BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Approve the Fiscal Year 2024-25 Safe, Clean Water and Natural Flood Protection Program Annual Report with Proposed Text Adjustments and Authorize Submission to the Independent Monitoring Committee for Review.
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RECOMMENDATION: Recommendation
A. Approve the Fiscal Year 2024-25 Safe, Clean Water and Natural Flood Protection Program Annual Report (Annual Report) with text adjustments;
B. Authorize staff to submit the Annual Report to the Independent Monitoring Committee for its review; and
C. Authorize staff to update the Annual Report with audited financials, as necessary.
Body
SUMMARY:
Fiscal Year 2024-25 (FY25) Safe, Clean Water Annual Report
FY25 marked the fourth year for Santa Clara Valley Water District’s (Valley Water) voter-approved renewed Safe, Clean Water and Natural Flood Protection Program (Program).
The renewed Program became effective on July 1, 2021 (FY22), and is implemented on a 15-year financial cycle. See Attachment 1 for Program background. This annual report (Attachment 2) provides FY25 progress updates for every project in the Program. The projects have specific key performance indicators (KPIs) to monitor the long-term performance.
For transparency and accountability, an external Independent Monitoring Committee (IMC) appointed by the Board conducts an annual review of the Annual Report and provides its recommendations to the Board.
Annual Report Improvements
On March 11, 2025, the IMC provided its recommendations to the Board to further improve the annual report (tinyurl.com/11Mar2025IMCreport <https://tinyurl.com/11Mar2025IMCreport>.)
This was followed by Valley Water staff presenting the Management Response to the Board (tinyurl.com/11Mar2025MgmtResponse <https://tinyurl.com/11Mar2025MgmtResponse>) and receiving directions on implementation. Valley Water has since implemented the recommendations, including the incorporation of information on debt financing for capital projects in the annual report.
FY25 Program Performance
Annual Project Status
As of FY24, there are 31 projects in the Program. In FY25, of the 31 projects, 28 projects (91%) are Active, one (1) project (3%) is Scheduled to Start in future years, one (1) project (3%), D6: Restoration of Natural Creek Functions, is Completed, and one (1) project (3%), Project E4: Upper Penitencia Creek Flood Protection (Project E4), was put On Hold due to the reallocation of staff resources to other priority projects approaching construction. Previously in FY24, the Board decided not to implement Project A1: Pacheco Reservoir Expansion under the Safe, Clean Water Program.
Change Control Process Indicators - Modifications and Adjustments
Modifications - On August 13, 2024, the Valley Water Board approved a funding modification for Project Upper Guadalupe River Flood Protection Project (Project E8), reducing the 15-year allocation from approximately $65 million to approximately $22 million. This decision followed Valley Water’s analysis of its project cost share based on the latest USACE estimates. Approximately 95% of the required real estate acquisitions, representing the majority of Valley Water’s cost share, had already been completed. The funding modification was recommended to help balance the Safe, Clean Water Fund (Fund 26) in the short term and to provide sufficient funding to award a construction contract and complete the final phase of another Safe, Clean Water project, namely Project E6: Upper Llagas Creek Project (E6), while still ensuring that there are sufficient funds to meet any remaining obligations for Project E8. For details about the modifications, see individual project updates in the annual report and to view the public hearing, visit <https://scvwd.granicus.com/MediaPlayer.php?view_id=3&clip_id=2194>
Adjustments (Schedule) - In FY25, the Board approved schedule adjustments for Project A3: Pipeline Reliability, Project D4: Fish Habitat and Passage Improvement, Project E1: Coyote Creek Flood Protection, Project E2: Sunnyvale East and Sunnyvale West Channels Flood Protection, Project E4: Upper Penitencia Creek Flood Protection, Project E5: San Francisquito Creek Flood Protection and Project F8: Sustainable Creek Infrastructure for Continued Public Safety.
The schedule changes were required for a variety of reasons. For example, Project D4.2 Ogier Ponds Separation from Coyote Creek Project schedule was pushed back to align with Project C1: Anderson Dam Seismic Retrofit’s (ADSRP) construction timeline. Construction of D4.2 will not begin until the ADSRP can effectively manage the output flow of the Anderson Reservoir, ensuring a safer and more efficient construction process. The updated timeline expects a three-year construction season. The Safe, Clean Water Program partially funds the project. Similarly, Project E1: Coyote Creek Flood Protection Project (Phase 2) schedule delay in start and completion by one year was influenced by a delay in the construction of the ADSRP because of the extension of the environmental permitting process. This provided greater flexibility regarding the scheduled start of Phase 2, which needs to be implemented by the end of 2028 (FY29), aligning with the completion of the Anderson Dam Stage 2 diversion system. This postponement gives Valley Water additional time to secure all necessary land rights for the Phase 2 project and avoid the increased costs associated with working in only approved areas, ensuring a smoother construction process. Project E2: Sunnyvale East and Sunnyvale West Channels Flood Protection construction start and completion were delayed by a year due to a delay in obtaining regulatory permits.
Adjustments (Text) - Additionally, the project description or benefits text has been adjusted for four projects, namely Project A2: Water Conservation Rebates and Programs, Project D1: Management of Riparian Planting and Invasive Plant Removal, Project D4: Fish Habitat and Passage Improvement, and Project E5: San Francisquito Creek Flood Protection. The text adjustments were primarily to provide additional explanation and greater clarity in response to the IMC recommendations or to provide more current information. Attachment 3 shows the redlined version of the text adjustments, while Attachment 4 shows the clean version with adjusted text.
FY25 Key Accomplishments
Water Supply
Anderson Dam Seismic Retrofit: On February 25, 2025, the Valley Water Board of Directors certified the Final Environmental Impact Report (EIR), approved the engineer’s report for the Anderson Dam Seismic Retrofit Project and approved the environmentally superior alternative described in the EIR.
Water Conservation Rebates and Programs: Valley Water issued 766 rebates totaling nearly $2.2 million to convert more than 960,000 square feet (sq ft) of lawns into low-water-use landscapes, upgrade irrigation equipment and install rainwater capture systems. Of these rebates, the Safe, Clean Water Program provided $876,000 to issue over 450 rebates, successfully converting 876,000 sq ft of lawn to low-water-use plants.
Flood Protection
Coyote Creek Flood Protection Project: Valley Water completed the Coyote Creek Flood Management Measures Project (Phase 1), one of two projects to reduce flood risks along Coyote Creek. The project included the construction of over 8,500 feet of floodwalls along a four-mile stretch between Old Oakland Road and Interstate 280. Phase 1 is part of the Anderson Dam Federal Energy Regulatory Commission Order (FERC) Compliance Project for Anderson Dam Seismic Retrofit and is, therefore, funded by the Water Utility Enterprise Fund. Valley Water also reached a key milestone on the Safe, Clean Water Program-funded Coyote Creek Flood Protection Project (Phase 2) by completing 90% design. On March 11, 2025, the Valley Water Board of Directors certified the Final Environmental Impact Report (EIR).
Upper Llagas Creek Flood Protection Project: In September 2024, Valley Water began constructing Phase 2B, the final phase of the project. In FY25, Valley Water secured up to $80 million in grant funding from the Natural Resources Conservation Service to support Phase 2B construction. Valley Water also completed the construction of Phase 2A in October 2024.
Vegetation Control and Sediment Removal: Valley Water completed 1,988 acres of in-stream vegetation management to reduce flood risk along 200 miles of streams throughout Santa Clara County. In terms of volumes, Valley Water removed approximately 317 cubic yards of vegetation from streams to restore capacity. Additionally, 11 sediment removal projects were completed, removing approximately 14,545 cubic yards of sediment to ensure flood protection projects continue to deliver the protection they were designed to provide. The Safe, Clean Water Program funds 21% of the sediment removal projects.
Stewardship
New Creekside Neighbor Rebate Program: Valley Water launched the Creekside Neighbor Rebate Program, a new initiative designed to support property owners who live alongside local creeks. The program offers rebates of up to $150,000 to help offset the costs of essential creek maintenance and improvement projects, such as bank stabilization (erosion repair), sediment, vegetation, or debris removal and storm drain outfall repair. These efforts support residents taking care of their property and protecting their community. The rebate can be used for qualifying construction and permit costs.
Safe, Clean Water Grants and Partnerships: Valley Water awarded over $2 million in grants, including $1.92 million in the standard grants program, which resumed after a temporary pause to complete the Grants Redesign Project.
Good Neighbor Program: Encampment Cleanup: Valley Water managed 4,321 acres to clean up 697 tons of trash, debris, and hazardous pollutants generated from encampments, reducing the amount of these pollutants entering streams.
Trash Removal: Five Safe, Clean Water projects include trash removal components to reduce and remove contaminants in our local streams and the bay. This work is accomplished not only by Valley Water but with the help of volunteers and grantees. In FY25, 904 tons of trash were removed from local waterways.
Next Steps
Once approved by the Board, the FY25 renewed Safe, Clean Water and Natural Flood Protection Program Annual Report (Annual Report) will be provided to the IMC and made available to the public on Valley Water’s website <https://tinyurl.com/SCWFY25AnnualReport>. The IMC is scheduled to receive the digital Annual Report on November 13, 2025, and hard copies the following week. The IMC is scheduled to convene on December 3, 2025, to discuss and establish the review process and schedule for the IMC review of the FY25 Annual Report.
Once Valley Water’s financial reports are audited, if needed, annual report tables and appendices will be updated with the audited financials and corresponding accomplishments. Depending on the final auditor's opinion, the final audited report is expected to be available in late December 2025 or early January 2026. The updated Annual Report will be provided to the Board and the IMC and posted on the Valley Water website.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice and equity impacts associated with this item.
FINANCIAL IMPACT:
The Annual Report is produced and printed internally and budgeted for in the Safe, Clean Water Implementation Project (26061012).
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.
ATTACHMENTS:
Attachment 1: Safe, Clean Water Program Background
Attachment 2: FY25 Safe, Clean Water Annual Report
Attachment 3: Project Text Adjustments, Redlined
Attachment 4: Project Text Adjustments, Clean
Attachment 5: PowerPoint
UNCLASSIFIED MANAGER: Manager
Luz Penilla, 408-630-2228