A $37.5M Kiewit CM/GC agreement was approved for DMC Subsidence Task 1 (liner raise MP 3.5–7.2), plus up to $4,538,061 for CDM Smith construction support. Reclamation reported Aging Infrastructure awards of $53M (O'Neill transformers), $11M (O'Neill unit rehab), and $112M (DMC subsidence). Jones Pumping Plant is running at 2,900 CFS on three units, with transfer programs and July operations looking favorable.
Water ops looked strong: Oroville near capacity (~3.38 MAF) and Folsom nearly full (~958 TAF), with Jones potentially increasing from 4 to 5 units if available. Golden mussels are in a spawning boom; growers were asked to report sightings and also report if pipes are clear. April hydrology significantly improved conditions: precipitation at 180% of normal.
Federal funding announcements of ~$750M One Big Beautiful Bill Act plus ~$750M aging infrastructure were described as imminent; ~$650M IRA drought funds face a Sept. 30 obligation deadline. Golden mussels are colonizing facilities; response is mitigation-focused and vulnerability assessment final report is pending. Ops: federal San Luis just under 700,000 AF, exports ~4,200 cfs; Vernalis inflows declining; April–May restrictions remain a concern.
The Board advanced Phase 1 of the DMC Subsidence Correction Project, authorizing $200,000 for pre-construction services with Kiewit and a $4.1 million advanced funding agreement with Westlands Water District. Water Year 2026 OM&R rates were approved for 25% and 50% allocation scenarios, with collections starting at the 25% rate. Jones Pumping Plant exports are currently around 1,900 CFS to help meet February X2 requirements.
The Board approved substantial executive compensation increases recognizing outstanding 2025 performance, along with the FY 2027 budget of $13.87 million including modest salary increases and new succession planning positions. Enhanced Delta export flexibility under new operational procedures is already delivering significant water supply benefits, with approximately 40,000 additional acre-feet exported during the recent first flush period.
