Staff said DWR may consider alternative ways to address subsidence impacts, though mitigation costs remain a concern. A Section 203 dam-raise study could cost around $5 million, with up to $1.5 million in potential federal reimbursement. Directors questioned a proposal to use $1 million in project funding for a pipeline connection in exchange for credits against future wheeling fees and discussed meeting with project representatives before any commitment.
Staff reported a net cash position of about $26.01 million for August activity, and discussed Bureau of Reclamation billing changes and credits that could reduce water expenses versus budget. Subsidence and canal-related cost exposure were discussed, including a hotspot near Dairyland. The Army Corps is shifting dam projects to a Section 203 district-led approach; staff plan to attend a workshop.
Staff relayed DWR concerns that subsidence monitoring triggers are too reactive and urged more continuous monitoring. Auditor Ryan Jolly gave a clean audit for YE 12/31/2020 (agenda listed 2025), citing ~$66.6M net position and ~$20.4M cash/investments and payoff of the 2010 contract. Water update showed ~613 AF carryover and ~900 AF at San Luis; directors said to hold it.
The board received an informational presentation on the LGAWD intertie pipeline project nearing Phase 4 and a possible future request to use ~$1M in USDA Rural Development funds toward completion. Directors discussed MID shoulder-season water pricing and stressed there is no guaranteed supply. Greenleaf Ag raised golden mussel risks and was referred to the Dairy Canal manager for possible monitoring.
DWR signaled a faster approach on subsidence than the 20-year SGMA framework and wants expanded monitoring (including more nested wells) funded locally. The board approved paying the district's share (discussed as about $8,000) for one physical subsidence survey measurement in December, citing concerns about patchy satellite InSAR coverage.
