COMMITTEE AGENDA MEMORANDUM
Board Policy and Monitoring Committee
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: title
Review Proposed Revisions to the Key Performance Indicators for Projects E5, D1, F3, and F6 of the Safe, Clean Water and Natural Flood Protection Program.
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RECOMMENDATION: Recommendation
A. Review and provide input on staff’s proposed revisions to the Key Performance Indicators for Projects E5, D1, F3, and F6 of the Safe, Clean Water and Natural Flood Protection Program; and
B. Recommend that staff’s proposed revisions be presented to the full Board for approval as shown below in strikethrough and red font.
Body
SUMMARY:
In November 2020, Santa Clara County voters approved Measure S, renewing Valley Water’s Safe, Clean Water and Natural Flood Protection Program (SCW Program or Program). This measure provides continued funding through a special parcel tax for projects delivering safe water, natural flood protection, and environmental stewardship. The SCW Program, effective July 1, 2021, replaced the 2012 Safe, Clean Water and Natural Flood Protection Program in its entirety, carrying forward funding for previously identified capital projects and replacing other projects with comparable initiatives.
The Program addresses six community priorities:
• Priority A: Ensure a Safe, Reliable Water Supply
• Priority B: Reduce Toxins, Hazards, and Contaminants in Our Waterways
• Priority C: Protect Our Water Supply and Dams from Earthquakes and Other Natural Disasters
• Priority D: Restore Wildlife Habitat and Provide Open Space
• Priority E: Provide Flood Protection to Homes, Businesses, Schools, Streets, and Highways
• Priority F: Support Public Health and Public Safety for Our Community
Each priority includes specific operational and capital projects, along with associated Key Performance Indicators (KPIs). The KPIs enable Valley Water to monitor progress of specific projects, identify potential issues, and maintain accountability. As the Program progresses, adjustments or modifications to the projects and sometimes the KPIs may be necessary due to inflation, regulatory changes, or evolving project conditions. Valley Water follows a Board-approved change control process for implementing any adjustments and modifications to the Program, which was last updated by the Board on February 24, 2026. Adjustments are changes to the Safe, Clean Water Program’s project text or funding allocation that do not impact the delivery of any project KPI, or changes to a project schedule. Adjustments may include change(s) to a KPI when the purpose of such change(s) is to clarify the project KPI to be consistent with the applicable project description in the approved Program. Modifications are changes to project description, project KPI, or funding allocation that impact the delivery of any project KPI.
SCW Program Performance Audit
To ensure accountability and transparency to voters, Measure S requires the Valley Water Board of Directors to obtain an independent professional audit of the SCW Program at least once every five years. Although an independent audit is required at least every five years, the Independent Monitoring Committee (IMC) requested an earlier review of the Program, and the Board concurred.
PMA Consultants (Auditor) conducted the independent audit, which assessed Program implementation during its first three years and evaluated governance, compliance, transparency, and progress toward meeting the Program’s priorities and KPIs.
On November 12, 2025, the Board received the Safe, Clean Water Performance Audit Report (Audit Report), covering the period from July 1, 2021, through June 30, 2024 (Attachment 1). The audit report includes nine findings, two of which provide recommendations for Valley Water to evaluate whether to modify the KPIs for several projects to ensure that they are financially sustainable, remain aligned with current project activities, and that their descriptions clearly articulate the project’s scope and deliverables. At the November 12 meeting, the Board directed the Chair to work with the CEO to identify and assign to an appropriate Board committee the task of reviewing the Auditor’s findings and evaluating whether any KPI revisions are necessary. The Board Policy and Monitoring Committee (BPMC) was assigned to first review staff’s proposed revisions to project KPIs determined to be appropriate in response to the Audit Report before they are presented to the full Board.
Below is a summary of staff’s evaluation and recommendations in response to the independent audit findings relating to KPIs.
Audit Report Finding #7: Project E5 - San Francisquito Creek Flood Protection, San Francisco Bay to Upstream of Highway 101 - Palo Alto
Auditor’s Finding
In Finding 7, the Auditor noted that the KPIs for Project E5 are misaligned with Valley Water’s role and authority because the “KPI holds Valley Water accountable for delivering a specific community outcome (protecting parcels from a 70-year flood event), yet Valley Water no longer has the direct control or authority to ensure this outcome is achieved” and the “KPI, as currently worded, does not accurately reflect Valley Water’s role as a funding partner.” The current KPIs for Project E5 are:
1. Preferred project with federal, state and local funding: Protect more than 3,000 parcels by providing 1% (100-year) flood protection.
2. With state and local funding only: Protect approximately 3,000 parcels by providing 1% (100-year) flood protection downstream of Highway 101, and approximately 1.4% (70-year) protection upstream of Highway 101.
Based on its findings, the Auditor recommended that Valley Water re-evaluate the KPI for Project E5 and consider options for shifting the KPI from an outcome-based metric to one that measures Valley Water’s specific, controllable contributions, such as a funding or partnership-based deliverable.
Staff’s Evaluation and Proposed Revisions to the KPIs
Staff agrees that Valley Water is not the lead agency responsible for delivery of Project E5. The project description makes clear that the project is sponsored by the San Francisquito Creek Joint Powers Authority (SFCJPA), of which Valley Water is a member agency, in partnership with the U.S. Army Corps of Engineers.
However, at the request of the SFCJPA, due to significant regulatory requirements and construction complexities, Valley Water led construction of the San Francisco Bay to Highway 101 portion of the project, which provided 1% flood protection to parcels in Palo Alto and ecosystem benefits to neighboring communities. The SFCJPA decided that because of Valley Water’s expertise in capital project delivery, it was the member agency best suited to lead this effort. Construction of this portion of the project (Reach 1) was completed in 2019.
Nevertheless, with only one seat on the five-member SFCJPA Board, Valley Water’s control over the project continues to be related to its financial contributions as the auditor accurately noted.
Since Valley Water has fulfilled its funding obligations required in KPI#1 for Reach 1, but no federal funding is available at this time to support the delivery of KPI#1 for Reach 2, staff recommends removing KPI#1 and revising KPI#2 to allow flexibility as the SFCJPA continues to design and plan the implementation of the remainder of the project. To align with the Auditor’s recommendation that KPIs for this project should focus on deliverables within Valley Water’s control, staff also proposes revising KPI#2 to focus on Valley Water’s funding contributions rather than project development and delivery and making clear in the KPI that Valley Water’s financial contributions should be commensurate with the value of the benefits that the project will provide for Santa Clara County. Below are staff’s recommended revisions to the KPIs:
1. Preferred project with federal, state and local funding: Protect more than 3,000 parcels by providing 1% (100-year) flood protection.
2. With state and local funding only: Protect approximately 3,000 parcels by providing 1% (100-year) flood protection downstream of Highway 101, and approximately 1.4% (70-year) protection upstream of Highway 101. Provide the San Francisquito Creek Joint Powers Authority a portion of funds commensurate with the project’s benefits to Santa Clara County, to provide flood protection along San Francisquito Creek.
Because these proposed revisions involve the removal of a KPI and a clarification of Valley Water’s role from implied project lead to funding contributor, both of which arguably impact the delivery of a KPI, they meet the definition of a “modification” in the current Change Control Process. Consequently, a public hearing is required to formalize these updates.
Audit Report Finding #9: Project D1 - Management of Riparian Planting and Invasive Plant Removal Project and Project F3 -- Flood Risk Assessment Studies
Auditor’s Finding
In Finding 9, the Auditor identified two projects where existing KPIs do not fully reflect project activities that are currently undertaken. The Auditor noted that the KPIs for these two projects could be enhanced for clarity and scope to better align with current project activities and deliverables. The first is Project D1, in which its KPI#3 focuses exclusively on Arundo donax, failing to credit Valley Water for the removal of other high-priority invasive species. The second project is Project F3, in which its KPI#2 references FEMA standards, which could be misinterpreted as requiring Valley Water to produce an official FEMA regulatory map, when the primary deliverable within Valley Water’s control is a planning map for Valley Water for internal use.
Staff’s Evaluation and Proposed Revision to Project D1, KPI#3
Current Project D1, KPI#3 reads: "Remove 25 acres of Arundo donax throughout the county over a 15-year period." This current language does not reflect the broader Project D1 description, which states that the project “includes targeted control of especially damaging non-native, invasive plant species such as Arundo donax throughout the county.” While the project description cites Arundo donax as a primary example, it was never intended to be the sole metric for success. Restricting the KPI to a single species overlooks the essential work performed to control other high-priority invasive plants.
To better reflect the project’s objective of comprehensive invasive species management, staff recommends the following revision to KPI#3:
“Remove Targeted control of 25 acres of damaging non-native, invasive plant species, such as Arundo donax throughout the county over a 15-year period.”
Because the purpose of this revision is to clarify the KPI such that it will be consistent with the project description, such revision meets the definition of an “adjustment” under the current Change Control Process (approved by the Board on February 24, 2026), and thus no formal public hearing would be required. However, should the BMPC agree with staff’s recommendation, staff will present the proposed adjustment to the Board at a future Board meeting.
Staff’s Evaluation and Proposed Revision to Project F3, KPI#2
Current Project F3, KPI#2 reads “Annually, update floodplain maps on a minimum of three (3) creek reaches in accordance with new FEMA standards.” The Auditor expressed concern that the current phrasing could be misinterpreted as requiring Valley Water to produce official FEMA regulatory maps, which is a task outside of Valley Water’s jurisdiction. The intent of this KPI is to ensure that Valley Water’s internal floodplain maps are updated to remain consistent with FEMA standards. To eliminate any ambiguity, staff proposes adding "Valley Water’s" to the KPI language. Specifically, staff proposes the following revised KPI#2:
“Annually, update Valley Water’s floodplain maps on a minimum of three (3) creek reaches in accordance with new FEMA standards.”
Because the change aims at clarifying the KPI to more accurately reflect existing project description and activities, the revision meets the definition of an “adjustment” rather than a “modification”, and thus no public hearing would be required. Similar to Project D1 as discussed above, should the BPMC agree with staff’s recommendation, staff will present the proposed adjustment to the Board at a future Board meeting.
Audit Report Finding #9 (cont.): Project F1 - Vegetation Control and Sediment Removal for Capacity
Auditor’s Finding
In Finding 9, the Auditor also pointed out that the KPI for this project represents a perpetual maintenance commitment and raised concern that an open-ended commitment of this nature could pose long-term financial commitment and risks for the Program. The Auditor recommended that Valley Water evaluate this KPI to ensure that it is financially sustainable.
Staff’s Evaluation and Recommendation
The current KPI for this project states: “Maintain completed flood protection projects for flow conveyance.” While Valley Water has a legal obligation to maintain its flood protection projects in perpetuity once they are built, the intent of this KPI is not for Valley Water to commit to expending Safe, Clean Water Program revenue to maintain completed flood protection projects in perpetuity. The intent of this KPI is that Valley Water will dedicate funds collected through the Safe Clean Water Program to maintain our flood protection projects during the current 15-year program financial cycle. The Program’s projects, KPIs and funding allocations will be revisited every 15-Year’s as required by Measure S. With this clarification, staff does not recommend revising the KPI.
Staff Recommended: Project F6 -- Good Neighbor Program: Graffiti and Litter Removal and Public Art
In addition to the Audit Report findings and recommendations referenced above, staff has identified a need to revise Project F6’s KPI#3 (along with its Description and Benefit Sections), which currently authorizes grant funding for public art on Valley Water property to deter graffiti and litter. While it was not part of the Board’s direction regarding the Audit Report, staff is including this recommendation in the BPMC’s review and it will be included in the Board’s review of the other proposed changes.
Staff proposes expanding the scope of this KPI#3. This change would allow funding for eligible art projects throughout Santa Clara County, moving beyond Valley Water-owned infrastructure and property. The goal is to leverage public art as a tool for community education on water and environmental stewardship, while deterring graffiti and litter.
The current KPI#3 reads “Provide up to $1.5 million over 15 years to implement public art projects on Valley Water property and infrastructure.”
Staff proposes the following revision for KPI#3:
“Provide up to $1.5 million over 15 years to implement or fund public art projects on Valley Water property and infrastructure.”
To maintain consistency with the proposed revision to KPI#3, staff recommends the following revisions to the Project F6 description:
“This project allows Valley Water to continue responding to requests for cleanup of illegal dumping, trash and graffiti on Valley Water’s property and rights-of-way. Cleanup efforts include graffiti removal from floodwalls, concrete embankments, signs, structures and other Valley Water assets, as well as maintaining, repairing and installing fences and gates so that Valley Water structures and facilities remain safe and clean. The project also funds installation and maintenance of public art projects, such as murals, to beautify Valley Water property and infrastructure, to in public spaces throughout Santa Clara County to educate the public about water and environmental stewardship, which in turn will also help deter graffiti and litter.”
Staff also proposes revising the 5th bullet under the Benefits section of the Program project page to read:
“Helps deter graffiti and litter by implementing public art projects to beautify Valley Water property and infrastructure in public spaces while providing opportunities to educate the public about water and environmental stewardship throughout Santa Clara County.”
These proposed revisions expand the scope of the initial project and will impact how the KPI is measured. Therefore, this change qualifies as a "modification" under the current Change Control Process. Consequently, a public hearing is required to formalize these updates.
Conclusion
Staff requests that the Committee review the proposed KPI revisions and provide input as it deems necessary. If the BPMC agrees with staff’s recommendations, staff will bring these proposals to the Board for approval. The Committee’s input on any proposed KPI revisions (if any) will be incorporated in staff’s recommendations to the full Board. As indicated above, modifications would require noticed public hearings, while adjustments could be approved by the Board in a regular agenda item without a hearing. The Board’s review and consideration of all proposed changes will follow the Change Control Process. The proposed modifications will be presented to the Board in alignment with the updated public outreach process and timeline as outlined in the Change Control Process, while the proposed adjustments will be incorporated into the Safe, Clean Water Program FY 2027-31 Five-Year Implementation Plan and presented to the Board for consideration at a regular board meeting in June 2026.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with this item.
ATTACHMENTS:
Attachment 1: Audit Report
Attachment 2: PowerPoint
UNCLASSIFIED MANAGER:
Manager
Luz Penilla, 408-630-2228