BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Receive an Update on Costs Associated with the Pacheco Reservoir Expansion Project, Project No. 91954002 (Santa Clara County District 1, Merced County).
End
RECOMMENDATION:
Recommendation
Receive an informational update on costs associated with the Pacheco Reservoir Expansion Project, Project No. 91954002 (Santa Clara County - District 1, Merced County).
Body
SUMMARY:
On October 13, 2023, staff and Committee Member Hsueh presented potential topics regarding the Pacheco Reservoir Expansion Project (PREP or Project) to be brought before the Water Storage Exploratory Committee (WSEC) for more detailed discussion in future quarterly updates, and, later, to be brought before the full Board for discussion. This approach and these proposed Project topics were then discussed before the full Board on November 14, 2023, and approved. Additionally, WSEC acknowledged that some topics may require more time to prepare and recommended adjusting the quarterly update schedule as necessary. With the recent Board realignment of committees, the Project will now be presenting updates to the newly formed Water Supply and Demand Management Committee (WSDM).
Previous presentations by staff have included cost information for the Project. In response to the updated list of future topics, staff has prepared a presentation providing a more detailed explanation of these project cost numbers:
• Construction Cost based on the 30% Design Cost Estimate
• Five-Year Capital Improvement Program (CIP) Total Project Cost (TPC) without Inflation
• Five-Year CIP TPC with Inflation
• Projected Financed Cost with 35% Partnership
• Projected Financed Cost without 35% Partnership
Staff has also provided additional detail on the funding sources for the Project and more detailed information on the financing costs of the Project. The presentation also includes updated information on Project expenditures through the end of March 2024.
Staff presented the informational update on costs at the WSDM Committee meeting on May 17, 2024. During the discussion of the item, the committee expressed support for bringing the update to the full Board.
During the WSDM Committee meeting, the Sierra Club submitted a list of questions on the Project to the WSDM Committee. Staff has provided answers to these questions, included as Attachment 2.
Staff has also prepared an additional handout with more detailed information on the actual expenditures through March 2024, included as Attachment 3.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no environmental justice and equity impacts associated with this item. However, the draft EIS/recirculated draft EIR will include an analysis of the project’s social and economic impacts including environmental justice, as required by NEPA. The environmental justice impacts of the PREP will be considered in future board actions. Some of the anticipated Environmental Justice Impacts include potential reduction of flood damages to several disadvantaged communities.
FINANCIAL IMPACT:
There is no financial impact associated with the recommendation in this item. The PREP is currently included in the Capital Improvement Program’s Fiscal Years 2025-29 Five-Year Plan. Any future decisions on the course of the PREP may have financial impacts.
CEQA:
The recommended actions in this item do not constitute a project under CEQA because they do not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
Santa Clara Valley Water District continues to proceed with CEQA review of the PREP, and the final Environmental Impact Report will be presented to the Board for consideration before project approval.
ATTACHMENTS:
Attachment 1: PowerPoint
Attachment 2: Sierra Club Response
Attachment 3: Expenditure Details
*Handout 8.1-A: Irvin
*Handout 8.1-B: Freedom
*Handout 8.1-C: Ballenger
*Handout 8.1-D: Lanman
*Handout 8.1-E: Irvin
*Handout 8.1-F: Norton
*Handout 8.1-G: MacIntosh
*Handout 8.1-H: Freedom
*Handout 8.1-I: Rogers
UNCLASSIFIED MANAGER:
Manager
Ryan McCarter, 408-630-2983