The board extended the Bard and Quechan Tribe seasonal fallowing programs through 2028 and authorized an agreement for California’s Instream Flow Water Purchase Program. The general manager reported a water right permit for Sites Reservoir; Metropolitan is a potential investor with up to a 22% share. During public comment, Tom Love urged progress on Pure Water Southern California and said a design contract could come before the board in late 2027.
Metropolitan forecast FY 2026-27 water transactions at 1.15 million acre-feet, among its lowest levels and about 62,000 acre-feet below budget. Staff reported record-high storage of 3.9 million acre-feet, projected full-year expenditures $88 million below budget and year-end unrestricted reserves of $846 million. An approximately $277 million bond offering was priced at a 4.04% all-in rate, below the 4.56% estimate.
Metropolitan identified three canyon storage sites for feasibility study and recommended retaining Eagle Valley for possible future storage. Staff is examining two quarry clusters, with recommendations targeted by year-end 2027. The committee reviewed El Niño readiness and fleet electrification. In December, staff expects to seek approvals for an Edison program offering no-cost utility-side infrastructure and rebates of up to 80% for eligible customer-built charging infrastructure.
Metropolitan maintained strong bond ratings amid climate, infrastructure and Colorado River challenges. The chair reported golden mussel impacts at Banks pump station and said a demonstration is planned. The Executive Committee recommended a department head pay policy targeting the 75th percentile of nine peer agencies for Board consideration on November 10; it was not adopted. The committee also advanced Brenda Denstadt's Board Secretary nomination, with nominations still open.
Colorado River supply for 2027–2028 remains uncertain amid litigation filed by Nevada and Arizona. Staff identified taking California’s entire proposed 440,000 acre-foot reduction as one option while talks on sharing it continue. Staff aims to seek approval of any negotiated agreements in December, but there is no firm deadline. Board members urged durable approaches, citing storage, agricultural land and potential interstate exchanges.
