COMMITTEE AGENDA MEMORANDUM
Capital Improvement Program Committee
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: title
Review List of Initially Validated and Currently Unfunded Capital Projects.
End
RECOMMENDATION: Recommendation
A. Review list of Initially Validated and Currently Unfunded Capital Projects; and
B. Provide feedback as necessary.
Body
SUMMARY:
The annual update of the Capital Improvement Program (CIP) Five-Year Plan includes updates to project plans for all existing capital projects, a Validation Process to review and evaluate potential new capital projects for inclusion in the CIP, and review points for the CIP Committee and decision points for the Board.
CIP Development Process Overview
Each year, Santa Clara Valley Water District (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. This occurs via Master Plan efforts and/or Business Case Reports.
From May through September, staff submits the business case for review by their respective Deputy Operating Officer (DOO) or Deputy Administrative Officer (DAO). If staff’s respective DOO/DAO approves the project, it is submitted to the CIP coordinator. Simultaneously, project managers update their existing capital projects to reflect changes to scope, schedule, and project cost/planned expenditures, which are also subject to approval by the respective DOO/DAO.
Between October and November each year, these newly proposed, initially validated projects will be presented to the CIP Committee and Board, along with a list of currently unfunded projects validated in prior years, for review and comment. Committee and Board feedback will be considered when preparing the funding scenarios for the CIP Preliminary Five-Year Plan.
Initially Validated Unfunded Projects
There are 8 unfunded projects for the Board’s consideration this CIP Development Cycle: three initially validated projects and five previously validated/currently unfunded projects. Project descriptions of each of the Initially Validated Projects are included in the PowerPoint (Attachment 1). Currently unfunded projects that were previously validated are being reevaluated for prioritization within relevant ongoing master plans. For a high-level overview of the Initially Validated Unfunded Projects List, see the table below:
Water Supply - WS
Water Resources Stewardship - WRS
Flood Protection - FP
Annual Process for Development of the CIP Preliminary Five-Year Plan
Project Plans updated annually. Every year, capital project managers update their project plans to reflect changes to project scope, schedule, and cost. In the fall each year, CIP and Finance staff compile data from existing CIP project plans, collect the operational forecast information, and run the financial models.
Staff analysis and recommendations. The CIP Evaluation Team (Chief Executive Officer (CEO), Assistant CEO, Chiefs and Deputies of the divisions initiating, delivering, implementing, and operating capital projects) will meet on November 20, 2026, to consider the Board’s feedback and review the financial models. The Team will determine which, if any, unfunded projects should be recommended for inclusion and whether any of the currently funded capital projects should be recommended for removal, re-scoping/phasing, deferment, or placement on the unfunded list for the next CIP Five-Year Plan being developed.
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:
• Board Priorities
• Asset’s remaining lifespan
• Available funding
• Urgency of investment
CIP Committee review and feedback. Following its review, the CIP Evaluation Team will offer recommendations. Funding scenarios that reflect these recommendations will be presented to the CIP Committee in December for their review and feedback, along with the CIP Preliminary FY 2028-32 Five-Year Plan. In addition, the CIP Committee will receive an overview of significant project plan updates from the prior year’s Board-adopted CIP FY 2027-31 Five-Year Plan.
Board direction. Each January, CIP and Finance staff update the funding scenarios to incorporate staff and CIP Committee recommendations, which will be presented to the full Board during a Funding Scenario Workshop as part of the CIP Preliminary Five-Year Plan and the Groundwater Charges item. Each year, the Board provides direction on capital project funding by approving the CIP Preliminary Five-Year Plan.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with this item.
ATTACHMENTS:
Attachment 1: PowerPoint
UNCLASSIFIED MANAGER:
Manager
Luz Penilla, 408-630-2228