BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Conduct a Public Hearing to Determine the Necessity for the Board of Directors to be Compensated for up to 15 Days Per Calendar Month, and to Consider Meeting Compensation Amount for Calendar Year 2026.
End
RECOMMENDATION:
Recommendation
A. Open and conduct a Public Hearing to allow members of the public to provide comments on the need to compensate Directors for up to 15 days per calendar month, and Director meeting compensation amount for calendar year 2026;
B. Close the Public Hearing; and
C. Discuss, make a finding, and adopt the Ordinance PROVIDING FOR COMPENSATION OF DIRECTORS OF SANTA CLARA VALLEY WATER DISTRICT PURSUANT TO CHAPTER 2, DIVISION 10, CALIFORNIA WATER CODE, reflecting the number of meetings per calendar month Directors should be compensated and the Director meeting compensation amount for calendar year 2026; or
D. Provide direction to the Clerk, Board of Directors relevant to the authorized number of compensated meetings per month and meeting compensation amount for calendar year 2026.
Body
SUMMARY:
This item allows the Board to hold a Public Hearing to:
1. Consider the evidence and determine if there is an operational need for Directors to be compensated for up to 15 days per calendar month; and
2. Consider Directors’ compensation for the calendar year 2026, pursuant to Chapter 2, Division 10 of the California Water Code.
PUBLIC HEARING
At its January 13, 2026 regular meeting, the Board set a Public Hearing to be held on February 10, 2026, to determine the necessity for Directors to be compensated for up to 15 days per calendar month and to consider Directors’ meeting compensation for Calendar Year 2026. A Notice of Public Hearing has been published in a general circulation newspaper and community papers throughout Santa Clara County, notifying the public of the opportunity to comment at the Public Hearing if they so choose (Attachment 1).
The Public Hearing is held pursuant to the Santa Clara Valley Water District (Valley Water) Act (District Act) Section 33(c), Government Code Section 53232.1, and California Water Code Sections 20200-20207.
Monthly Meeting Limit
AB 1889 (Caballero) enacted by the Governor on September 5, 2018, and taking effect on January 1, 2019, amends the District Act by adding Section 33(c), authorizing the Board to annually adopt a written policy describing, based on a finding supported by substantial evidence, why more than 10 meetings per month, but not more than 15 meetings per month, are necessary for the effective operation of Valley Water. AB 939 (Pellerin) enacted by the Governor on September 9, 2023, extends the aforementioned provision indefinitely. The determination of whether a Director’s activities on any specific day are compensable shall be made pursuant to Section 53232.1 of the Government Code.
In accordance with Board Governance Policy GP-10-6.1, a finding could be made based on substantial evidence including, but not limited to, the following:
1. Many of Valley Water’s responsibilities such as water supply, flood protection, and environmental stewardship, are in other jurisdictions spread across separate governmental entities. These functions require numerous meetings to set courses of action based on input from the community and other stakeholders.
2. The number and scope of Board and committee meetings, public hearings, community meetings, and other meetings Directors must attend to accomplish Valley Water’s business are extensive. The Board has 19 internal and/or joint policy committees/working groups, and the Directors serve on a total of 17 external boards and committees for other intergovernmental, regional, or public policy entities (Attachment 2).
3. Valley Water is the only water agency in California that is both a state and federal water contractor through the State Water Project and the Central Valley Project, putting Valley Water at the heart of complex water policy debates in both Sacramento and Washington. This greatly expands the number of meetings necessary to ensure reliable water supplies for Santa Clara County as compared to other regions.
4. In 2025, the maximum number of monthly meeting days for which Directors could be compensated was 15, per Ordinance 2025-01. During 2025, the Valley Water Board of Directors reported 1091 meeting days that were paid and 84 that were unpaid because they exceeded the maximum number of meeting days allowed for the stated month. The table included in Attachment 3 provides details on the meetings per month data.
The Board could consider the following monthly meeting limit options:
1. Make a finding based on substantial evidence that there is an operational need to compensate Directors for up to 15 days per calendar month, and set the meeting day limit accordingly, effective April 14, 2026, for calendar year 2026; OR
2. Determine that no operational need exists to compensate Directors for more than the current 10 days per calendar month, per California Water Code.
Meeting Compensation
California Water Code Section 20202 authorizes the Board to annually consider, through the Public Hearing and ordinance adoption process, compensation increases at a rate not to exceed an amount equal to five percent (5%) annually.
Any Board-approved change in the Directors’ number of compensated meetings per month and meeting compensation rate will become effective beginning 60 days after the date of ordinance adoption, pursuant to California Water Code Section 20204.
The Board’s last compensation adjustment was in April 2025. In accordance with the regulatory process, the Board held a Public Hearing on February 11, 2025, for the public to comment on the Directors’ meeting compensation amount; and at that meeting, the Board adopted Ordinance 2025-01 enacting a compensation increase of five percent (5%), effective April 14, 2025 (12 months after the last compensation increase.)
The Board could consider the following monthly compensation options:
1. Keep the Directors’ compensation at the current amount of $403.37 per day, up to 10 or 15 days per calendar month, as previously determined;
2. Reduce the Directors’ compensation to a specified amount below the current $403.37 rate per day, up to 10 or 15 days per calendar month, as previously determined, effective April 14, 2026; or
3. Approve an increase of up to 5% in Directors’ compensation under the California Water Code Sections 20200-20207, for up to 10 or 15 days per calendar month, as previously determined, effective April 14, 2026.
Additional Board-Imposed Requirements
In addition to the statutory requirements detailed above, the Board has imposed certain other requirements on itself with respect to meeting compensation. Those requirements are enshrined in Board Governance Process section 10 (GP-10). Among other things, GP 10 (1) requires that Board members “will briefly report on meetings attended at Valley Water expense at the next regular Board meeting following the event at which the member is in attendance” (GP-10.4); specifies which types of events qualify as compensable meetings (GP-10.6.1); and excludes explicitly certain events from being compensable (GP-10.6.2). For ease of reference, a copy of GP-10 is attached as Attachment 5.
ENVIRONMENTAL JUSTICE IMPACT:
There is no environmental justice impact associated with the Board of Directors compensation. This action is unlikely to or will not result in adverse impacts.
FINANCIAL IMPACT:
Funds are budgeted in the Board of Directors Fiscal Year 2026 budget for meeting compensation.
Staff estimates that a 5% increase in Directors’ compensation for up 15 days per calendar month would cost approximately $24,203. Since contingency budgeting is not performed, funding for any Board-approved increase in compensation may need to be transferred from reserves pursuant to a budget adjustment if the impact cannot be absorbed within budget.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Notice of Public Hearing
Attachment 2: 2026 Board Committee Appointments
Attachment 3: 2025 Board Meeting Days Analysis
Attachment 4: Draft Ordinance
Attachment 5: GP-10
UNCLASSIFIED MANAGER:
Manager
Candice Kwok-Smith, 408-630-3193