Paulsell Phase 1—about six miles of canal expansion funded by a $14.4M grant—was reported complete, designed for up to 180 cfs. Phase 2 work was discussed for this winter (design proposal expected soon). District groundwater pumping remains minimal at under 200 acre-feet, with surface water rights handling most supply needs. Proposition 4 grant funding was discussed as a future opportunity.
The board approved a resolution authorizing the 2026 out-of-district water sale program at $218.54 per acre foot, with staff projecting roughly 12,000 to 15,000 acre feet in sales including fringe areas. Canals have begun charging in early March, and staff reported a 620,000 acre foot Bulletin 120 forecast at 90 percent probability. The board also unanimously adopted the 2025 Water Management Plan after a public hearing with no comments.
The Board approved a crane system investment exceeding the $100,000 formal bid threshold for the auto shop to improve operational efficiency and safety. They authorized the formal surplus process for a property parcel that requires shopping to agencies and government entities before sale. Staff presented the 2025 Agricultural Water Management Plan showing over 800,000 acre-feet contributed to groundwater aquifers over 20 years.
The Board approved extending the out-of-district water sales program with a one-year credit rollover for 2025 unused minimums, addressing infrastructure constraints while the program delivered over 12,000 acre-feet generating $2.6 million. Directors also voted to adopt a groundwater management plan requiring 25% reduction in non-district areas over five years and a $300,000 well mitigation fund, while the Paulsell Lateral Phase 1 upgrade nears completion ahead of schedule.
The Board adopted a $17 million operating budget for 2026 with a 7% rate increase, facing projected operational losses due to reduced Tri-Dam revenue. Draft groundwater management programs were reviewed, including a well mitigation program and allocation reductions up to 65% in some areas, with formal GSA adoption targeted for January 2026. All employee groups received a 1.6% CPI-based COLA effective January 9, 2026.
