The board approved Resolution 2026-50 appointing the General Manager as real property negotiator for transactions involving Cemex, Salinas Valley Health, and the City of Marina, then entered closed session to discuss those negotiations. Item 11A — a resolution to find a sphere of influence amendment and annexation exempt from CEQA and to direct staff to file with LAFCO — pulled before a vote could be taken, staff citing correspondence requiring further review before the item is rescheduled.
The committee reviewed plans for a ~4,000-acre annexation of parcels inadvertently excluded in 2018, set for formal board action August 17. Three property matters — involving the Semic property, a hospital parcel, and a City of Marina land swap — were discussed for closed session, with counsel advising they be separately noticed. Staff said AI and cybersecurity policies are being drafted, with discussion of closed-session review as early as September (or later).
The board adopted the 2025 Urban Water Management Plan (Resolution 2026-39) projecting ~10,827 AF of excess supply through 2050 from groundwater, recycled water, desalination, and potential surface water. Groundwater sustainable yield estimates range 4,400–9,900 AFY depending on neighboring basin conditions. The board also approved a Garney Pacific contract amendment (Resolution 2026-38) for Phase 1 of the Reservation Road Desal Plant renovation, a facility with ~300 AFY capacity.
Groundwater monitoring showed deep aquifer declines and seawater intrusion concerns; supply projects including IPR and aquifer storage were discussed as potential responses. The board received the 2025 Monterey Subbasin Annual GSP Report and reviewed the proposed FY 2026-2027 budget, including a new water allocation fee to charge jurisdictions for allocation management.
District is in a solid financial position at mid-year, with $22.3M in total revenue (45% of budget) and $51.9M in reserves. Renovation of the desalination plant is actively underway, with large equipment now visible on-site and major work expected to shift from the beach to the plant by mid-April. The recycled water fund currently shows a negative balance, though 23 new connections are anticipated to improve its outlook.
