Montecito Water District’s Board of Directors has approved a non-binding Letter of Intent to sell approximately 40% of the District’s State Water contract interests. The MWD will keep nearly 60% of its State Water Contract interests, or approximately 1,900 acre-feet of annual water allocation, and the capacity to convey, store, and transfer water, if the sale succeeds.  At the District’s September Board meeting, MWD General Manager Nick Turner presented information on the State Water Project and the partial sale opportunity. Data shared showed that the MWD has received its full annual State Water Project allocation only five times since participation started in 1997. “The MWD currently pays about $5 million annually in fixed costs regardless of whether the allocation is 100% or 0%,” Turner explained. “If there is water available and we deliver it, that cost increases.”