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 Program Environmental Impact Report and Engineer’s Report for the Pipeline Maintenance Program, Adopt a Resolution Certifying the Final Program Environmental Impact Report and Adopting the Mitigation Monitoring and Reporting Program, Findings of Fact, and Statement of Overriding Considerations; Adopt a Resolution Approving the Engineer’s Report; and Approve the Pipeline Maintenance Program. (*Previously Listed as Item 3.5)
End
RECOMMENDATION: Recommendation
A. Open and Conduct a Public Hearing on the Final Program Environmental Impact Report and Engineer’s Report for the Pipeline Maintenance Program;
B. Close the Public Hearing;
C. Consider the Environmental Effects of the Pipeline Maintenance Program as discussed in the Final Program Environmental Impact Report;
D. Adopt the Resolution CERTIFYING THE FINAL PROGRAM ENVIRONMENTAL IMPACT REPORT FOR THE PIPELINE MAINTENANCE PROGRAM AND ADOPTING CEQA FINDINGS OF FACT, STATEMENT OF OVERRIDING CONSIDERATIONS, AND MITIGATION MONITORING AND REPORTING PROGRAM;
E. Adopt the Resolution APPROVING THE ENGINEER’S REPORT FOR THE PIPELINE MAINTENANCE PROGRAM; and
F. Approve the Pipeline Maintenance Program
Body
SUMMARY:
On April 8, 2025, the Board adopted a resolution setting the time, date, and place for the Public Hearing on the Final Program Environmental Impact Report (Final PEIR) and Engineer’s Report to take place on April 22, 2025, for the Pipeline Maintenance Program (PMP or Project). Staff is recommending the Board hold this Public Hearing and consider: adoption of a Resolution certifying the Final EIR, and adopting the Mitigation Monitoring and Reporting Program (MMRP), Findings of Fact, and Statement of Overriding Considerations (Attachment 2); adoption of a Resolution approving the Engineer’s Report (Attachment 5); and approving the PMP as described in the PEIR
Project Background
The Santa Clara Valley Water District (Valley Water) owns, operates, and maintains over 150 miles of raw, treated, and recycled water conveyance pipelines throughout Santa Clara County and within small portions of San Benito and Merced Counties.
Valley Water first approved the PMP in 2007, recognizing the need to centralize and document the inspections and preventative and corrective maintenance procedures that the engineering and maintenance staff had historically implemented on the raw, treated, and recycled water pipeline facilities (that are covered under the PMP) on a routine basis. The PMP is primarily a process and procedural manual that provides long-term guidance for the implementation of pipeline inspection and maintenance work and has been successfully implemented over the last 15 years; however, maintenance processes, tracking systems, and the regulatory and physical environment have changed over this timeframe.
Valley Water has determined that an update to the PMP would allow for capturing these changes and expanding the program to include the 10-Year Pipeline Inspection & Rehabilitation Program and align it with other facility maintenance activities, which would increase the utility and effectiveness of the PMP. The 10-YR Pipeline Inspection & Rehabilitation Program involves planning for the condition assessment, design, and construction activities required for renewal of Valley Water’s large diameter pipelines and tunnels.
The 2024 PMP is therefore the update to the 2007 PMP. The PMP work includes updating the environmental documents, program budget, and creating projects to inspect and rehabilitate the pipelines that Valley Water owns or maintains to ensure the delivery of clean and safe water to Valley Water customers.
Final Program Environmental Impact Report Project Description
The Final PEIR covers all PMP components, which include inspection, maintenance, rehabilitation and/or repair of all existing conveyance systems (including pipelines and tunnels) raw, treated, and recycled water that are owned and/or operated by Valley Water to meet public safety requirements; measures that would be implemented to avoid and minimize adverse environmental impacts; and monitoring, operations and maintenance, and adaptive management programs. In addition, the updated PMP covers maintenance, inspection, and rehabilitation of facilities and appurtenances associated with operation of these conveyance systems. The detailed activities and measures are included in the PEIR.
Project Alternatives Described in the Program EIR
In addition to the Project, the Final PEIR evaluates 2 alternatives: (1) No Project Alternative; (2) Less Frequent Inspection and Maintenance Alternative. Under the No Project Alternative, Valley Water would not update the existing PMP or the PMP Manual and would continue to conduct maintenance activities under the 2007 PMP Manual and 2007 PMP EIR. The 2007 PMP does not cover several pipeline maintenance needs that would be included in the updated PMP. Under the Less Frequent Inspection and Maintenance Alternative, pipeline inspections would shift from every 5 years to every 20 years, increasing the risk of larger, more complex, and costly maintenance needs. The Less Frequent Inspection and Maintenance Alternative would reduce environmental impacts such as ground disturbance, emissions, and noise due to the decreased frequency of maintenance activities. However, deferred maintenance increases the likelihood of larger, more complex repairs and emergency projects, which could result in greater long-term impacts on hydrology, air quality, and sensitive species.
Staff Recommended the Project Proposed for Board Approval
Staff is recommending the PMP as described in the Final PEIR for implementation. The proposed Project described in the Final PEIR is the most environmentally superior.
Environmental Review
As the lead agency under California Environmental Quality Act (CEQA), Valley Water circulated a Notice of Preparation (NOP) for the PMP on October 17, 2023, through November 22, 2023. To provide an additional opportunity for public input on the scope and content to be addressed in the Program Environmental Impact Report (PEIR), Valley Water later held a scoping meeting on November 2, 2023.
A Draft PEIR was then prepared to provide the Valley Water Board of Directors (Board), public, responsible agencies, and trustee agencies with information about the potential environmental effects of the PMP. The Draft PEIR also analyzes a reasonable range of alternatives based on input from environmental assessments, public participation process, and resource agencies. The Draft PEIR describes project elements, evaluates project impacts, and proposes mitigation measures to avoid or minimize such impacts. The Draft PEIR was prepared in compliance with the California Environmental Quality Act (CEQA) of 1970 (as amended) and the State CEQA Guidelines (California Code of Regulations [CCR] title 14, section (§) 15000 et seq.).
On September 12, 2024, Valley Water released the Draft EIR for public review (State Clearinghouse No. 2023100671). The public review period ran from September 12, 2024 to October 28, 2024, totaling 46-days of public review. Copies of the Draft PEIR and selected appendices were posted online, and hard copies were available for review at Valley Water’s headquarters and at several public libraries throughout Santa Clara County.
Valley Water received four comment letters and other written documents, such as emails were received before the close of the public review period on the Draft PEIR.
The Final PEIR consists of a comprehensive revision to the PEIR after public circulation of the Draft PEIR (including technical appendices); public comments on the Draft PEIR; and responses to the public comments.
Summary of Environmental Impacts
The Final Program EIR concludes that PMP would result in no or less-than-significant impacts relating to aesthetics, agriculture and forestry, air quality, biological resources, energy, geology and soils, greenhouse gas, hazards and hazardous materials, hydrology and water quality, land use and planning, public services, recreation, transportation, utilities and service systems, and wildfire.
Attachment 2 includes CEQA findings of fact for each significant impact identified in the Final EIR, including the feasibility of mitigation measures, pursuant to Public Resources Code Sec. 21081(a) and CEQA Guidelines Sec.15091. The Final EIR identified significant direct and cumulative environmental impacts related to aesthetics, biological resources, cultural resources, geology and soils, noise and vibration, and tribal cultural resources. Most of these impacts would be reduced to less than significant levels with the implementation of mitigation measures.
The Final PEIR concluded that certain direct and cumulative impacts on noise would remain significant and unavoidable, despite efforts to mitigate them with feasible mitigation measures.
Statement of Overriding Considerations
CEQA requires the decision-making agency to balance, as applicable, the economic, legal, social, technological, or other benefits of a project against its unavoidable environmental risks when determining whether to approve the project. When a lead agency approves a project that will result in significant effects which are identified in the Final EIR but are not avoided or substantially lessened, the agency must adopt a Statement of Overriding Considerations (CEQA Guidelines, section 15093). The Statement of Overriding Considerations sets forth the specific reasons why the agency finds that the project's benefits would render the Project’s unavoidable adverse environmental effects as acceptable. (CEQA Guidelines Sec.15093, 15043(b); see also Public Resources Code Sec. 21081(b).)
Valley Water has determined that the Project has significant unavoidable direct and cumulative impacts on noise, despite efforts to mitigate them with feasible mitigation measures. However, Valley Water has evaluated the benefits of the Project, supported by substantial evidence in the EIR and the administrative record. In summary, the benefits described in the Statement of Overriding Considerations include:
• General benefits provided by achieving the Project objectives to establish standard maintenance practices for Valley Water’s conveyance systems, improve operational flexibility and adaptive management over time, and streamline environmental review and permit processing for maintenance.
• PMP-covered activities and tasks are necessary to meet Valley Water’s obligations to deliver safe and reliable service as a water purveyor.
Considering these benefits and weighing them against the unavoidable environmental impacts, the Statement of Overriding Considerations included in Attachment 2 finds that the benefits of the Project outweigh the significant unavoidable impacts on noise.
Engineer’s Report
Section 12 of the District Act requires the Board to conduct a public hearing to hear testimony on a project when: 1) the project is a new construction; and 2) the project is funded by a single or joint zone of benefits. The proposed Project meets both conditions. The Engineer’s Report (Attachment 3) was prepared for the purpose of public disclosure of significant rehabilitation activities and construction of new vaults associated with the proposed Project. The Notice of Public Hearing (Attachment 4) for the Engineer’s Report was published in accordance with the District Act and posted on Valley Water’s website at www.valleywater.org.
A Resolution to approve the Engineer’s Report is included as Attachment 5.
Prior Board Actions
On April 8, 2025, the Board adopted a resolution setting the time and date for the Public Hearing on the Final Program EIR and Engineer’s Report to take place on April 22, 2025 for the Project.
Next Steps
If the Board approves the PMP, staff will pursue the necessary permits and complete the design and construction contract documents. Staff anticipates requesting the Board’s adoption of the final plans and specifications and authorization for obtaining construction bids.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
The PMP addresses water supply equity by ensuring a cost-effective, high-quality supply is available for all of Santa Clara County, including disadvantaged communities.
FINANCIAL IMPACT:
The Final Program EIR and Engineer’s Report for the PMP is being charged to the 10-Year Pipeline Inspection and Rehabilitation Program, Project No. 95084002, which is sunsetting in Fiscal Year 2027 (FY 27) and being replaced by the Pipeline Maintenance Program, Project No. 95084003, a new project proposed for inclusion in the CIP Draft FY 2026-30 Five-Year Plan.
The 10-Year Pipeline Inspection and Rehabilitation Program, Project No. 95084002 and the Pipeline Maintenance Program, Project No. 95084003, are included in the Capital Improvement Program (CIP) Draft Fiscal Years 2026-30 Five-Year Plan and in the FY 2026-27 Budget. Total project costs are reported in the Engineer’s Report for the PMP. The preliminary cost to design and execute the proposed Project is estimated at $55 million. The projects are funded by the Water Utility Enterprise Fund (Fund 61) with 100% of the cost allocated to North County Zone W-2.
CEQA:
A Final Program EIR has been prepared for the PMP and is before the Board for certification. The Final Program EIR is available for the Board and posted on Valley Water’s website at www.valleywater.org.
ATTACHMENTS:
Attachment 1: Final EIR Cover Page and Link
Attachment 2: Resolution Certifying the Environmental Impact Report
Attachment 3: Engineer’s Report
Attachment 4: Public Hearing Notice
Attachment 5: Resolution to Approve the Engineer’s Report
Attachment 6: PowerPoint
UNCLASSIFIED MANAGER: Manager
Emmanuel Aryee, 408-630-3074