Water rates for the next three water years were approved, with agricultural rates decreasing 14% and M&I rates dropping about 37% in the first year. Due to ongoing issues at Hollister's reclamation plant, temporary rules now allow blue valve water delivery through the recycled system, with those users second priority. Staff outlined a conservative 2026 allocation framework, likely around 35% for ag and a full 5,000 AF for M&I, pending CVP decisions.
The Board reviewed a proposed water rate structure with 2% annual increases through 2028 and approved the Proposition 218 public hearing process. Written objections must be submitted by mail only by February 20, 2026, with a public hearing scheduled for February 25, 2026. The rates are designed to gradually draw down reserves while maintaining financial stability and debt coverage requirements.
The Board approved a $12,327 capacity fee per equivalent dwelling unit for new water connections in Zone 6, ensuring new development pays for water supply expansion costs. A water transfer agreement was authorized through 2038, providing access to 250-1,000 acre-feet annually at competitive rates. Operations began filling San Justo Reservoir with 5,000 acre-feet, expected to reach target levels by March 1st.
The board advanced a $12,327 Zone 6 capacity fee toward a December 17 hearing and authorized Proposition 218 noticing for new Zone 6 water rates projected to decrease overall for ag and municipal users. The district also approved a cost‑share agreement for Sunnyslope’s grant‑funded Highway 25 pipeline project, with Sunnyslope leading design and construction.
A calculation error reduced planned water transfers by 3,000 acre-feet, cutting potential revenue from $1.6 million to $1 million as the district prioritized water security over sales. The West Hills treatment plant expansion faced a $373,000 cost increase due to new environmental requirements for additional fencing and material handling. The board officially terminated participation in the Pacheco Reservoir project after costs escalated to $3.2 billion and the Bureau of Reclamation ...
