CVWD Board Weighs $95M in Colorado River Curtailment Money, Holds Off

The Coachella Valley Water District's board spent its longest debate on Nov. 10, 2026, on roughly $95M in Colorado River curtailment proceeds and interest. Directors left without deciding who should benefit. Every other action item passed unanimously, including about $2.2M for a new plant office trailer and the design of two replacement wells, plus three-year pay deals covering about 132 employees.

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• No decision on ~$95M in curtailment funds, as Vice President Estrada questions what Replenishment Assessment payers get
• $1.1M awarded to replace a 36-year-old office trailer at Water Reclamation Plant No. 7 after the low bidder is rejected
• $974,958 Dudek contract approved to design two domestic wells, replacing capacity lost to age, chromium-6 and PFAS
• Three-year labor terms approved for about 103 ASSET members and 29 unrepresented employees
• 2027-2028 legislative platform adopted, with affordability and supply reliability at its core

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Curtailment Cash: Who Benefits?

The basics: The district is collecting payments for curtailing its Colorado River water use. Finance staff member David Lacy reported about $81M in expected curtailment earnings through 2029 and $14.1M in interest. That is set against about $21M in lost sales from the Canal.

Why it matters: Where that money lands decides whether Canal users face rate increases. It also decides whether the district holds reserves for leaner years and whether East Valley ratepayers see any direct benefit.

Where things stand: Lacy laid out five scenarios. At one end, the district leaves the money in the Canal Fund and raises no Canal rates through 2031. At the other, it moves the money out of the fund and raises rates to the maximums allowed under Prop 218, California's constitutional limit on property-related fees.

General Manager Jim Barrett said staff favors a middle path. "Staff's recommendation is to keep half in the canal fund to avoid rate increases that'll impact the users of the canal," said Barrett.

Board President John Powell Jr. argued for keeping a cushion. "We may need it for future curtailment that isn't compensated," said Powell.

The other side: Board Vice President Cástulo R. Estrada questioned the Replenishment Assessment, or RAC, which is paid by groundwater users. "I've been struggling with the idea that people are paying a RAC and there is no replenishment," said Estrada. He floated suspending the RAC.

Powell and staff responded that RAC revenue still covers debt service on the Oasis Project and supports in-lieu recharge. In-lieu recharge means delivering surface water so pumpers draw less groundwater.

Decisions and stakeholder impacts: The board took no vote. Barrett said staff was not seeking a decision and that the board could revisit the item. For now, Canal users keep the protection of the existing fund balance. RAC payers have no answer on relief.

What's next: Barrett suggested staff return with a short follow-up on the East RAC fund. No date was set.

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Plant Trailer Replacement: Why Not Permanent?

Why it matters: Staff at Water Reclamation Plant No. 7 use the office trailer daily, and it is failing. "The current trailer, it's about 36 years old," said Armando Rodriguez, Engineering Department staff.

Where things stand: The 1990 unit will be replaced in the same footprint and reuse existing utilities. The new trailer adds ADA-compliant restrooms, showers and lockers.

Three bids came in. The apparent low bidder, Monmouth Solutions, was ruled non-responsive for four reasons:
- It was not licensed.
- It was not registered with the state Department of Industrial Relations (DIR).
- It submitted no bid bond.
- It offered a pre-owned, leased building.

The contract goes to Atlas Performance Industries for $719,693.87. With soft costs, the total is $1,109,674.87.

Estrada asked whether staff had considered a permanent building. Rodriguez said a permanent structure was costed at $845 to $1,100 per square foot. "Here we're looking at $333 per square foot," said Rodriguez.

The other side: One director called a $250,000 inspection line excessive for a building of roughly 2,200 square feet. Staff said the figure is a budget number and unspent money returns to the district.

Estrada also asked about roughly $485,000 transferred from the Warp 7 project budget. Staff said the transfer defers no capital work.

Decisions and stakeholder impacts: The award passed (For: 5 — Powell, Estrada, Bianco, Aguilar, Sanchez; Against: 0; Absent: 0). Plant workers get modern facilities. Rejecting Monmouth signals that the district will enforce licensing and bonding rules even when it costs the lowest price.

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Two New Wells to Shore Up Supply

Why it matters: The Valley Pressure Zone relies on 20 production wells to meet a 38,000-gallon-per-minute peak demand, and those wells are aging. "Three wells have been taken offline just in the last three years," said Glenn Luby, Acting Engineering Manager for Domestic Water. Seven more face chromium-6 or PFAS limits.

Where things stand: Dudek scored highest and came in lowest-cost among six proposals for designing Wells 5636-2 and 5684-1. The $974,958 agreement, $1,096,958 with other expenditures, covers three pieces of work:
- Design of the drilling package
- Inspection by a hydrogeologist at $195 an hour, versus $190 for a typical inspector
- Design of the pumping plant

The full project is estimated at about $12M.

Directors asked about the proposed sites in Indian Wells and Palm Desert, including an existing wall and gate at the Country Club site. They also asked about contamination risk. Luby said nearby wells are not above regulatory limits. "We're confident we can construct a well that will not exceed the MCL for those constituents," said Luby. The MCL is the maximum contaminant level allowed in drinking water.

Decisions and stakeholder impacts: The contract was approved (For: 5, Against: 0, Absent: 0). Domestic water customers in the zone stand to regain lost capacity. Because chromium-6 and PFAS rules drive the replacements, ratepayers ultimately absorb the cost.

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Labor Deals Lock In Raises Through 2029

Where things stand: Human Resources Director Scott Hunter said about 103 members of the Association of Supervisory Support Evaluation Team (ASSET) voted overwhelmingly to ratify a 2027-2029 successor agreement. Its main terms:
- A 3.6% cost-of-living adjustment (COLA) for 2027, with COLAs between 2% and 5% in later years
- A $3,000 lump sum, which Hunter said "will be issued in January of 2027"
- The district paying 100% of the lowest-cost HMO premium in 2028 and 2029
- Higher medical opt-out payments
- An $18,499 one-time pay equity fix for five crew chiefs, whom Hunter said the district "will accelerate to step 9"

Staff estimate COLA costs at roughly $350,000, plus the premium and opt-out increases. Director John Aguilar asked about costs in the later years, and staff answered with estimates.

"I think this is a win-win for everybody," said Director Anthony Bianco.

A companion compensation plan covers about 29 confidential, at-will and unrepresented employees, whose current plan expires Dec. 31. Outside counsel Jay Triniman said it mirrors the ASSET terms. Premiums start with "the district picking up 80% of the premiums with the employees picking up 20%," then move to the 100% lowest-cost HMO model.

Decisions and stakeholder impacts: Both agreements passed (For: 5, Against: 0, Absent: 0), and directors asked no questions on the unrepresented plan. Supervisors and non-union staff get predictable raises through 2029. The district gets three years of labor peace.

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Platform Targets Unfunded Mandates

Where things stand: Public Affairs staff member Karen Borja presented the 2027-2028 Legislative & Policy Platform. It centers on affordability and supply reliability, covering the Colorado River, the State Water Project, the Delta Conveyance Project, Sites Reservoir and the Salton Sea. A new Section 14 addresses habitat conservation permitting. The platform also guides the district's positions on the Cathedral City sewer conversion.

"Emerging contaminants like chromium-6 and PFAS continue to be unfunded mandates and regulations," said Borja.

Estrada asked that the legislative committee, made up of himself and Aguilar, start meeting again. He also wants directors to join meetings with legislators. "I'd like to get those going again," said Estrada.

Decisions and stakeholder impacts: The platform was adopted (For: 5, Against: 0, Absent: 0). It will frame the district's lobbying in Sacramento and Washington on the same contaminant costs that are driving the well replacements.

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Minor Items

• Consent calendar passed 5-0. It included 2027 dues to ACWA ($52,165), AWWA ($19,137), CSDA ($10,839) and the Urban Water Institute ($3,000), along with the Oct. 27, 2026, minutes, an amended regional water management MOU and a Colorado River agricultural conservation plan for the Bureau of Reclamation.
• New state AI law explained. District counsel said SB 1159, effective Jan. 1, means "public agencies are not obligated to respond to what is clearly AI" acting alone, citing bots that repeatedly dialed into a meeting.
• Two 20-year employees honored: Luis Bautista and Jesus Castillo.
• Per diem approved 5-0 for meetings directors reported attending.
• No reportable action from the closed session on a claim filed by Matthew and Melissa Mello.

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Looking Ahead

Directors congratulated two re-elected colleagues. The clerk said four directors must be sworn in before the Dec. 8 board meeting.