BOARD AGENDA MEMORANDUM
Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)
SUBJECT: Title
Receive an Update on the Pacheco Reservoir Expansion Project, Project No. 91954002 (Santa Clara County, District 1; Merced County).
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RECOMMENDATION: Recommendation
A. Receive an update on the Pacheco Reservoir Expansion Project, and
B. Provide direction to staff and authorize the Interim Chief Executive Officer to take all actions necessary to implement the Board's direction.
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SUMMARY:
The purpose of this memorandum is to provide the Board an update on progress made in the planning, permitting, and design efforts of the proposed Pacheco Reservoir Expansion Project ("PREP" or "Pacheco Project") and other issues that may impact the PREP. This memorandum is organized in sections to also address the following concerns raised by the California Water Commission (the "Commission") during its May 21, 2025 meeting:
I. The Commission commented that Valley Water's environmental review and decision-making timeline for the Pacheco Project appears protracted and lengthy.
II. The Commission raised concerns that the likely cost of PREP might be cost-prohibitive for Valley Water.
III. The Commission pointed out that Valley Water has not yet secured the necessary approvals from the Bureau of Reclamation (Bureau) to advance the project.
IV. The Commission observed that PREP does not seem to be a high-priority project for Valley Water compared to other ongoing projects. It also asked when Valley Water's Board would be able to make a decision on the project.
Valley Water continues to make progress in the planning and design phases of the Pacheco Project and has initiated efforts to ensure the timely review and processing of regulatory permits. However, Valley Water continues to face significant challenges with PREP, particularly concerning an anticipated increase in PREP's estimated costs and Valley Water's ability to s...
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