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Yuba City approves sale of up to 3,000 acre‑feet of carryover water to San Gorgonio Pass Water Agency at $225/acre‑foot
Summary
The council approved staff’s recommendation to sell and transfer up to 3,000 acre-feet of carryover water from the city's State Water Project bank to the San Gorgonio Pass Water Agency at $225 per acre‑foot, potentially generating about $675,000 in revenue if the full amount is transferred.
City staff presented a proposal to sell and transfer up to 3,000 acre‑feet of carryover water to the San Gorgonio Pass Water Agency (Pass Agency). The council approved the sale by voice vote.
The proposal, presented by a city staff member, described Yuba City’s portfolio of water entitlements and recent operational changes — including new groundwater wells and an aquifer storage and recovery (ASR) project — that strengthen short‑to‑medium-term supply. Staff said carryover water is banked in locations such as the San Luis Reservoir under state accounting rules; if an unusually wet year causes a spill the carryover accounting can reset to zero, which is a risk the city monitors.
Staff explained the market context: a past sale in 2023 was priced at $175 per acre‑foot, and market indications ranged from $200 to $250 per acre‑foot depending on demand and weather conditions. For the current transaction staff recommended $225 per acre‑foot for up to 3,000 acre‑feet. At full transfer that would yield about $675,000 in one‑time revenue. Staff said timing and operational constraints at the State Water Project and the State Water Resources Control Board can affect how much water ultimately moves in any given year.
Council members asked about whether other buyers had approached the city and about whether the city should more proactively market available water. Staff said they had not actively marketed the supply for the current request but plan to build a decision tool and be more proactive next year to avoid late‑season price compression.
A motion to approve staff’s recommendations (sale and transfer of up to 3,000 acre‑feet at $225/acre‑foot) was moved and seconded and carried by voice vote; no roll-call tally was recorded in the meeting transcript. The council also instructed staff to work with the city attorney and complete the necessary transfer agreements and administrative steps with state agencies.
No amendment to the sale price or volume was made at the meeting.
