Board approved consent minutes, a $34,041.86 bad-debt write-off, financial reports, and a credit card policy update. Staff discussed cost pressures behind past rate increases and gave updates on Sandmound consolidation phasing ahead of an August construction-grant application. Directors discussed recycled-water coordination with Ironhouse Sanitary District; an EPA sub-awardee agreement is nearing completion.
Basin conditions were reported as sustainable with no GSP actions triggered, and the draft Urban Water Management Plan projects supply meeting demand through 2045 under required scenarios. The Board discussed (no action) the FY 2026/27 draft budget assuming 1.75% connection growth and major capital spending, including the assumption of the previously noticed 7.25% Prop 218 increase effective July 1. UWMP and budget adoption are scheduled for June 10.
Directors requested more conservative well assumptions ahead of the May 27 hearing. Non-revenue water at 9% was flagged as a concern, with staff offering to share M36 audit details. The Board adopted Resolution 2026-05 updating Regulations 8 and 12, removing “where available” from recycled-water language, requiring board approval for waivers, and adding enforcement flexibility. CDM Smith’s draft 2025 UWMP shows reduced buildout demand and surplus under drought scenarios;
Water-efficiency rules are being updated to align with tighter state standards, including 42 gpcd by 2030 and reduced outdoor irrigation limits; adoption is scheduled for April 22, 2026. A phased ban on potable water for non-functional turf irrigation runs 2027–2029. Knightsen monitoring well E-log indicates a potential aquifer zone near ~350 feet; water quality results are expected within ~2 weeks.
The Board completed governance training and adopted new meeting procedures to improve efficiency. They approved transitioning to Five Star Bank, saving approximately $106,000 annually through reduced fees and higher interest earnings. The income assistance program was expanded to include qualifying nonprofits at a 50% discount, estimated to cost $12,513 annually.
