Board authorizes staff to pursue one‑year sale term sheet for 2,000 acre‑feet of surplus State Water; motion approved 5–0

The board voted to authorize the general manager to pursue a term sheet to sell up to 2,000 acre‑feet of surplus State Water to United (a state water contractor in Oxnard) and to bring a final agreement back to the board for consideration.

Staff said the district anticipates roughly 2,700 acre‑feet of state carryover in San Luis Reservoir on Jan. 1 and that reservoir operations create a meaningful risk of release or “spill” in late winter. Because a spill would reduce the district’s usable carryover, staff pursued potential short‑term transfers and reported a term sheet offer from United at $275 per acre‑foot for 2,000 acre‑feet, a deal that would yield about $550,000 in additional revenue this year (approximately 3% of an $18,000,000 budget figure cited in the presentation).

Board members discussed the tradeoff between holding carryover water for future droughts and selling now to avoid the risk of spill. Staff said buyers who wish to bank water longer term were not offering banking space at competitive terms this season, so a sale was a practical option to monetize at‑risk carryover.

A motion authorizing the general manager to pursue the deal and return a final agreement for board consideration on Dec. 10 was moved and seconded; roll call votes were recorded as five ayes and the motion passed 5–0.

What’s next: staff will continue negotiations, monitor San Luis Reservoir spill risk and, if conditions warrant, execute the agreement and present the contract to the board for final approval on Dec. 10.