The Los Banos City Council unanimously approved a memorandum of understanding with Grasslands Water District on May 21 to develop and operate a stormwater recharge basin east of town.

Public Works staff presented the agreement as a cooperative project with the water district. "It contains approximately 160 acres," the public works presenter said, and "at 60 acres, it can hold approximately 500 acre foot of water," language the presenter used to describe the basin’s scale and benefits.

According to staff, the basin sits between the San Luis and Santa Fe canals at the northeast edge of town. The MOU delegates day‑to‑day operation decisions to the water district while giving the city credits for captured stormwater and groundwater recharge. Staff told the council the basin will provide flood control and a more reliable water supply for the district while increasing the city’s ability to capture stormwater and receive exchange/recharge credits over time.

A letter from the Grasslands Water District general manager was included in the record and urged council approval, noting the basin’s potential to improve drinking‑water quality near the basins by placing fresh water closer to domestic wells.

Councilmember motioned to adopt resolution 6,933; the motion was seconded, and the council voted "aye" with no recorded opposition. The resolution passed without amendments.

Council staff said they view the MOU as the first of multiple projects to expand stormwater capture in and around Los Banos and that design and implementation steps will follow the agreement.

No specific construction dates were presented at the May 21 meeting. Staff committed to return with implementation details, operational protocols and any future requests for project approvals or funding.