Montecito outlined a proposed $40 million sale of about 42% of its State Water Project interest, plus Semitropic storage-and-recovery rights and stored water; the board took no action. Staff discussed potential spill risk to some of the roughly 44,000 acre-feet in San Luis Reservoir. The board accepted a DWR charges audit report. DWR calculated a potential $7.9 million debt-service benefit that requires updating for 2028 before implementation.
Staff reported that the state side of San Luis Reservoir has a greater than 50% chance of filling in November, potentially making Article 21 surplus water available as early as November; surcharge negotiations with federal contractors continue with no agreement. The NWS outlook suggests a wetter winter driven by a strong El Niño signal, though warmer temperatures could limit snowpack benefits.
Water supply remains stable with above-average storage heading into summer, and 2027 DWR charges came in slightly under budget, so no supplemental bills are expected. Staff updated the Board on golden mussels found upstream of Polonio Pass and a potential Coastal Branch pilot treatment effort to protect pumping plants.
The State Water Project allocation remains at 30%, with San Luis Reservoir nearly full and Article 21 surplus water potentially available soon, though carryover storage may be at risk. Legislators are being urged to support $150M annually for 15 years to fund aqueduct subsidence repairs, which could significantly affect deliveries to Santa Barbara County. The board directed staff to develop a proposal to launch a new 3–5 year strategic planning process.
DWR approved CCWA’s assignment agreement, clearing the way for CCWA to become a direct State Water Project contractor. The Board approved an employment agreement for Peter Thompson, who will start as Associate Director in February 2026 at $310,000, then become Executive Director in May at $325,000. The Board postponed action on a 15.8% legal rate increase to gather more cost and oversight detail.
