BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Approve Santa Clara Valley Water District’s Fiscal Year 2026-27 Annual Member Contribution to the San Francisquito Creek Joint Powers Authority Operating Budget in the Amount of $179,554 (Palo Alto, District 7).
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RECOMMENDATION: Recommendation
Approve Santa Clara Valley Water District’s Fiscal Year 2026-27 Annual Member Contribution to the San Francisquito Creek Joint Powers Authority Operating Budget in the Amount of $179,554 (Palo Alto, District 7).
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SUMMARY:
The Santa Clara Valley Water District (Valley Water) is one of five (5) public entity member agencies (Member Entities) that created the San Francisquito Creek Joint Powers Authority (SFCJPA) in 1999, along with the Cities of East Palo Alto, Menlo Park, Palo Alto, and the San Mateo County Flood and Sea Level Rise Resiliency District (One Shoreline). The SFCJPA operations are funded by equal annual contributions from the Member Entities, subject to each agency’s approval. The purpose of this item is to recommend approval of Valley Water’s Fiscal Year 2026-27 (FY 27) annual member contribution.
Background and History
The SFCJPA has been working with the Member Entities to implement the San Francisquito Creek Flood Protection Project to enhance flood protection along the San Francisquito Creek. The Project is part of Valley Water’s Safe, Clean Water and Natural Flood Protection Program that voters renewed in November 2020. Construction downstream of Highway 101 (Reach 1 Project) was completed in May 2019 to provide 100-year flood protection. Planning is in progress to provide 70-year flood protection upstream of Highway 101 (Reach 2 Project).
SFCJPA Annual Operations Budget
Section 12. Operating Budget, of the current JPA Agreement (Attachment 1), requires the SFCJPA Board of Directors to adopt an annual operating budget, which shall be separate from any capital budget, that includes the proposed member contribution from each Member Entity. The operating budget shall not be effective unless and until the governing body of each Member Entity approves that Member Entity’s contribution to the operating budget.
At their Board Meeting on August 27, 2026, the SFCJPA Board of Directors voted to adopt the SFCJPA FY 27 operating budget. The budget identified anticipated expenditures of $3,702,008. Of this amount, $2,804,240 will be funded by SFCJPA reserves, and the remaining $897,768 will be split equally between five member agencies, resulting in a total per-member contribution of $179,554. The adopted FY27 SFCJPA operating budget will fund SFCJPA operations, including SFCJPA staff salaries and administrative costs, as well as consultant expenses for planning of the Reach 2 Project through June 30, 2027. Additional details are provided in the August 27, 2026, SFCJPA Board Agenda Item 6.A - Draft Budget Memo (Attachment 2). SFCJPA staff worked closely with Valley Water staff to adequately address Valley Water comments on the proposed budget.
On September 9, 2026, the SFCJPA submitted an invoice package (Attachment 3) to Valley Water’s CEO for the annual member contribution in the amount of $179,554. Staff recommends approval of the member contribution to allow SFCJPA operations and Reach 2 Project planning to continue.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with this item.
FINANCIAL IMPACT:
There is a $179,554 expenditure associated with approval of this item. Funding for this item is included in the adopted Fiscal Year 2026-27 San Francisquito Creek Project (Project No. 26281001) budget.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Agreement
Attachment 2: SFCJPA Board Agenda Item 6.A
Attachment 3: SFCJPA FY26-27 Invoice Package
UNCLASSIFIED MANAGER: Manager
Bhavani Yerrapotu, 408-630-2735