TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Matt Loesch
SUBJECT: See Below DATE: August 24, 2026
Approved Date:
8/31/26
CO
UNCIL DISTRICT: Citywide
S
UBJECT: Agreement with West Valley Sanitation District for Joint Use Sanitary Sewers
RE
COMMENDATION
A
pprove a cost-sharing agreement with West Valley Sanitation District of Santa Clara County for construction, operation, and maintenance of joint use sanitary sewers, with an effective date retroactive to July 1, 2026, through June 30, 2046.
S
UMMARY AND OUTCOME
A
pproval of this agreement will set forth the respective obligations of the parties related to the construction, operation, and maintenance of joint use sanitary sewers.
BACKG
ROUND
O
n June 25, 2002, the City of San José (City) and West Valley Sanitation District (WVSD) entered into an agreement entitled “Cost-Sharing Agreement between City of San José and West Valley Sanitation District of Santa Clara County for Construction, Operation and Maintenance of Joint Use Sanitary Sewers” (Agreement). The term of the Agreement was retroactive to July 1, 2000, through June 30, 2020.
A fi
rst amendment to the Agreement with WVSD was executed on June 30, 2020, which extended the term of the Agreement by two years, through June 30, 2022.
A s
econd amendment to the Agreement with WVSD was executed on May 24, 2022, which extended the term of the Agreement by three years, through June 30, 2025.
COUNCIL AGENDA: 9/15/26
FILE: 26-9 47
ITEM: 2.14
HONORABLE MAYOR AND CITY COUNCIL
August 24, 2026
Subject: Agreement Between the City Of San José and West Valley Sanitation District for Joint Use Sanitary Sewers
A third amendment to the Agreement with WVSD was executed on June 17, 2025, which extended the term of the Agreement by one year, through June 30, 2026. The City and WVSD have been actively verifying sewer flows in the joint use sewer network and discussing the terms, provisions, and methodology for operation and maintenance costs to develop the new agreement associated with this memorandum. WVSD did not complete internal reviews with the new General Manager prior to the expiration date of the Agreement, and as a result, the new agreement and exhibits were delayed, resulting in the need to have a retroactive effective date of July 1, 2026.
ANALYSIS
The City and WVSD have been actively discussing a new cost-sharing agreement to reflect changes in joint-use sanitary sewer systems and administrative practices related to recent addition and construction of new joint-use sanitary sewer lines, capacity reserved for the City and WVSD, and operations and maintenance responsibilities.
The new agreement defines the joint use sewer system as the system that consists of joint use sewer lines that convey sewage from both the City and WVSD to the San José-Santa Clara Regional Wastewater Facility. Each party is responsible for operating, maintaining, and improving the Joint Use Sewer System within their respective jurisdictions, and is responsible for their respective percentage of the costs to operate, maintain, and/or improve the joint-use sewer lines that lie in the other’s jurisdiction.
Each party is responsible for billing the other for these costs.
EVALUATION AND FOLLOW-UP
No additional follow-up action with the City Council is expected at this time.
FISCAL IMPACTS
Revenues from the WVSD are based on annual sanitary sewer capital improvements and operation and maintenance expenses and will be reflected in the Sewer Service and Use Charge Capital Improvement Fund (Fund 545), as "Revenue from Local Agencies - Sanitary Sewer Joint Participation.”
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, City Manager’s Budget Office, Planning, Building and Code Enforcement Department, and the Transportation Department.
HONORABLE MAYOR AND CITY COUNCIL
August 24, 2026
Subject: Agreement Between the City Of San José and West Valley Sanitation District for Joint Use Sanitary Sewers
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the September 15, 2026 City Council meeting.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
No board, commission, or committee recommendation or input is associated with this action.
CEQA
Not a Project, File No. PP17-004, Government Funding Mechanism or Fiscal Activity with no commitment to a specific project which may result in a potentially significant physical impact on the environment.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
MATT LOESCH
Director of Public Works
For questions, please contact Garrett Haertel, Deputy Director of Public Works Department, at [email protected].