BOARD AGENDA MEMORANDUM
Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)
SUBJECT: Title
Receive an Informational Update on the Capital Improvement Program Prioritization Process Enhancements.
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RECOMMENDATION: Recommendation
Receive an informational update on the Capital Improvement Program Prioritization Process Enhancements.
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SUMMARY:
In response to the challenges identified in executing Santa Clara Valley Water District's (Valley Water) Capital Improvement Program (CIP) and the feedback received from the Board during the August 29, 2025, workshop, staff has implemented a series of refinements to the CIP Prioritization Process. These enhancements aim to better align project prioritization with risk to public health and safety, strategic goals, and financial feasibility, ensuring that limited funding is directed toward the most critical and impactful projects.
To support the Board's review of the enhanced process, staff have prepared a PowerPoint presentation (Attachment 1).
The enhanced process will be used in this year's CIP Development Cycle to prepare the CIP Preliminary FY 2027-31 Five-Year Plan, which is scheduled to be presented to the CIP Committee on December 15, 2025, and to the Board on January 13, 2026.
Funding Categories
To assist with decision-making and resource allocation, projects will continue to be organized into three funding categories that reflect their risk exposure and urgency:
Category 1 - High Risk Exposure
* Urgent repair or replacement needs
* Projects that are regulatory/mandated or driven by public health and safety
* Projects currently under construction or requiring immediate continuation
Category 2 - Moderate Risk Exposure
* Critical repairs or replacements needed to maintain service reliability
* Projects primarily addressing public health and safety, but without the immediacy of Category 1
Category 3 - Low Risk Exposure
* New infrastructure or placeholde...
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