Major leak near Coyote Valley Casino is losing over 100,000 gallons monthly and may require costly deep repairs. Lake Mendocino is steady around 87,000 acre-feet; staff are confident supply is adequate despite no rain forecast. Grant well closeout continues after a missed $332,850 invoice; project still needs PG&E power, DDW steps, test pumping, and site work. Board approved a 50/50 lawsuit cost-share MOU amendment.
The Board approved a cost sharing amendment with Russian River Flood Control to defend a CEQA suit over the annexation CEQA documents, with estimated defense costs of up to $50,000. Staff explained that the planned annexation will not, by itself, lift existing domestic and agricultural moratoriums. The district received a $307,000 DWR grant reimbursement and aims to finish the project by late February, while seeking a short extension.
The district anticipates substantial unforeseen costs from a July 2027 county road paving project that will likely require adjustments to some water infrastructure, with a five‑year moratorium on non‑emergency road cuts afterward. The new drought relief well construction is substantially complete with pumping to waste planned by end of January. Walker expects the district to remain an independent legal entity for now, noting about $7 million in federal debt as a key factor.
Board discussed projected future costs tied to IWPC/ERPA, including an annual operating budget near $200,000 and a possible $250,000 general manager position for 2026–2030. A grant-funded backup well (about 350 gpm) is nearing completion under a Small Community Drought Relief Program extension to February 27. Candidate Whitney Sekora introduced herself for the board vacancy, and members informally discussed Potter Valley Project issues.
Annexation with Russian River Flood Control has been slowed by a legal complaint on the negative declaration and a notice of incomplete LAFCO application, potentially delaying more secure water service. Planned rate increases have shifted from March to April, and staff may instead combine that with a July 1 increase. A drought relief grant project is nearing completion with a Dec. 31 deadline and pump equipment secured at lower-than-expected cost.
