1. Water Year 2027 rates and allocations remain unchanged. The board approved Tier 1 and Tier 2 penalty rates of $250 per acre-foot and a Tier 3 rate of $500 per acre-foot, with two directors opposed. Staff reported no change to Water Year 2027 allocations; the board did not vote on a new allocation. Directors weighed the cost of replacing water against keeping rates affordable. One cited roughly $4.5 million in unpaid penalties from last year. Directors separately discussed allocation access for customers with unpaid bills.
2. Staff may negotiate and purchase supplemental water, subject to a $10 million cap. The board approved Resolution 2026-06, authorizing purchases funded by penalty revenue. Directors discussed imported water and existing water credits as possible components, but the purchasing mix and program rules remain unsettled. Tier allocations remain in place for Water Year 2027. Directors described an aim to offset Tier 1, Tier 2 and Tier 3 water used that year and replace Tier 1 and Tier 2 allocations with a supplemental water program beginning in Water Year 2028. That transition is an intended approach, not a settled program design or confirmed binding start date. Staff hopes to receive a framework in the coming weeks and prepare a draft agreement before the holidays.
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