The board voted 3-2 to adopt Resolution 2026-03, authorizing the General Manager to pursue state grant funding for a potential consolidation of CVWD's ID-8 water system into MSWD, the vote does not approve annexation—multiple additional steps remain. Sky Valley and ID-8 residents raised strong concerns over rate impacts on agricultural properties and lack of outreach. Urban Futures presented a plan for approximately $28 million in certificates of participation for water system improvements
The groundwater basin posted a positive water balance of ~4,900 acre-feet, and the annual report stated long-term overdraft has been eliminated. A $21.8M sewer and waterline construction contract was awarded to WEKA, Inc., with staff working to secure full state funding. Staff also reported strong progress toward an October 1 hexavalent chromium compliance deadline, with well rehabilitations underway to maintain supply while affected wells remain offline.
The Board approved $1.1 million in well maintenance work and noted that Chrome 6 in the region is naturally occurring, not industrial. A contract amendment for IT services was also approved, increasing the scope to $259,616 with partial grant funding. Solar facility repairs are moving forward with bidding, with a contract award expected in March.
The Board renewed its federal advocacy contract ($5,000/month) which has previously secured $40M+ in funding, and adopted the revised FY 2025-26 budget showing strong financial performance with $12.3M in operating revenues and $83M total cash. Water infrastructure agreements for the Desert Grow development project were also approved.
The Board reviewed a proposed $2.8 million mid-year budget adjustment, including added costs for solar-related projects and sewer infrastructure cost-sharing with the Army Corps of Engineers. Solar support work on the PPA is now projected to total about $1.117 million versus an earlier $500,000 planning estimate, while still maintaining an approximate three-and-a-half-year payback. The Desert Grow cultivation facility water connection agreements were also presented and discussed.
