BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Consider the Validation Process and Financial Planning Schedule for Capital Projects, and Review and Provide Feedback on the Fiscal Year 2020-21 (FY21) Initially Validated, and Current Unfunded Projects.
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RECOMMENDATION:
Recommendation
A. Consider the Validation Process for Capital Projects, as follows:
i. Receive the Capital Improvement Program (CIP) Committee recommendation to support the current Validation Process as the decision-making tool for the Board to approve the Preliminary CIP;
ii. Provide feedback, if necessary, and approve the Validation Process as a robust and appropriate process;
iii. Review and comment on the list of FY21 Initially Validated at Deputy level, and Current Unfunded Projects; and
B. Review the CIP Financial Planning Schedule.
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SUMMARY:
The annual update of the 5-year Capital Improvement Program (CIP) includes a Validation Process to review and evaluate potential new projects for inclusion in the CIP. A PowerPoint that shows the steps in detail is included as Attachment 1.
New projects can be directed by the Board or requested by a Chief based on business needs or to improve Santa Clara Valley Water District (Valley Water) services.
Additionally, each year, Valley Water staff can submit new projects for consideration for inclusion into Valley Water's 5-Year CIP. For each potential new project, staff develops a business case to compare capital, non-capital, and non-asset alternative solutions; evaluates the lifecycle costs of these solutions; and identifies a recommended solution that minimizes lifecycle cost while balancing service levels and risk. Staff then submits the business case for review by their respective Deputy Operating Officer (DOO) or Deputy Administrative Officer (DAO).
If staff's respective DOO/DAO approves the project, it is submitted to the CIP coordinator. These newly-proposed, initially validated projects will be presented to the Board each fall (Septemb...
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