DMC Subsidence Correction Project Phase 1 Cost Allocation Approved: The board approved a $93 million cost allocation plan for Phase 1 of the Delta-Mendota Canal subsidence correction project, with a $30 million state grant reducing member agency costs. The plan excludes Friant contractors from paying for Tasks 1 and 2 (freeboard and SAG areas) but includes them for Tasks 3 and 4 (panel replacements), creating some controversy among members who felt all should share costs equally.
Federal Funding Uncertainty Drives Backup Planning: Staff is aggressively pursuing federal non-reimbursable funding for the entire DMC project through recent Congressional appropriations, but the board approved Plan B cost allocations in case federal funding doesn't materialize by February 2026. This represents a critical decision point for moving forward with construction contracts.
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