BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Receive an Update on the San Francisquito Creek Flood Protection Project from the San Francisquito Creek Joint Powers Authority (Palo Alto, District 7).
End
RECOMMENDATION: Recommendation
A. Receive an Update on the San Francisquito Creek Flood Protection Project from the San Francisquito Creek Joint Powers Authority; and
B. Provide direction to staff including considering approval of a portion of Santa Clara Valley Water District’s Fiscal Year 2025-2026 annual member contribution to the San Francisquito Creek Joint Powers Authority operating budget for “Capital Expenditures” in the amount of $604,000 and authorizing the Interim Chief Executive Officer to take all actions necessary to implement the Board's direction.
Body
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 receive an update on the status of the San Francisquito Creek Flood Protection Project and to consider approval of the capital expenditures portion of Valley Water’s Fiscal Year 2025-26 (FY 26) annual member contribution.
Status Update
The SFCJPA has been working with the Member Entities to implement the San Francisquito Creek Flood Protection Project (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 and design are in progress to provide 70-year flood protection upstream of Highway 101 (Reach 2 Project). For this item, the SFCJPA will provide an update on the status of this effort and their current plans for the implementation of the Reach 2 Project.
SFCJPA Annual Operations Budget
Section 12. Operating Budget, of the current JPA Agreement (Attachment 2), 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. In addition, Section 7. Capital Project Participation states that each Member Entity shall have the right to determine independently whether to participate in any capital project.
At their Board Meeting on June 26, 2025, the SFCJPA Board of Directors voted to adopt the SFCJPA FY 26 operating budget. The budget identified anticipated expenditures of $4,665,485.91. Of this amount, $1,645,485.91 was identified for “Operations/ Administration and Reserves”, and the remaining $3,020,000.00 was identified for “Reach 2 Project Planning and Design (“capital” expenditures)”. This results in a total per-member contribution of $933,097.18, of which $329,097.18 is for “Operations/ Administration and Reserves”, and $604,000.00 is for “Reach 2 Project Planning and Design (“capital” expenditures)”. Additional details are provided in the June 26, 2025, SFCJPA Board Agenda Item 6.A - Draft Budget Memo (Attachment 3).
On July 1, 2025, the SFCJPA submitted an invoice package (Attachment 4) to Valley Water’s CEO for the annual member contribution in the amount of $933,097.18.
On August 12, 2025, the Valley Water Board of Directors approved only the “Operations/Administration and Reserves” portion of the member contribution in the amount of $329,097.18, allowing SFCJPA operations to continue. Additional details are provided in the 08122025 SCVWD Board Agenda Memo Item 7.1. (Attachment 5).
Recommendation
Valley Water staff supports approval of $604,000 for “capital expenditures”, the remainder of the SFCJPA FY26 proposed annual member contribution, with the understanding that the SFCJPA will use the funds to complete the planning phase of the project within the year and prior to implementing any “no regrets” or “Phase 1” improvements. Staff suggests that the Board may consider the planning phase to be complete when the SFCJPA has:
• Identified a full capital project that reflects community support,
• Analyzed the project’s benefits and costs, and
• Developed an implementation plan, if the project is to proceed in phases
• Begun to develop a financing and cost share plan amongst the member agencies, which must be completed prior to implementation.
Meeting these goals will strengthen confidence among Valley Water staff and the Board in supporting future annual budget requests and continuing our full participation as a committed partner in the SFCJPA.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with the San Francisquito Creek Joint Powers Authority Project Update. This action is unlikely to or will not result in disproportionate impacts on any specific communities relative to the general population.
FINANCIAL IMPACT:
The San Francisquito Creek - San Francisco Bay to Searsville Dam (E5) Project (Project No. 26284002) is included in Valley Water’s Capital Improvement Program (CIP) Fiscal Year (FY) 2026-30 Five-Year Plan and in the FY 2025-26 (FY 26) Adopted Budget.
Valley Water’s total member agency contribution for FY 26 is $933,097.18. On August 12, 2025, the Valley Water Board of Directors approved the “Operations/Administration and Reserves” portion of the member contribution in the amount of $329,097.18. The recommended Board action seeks approval for payment of the remaining “capital expenditures” portion of the FY 26 invoice, which totals $604,000. There is currently sufficient funding for this item in the FY 2026 budget for the San Francisquito Creek - San Francisco Bay to Searsville Dam, Project 26284002. The Project is funded by the Safe, Clean Water and Natural Flood Protection Program Fund (Fund 26).
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.
The SFCJPA will be the lead agency responsible for CEQA compliance prior to considering the approval of the San Francisquito Creek Flood Protection Project.
ATTACHMENTS:
Attachment 1: PowerPoint
Attachment 2: Agreement
Attachment 3: 06252025 SFCJPA Board Agenda Item 6.A
Attachment 4: SFCJPA FY25-26 Contribution Invoice Package
Attachment 5: 08122025 SCVWD Board Agenda Memo Item 7.1
*Handout 7.1-A: J. Shore
UNCLASSIFIED MANAGER: Manager
Christopher Hakes, 408-630-3796