BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Work Study Session on the Capital Improvement Program Preliminary Fiscal Year 2025-29 Five-Year Plan and Preliminary Fiscal Year 2024-25 Groundwater Production Charges.
End
RECOMMENDATION:
Recommendation
A. Review and approve the Capital Improvement Program Evaluation Team’s recommendation to include four new capital projects in the Recommended CIP Preliminary Fiscal Year 2025-29 Five-Year Plan;
B. Review and approve the Recommended CIP Preliminary FY 2025-29 Five-Year Plan; and
C. Discuss and provide direction on the Preliminary FY 2024-25 Groundwater Production Charge analysis.
Body
SUMMARY:
Each year, the Capital Improvement Program (CIP) team prepares its rolling five-year plan, which is presented for Board consideration and approval. The CIP Five-Year Plan describes the Santa Clara Valley Water District (Valley Water) capital investments by type of improvement and provides information on planned capital projects and Valley Water’s intended source(s) of funding.
The annual CIP process, wherein capital project plans are updated to reflect changes to scope, schedule or planned expenditures, works in concert with the biennial budget process, by which funding is appropriated to the projects and the groundwater production charge process, by which water rates are established.
This Work Study Session combines, for Board review, the Recommended CIP Preliminary FY 2025-29 Five-Year Plan (Attachment 1), which reflects the CIP Evaluation Team’s recommendations (referenced below) and consists of a list of projects organized by type of improvement, with estimated costs and proposed funding sources, and the Preliminary FY 25 Groundwater Production Charge Analysis.
Background
As part of the annual CIP process, capital project plans are updated to reflect all changes to scope, schedule, or planned expenditures from the Board Adopted CIP FY 2024-28 Five-Year Plan and referenced as Project Plan Updates (Attachment 2).
Based upon the project plan updates, the total project cost (TPC) increases or decreases (with inflation) from the Board Adopted CIP FY 2024-28 Five-Year Plan by fund are as follows: General Fund (Fund 11) decreased by $1.39M; Watersheds Stream Stewardship Fund (Fund 12) increased by $34.07M; Safe, Clean Water and Natural Flood Protection Program Fund (Fund 26) decreased by $1.37M; Water Utility Enterprise Fund (Fund 61) increased by $1.018B; and Information Technology Fund (Fund 73) increased by $6.458M. These changes, when applied to the Board Adopted CIP FY 2024-28 Five-Year Plan, establish the Baseline for the CIP Preliminary FY 2025-29 Five-Year Plan and serve as a starting point for financial analysis. The Baseline numbers are based solely on the project plan updates and do not reflect any recommended changes.
In concert with the review of the Recommended CIP Preliminary FY 2025-29 Five-Year Plan, staff is seeking Board input on the preliminary analysis to incorporate into the development of the groundwater production charge recommendation. The groundwater production charge analysis includes a water demand projection, a discussion of key capital project funding, and several scenarios for Board consideration.
Capital Investments Not Included in the CIP
Not included in the Recommended CIP Preliminary FY 2025-29 Five-Year Plan are Valley Water contributions to water infrastructure capital investments being led by external agencies. While not included in the CIP, these investments are being evaluated through the development of the Water Supply Master Plan (WSMP) 2050 and budgeted and forecasted through operating projects. They are also included and reflected in the financial modeling that is analyzed during the development of the Recommended CIP Preliminary FY 2025-29 Five-Year Plan. These investments include:
1. Los Vaqueros Reservoir Expansion Project
2. B.F. Sisk Dam Raise and Reservoir Expansion Project (Staff recommends that this Project be included in the baseline for financial modeling purposes)
3. Delta Conveyance Project
Additionally, to ensure consistency with Valley Water’s various planning efforts, CIP staff continues to coordinate with staff leading the development of the WSMP 2050. The WSMP 2050 assumes that capital projects, which are included in the Recommended CIP Preliminary FY 2025-29 Five-Year Plan and intended to repair/replace existing water supply infrastructure are part of its baseline for identifying future water supply needs. The WSMP 2050 baseline assumes no new investments but does assume completion of local dam seismic retrofits by 2035, achieving long-term water conservation goals, and maintaining Valley Water assets.
Initially Validated Unfunded Projects
Each year, Valley Water staff can submit new projects to be considered for inclusion in Valley Water’s CIP. For each potential new project, staff develops a business case to compare capital, non-capital, and non-asset alternative solutions; evaluates the lifecycle costs of these solutions; and identifies a recommended solution that minimizes lifecycle cost while balancing service levels and risk.
Between October and November each year these newly-proposed, initially validated projects are presented to the CIP Committee and Board, along with a list of currently unfunded projects, which have been validated during prior years, for review and comment. CIP Committee and Board feedback is then considered when preparing the recommended scenarios for the development of the CIP Preliminary Five-Year Plan.
During this year’s cycle there were two currently validated unfunded projects and six newly-proposed, initially validated projects that were considered.
Newly Implemented Funding Categories
Funding Categories have been developed to enhance the Board-approved Funding Filters tool. This is in response to recent recommendations from the CIP Performance Audit and funding constraints due to rising capital costs.
Categories 1 and 2 focus on further prioritizing existing infrastructure projects based on their Business Risk Exposure (BRE) scores as assigned in Valley Water’s Asset Management Plan (AMP). Category 3 applies to existing infrastructure projects that have a lower risk of failure, as well as new infrastructure projects.
Further details of the three Categories are as follows:
1. Category 1: ≥ 19 points
Category 1 Projects meet Valley Water’s objectives to repair/replace its existing infrastructure within certain timeframes, targeting the inclusion of projects with an AMP BRE score that is ≥ 88 and have public health and safety benefits. In addition, projects that are currently in the construction phase or externally mandated (required by law, regulation, federal order, lawsuit, etc.) are automatically included in Category 1.
2. Category 2: 13-18.5 points
Category 2 Projects meet Valley Water’s objectives to repair/replace its existing infrastructure within certain timeframes, targeting the inclusion of projects with an AMP BRE score that is between 76-87 and have public health and safety benefits.
3. Category 3: ≤ 12.5
Category 3 Projects have a lower risk of failure and an AMP BRE score of ≤ 75, which includes existing infrastructure projects and new infrastructure projects, as identified/prioritized in Valley Water’s Master Plans and Program Plans. In addition, small capital improvement projects and placeholder projects are automatically included in Category 3.
Valley Water’s CIP Five-Year Plan includes projects that meet the criteria for all three Categories, all of which are critical to meeting Valley Water’s mission. In alignment with Ends Policies (goals and objectives for accomplishing Valley Water’s Mission), the Board may approve the funding of projects in any category.
Attachment 3 provides an overview of the Funding Categories for all capital projects, by Fund, with TPCs and schedules updated to reflect the project plan updates detailed in Attachment 1. The CIP Evaluation Team reviewed the Funding Categories to help inform the development of recommendations for Board consideration.
Further, each of the Initially Validated/Unfunded existing infrastructure projects has been ranked based on points received according to the funding filters and BRE scores. New infrastructure projects are automatically placed in Category 3, as referenced above.
Development of the CIP Preliminary FY 2025-29 Five-Year Plan: CIP Evaluation Team Recommendations
The CIP Evaluation Team (Chief Executive Officer (CEO), Assistant CEO, Chiefs and Deputies of the divisions initiating, delivering, implementing, and operating capital projects) meets in November of each year to consider the CIP Committee and Board feedback received, review the financial models, and determine which, if any, initially validated or unfunded projects should be recommended for inclusion in the CIP.
To ensure Valley Water’s high-priority business needs are met in adherence to Board policy, the CIP Evaluation team reviews the projects based upon:
1. Board Priorities
2. Asset’s remaining lifespan and Business Risk Exposure
3. Available funding/staff resources
4. Urgency of investment
Based upon the outcome of its review, the CIP Evaluation Team provides recommendations regarding whether the newly proposed capital projects should be funded in the CIP Preliminary FY 2025-29 Five-Year Plan or remain on the unfunded list. Shown on the following page in Table 1 and included as Attachment 4, are the CIP Evaluation Team’s recommendations regarding the Initially Validated and Unfunded Projects.
Table 1: CIP Evaluation Team Recommendations for
FY 25 Initially Validated and Unfunded Projects
* Projects identified through planning under the Sustainable Creek Infrastructure Program (Safe, Clean Water - Project F8)
** San Jose Purified Water Project - Phase 2 (Full-Scale Facility) pending development of the Validation Study through the Phase 1 Demonstration Facility to meet Direct Potable Reuse requirements
Recommended Funding Scenarios for Consideration
The CIP Evaluation Team reviewed the Baseline CIP Preliminary FY 2025-29 Five-Year Plan increases/decreases resulting from the project plan updates (referenced on page 2 of this memo) and the corresponding fund models. Based on the impact these changes had on the financial health of Funds 12, 26, and 61, and taking into consideration feedback received from the CIP Committee and the Board, the CIP Evaluation Team has prepared recommendations for each fund. These recommendations have been incorporated into the Recommended CIP Preliminary FY 2025-29 Five-Year Plan for the Board’s review and approval (Attachment 1).
Fund 12 Recommended Scenario = Baseline, with:
|
(-) $98.8M Reduction |
Removal of Lower Llagas Creek Capacity Restoration Project to Unfunded List in FY 25 |
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(+) $2.2M Transfer Out |
Transfer into Fund 26 for F8: Sustainable Creek Infrastructure - Regnart Creek Rehabilitation Project |
|
(+) $8.9M New Project |
Coyote 10B Freshwater Wetlands Project recommended for inclusion from the Initially Validated Project List |
Fund 26 Recommended Scenario = Baseline, with:
|
(+) $9.0M New Project |
F8: Sustainable Creek Infrastructure - Regnart Creek Rehabilitation Project recommended for inclusion from the Initially Validated Project List |
|
(-) $2.2M Transfer In |
Transfer from Fund 12 into Fund 26 for F8: Sustainable Creek Infrastructure - Regnart Creek Rehabilitation Project |
|
(-) $9.9M Transfer In |
Transfer from Fund 61 into Fund 26 for IRP2 Project A3 cost increases above funding allocation |
Fund 61 Recommended Scenario = Baseline, with:
|
Updates to existing capital projects: |
|
(+) $20M Increase |
$20M for Palo Alto Purified Water Project* |
|
(+) $9.9M Transfer Out |
Transfer from Fund 61 into Fund 26 for IRP2 Project A3 cost increases above funding allocation |
|
* The costs are estimated and may also be distributed to the new San Jose Purified Water Project - Phase 1. This will be determined after the Board’s direction on January 9, 2024, and will be updated to reflect the final processed project plan updates for the presentation of the CIP Draft FY 2025-29 Five-Year Plan on February 27, 2024. |
|
Initially validated capital projects recommended for funding in CIP: |
|
(+) $10.4M New Project |
SMPIP Upgrades Phase 1 recommended for inclusion from the Initially Validated Project List |
|
(+) $50M New Project |
San Jose Purified Water Project - Phase 1 (Demonstration Facility) recommended for inclusion from the Initially Validated Project List |
New Project Plan Updates/Project Plan Update Revisions to Funded Capital Projects
Since the project plan updates submittal deadline, there have been new project plan updates identified. The new changes below were not finalized in time for the December 11, 2023, CIP Committee Meeting, but since then have been incorporated into the Baseline CIP Preliminary FY 2025-29 Five-Year Plan.
A list of the new project plan updates is provided below and incorporated into Attachment 2:
1. Almaden-Calero Canal Rehabilitation (91854003)
2. STWTP Filter Media Replacement (93284013)
3. South County Recycled Water Pipeline - Short-Term Phase 1B (91094009)
4. Software Upgrades & Enhancements (73274008)
5. Small Capital Improvement Projects Forecast Revisions
6. Administrative Project Plan Updates
Additional Pending Project Plan Updates/Project Plan Update Revisions to Funded Capital Projects
Since the project plan updates submittal deadline, there have been new project plan updates identified. The pending changes have not been finalized and therefore are not incorporated into the Baseline CIP Preliminary FY 2025-29 Five-Year Plan. The changes will be incorporated for the February 27, 2024, Board Meeting.
A list of the projects with pending changes is provided below:
1. Palo Alto Purified Water Project (91304001)
2. Coyote Creek Chillers (91864008)
3. Upper Llagas Creek Flood Protection - LERRDs (26174051)
4. Small Capital Improvement Projects Forecast Revisions
5. Administrative Project Plan Updates
Projects Planned for Closure
Additionally, seven (7) projects in the Board Adopted CIP FY 2024-28 Five-Year Plan are anticipated to be completed and/or closed out by June 2024, as listed below:
1. Cross Valley Pipeline Extension (91864010)
2. Coyote Warehouse (91234011)
3. Almaden Lake Improvements (26044001)
4. RWTP Residuals Remediation (93294058)
5. Permanente Creek, SF Bay to Foothill Expressway (26244001)
6. Berryessa Creek, Lower Penitencia Creek to Calaveras Blvd. - Phase 1 (40174001)
7. IT Disaster Recovery (73274001)
Summary of Groundwater Production Charge Analysis
Staff has prepared the preliminary FY 2024-25 groundwater production charge analysis, which includes several scenarios for Board review. Staff is seeking Board input on the preliminary analysis to incorporate into the development of the groundwater production charge recommendation.
The groundwater production charge reflects the benefit of Valley Water activities to protect and augment groundwater supplies and is applied to water extracted from the groundwater basin in Zones W-2, W-5, W-7, and W-8. Zone W-2 encompasses the Santa Clara groundwater subbasin north of Metcalf Road or the North County. Zone W-5 overlays the Llagas subbasin from northern Morgan Hill south to the Pajaro River. Zone W-7 overlays the Coyote Valley south of Metcalf Road to northern Morgan Hill, and W-8 encompasses the area below Uvas and Chesbro Reservoirs.
The groundwater production charge recommendation will be detailed in the 53rd Annual Report on the Protection and Augmentation of Water Supplies that staff plans to provide to the Clerk of the Board on February 23, 2024. The public hearing on groundwater production charges is scheduled to open on April 9, 2024. It is anticipated that the Board will set the FY 2024-25 groundwater production charges by May 14, 2024, and those charges will become effective on July 1, 2024.
The FY 2024-25 groundwater production charge and surface water charge setting process will be conducted consistent with the District Act requirements, and Board Resolutions 99-21 and 12-10. (Attachments 5 and 6).
Water Use Assumptions
District managed water use for FY 2022-23 is estimated to have been approximately 197,600 acre-feet (AF), roughly 6,100 AF higher than budgeted due to a slight increase in water use at the conclusion of the drought. Water use is budgeted slightly higher for FY 2023-24 at 207,000 AF. In FY 2024-25 and beyond, water usage has been adjusted based on trends from the last drought (2014-2017). Returning to “normal” water use is projected by FY 2025-26, with water usage projected to be 222,000 AF for FY 2024-25.
Groundwater Production Charge Projection Scenarios
Staff has prepared an initial baseline groundwater production charge projection scenario for Board review, with several additional scenarios including a lower water use scenario and scenarios reflecting a range of assumptions for the Pacheco Reservoir Expansion Project and the Palo Alto Purified Water Project. Staff can model additional scenarios for the Board as needed.
For the baseline scenario, the increase in the North County Zone W-2 Municipal and Industrial (M&I) groundwater production charge is 14.5% for FY 2024-25. In the South County, for the FY2024-25 baseline scenario, increases in the M&I groundwater production charge projections are 6.5% for Zone W-5; 14.0% for Zone W-7; and 8.0% for Zone W-8.
The overall impact of the preliminary analysis baseline scenario for FY 2024-25 on the average household would be an estimated increase of $9.85 per month in North County, $1.21 per month in South County Zone W-5, $3.17 per month in South County in Zone W-7, and $1.10 per month in South County in Zone W-8.
Staff assumes the continuation of the Contract Treated Water Surcharge at $115/AF to maintain alignment with the cost that retailers would incur to pump water from their wells.
Staff has prepared the following scenarios for Board consideration:
Scenario 1) Baseline with Return to Prior Projected Water Use by FY26:
This scenario includes the following projects and assumptions:
1. Conservation: voluntary conservation continues, with water use returning to prior projections by FY 2025-26; FY2024-25 water use is projected at 222 thousand acre-feet (kAF)
2. Anderson Reservoir leveraging WIFIA loan (up to 49% of TPC)
3. Pacheco Reservoir Expansion Project (PREP) with $504M Proposition 1 grants, WIFIA loan (up to 49% of TPC) and Partnership Participation at 35% of TPC
4. Purified Water Expansion operational by FY28, assumes 100% debt financed by P3 entity with a $100M reduction in total project costs (TPC) combined with $183M in potential grant funding for the Palo Alto Purified Water Project
5. Delta Conveyance State Water Project (SWP) portion at 3.23%
6. Los Vaqueros (Transfer Bethany Pipeline) with up to 50 kAF storage
7. B.F. Sisk Dam Raise and Reservoir Expansion Project participation with up to 60 kAF storage (Staff recommended assumption for Baseline scenario)
8. Master Plan Project Placeholder - Assumes $326M in anticipated costs from FY 26 to FY 34 for new pipelines, pipeline rehabilitations, treatment plant upgrades, and SCADA implementation projects.
9. Agricultural rates set at or below 10% of the lowest groundwater benefit zone M&I rate (Zone W-8)
Scenario 2) Baseline with Lower Water Use:
Rebound from the recent drought is slower than projected; water use is projected at 208 kAF in FY 2024-25.
Scenario 3) Baseline excluding Pacheco Reservoir Expansion Project:
Includes the same projects and assumptions as Scenario 1; excludes Pacheco Reservoir Expansion Project.
Scenario 4) Baseline with 0% Partnership Participation Funding for Pacheco Reservoir Expansion Project:
Includes the same projects and assumptions as Scenario 1.
Scenario 5) Baseline excluding the Palo Alto Purified Water Project (PAPWP), plus preliminary projection for Dam Safety Program:
Includes the same projects and assumptions as Scenario 1; excludes the PAPWP delivered via P3 entity; includes a preliminary cost projection for the Dam Safety Program (Almaden, Calero, Coyote and Guadalupe).
Scenario 6) Baseline excluding Palo Alto Purified Water Project (PAPWP), plus preliminary projection for Dam Safety Program, plus preliminary projection for San Jose Purified Water Project (SJPWP) - Phase 2 (Full-Scale Facility):
Includes the same projects and assumptions as Scenario 1; excludes the PAPWP delivered via P3 entity; includes a preliminary cost projection for the Dam Safety Program (Almaden, Calero, Coyote and Guadalupe); includes a preliminary cost projection for SJPWP - Phase 2 (Full-Scale Facility).
Staff can model additional scenarios for the Board as needed.
Other Assumptions
All scenarios assume the continued practice of relying on the State Water Project (SWP) Tax to pay for 100% of the SWP contractual obligations. Pursuant to Water Code Section 11652, Valley Water, whenever necessary, is required to levy on all property in its jurisdiction not exempt from taxation, a tax sufficient to provide for all payments under its SWP contract with the California Department of Water Resources (DWR). All scenarios assume setting the SWP Tax for FY 2024-25 at $28M. The SWP Tax for the average household in Santa Clara would be about $42 per year.
A Drought Reserve was established in FY 2015-16 to help minimize future rate impacts and complements the Supplemental Water Supply Reserve. The reserve ($10M) was used fully in FY 2022-23 due to the ongoing drought. The staff analysis assumes that future reserve levels gradually build back up to $20M over subsequent years beginning in FY 2025-26.
All scenarios assume Water Utility operations cost of $289.4M in FY 2024-25 versus the FY 2023-24 adopted budget of $244.1M.
The preliminary analysis does not include unfunded capital projects or additional unfunded operations cost needs identified by staff.
Summary of Groundwater Production Charge Analysis Issues
Staff is seeking Board direction to be incorporated into the Report on Protection and Augmentation of Water Supplies (PAWS) scheduled to be filed with the Clerk of the Board on February 23, 2024.
CIP Board Committee
The Board established a CIP Committee to review and discuss in greater detail the various processes and information used to prepare an annual update to the CIP Five-Year Plan. In 2023, the CIP Committee was comprised of Director Nai Hsueh (CIP Committee Chair), Director Tony Estremera (CIP Committee Vice Chair), and Director Jim Beall.
The CIP Committee met monthly in 2023 to review and discuss information related to capital projects, the development of the CIP, and to provide feedback to staff and recommendations to the full Board, as required.
CIP Committee Review of the CIP Preliminary FY 2025-29 Five-Year Plan
On December 11, 2023, the CIP Committee reviewed the Baseline CIP Preliminary FY 2025-29 Five-Year Plan. The CIP Committee focused its review on the CIP Evaluation Team’s recommended funding scenarios to support the overall financial health of Funds 12, 26, and 61.
In reviewing the project plan updates (Attachment 2), the corresponding financial analysis, and the CIP Evaluation Team’s recommendations for Funds 12, 26, and 61, the CIP Committee provided feedback, but made no additional recommendations for the Board’s consideration regarding the CIP Preliminary FY 2025-29 Five-Year Plan. Based on the CIP Committee’s feedback, the Recommended CIP Preliminary FY 2025-29 Five-Year Plan is presented for the Board’s review and approval.
Review and Approval Process for the CIP FY 2025-29 Five-Year Plan
Receiving Board direction regarding the Recommended CIP Preliminary FY 2025-29 Five-Year Plan (Attachment 1) will allow staff to proceed with preparing the CIP Draft FY 2025-29 Five-Year Plan.
The CIP Draft FY 2025-29 Five-Year Plan is scheduled to be presented to the Board at its meeting on February 27, 2024. At that time, staff will recommend that the Board review and authorize the release of the CIP Draft FY 2025-29 Five-Year Plan for a 60-day public review period. After the public review and responses to comments are completed, a Resolution to Adopt the CIP Final FY 2025-29 Five-Year Plan will be presented to the Board in May 2024 for approval in conjunction with the FY 2024-25 biennial budget.
The proposed changes to the CIP are summarized by Fund and will be presented in the PowerPoint presentation (Attachment 7).
Additionally, to ensure consistency with Valley Water’s various planning efforts, CIP staff continues to coordinate with staff leading the development of the Water Supply Master Plan 2050, One Water Plan, and Watersheds and Water Utility Operations and Maintenance Plans. These plans assume that capital projects included in the Five-Year Plan that repair/replace existing infrastructure are baseline projects for inclusion in their planning efforts. If necessary, these plans will be updated to align with the CIP FY 2025-29 Five-Year Plan, as adopted by the Board.
Communications and Community Outreach
Informing members of the community about the CIP efforts, process and program details remains an integral part of Valley Water’s communications and public engagement. Staff regularly invites community members to participate in the CIP public comment period, the CIP public hearings, and other milestone dates through frequent social media posts. Staff promotes monthly CIP committee meetings on Nextdoor, Facebook and Twitter (X) and boosts them on Facebook once the meeting agenda is posted online, typically within the week leading up to those scheduled meetings.
In early December 2023, a detailed blog about the CIP Five-Year Plan and process was shared with the community. A three-blog series to highlight projects within the CIP launched in January. These blogs will be posted on valleywaternews.org and shared in Valley Water’s newsletter, Facebook, and Twitter (X). Staff also posts on the CIP webpage and project pages about how to submit public comments and other reminders about ways community members can participate in the CIP process.
Additionally, Valley Water’s public events, including scheduled Speakers Bureau presentations, serve as venues for staff to remind community members about the CIP efforts and how they can participate in that process. Staff supports all Board-approved CIP efforts with year-round community engagement. CIP project outreach includes the distribution of information through mailings, social media updates, email blasts, Nextdoor notifications, hosting public meetings, and updating project webpages with details about current project progress. On average, staff post about CIP projects approximately five times per month, across all our platforms.
ENVIRONMENTAL JUSTICE IMPACT:
While individual capital projects may have environmental justice impacts and conduct outreach and engagement to impacted communities, which will be reported to the Board accordingly, the Recommended CIP Preliminary FY 2025-29 Five-Year Plan and the FY 2024-25 Groundwater Production Preliminary Analysis Work Study Session has no environmental justice impact.
The Recommended CIP Preliminary FY 2025-29 Five-Year Plan is a projection of Valley Water’s capital funding for planned capital projects. Its purpose is to document planned capital projects to help integrate Valley Water work with the larger community by aligning Valley Water planning with other local agency planning efforts. The CIP Preliminary Five-Year Plan documents any changes to capital projects’ planned funding and expenditures and is updated and brought to the Board of Directors for approval each year in January.
Each February, upon the Board’s direction, to ensure meaningful engagement of all Santa Clara County communities in the decision-making process, staff provides a copy of the CIP Draft Five-Year Plan to Santa Clara County, its cities, and land use agencies and publishes a public notification for a review before the Board of Directors adopts the Resolution to Adopt the CIP Five-Year Plan in May.
The CIP is thus produced each year in collaboration with government, academic, private, non-governmental, and non-profit organizations, as well as diverse and disadvantaged communities, and as such, adheres to the Board’s General Principles and Ends Policies, which are integral in ensuring that Valley Water meets its mission.
FINANCIAL IMPACT:
While there is no direct financial impact associated with the recommended action to approve the Recommended CIP Preliminary FY 2025-29 Five-Year Plan, the CIP Five-Year Plan presents a funding plan that shows the intended source of funds for each project. Valley Water’s FY 2024-25 proposed biennial budget will include the approved projects in the first year of the CIP FY 2025-29 Five-Year Plan.
Furthermore, this preliminary analysis of the groundwater production charges does not have any immediate financial impact, however, the adopted groundwater production charges will affect the future finances of the Water Utility Enterprise.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Recommended CIP Prelim FY 2025-29 5-Year Plan
Attachment 2: Project Plan Updates
Attachment 3: Capital Project Funding Categories
Attachment 4: Initially Validated/Unfunded Recommendations
Attachment 5: SCVWD Resolution No. 99-21
Attachment 6: SCVWD Resolution No. 12-10
Attachment 7: PowerPoint
*Handout 3.9-A: Revised PowerPoint
*Handout 3.9-B: Revised PowerPoint
*Handout 3.9-C: Revised Project Plan Updates
UNCLASSIFIED MANAGER:
Manager
Luz Penilla, 408-630-2228
Darin Taylor, 408-630-3068