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Council reviews possible sale of 2,000 acre-feet of carryover water
Summary
Council discussed a proposed brokered sale of carryover water and whether proceeds would offset earlier purchases; staff clarified the UC Davis purchase was 2,000 acre-feet at $200 per acre-foot ($400,000) and said proceeds from a brokered sale would return to the city if the water is sold.
Council members discussed a proposed sale of carryover water (item 14d) and what proceeds would mean for the city's water portfolio.
City staff explained the UC Davis purchase that the council had previously approved was 2,000 acre-feet at $200 per acre-foot, a $400,000 expenditure that has already occurred. Staff said the water under consideration in the current brokered sale is a different allocation; if the water is brokered successfully the sale proceeds would be refunded to the city rather than lost.
Vice Mayor Scott asked whether selling the allocation could create a net refund rather than a loss; staff replied the brokered sale would not cause the city to lose its previous purchase money but rather offers an opportunity to recover value for unused carryover water. Staff added the result will depend on the water year and physical ability to move water to a buyer through canals, which is why the item was brought forward at this time.
