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Pixley PUD to execute TCP grant agreement contingent on revised scope after board reviews $15 million risk
Summary
The Pixley Public Utility District board approved executing a State Water Resources Control Board construction funding agreement for TCP treatment contingent on a revised scope of work and a second legal/engineering review; a Compliance Order requires a Corrective Action Plan and public notice by June 30, 2026.
The Pixley Public Utility District board on May 11 approved executing a construction funding agreement from the State Water Resources Control Board for treatment of TCP contamination, provided the state revises the scope of work and District staff and counsel complete a second review.
District Engineer Maija Madec told the board the SWRCB issued a Construction Funding Agreement on April 20, 2026 and a Compliance Order (Order no. 04_12_26J_19) on April 30 covering wells 3A, 4A, 5 and 6. The Compliance Order requires the District to prepare a Corrective Action Plan by June 30, 2026, publicly notify customers by June 30 and file a compliance certification and supporting notice with the state by July 10, 2026, followed by quarterly reporting beginning July 10.
District Counsel Chad Lew flagged financial risk in the grant language, saying the agreement contains provisions that could obligate the District if state or federal funding falls short. "It would bankrupt the District because we do not have 15 million dollars to complete this," Lew said, pointing to an estimated project cost of roughly $15 million. Maija told the board the state indicated funding may be amended later to increase budget and extend schedule, but those amendments are not guaranteed.
After discussion about risks and grant terms, the board approved a motion to execute the agreement contingent on the SWRCB updating the scope of work and on a second review by the District engineer and legal counsel. The motion carried (mover: Jose Moreno; second: Matthew Martinez).
The board and staff discussed next steps if bids exceed the grant amount. Maija said there would be an opportunity to request budget increases after bids are received, and the District would not proceed to construction if funding shortfalls could not be resolved. Lew emphasized the District must weigh the risk of accepting conditional funding while under a compliance deadline.
The board’s action advances the administrative steps needed to pursue state funds while preserving a legal and engineering review before final commitment.
