BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Approve the Fiscal Year 2023-24 Safe, Clean Water and Natural Flood Protection Program Annual Report with Proposed Text Adjustments and Authorize Submission to the Independent Monitoring Committee for Review.
End
RECOMMENDATION:
Recommendation
A. Approve the Fiscal Year 2023-24 Safe, Clean Water and Natural Flood Protection Program Annual Report (Annual Report) with text adjustments;
B. Authorize staff to submit the Annual Report to the Independent Monitoring Committee for its review; and
C. Authorize staff to update the Annual Report with audited financials, as necessary.
Body
SUMMARY:
Fiscal Year 2023-24 (FY24) Safe, Clean Water Annual Report
FY24 marked the third year for Santa Clara Valley Water District’s (Valley Water) voter-approved renewed Safe, Clean Water and Natural Flood Protection Program (Program).
The renewed Program became effective on July 1, 2021, and is implemented on a 15-year financial cycle. This annual report (Attachment 1) provides FY24 progress updates for every project in the Program. The projects have specific key performance indicators (KPIs) to monitor the long-term performance.
For transparency and accountability, an external Independent Monitoring Committee (IMC) appointed by the Board conducts an annual review of the Annual Report and provides its recommendations to the Board.
Annual Report Improvements
On March 12, 2024, the IMC provided its recommendations to the Board. This was followed by staff presenting the Management Response to the Board and receiving directions on implementation. Valley Water has implemented the recommendations, which include adjusting project Benefits text to explain how the project addresses climate change impacts. Additionally, capital project schedules have been revised to identify the “plant establishment period,” where applicable, and new graphs have been developed to illustrate changes in funding allocations due to revised project costs.
FY24 Program Performance
Annual Project Status
There are 32 projects under the renewed Safe, Clean Program. As indicated in Figure 1, 27 projects (85%) are Active, three (3) projects (9%) are Scheduled to Start in future years, one (1) project (3%), D6: Restoration of Natural Creek Functions, was Completed, and one (1) project (3%), Project F9: Grants and Partnerships for Safe, Clean Water, Flood Protection and Environmental Stewardship (F9), was On Hold. On February 27, 2024, the Board authorized postponing the FY24 standard grant cycle related to KPI #1 as the grant program was being redesigned to align with the changes adopted through the passage of the renewed Safe, Clean Water Program and address the recommendations from the 2021 Grants Management Performance Audit.
Change Control Process Indicators - Modifications, Adjustments, and Non-Implementation
Non-Implementation and Modifications - On April 9, 2024, following a formal Public Hearing, the Board approved Not Implementing Project A1: Pacheco Reservoir Expansion under the Safe, Clean Water Program and Modifying Project E8: Upper Guadalupe River Flood Protection and F9: Grants and Partnerships for Safe, Clean Water, Flood Protection and Environmental Stewardship.
The Board’s decision to not implement Project A1 under the Safe, Clean Water Program was in response to funding gaps resulting from rising infrastructure project construction costs and increasing community expectations impacting the progress of other projects. While Project A1, with the KPI to provide a portion of funds, up to $10 million, to help construct the Pacheco Reservoir Expansion Project, is removed from the Safe, Clean Water Program, it continues to be part of Valley Water’s Capital Improvement Program and is primarily funded by the Water Utility Enterprise Fund.
The funding released from Project A1 would help address the funding gap for construction of Project E2: Sunnyvale East and Sunnyvale West Channels Flood Protection (Project E2) and provide flood protection for 1,618 properties and 47 acres (11 parcels). Furthermore, some funds released from Project A1 would also help deliver the Board-directed enhanced level of services under Project F5: Good Neighbor Program: Encampment Cleanup.
Project E8: Upper Guadalupe River Flood Protection KPI #2 was modified to reflect that aquatic habitat improvements made under the project will benefit all native fish species, not just migrating steelhead. The modification resulted from the IMC recommendation made during the FY23 annual review.
Finally, the Board modified Project F9: Grants and Partnerships for Safe, Clean Water, Flood Protection and Environmental Stewardship (Project F9) to expand the project and initiate a new Creekside Neighbor Rebate Program in response to community needs.
For details about the modifications, see individual project updates in the annual report and to view the Public Hearing, visit <tinyurl.com/2024Apr9BoardMtg>.
Adjustments - In FY24, the Board approved schedule adjustments for five (5) capital projects: D4.2 the Ogier Ponds-Coyote Creek Separation Project (D4.2); E2: Sunnyvale East and Sunnyvale West Channels Flood Protection (E2); E4: Upper Penitencia Creek Flood Protection (E4); E5: San Francisquito Creek Flood Protection (E5); and E6 Upper Llagas Creek Flood Protection (E6).
The schedule changes were required for various reasons, including delays in acquiring permits and right-of-way, potential design changes resulting from hydraulics/hydrology model changes, and coordination with the local partner. However, Project D4.2 construction schedule was adjusted to begin construction a year sooner and be completed three years earlier.
Additionally, 21 of the 32 projects have text adjustments. Of these,18 (86%) projects have text adjustments to the Benefits section and, where necessary, to the project description in response to the IMC recommendations and feedback.
Furthermore, the project descriptions of A3: Pipeline Reliability, E8: Upper Guadalupe River Flood Protection, and F9: Grants and Partnerships for Safe, Clean Water, Flood Protection and Environmental Stewardship, are adjusted to remove or replace outdated information or to align with the modified KPI.
FY24 Key Accomplishments:
Water Supply
Anderson Dam Seismic Retrofit: In February 2024, Valley Water achieved a significant milestone in the Anderson Dam Tunnel Project (ADTP) by completing the 24-foot diameter and 1,400-foot Low-Level Outlet Tunnel excavation. On Sept. 1, 2023, Valley Water released the Anderson Dam Seismic Retrofit Project Draft Environmental Impact Report, which identifies environmental impacts associated with Valley Water’s plan to rebuild Anderson Dam to modern-day seismic safety standards. ADTP, anticipated to be completed in the summer of 2025, will allow Valley Water to draw down the reservoir reliably and quickly, providing greater control over the water levels in the reservoir and increasing public safety.
Water Conservation Rebates and Programs: Valley Water issued 1,118 rebates totaling nearly $3.2 million to convert more than 1.4 million square feet (sq ft) of lawns into low-water-use landscapes, upgrade irrigation equipment, and install rainwater capture systems. Of these rebates, the Safe, Clean Water Program provided $1.0 million to issue 620 rebates to successfully convert 1.0 million sq ft of lawn to low-water-use plants.
Pipeline Reliability Project: Valley Water began construction of the Snell Pipeline line valve, which is among the four line valves to be constructed in conjunction with the 10-Year Pipeline Inspection and Rehabilitation Program. The construction of the Snell Pipeline valve will be followed by two additional valves along the West Pipeline and one along the East Pipeline. Once completed, this project will allow Valley Water to isolate sections of pipelines for scheduled maintenance and repairs following a catastrophic event, such as a major earthquake, and allow the network of emergency wells to operate, even when there is damage upstream and downstream of individual wells.
Flood Protection
Coyote Creek Flood Protection Project: Valley Water made significant progress on the Coyote Creek Flood Management Measures Project (CCFMMP or Phase 1), one of two projects undertaken to reduce flood risk along Coyote Creek. In June 2024, Valley Water completed installation of over 8,500 feet of floodwalls along a four-mile stretch of Coyote Creek between Old Oakland Road and Highway 280. Phase 1 is part of the Anderson Dam Federal Energy Regulatory Commission Order (FERC) Compliance Project for Anderson Dam Seismic Retrofit and is, therefore, funded by Valley Water’s Water Utility Enterprise Fund. Meanwhile, Valley Water also Completed 60% design for the Coyote Creek Flood Protection Project (CCFPPP or Phase 2).
Upper Llagas Creek Flood Protection Project: In May 2024, Valley Water completed Phase 2A of the project, including construction of a 2,300-foot-long horseshoe-shaped underground tunnel and a 1,600-foot-long twin reinforced concrete box culverts upstream and downstream of the tunnel in Morgan Hill. Valley Water also advertised Phase 2B for construction. Phase 2B is the project's final phase and schedule to begin construction in early FY25.
Vegetation Control and Sediment Removal: Valley Water completed 2,126 acres of in-stream vegetation management to reduce flood risk along 178 miles of streams throughout Santa Clara County. In terms of volume, Valley Water removed approximately 372 cubic yards of vegetation from streams to restore capacity. In addition, 22 sediment removal projects were completed, removing approximately 54,452 cubic yards of sediment to ensure flood protection projects continue to deliver the protection they were designed to provide. The renewed Program funds 21% of the sediment removal project.
Stewardship
Bolsa Road Fish Passage Project: In March 2024, Valley Water completed construction of the Bolsa Road Fish Passage Improvements Project. The project provides improved passage for fish, including threatened steelhead trout, in the Uvas-Carnadero Creek south of Gilroy. The project also restored the creek’s natural functions and bed and bank stability. The project was named the 2024 Project of the Year by the American Public Works Association (APWA) Silicon Valley Chapter.
Partnerships for the Conservation of Habitat Lands: Valley Water provided $4.0 million to the Santa Clara Valley Habitat Agency to acquire 978 acres of Richmond Ranch near San José. The property at Richmond Ranch will ultimately be transferred to Santa Clara County, with the long-term vision of converting it into a nature preserve with hiking trails.
Good Neighbor Program: Encampment Cleanup: Valley Water managed 3,515.16 acres to clean up 1,080.18 tons of trash, debris, and hazardous pollutants generated from encampments and to reduce the amount of these pollutants entering streams. Responding to higher volumes of encampment-generated trash and debris in creeks throughout the county, Valley Water exceeded the annual project key performance indicator (KPI) of managing 300 acres annually.
Trash Removal: Five Safe, Clean Water projects include trash removal components to reduce and remove contaminants in our local streams and bays. Valley Water accomplishes this work, as well as with the help of volunteers and grantees. In FY24, 1,202 tons of trash were removed from local waterways.
Safe, Clean Water Grants and Partnerships: Valley Water awarded $95,000 in grants, comprising $50,000 in mini-grants for stewardship activities such as pollution prevention, watershed education, volunteer cleanups and education, etc., and $45,000 for water bottle refill stations.
Next Steps
Once approved by the Board, the FY24 renewed Safe, Clean Water and Natural Flood Protection Program Annual Report (Annual Report) will be provided to the IMC and made available to the public on Valley Water’s website, <https://www.valleywater.org/safe-clean-water-and-natural-flood-protection-program/safe-clean-water-program-archive>. The IMC is scheduled to receive the digital Annual Report on November 13, 2024, and hard copies later in the week. The IMC is scheduled to convene on December 4, 2024, to discuss and establish the review process and schedule for the IMC review of the FY24 Annual Report.
Once Valley Water’s financial reports are audited, if needed, all annual report tables and appendices will be updated with the audited financials and corresponding accomplishments to finalize the Annual Report. Depending on the final auditor's opinion, the final audited report is expected to be available in late December 2024 or early January 2025. The updated Annual Report will be provided to the Board and the IMC and posted on the Valley Water website.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no environmental justice and equity impacts associated with this item.
FINANCIAL IMPACT:
The Annual Report is produced and printed internally and budgeted for in the Safe, Clean Water Implementation Project (26061012).
CEQA:
The recommended action does not constitute a project under CEQA because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Safe, Clean Water Program Background
Attachment 2: FY24 Safe, Clean Water Annual Report
Attachment 3: Project Text Adjustments
Attachment 4: PowerPoint
UNCLASSIFIED MANAGER:
Manager
Luz Penilla, 408-630-2228