BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Adopt a Resolution Authorizing the Santa Clara Valley Water District to Submit a Grant Application to the United States Economic Development Administration Fiscal Year 2025 Disaster Supplemental Grant Program for $19,500,000 and, if Awarded, Delegate Authority to the Chief Executive Officer to Negotiate and Execute the Grant Agreement, and any Amendments Thereto, for the Anderson Dam Seismic Retrofit Project, Project No. 91864005, Stage 2 Diversion Project.
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RECOMMENDATION: Recommendation
A. Adopt the RESOLUTION AUTHORIZING SUBMISSION OF A GRANT APPLICATION TO THE UNITED STATES ECONOMIC DEVELOPMENT ADMINISTRATION (EDA) GRANT PROGRAM FOR $19,500,000 AND, IF AWARDED, DELEGATE AUTHORITY TO THE CHIEF EXECUTIVE OFFICER, TO NEGOTIATE AND EXECUTE A GRANT AGREEMENT AND ANY AMENDMENTS THERETO, FOR THE ANDERSON DAM SEISMIC RETROFIT PROJECT STAGE 2 DIVERSION PROJECT, PROJECT NO. 91864005;
B. Delegate authority to the Chief Executive Officer (CEO) to submit a grant application and, if awarded, to negotiate and execute a Grant Agreement with Economic Development Administration (EDA) to support the Anderson Dam Seismic Retrofit Project (ADSRP) Stage 2 Diversion Project, and any amendments thereto provided all grant requirements can be met;
C. Delegate authority to the CEO to sign and submit invoices to EDA for grant fund reimbursements to be made pursuant to the Grant Agreement; and
D. Delegate to the CEO, such other authority as needed, to provide management and support services required for the performance of the work and administration, pursuant to the Grant Agreement, as deemed necessary and appropriate.
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SUMMARY:
The ADSRP Stage 2 Diversion Project is a key element of the overall seismic retrofit effort. The project includes the construction of new facilities and improvements to existing infrastructure to safely convey reservoir inflows during dam reconstruction and to provide long-term emergency drawdown capability. Through this application, Santa Clara Valley Water District (Valley Water) seeks $19,500,000 in EDA funding over a four-year period to support implementation of the ADSRP Stage 2 Diversion Project.
The EDA FY25 Disaster Supplemental Grant Program provides approximately $1.45 billion to help communities rebuild and transform local economies after major natural disasters declared in 2023 and 2024. Administered by the U.S. Economic Development Administration, under the U.S. Department of Commerce, it offers rolling deadlines and grants ranging from $100,000 to $50 million, depending on the chosen project pathway; readiness, implementation, or industry transformation. EDA grants are focused on economic impacts and the effects of disasters on investment, hiring, and other regional economic indicators.
Traditional disaster metrics like residential effects and injuries are not used in this grant, but data like Worker Adjustment and Retraining Notification (WARN) Notices and Gross Domestic Product (GDP) are. As with all Federal grants under the current administration, applications must score well on the given criteria and pass inspection by the appropriate political appointee in order to be awarded.
Staff recommends the Board authorize submittal of a grant application to the EDA under its Disaster Supplemental Grant Program for the Anderson Dam Seismic Retrofit Project (ADSRP), Stage 2 Diversion Project. Although applications are accepted on a rolling basis, staff is targeting submission by July 14, 2026.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice Impacts associated with this action. Seeking outside funding to provide support for the Project could result in additional water conservation and enhanced water supply options for all residents of Santa Clara County.
FINANCIAL IMPACT:
The preliminary construction cost estimate for the Project is $1.47 Billion; the Disaster Supplemental Grant Program would reimburse up to $19,500,000 of total Project costs over an approximate 4-year period.
Anderson Dam Seismic Retrofit Project, Project No. 91864005, is included in the FY 2026-27 Adopted Budget. There are adequate funds in the Project’s FY 2026-2027 Adopted Budget to cover the anticipated matching funds required should the grant be awarded. Funds to cover expenses in subsequent fiscal years expenses will be recommended by staff during the biennial budget process through budget adjustment(s).
CEQA:
The recommended action has satisfied the requirements of the California Environmental Quality Act (CEQA) through certification of an Environmental Impact Report (EIR).
ATTACHMENTS:
Attachment 1: Resolution
Attachment 2: Project Location Map
Attachment 3: Project Location Map, Stage 2
*Handout 4.1-A: PowerPoint
UNCLASSIFIED MANAGER: Manager
Angie Perkins-Haslam, 408-630-2165