District staff told the board the district expects roughly 2,700 acre‑feet of state water carryover in storage as of Jan. 1 and that reservoir operations create a substantial risk the water could be released ("spilled") before the district can use it. To reduce that risk and capture revenue, staff proposed pursuing a short‑term transfer.

Staff reported market prices had declined from earlier expectations and that United Water (a state water contractor in Oxnard) offered $275 per acre‑foot for a quantity of 2,000 acre‑feet, equating to roughly $550,000 in additional revenue. The presenter described three scenarios: (1) do nothing and risk spill, (2) sell but no spill, and (3) spill occurs and resets carryover to zero.

Director Polly moved to authorize the general manager to pursue the deal with United Water and present a negotiated agreement for board consideration at the Dec. 10 meeting. The motion was seconded, and a roll call vote recorded Directors O'Connor, Holcomb, Balch, Roberts and Browningarten voting yes. The motion passed 5‑0.

Directors emphasized the preference for exploring longer‑term buyer agreements that could include banking options and for continuing to seek multi‑year contracts to reduce year‑to‑year price volatility. Staff said banking options were not currently available or priced at scale and that the district will continue to pursue multi‑year agreements and explore banking when possible.