CVP agricultural allocation increased to 20% (M&I to 70%), adding ~2,200 acre-feet per the GM; further increases may not materialize. Zone 6 demand is already ~75% of summer peak, raising pressure concerns as the season progresses. A catastrophic penstock failure at Yuba County's Colgate Power Plant has put the Yuba water transfer program at risk, potentially limiting supply during future dry years.
Water rates for the next three water years were approved, with agricultural rates decreasing 14% and M&I rates dropping about 37% in the first year. Due to ongoing issues at Hollister's reclamation plant, temporary rules now allow blue valve water delivery through the recycled system, with those users second priority. Staff outlined a conservative 2026 allocation framework, likely around 35% for ag and a full 5,000 AF for M&I, pending CVP decisions.
The Board reviewed a proposed water rate structure with 2% annual increases through 2028 and approved the Proposition 218 public hearing process. Written objections must be submitted by mail only by February 20, 2026, with a public hearing scheduled for February 25, 2026. The rates are designed to gradually draw down reserves while maintaining financial stability and debt coverage requirements.
The Board approved a $12,327 capacity fee per equivalent dwelling unit for new water connections in Zone 6, ensuring new development pays for water supply expansion costs. A water transfer agreement was authorized through 2038, providing access to 250-1,000 acre-feet annually at competitive rates. Operations began filling San Justo Reservoir with 5,000 acre-feet, expected to reach target levels by March 1st.
The board advanced a $12,327 Zone 6 capacity fee toward a December 17 hearing and authorized Proposition 218 noticing for new Zone 6 water rates projected to decrease overall for ag and municipal users. The district also approved a cost‑share agreement for Sunnyslope’s grant‑funded Highway 25 pipeline project, with Sunnyslope leading design and construction.
