BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Approve Fiscal Year 2026 Standard Grants for the Safe, Clean Water and Natural Flood Protection Program.
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RECOMMENDATION: Recommendation
A. Review and discuss staff’s recommendations for Fiscal Year 2026 Safe, Clean Water and Natural Flood Protection Program (Safe, Clean Water Program) standard grant awards;
B. Authorize the Chief Executive Officer or designee to approve and execute non-consultant agreements for four (4) standard grant projects at a total not-to-exceed amount of $1,776,760; and
C. Authorize reallocating the remaining Fiscal Year 2026 standard grant funding towards Fiscal Year 2027 mini-grants and refill station grants, with $73,240 for mini-grants and $20,000 for refill station grants.
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SUMMARY:
About the Safe, Clean Water Grants and Partnerships Program
The Safe, Clean Water and Natural Flood Protection Program (Safe, Clean Water
Program) is a voter-approved special parcel tax that provides funding for local projects that deliver safe, clean water, natural flood protection, and environmental stewardship to all the communities in Santa Clara County.
One of the Safe, Clean Water Program projects is Project F9: Grants and Partnerships for Safe, Clean Water, Flood Protection and Environmental Stewardship (Grants and
Partnerships Program). This project leverages community resources for the efficient use of funds to implement projects related to the Safe, Clean Water Program priorities. The project also promotes public involvement, awareness, and education of safe, clean drinking water, flood protection, and environmental stewardship through community-led projects that are located within, or serve, Santa Clara County.
In fiscal year 2024-25 (FY 2025), Santa Clara Valley Water District (Valley Water) completed the redesign of the Grants and Partnerships Program to align with the changes adopted through the passage of the Safe, Clean Water Program and address the recommendations from the FY 2021 Grants Management Performance Audit Report.
The grants redesign, which began in FY 2023, focused on streamlining grant administration and updating standard grant criteria to better align grant requirements with project size, risk, and complexity.
To support the redesign, the Board postponed the FY 2024 standard grants cycle and redistributed $1.4 million in funding across FY 2025 through FY 2027, increasing annual standard grant funding to $1.87 million.
In May 2024, the Board approved significant program improvements, paving the way for their implementation in FY 2025. The improvements to standard grants include:
• Recategorizing grant types into the following categories:
o Education Grants
o Planning Grants
o Stewardship Grants
o Implementation Grants (available in FY 2026)
• Implementing alternating grant categories every other year
• Fully funding standard grant requests
• Reducing the match funding requirement to 15% for Stewardship and Implementation Grants
• Eliminating a match funding requirement for Education and Planning Grants
• Establishing a minimum and maximum grant request amount per project ($50,000 to $500,000 for Implementation Grants)
• Streamlining the application and agreement development processes
• Updating the eligibility requirements for applicants
• Making the grantee insurance costs associated with the grant project eligible for reimbursement
Fiscal Year 2026 Standard Grant Cycle
In the FY 2026 standard grants cycle, a total of $1.87 million in grants is available to fund a diverse range of project types, project locations, and project sizes within the
Implementation category:
• Implementation Grants - for public agencies with shovel-ready construction or large-scale implementation projects that advance Safe, Clean Water Program priorities in Santa Clara County. Eligible projects may include:
o Creeks and stream restoration;
o Water conservation or recycled water infrastructure;
o Creating or enhancing wetland, riparian, and tidal marsh habitats;
o Protecting species of special status;
o Improving fish passage and habitat; and
o Removing non-native, invasive plant species and planting native species.
Applicants could request up to $500,000 per project. As part of the grants redesign, Valley Water intends to award 100% of the applicant’s requested amount in FY 2026 to avoid partial funding for projects.
FY 2026 Standard Grant Guidelines
FY 2026 is the first standard grant cycle to offer the Implementation Grant category, with updated criteria from the Board-approved 2025 Grants Redesign. This included shifting the standard grant criteria away from limited, singular benefit categories to a “right-sized” approach based on project features and activities that would apply universally to all grant categories. The FY 2026 Standard Grant Guidelines (Attachment 1) incorporated these changes.
Application Timeline
On February 23, 2026, Valley Water announced the opening of the FY 2026 standard grant cycle with the release of the Grant Guidelines and accepted grant applications
via Valley Water’s online Fluxx grants management system until it closed on April 24, 2026, at 11:59 p.m.
Outreach Effort
Because the FY 2026 grant cycle limited eligible applicants to public agencies, staff implemented targeted outreach to eligible government agencies. Information was also shared with non-government agencies, such as non-profits, who may want to partner with eligible applicants. In addition to targeted outreach, staff promoted the Calendly meeting scheduling tool more in response to feedback from prior years.
The general grants webpage (valleywater.org/grants <https://valleywater.org/grants>) and the standard grants webpage (valleywater.org/standardgrants <https://valleywater.org/standardgrants>) were updated with the FY 2026 standard grants cycle information. Staff also created a flyer that was available for download and included in outreach emails.
Outreach efforts included the following:
• Virtual informational workshop: March 9, 2026 (recording available)
• Email announcements to Grants email subscribers:
o Non-government agencies: 149 contacts, February 23, 2026
o Government agencies; 45 contacts; February 23, 2026; March 4, 2026
• Email announcements to government agency contacts through other Valley Water programs
o Santa Clara County Community Rating System communities
o Creek Connections Action Group
o Santa Clara Valley Urban Runoff Pollution Prevention Program
o Recycled and Purified Water Outreach Technical Advisory Group (specifically to City of Palo Alto, City of San Jose, City of Santa Clara)
• Email announcements to Office of Government Relations contacts comprising
elected officials, city managers, and executive leaders in Santa Clara County
• Announcement at the Water Commission meeting: April 8, 2026
• Announcement at the Cities Association of Santa Clara County meeting: April 9, 2026
Applications Received
At the close of the standard grant cycle, Valley Water received eight applications, five of which were from cities/towns, and three from special districts. The project summaries for all applications are shown in Attachment 2.
Application Review and Evaluation
The FY 2026 Standard Grant Guidelines provided applicants with a list of minimum qualifications and criteria for each section and grant category type. Applicants were encouraged to provide adequate rationale and documentation to support their application.
The panels were made up of Valley Water staff who are subject matter experts on relevant topics such as pollution prevention, environmental stewardship, native habitat restoration, permitting, regulations, and environmental planning. The subject matter experts spanned several units and divisions throughout the agency.
The panelists scored the applications based on the evaluation criteria identified in the FY 2026 Standard Grant Guidelines. Panelists considered the quality of the project and responses within each application section.
To provide continuity in the evaluation, the panelists rated each section on a scale from zero to five, in accordance with the FY 2026 Standard Grant Guidelines (Attachment 1). All section scores per project were multiplied based on a weighted scoring system and added together to produce a total project score out of a maximum of 100 points. Panelists’ scores were then averaged to calculate a final score for each application.
FY 2026 Standard Grant Funding Recommendations
Staff funding recommendations are based on the standard grant framework that the Board approved under the Grants Redesign on May 27, 2024. This includes the availability of $1.87 million for standard grants in FY 2026.
The following projects are recommended for 100% funding based on the final project scores from the panelists for a total not-to-exceed amount of $1,776,760:
• Santa Clara Valley Habitat Agency, Pajaro River Riparian and Floodplain Restoration Project ($500,000)
• Midpeninsula Regional Open Space District, Santa Cruz Kangaroo Rat Habitat Management Plan Implementation ($500,000)
• City of Cupertino, Lawrence-Mitty Park and Trail Project ($500,000)
• Santa Clara Valley Transportation Authority, Green Line Water Conservation Landscaping and Pocket Forests ($276,760)
Applications Not Recommended for Funding
The evaluation panel scores indicate the strength and quality of the application and its alignment with Valley Water’s mission and the FY 2026 Standard Grant Guidelines.
In general, applications received lower scores for the following reasons:
• Incomplete, inconsistent, or vague responses;
• Lacking a strong tie and connection to Safe, Clean Water Program priorities;
• Inability to demonstrate project readiness; and
• Heavy reliance on elements and activities that are better suited under other grant categories, such as the Stewardship Grant category, or that could be funded through other public programs, such as through Valley Water’s water conservation programs.
Staff will continually endeavor to incorporate tips related to these areas into future applications and resources, such as workshops, help text, and guidance documents, to help applicants improve their submissions in future grant cycles.
Applicants who do not receive funding in FY 2026 will have the opportunity to meet with grants staff to debrief on their application feedback. Applicants with projects more aligned with Stewardship Grants are also strongly encouraged to apply in the FY 2027 Standard Grant Cycle.
Post-Award Next Steps
Upon the Board’s funding award decision, staff will notify all applicants and meet with the awarded applicants to review the next steps and develop a grant agreement. Grantees may begin their project activities and grant invoicing after the grant agreement is executed.
The agreement terms will be for five years from the agreement's effective date.
The grant agreements will contain the standard provisions related to communications, including:
• Inclusion of Safe, Clean Water Program logo on all project materials presented to the public;
• All materials that include Safe, Clean Water Program logo are subject to review and approval by Valley Water;
• Mention of “Safe, Clean Water and Natural Flood Protection Program” as appropriate when funding sources for the project are printed or presented;
• Early notification to and invitations provided to Valley Water for any project related events; and
• Invitation with speaking roles for members of the Board at project groundbreaking and opening ceremonies.
Additionally, grantees will be asked to report project data and measurable outcomes of all activities, including any community engagement and outreach, so staff can assess the impact of the grant funding.
The grant agreements will contain standard provisions requiring grantees to prepare a project fact sheet and make a presentation at an event or meeting hosted by Valley Water when the project is completed, upon request.
Other provisions will include clear success measures, adherence to the project schedule, and guidelines. Finally, staff is recommending that the Board authorize the CEO or designee to approve and execute the grant agreements for the projects recommended for award, that comply with CEQA requirements before conducting activities that require CEQA compliance.
FY 2026 Standard Grant Cycle Assessment
As part of its larger continual improvement efforts, staff will continue to assess the Grants Program, including the 2026 standard grant cycle, through its annual survey and ongoing feedback from applicants, grantees, panel members, and grants program staff, to identify areas for improvement in the application and Standard Grant Guidelines. Any improvements that are identified and deemed appropriate will be incorporated into future grant cycles.
Reallocating Remaining FY 2026 Funds to FY 2027 Mini-Grant and Refill Station Grant
Programs
If the FY 2026 standard grant funding recommendations are approved by the Board, the total not-to-exceed award amount would result in a remainder of $93,240. This remaining amount is not sufficient to fund any additional standard grant projects at 100% of their requested amount. Staff recommends allocating the total remaining funds to the FY 2027 mini-grant and refill station grant programs.
Staff have received a significant increase in demand for mini-grants since increasing the award amount from $5,000 to $10,000 under the redesigned FY 2025 mini-grant program. Reallocating $73,240 in remaining funding to the FY 2027 mini-grant program would make it accessible year-round and help kick-start more eligible projects in the next fiscal year.
In addition, the refill station grants have steadily increased due to growing demand, word of mouth, and the increased number of installations, which expanded the program’s visibility throughout the community. Staff recommends reallocating $20,000 in remaining funding to the FY 2027 refill station grant program to help meet the demand year-round.
ENVIRONMENTAL JUSTICE IMPACT:
There are no likely environmental justice impacts associated with the FY 2026 standard grant funding recommendations.
FINANCIAL IMPACT:
Financial impact associated with this item is limited to the applications approved for funding per Board action. The FY 2026 budget includes sufficient funding of $1,870,000 for standard grant agreements under Project F9: Grants and Partnerships for Safe, Clean Water, Flood Protection and Environmental Stewardship (Project No. 26061021). A budget adjustment will be prepared to reallocate a total of $93,240 for mini-grants ($73,240) and refill station grants ($20,000) in FY 2027.
CEQA:
The recommended action does not constitute a project under CEQA (per CEQA Guidelines Section 15378(a)) because it does not commit Valley Water to a definite course of action, and therefore has no potential to result in a direct or reasonably foreseeable indirect environmental impact. Specifically, it is a government fiscal activity which is not a project because it does not involve commitment to any specific project that may result in a potentially significant environmental impact, per CEQA Guidelines Section 15378(b)(4).
The Board action is approval of staff recommendations to fund projects following project-specific CEQA compliance, if required, and is not a commitment to fund those projects. It does not foreclose Valley Water’s exercise of discretion with respect to a project, including but not limited to considering other feasible alternatives or mitigation measures to avoid or minimize a project’s impacts, requiring a grantee to make such modifications deemed necessary to reduce a project’s impacts, or determining not to proceed with one or more components of a project.
ATTACHMENTS:
Attachment 1: FY 2026 Standard Grant Guidelines
Attachment 2: FY 2026 Standard Grant Application Summaries
Attachment 3: FY 2026 Staff Funding Recommendations
Attachment 4: PowerPoint
UNCLASSIFIED MANAGER: Manager
Rachael Gibson, 408-630-2884