BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
5-Year Implementation Plan for Fiscal Years 2027-2031 for the Safe, Clean Water and Natural Flood Protection Program.
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RECOMMENDATION: Recommendation
A. Approve the proposed key performance indicator (KPI) adjustments to two projects in the Safe, Clean Water and Natural Flood Protection Program (Safe, Clean Water Program);
B. Approve the proposed text adjustment to specific projects in the Safe, Clean Water Program;
C. Approve the Safe, Clean Water Program’s 5-Year Implementation Plan for Fiscal Years 2027-2032 (5-Year Plan or Plan); and
D. Authorize staff to update the 5-Year Plan following the close of FY26 and the availability of audited financials.
Body
SUMMARY:
On November 3, 2020, Santa Clara County voters overwhelmingly approved Measure S, a renewal of Santa Clara Valley Water District's (Valley Water) Safe, Clean Water and Natural Flood Protection Program (Safe, Clean Water Program or Program).
The renewed Safe, Clean Water Program addresses the following six community priorities:
Priority A: Ensure a Safe, Reliable Water Supply
Priority B: Reduce Toxins, Hazards, and Contaminants in our Waterways
Priority C: Protect Our Water Supply and Dams from Earthquakes and Other
Natural Disasters
Priority D: Restore Wildlife Habitat and Provide Open Space
Priority E: Provide Flood Protection to Homes, Businesses, Schools, Streets,
and Highways
Priority F: Support Public Health and Public Safety for Our Community
The Program is implemented through a structured framework designed to ensure transparency, accountability, and alignment with voter-approved priorities. The Safe, Clean Water Program’s 5-Year Implementation Plan for Fiscal Years 2027-2031 (Attachment 1) outlines the approach for delivering Program projects within the broader 15-year financial planning cycle (FY22-36), while addressing evolving financial, regulatory, and implementation conditions.
The Plan reflects progress made during the first five years of implementation (FY22-26) and identifies work planned for the next five years (FY27-31) to achieve key performance indicators (KPIs). It includes financial information and defines roles and responsibilities for implementing, monitoring, and evaluating Program performance.
The Plan:
• Breaks down KPIs into 5-year targets and proposes measures to gauge progress toward them.
• Identifies Program challenges and strategies to continue advancing priority infrastructure.
• Supports flood protection, water supply reliability, and environmental stewardship goals.
Data Limitation
This Plan has been prepared prior to the completion of FY26, the final year of the first 5-Year Implementation Plan (FY22-26). It is based on preliminary financial and outcome data available as of March 2026 and is therefore subject to change.
An updated Plan will be published after FY26 closes in July 2026 and audited financial statements become available in December 2026/January 2027.
Change Control Process
As the Program progresses, adjustments or modifications to projects and sometimes the KPIs may be necessary due to inflation, regulatory changes, or evolving project conditions. Valley Water follows a Board-approved Change Control Process that distinguishes among the following three types of project changes, last updated by the Board on February 24, 2026.
• Adjustments: Changes to the Safe, Clean Water Program’s project text or funding allocation that do not impact the delivery of any project KPI, or changes to a project schedule. Adjustments may include change(s) to a KPI when the purpose of such change(s) is to clarify the project KPI to be consistent with the applicable project description in the approved Program.
• Modifications: Changes to the project description, project KPI, or funding allocation that impact the delivery of any KPI.
• Non-Implementation: A decision by the Board to not implement a project.
While modifications require noticed public hearings, adjustments can be approved by the Board during a regular agenda item without a hearing.
5-Year Plan Improvements
In prior annual report reviews, the Independent Monitoring Committee (IMC) noted that year-by-year reporting does not provide a comprehensive multi-year perspective. To address this concern, the 5-Year Plan includes:
• A summary of progress toward the five-year targets.
• An overview of modifications, decisions not to implement a project, and adjustments to text, schedule, funding, and KPIs.
• Appendix D, which provides the cumulative status of all projects for FY22-26.
The Plan also includes visual comparisons of:
• Initial 15-year funding.
• Board-adjusted funding.
• Current funding forecast.
These comparisons are presented at both the project and priority levels.
Additionally, contributions from the Watersheds and Stream Stewardship Fund and the Water Utility Enterprise Fund are illustrated to show how they support KPI achievement.
FY22-26 (Q1-Q3) Key accomplishments
Water Supply
• Project A2: Water Conservation Rebates and Programs
Converted nearly 4.1 million square feet (sq ft) of lawn to low-water-use landscaping; exceeded $5.4 million.
• Project A3: Pipeline Reliability
Began construction on two of the four planned line valves. Work is underway on West Pipeline valves near Quito Road in Saratoga and near Granada Avenue in Cupertino.
Flood Protection
• Project E6: Upper Llagas Creek Flood Protection Project
Completed construction of the first two phases of the three-phase project, with the third and final phase currently under construction. Secured $80 million in grant funding from the Natural Resources Conservation Service (NRCS), of which Valley Water has already received approximately $21 million in reimbursements.
• Project E1: Coyote Creek Flood Protection Project
Completed the Coyote Creek Flood Management Measures Project (Phase 1) of the project. Phase 1, part of the Anderson Dam Federal Energy Regulatory Commission (FERC) Order Compliance Project for Anderson Dam Seismic Retrofit, is funded by the Water Utility Enterprise Fund.
The Board approved advertisement of the Coyote Creek Flood Protection Project (Phase 2) for construction bids in April 2026.
Stewardship
• Project D6: Restoration of Natural Creek Functions
Completed the project and delivered the KPI with the construction of the Hale Creek Enhancement Pilot Project and the Bolsa Road Fish Passage Improvements Project.
• Project D7: Partnerships for the Conservation of Habitat Lands
On track to complete the project and deliver the KPI in FY26 by contributing $3.95 million to support Peninsula Open Space Trust’s 2,284-acre Sargent Ranch acquisition. In FY24, Valley Water contributed $4 million toward the Santa Clara Valley Habitat Agency’s 3,653-acre Richmond Ranch purchase.
• Project F5: Good Neighbor Program: Encampment Cleanup
Managed 18,090 acres between FY22-FY26 (Q1-Q3) to clean up encampment-generated trash, debris, and hazardous pollutants, exceeding the KPI of managing 300 acres annually.
• Project F9: Safe, Clean Water Grants and Partnerships
Awarded approximately $5.2 million in grants and partnerships for stewardship activities.
• Project D4: Fish Habitat and Passage Improvement
Completed the construction of the large woody debris and gravel augmentation project to improve the fish habitat along Uvas Creek in Gilroy.
Transparency and Accountability
Independent Monitoring Committee Review
Each year, to ensure transparency and accountability, the Safe, Clean Water Program requires the IMC to conduct annual reviews and prepare annual reports looking back on the prior year to assess progress toward achieving the Program’s intended outcomes.
Every five years, the Safe, Clean Water Program requires the IMC to look ahead in its review of the draft 5-Year Plan before it is presented to the Board for consideration and approval. The IMC has continued to fulfill these responsibilities with diligence and dedication.
Staff presented the draft Plan to the IMC on May 7, 2026. The IMC had no recommendations regarding the 5-year targets but did have notes on how to improve the Plan, which ranged from correcting minor typographical errors to providing additional information (see Attachment 2). The IMC recommended approving the 5-Year Plan with its notes captured. All the IMC’s notes have been addressed in the version of the 5-Year Plan presented today for Board approval.
The IMC also expressed strong appreciation for staff’s work in developing the 5-Year Implementation Plan, commending the document’s organization, level of detail, and overall quality.
One IMC member stated, “I really like how it is set up. This is a really impressive document.” Another commented, “I just wanted to say thank you because this is just an incredible effort, and the staff really nailed it. Especially when you get to the appendices and are able to look at everything-that is very helpful…We are looking at a very great product here.”
A third IMC member remarked, “It is so obvious how many experts and people have been involved in this... I can say on behalf of all of us how much we appreciate the time, energy, and effort that went into putting this together…It is great that staff is so receptive to our comments.”
Independent Professional Audits
The Program also requires the Board to conduct independent professional audits at least every five years. Although an independent audit is required at least every five years, the IMC requested an earlier review of the Program, and the Board concurred.
In FY23, the Board initiated the Program’s first independent audit, covering its first three years of implementation (FY22-24).
The audit report includes nine (9) recommendations, two of which recommend that Valley Water evaluate whether to change certain project KPIs to ensure they are financially sustainable, remain aligned with current project activities, and that their descriptions clearly articulate the project’s scope and deliverables.
Valley Water is actively addressing all nine (9) audit recommendations. To access the audit report, including management response to the recommendations, visit tinyurl.com/SCWauditFY22-24.
Recommended Adjustments
As part of Finding #9, the audit identified two projects for which their existing KPIs do not fully reflect project activities that are currently undertaken. These two projects are Project D1: Management of Riparian Planting and Invasive Plant Removal, and Project F3: Flood Risk Assessment Studies. The Auditor noted that the KPIs for these two projects could be enhanced for clarity and scope to better align with current project activities and deliverables. In response to audit recommendations, staff has recommended KPI revisions for these two projects. As per the Board’s direction, the proposed revisions were presented to the Board Policy and Monitoring Committee (BPMC) on April 21, 2026, for review before they are presented to the full Board.
Additionally, as part of its 5-Year Plan development, staff identified the need to revise the project descriptions of two other projects to update outdated information-D5: Ecological Data Collection and Analysis and Project E8: Upper Guadalupe River Flood Protection.
The proposed revisions (Attachment 3) meet the definition of “adjustment” pursuant to the Change Control Process and do not require formal public hearings prior to adoption. As per the Safe, Clean Water Program’s Change Control Process, staff is recommending approval of the proposed KPI and text adjustments that have been incorporated in the 5-Year Plan. Details of the proposed adjustments are included in Attachment 3, with deletions shown in strikethrough and additions indicated in red font.
Proposed Modifications
In Finding #7, the audit noted misalignment between the KPI for Project E5: San Francisquito Creek Flood Protection and Valley Water’s role and authority. The auditor recommended evaluating the project KPI for potential revisions. In response to audit recommendations, staff has recommended revisions to shift the KPI from an outcome-based metric to one that measures Valley Water’s funding contribution to the project. The proposed revisions were presented to and supported by the BPMC on April 21.
While not part of the audit findings, staff also proposed expanding the scope of a KPI for Project F6: Good Neighbor Program - Graffiti and Litter Removal and Public Art to allow implementation or funding of eligible public art projects throughout Santa Clara County, without limiting public art projects to be located on Valley Water-owned infrastructure and property. Similarly, the BPMC supported staff’s recommended revisions to the KPI for Project F6.
The proposed revisions meet the definition of “modification” pursuant to the Change Control Process. As noted, modifications require noticed public hearings and will be brought forward to the Board at a later date in accordance with the updated public outreach process and timeline outlined in the Change Control Process.
For more information on staff recommendations to the BPMC, visit <https://fta.valleywater.org/dl/JqPTJw6xykH6>.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice and equity impacts associated with this item.
FINANCIAL IMPACT:
The 5-Year Plan is produced and printed internally and budgeted to the Safe, Clean Water Implementation Project (26061012).
CEQA:
There are no environmental justice impacts associated with this item.
ATTACHMENTS:
Attachment 1: 5-Year Implementation Plan
Attachment 2: IMC Notes for 5-Year Implementation Plan
Attachment 3: Recommended Adjustments
Attachment 4: PowerPoint
UNCLASSIFIED MANAGER: Manager
Luz Penilla, 408-630-2228