Consider recommending approval of a five-year water rights lease agreement with Leprino Foods Co. for 1,200 acre-feet of City of Roswell water rights, including an option for one (1) five-year renewal term. (Nairn-Mahan) 

The City of Roswell (Lessor) owns certain Artesian water rights and water wells in Chaves County, New Mexico and proposes to lease a portion of said water rights to Leprino Foods Co. (Lessee) The total water rights Lessor desires to lease to Lessee is 1,200 acre-feet per year at the Lessee's location. The initial term of this proposed lease is from 11/1/2026 to 10/31/2031.

During the initial term of this Lease, Lessee shall be entitled to use up to 1200 acre-feet of water per year at the move-to location, for which Lessee agrees to pay Lessor the sum of $38.00 per acre-foot. After the initial year and each successive year of the lease term thereafter, the per acre foot cost of the water shall be increased by three percent (3%) annually per acre-foot.

The City Attorney has reviewed the proposed lease. 

This will be the first consideration of this item.

Proceed as presented