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KITTITAS COUNTY DEPARTMENT OF PUBLIC WORKS AGENDA STAFF REPORT AGENDA DATE: June 18, 2024 ACTION REQUESTED: Hold a continued Public Hearing on June 18, 2024 at 2:00pm local time to consider a Drought Auction. BACKGROUND: On May 7, 2024, Kittitas County Public Works Department requested to set a public hearing to consider making a portion of its water rights portfolio available through a temporary leasing agreement, to consider a minimum bid price, and to set an auction date. Kittitas County Public Works staff has reached out to past bidders to solicit information about the need for water rights to mitigate emergency drought wells. The feedback we have received is that there is not currently an identified need for the County’s leasing program, given the availability of subsidized mitigation through the Washington State Department of Ecology, and if we were to schedule an auction now, we would not have participants. Roza Irrigation District has reached out to Kittitas County to inquire about leasing water. Kittitas County Code 2.81.090 exempts leases to governmental entities or made in the event of an emergency from the auction process (KCC 2.81.060). Due to complexities around mitigation for surface water diversions, water availability, and water management, staff recommends developing a lease agreement with Roza, structured on leasing the amount of water authorized for use by the Department of Ecology. Public Works Staff recommends that we do not schedule a public auction and that we instead work with Roza Irrigation District, which was formed pursuant to RCW 87.03, on developing a leasing agreement. This leasing agreement would be brought for board approval during a public meeting. INTERACTION: Public Works RECOMMENDATION: Do not schedule a public auction. Direct Staff to Prepare Lease and Enabling Documents Pursuant to KCC 2.81.090.