City of Adelanto to Join Mojave Basin "One Water" Plan

Rhea-AI Summary

Cadiz, Inc. announced that the City of Adelanto, California has signed a Letter of Intent with Fenner Gap Mutual Water Company to join Victor Valley water agencies in developing an integrated water management and infrastructure investment plan for the Mojave Basin region. This collaboration aims to improve the reliability and quality of local water supplies through the Cadiz Water Conservation, Supply, and Storage Project. The project will provide 25,000 acre-feet of water to the City of Adelanto, with the goal of creating a sustainable, reliable water supply strategy for the Mojave Basin. The 'One Water' regional planning process will allow pooling of resources to manage water supplies and efficiently invest in water infrastructure that benefits the whole region.

Insights

Water Resources Engineer

From an engineering perspective, the integration of water management systems across multiple agencies is a significant undertaking that could lead to increased efficiency in water usage and enhanced drought resilience. The construction of pipelines, recharge basins and storage banks is technically complex and requires careful planning to ensure sustainability and minimal environmental impact. The strategic investment in such infrastructure, particularly in a region like the Mojave Basin which is prone to water scarcity, denotes a proactive approach to addressing both current and future water demands. This infrastructure could also lead to economic development by supporting the growth of local communities and industries that depend on reliable water supplies.

Environmental Policy Analyst

The 'One Water' project aligns with contemporary environmental policy initiatives that emphasize the sustainable and integrated management of water resources. By focusing on regional collaboration, the initiative sets a precedent for other regions facing similar challenges. However, the environmental implications of such projects must be scrutinized, considering the potential for habitat disruption or changes in groundwater levels. The policy's success hinges on its ability to balance human water needs with ecological preservation. Furthermore, the project's emphasis on cost-effective investments could resonate well with stakeholders interested in long-term economic and environmental sustainability.

Financial Analyst

For investors, the project represents a long-term investment in Cadiz Inc.'s infrastructure that could potentially enhance the company's financial stability and growth prospects. The focus on maximizing grant and municipal financing opportunities could alleviate some of the financial burdens on the company and its partners, potentially improving their creditworthiness and investment appeal. Investors should monitor the progression of the definitive agreements and the actual incremental costs associated with pumping, delivery and exchange, as these will impact the financial feasibility of the project and, consequently, the company's stock performance. The project's ability to secure a reliable water supply for one of the fastest-growing cities can be seen as a positive indicator of future revenue streams for Cadiz Inc., albeit with the understanding that infrastructure projects are typically capital intensive and have long gestation periods before yielding returns.

Adelanto joins Fenner Gap and Victor Valley water agencies in regional planning, infrastructure investment strategy to improve reliability and quality of local water supplies.

LOS ANGELES, Feb. 1, 2024 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI / CDZIP, the "Company") announced today that the City of Adelanto, California has signed a Letter of Intent with Fenner Gap Mutual Water Company ("Fenner Gap") to join Victor Valley water agencies in developing an integrated water management and infrastructure investment plan for the Mojave Basin region. As part of the agreement, Fenner Gap will provide 25,000 acre-feet of water to the City of Adelanto from the Cadiz Water Conservation, Supply and Storage Project.

Fenner Gap will provide 25,000 acre-feet of water to the City of Adelanto

By signing the Letter of Intent, the City of Adelanto joins Fenner Gap, Victor Valley Wastewater Reclamation Authority ("VVWRA") and local Victor Valley water agencies in launching the Mojave – San Bernardino "One Water" plan, an ambitious plan to integrate public, private and multi-agency financing resources and maximize grant and municipal financing opportunities for the design, construction and operation of regional water infrastructure including pipelines, groundwater recharge basins, groundwater storage banks and water treatment facilities benefitting the entire Mojave Basin region.

"We are proud to work with the City of Adelanto as part of this important regional effort to develop a sustainable, reliable water supply strategy," said Susan Kennedy, Chief Executive Officer of Cadiz. "Coordinating infrastructure investments and groundwater replenishment strategies on a regional basis will improve the health and reliability of water supplies not only for Adelanto, but for all communities in the Mojave Basin."

"Adelanto is one of the fastest growing cities in the High Desert," said Mayor Gabriel Reyes. "But we cannot thrive and grow without clean, affordable water and the infrastructure to deliver that water to people. This "one water" regional planning process will allow us to pool our resources to manage water supplies and efficiently invest in water infrastructure that benefits the whole Mojave Basin."

In accordance with the LOI, Adelanto and Fenner Gap will enter a definitive agreement reserving up to 25,000 AF of water from the Cadiz Project as supplemental water supply for the City of Adelanto. Under the LOI, Project water would be delivered to designated points of delivery within the Mojave River Basin on a space available basis. The cost of the water will be limited to the actual incremental expense of pumping, delivery and exchange. A copy of the Letter of Intent is attached.

The Mojave-San Bernardino County One Water Project was launched by VVWRA as a collaboration among public agencies and water providers in eastern San Bernardino County to develop a regional, integrated and sustainably managed water system that considers the current and future needs of all its users, meets human needs with environmental best practices, and makes cost-effective investments in infrastructure to preserve access and affordability for all. Under the plan, pipelines, groundwater recharge basins, water supply, groundwater storage banks and water treatment facilities in Mojave River Basin, Fenner Valley and Morongo Basin would be integrated for the benefit of the region.

About Cadiz, Inc.
Founded in 1983, Cadiz, Inc. (NASDAQ: CDZI) is a California water solutions company dedicated to providing access to clean, reliable and affordable water for people through a unique combination of water supply, storage, pipeline and treatment solutions. With 45,000 acres of land in California, 2.5 million acre-feet of water supply, 220 miles of pipeline assets and the most cost-effective water treatment filtration technology in the industry, Cadiz offers a full suite of solutions to address the impacts of climate change on clean water access.

Fenner Gap Mutual Water Company is the non-profit corporation established by Cadiz to distribute water supplies from the Cadiz Water Conservation, Supply and Storage Project.

For more information, please visit www.cadizinc.com.

FORWARD LOOKING STATEMENT: This release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the Company's ability to secure any additional necessary permits for project development. Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company's forward-looking statements include potential litigation that may delay project development, the Company's ability to obtain financing as needed, and other factors and considerations detailed in the Company's Securities and Exchange Commission filings.

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SOURCE Cadiz, Inc.

FAQ

What is the purpose of the collaboration between Adelanto, Fenner Gap, and Victor Valley water agencies?

The collaboration aims to develop an integrated water management and infrastructure investment plan for the Mojave Basin region to improve the reliability and quality of local water supplies.

How much water will the Cadiz Water Conservation, Supply, and Storage Project provide to the City of Adelanto?

The project will provide 25,000 acre-feet of water to the City of Adelanto.

What is the goal of the 'One Water' regional planning process?

The goal is to allow pooling of resources to manage water supplies and efficiently invest in water infrastructure that benefits the whole Mojave Basin region.

What is the Mojave-San Bernardino County One Water Project?

It is a collaboration among public agencies and water providers in eastern San Bernardino County to develop a regional, integrated, and sustainably managed water system that considers the current and future needs of all its users.

What is the purpose of the Letter of Intent signed by Adelanto and Fenner Gap?

The purpose is to reserve up to 25,000 AF of water from the Cadiz Project as supplemental water supply for the City of Adelanto.