BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Conduct a Public Hearing on the Final Mitigated Negative Declaration and Engineer’s Report for the Penitencia Water Treatment Plant Residuals Management Project, Project No. 93234044; Adopt a Resolution Approving the Final Mitigated Negative Declaration and the Mitigation and Reporting Program; Adopt a Resolution Approving the Engineer’s Report; and Approve the Project for the Penitencia Water Treatment Plant Residuals Management Project (San Jose, District 3).
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RECOMMENDATION: Recommendation
A. Open and conduct a Public Hearing on the Final Mitigated Negative Declaration and Engineer’s Report for the Penitencia Water Treatment Plant Residuals Management Project, Project No. 93234044;
B. Close the Public Hearing;
C. Adopt the Resolution APPROVING THE FINAL MITIGATED NEGATIVE DECLARATION AND THE MITIGATION MONITORING AND REPORTING PROGRAM FOR THE PENITENCIA WATER TREATMENT PLANT RESIDUALS MANAGEMENT PROJECT;
D. Adopt the Resolution APPROVING THE ENGINEER’S REPORT FOR THE PENITENCIA WATER TREATMENT PLANT RESIDUALS MANAGEMENT PROJECT; and
E. Approve the Project.
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SUMMARY:
On March 25, 2025, the Board adopted a Resolution setting the time and date for the Public Hearing on the Final Mitigated Negative Declaration (Final MND) and Engineer’s Report to take place on April 8, 2025, for the Penitencia Water Treatment Plant Residuals Management Project (Project). Staff is recommending the Board hold this Public Hearing to consider adoption of a Resolution approving the Final MND and the Mitigation Monitoring and Reporting Program (MMRP, Attachment 2), adoption of a Resolution approving the Engineer’s Report (Attachment 3), and approving the Penitencia Water Treatment Plant Residuals Management Project.
Project Background
The Penitencia Water Treatment Plant (PWTP) is a potable water treatment plant, commissioned in 1974. The objective of the Project is to address age, capacity, efficiency, and reliability issues with the plant’s existing Residuals Management System (RMS) to ensure that the PWTP efficiently and reliably provides potable water to retailers in Valley Water’s service area while meeting applicable regulatory standards. The scope of work for the Project includes improvements to the following components of the RMS: wash water handling and treatment, sludge handling and dewatering, and sedimentation basin sludge withdrawal.
Final Mitigated Negative Declaration
A Draft MND was prepared for the Project in accordance with the California Environmental Quality Act (CEQA), and circulated for public review from September 27, 2024, to October 28, 2024. Comments were received during the public review period and these comments were considered and addressed as appropriate, prior to preparing the Final MND. A Final MND has been prepared (Attachment 1).
The MND determined that the Project could have significant impacts related to dust, exhaust emissions, special status habitat and species (Crotch’s bumble bee and San Francisco dusky footed woodrat), discovery of unknown cultural or paleontological resources, release of hazardous materials from excavation or demolition of structures, construction noise, and vibration from pile drivers. Each of these potential impacts can be reduced through the adoption and incorporation of mitigation measures identified in the MND.
CEQA requires that before approving a project, the lead agency must consider the MND, together with any comments received during the public review process and adopt the MND only if it finds that the project will not have a significant effect on the environment. As concluded in the findings of the Final MND, the Project would not cause any significant adverse effect upon the environment because mitigation measures have been incorporated into the Project to avoid, minimize, and reduce potential impacts to less-than-significant.
When adopting an MND, the lead agency must also adopt a program for reporting on, or monitoring measures to avoid or mitigate significant environmental impacts (Mitigation Monitoring and Reporting Program or MMRP). The Final MND, including the MMRP for the proposed Project, is before the Board for adoption pursuant to CEQA requirements.
Engineer’s Report
Section 12 of the District Act requires the Board to conduct a Public Hearing to consider all written and oral objections to the proposed Project when: 1) the Project is new construction; and 2) the Project is funded by a single or joint zone of benefit. Construction of the proposed Project meets both conditions, and staff has prepared an Engineer’s Report for this Project (Attachment 4) for the purpose of public disclosure. The Notice of Public Hearing (Attachment 5) for the Engineer’s Report was published in accordance with the District Act and posted outside Valley Water’s Offices at 5700 Almaden Expressway, San Jose, California, 95118, and on the Valley Water website at www.valleywater.org.
A Resolution to approve the Engineer’s Report is included as Attachment 3.
Previous Board Actions
On March 25, 2025, the Board adopted a Resolution setting the time and date for the Public Hearing on the Final MND and Engineer’s Report to take place on April 8, 2025, for the Project.
Next Steps
If the Board approves the proposed Project, the future milestones are:
1. Board adoption of plans and specifications, and authorization for construction contract procurement, and
2. Board award of construction contract
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no environmental justice and equity impacts associated with the recommended action for the Penitencia Water Treatment Plant Residuals Management Project. The recommended action is unlikely to or will not result in any significant adverse effect upon the environment because mitigation measures have been incorporated into the Project to avoid, minimize, and reduce potential impacts to less-than-significant; and/or is not associated with an equity opportunity. However, the Public Hearing allows community members to provide input into the decision-making process.
FINANCIAL IMPACT:
The Penitencia Water Treatment Plant Residuals Management Project, Project No. 93234044, is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2025-29 Five-Year Plan and in the FY 2024-25 Adopted Budget. The estimated cost to plan, design, and construct the Project is $95.36 million (with inflation). Based upon current estimates, there are adequate funds in the Project’s Board-Adopted FY 2024-25 budget for planned Project spending during this fiscal year. Funds to cover each subsequent fiscal year anticipated Project costs will be included in the biennial budget process and recommended by staff during the annual fiscal year budget process or through budget adjustment(s), if needed. The Project is funded by the Water Utility Enterprise Fund (Fund 61), with 100% of the costs allocated to Zone W-2 (North County).
CEQA:
A Final MND has been prepared for the Project and is before the Board for approval. The Final MND is available as Attachment 1.
ATTACHMENTS:
Attachment 1: Final MND, including MMRP
Attachment 2: Resolution, Final MND
Attachment 3: Resolution, Engineer’s Report
Attachment 4: Engineer’s Report
Attachment 5: Notice of Public Hearing
Attachment 6: Project Delivery Process Chart
Attachment 7: PowerPoint
*Supplemental Board Agenda Memo
*Supplemental Attachment 1: Appendix H
UNCLASSIFIED MANAGER: Manager
Emmanuel Aryee, 408-630-3074