DISTRICT BOARD OF DIRECTORS
Gary Kremen, Chair - District 7
John Varela, Vice Chair - District 1
Barbara Keegan - District 2
Richard P. Santos - District 3
Linda J. LeZotte - District 4
Nai Hsueh - District 5
Tony Estremera - District 6
RICK L. CALLENDER, ESQ.
Chief Executive Officer
MICHELE L KING, CMC
Clerk of the Board
(408) 265-2600
Fax (408) 266-0271
www.valleywater.org
District Mission: Provide Silicon Valley safe, clean water for a healthy life, environment and economy.
Note: The finalized Board Agenda, exception items and supplemental items will be posted prior to the meeting in accordance with the Brown Act.
During the COVID-19 restrictions, all public records relating to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body, will be available to the public through the legislative body agenda web page at the same time that the public records are distributed or made available to the legislative body, or through a link in the Zoom Chat Section during the respective meeting. Santa Clara Valley Water District will make reasonable efforts to accommodate persons with disabilities wishing to participate in the legislative body’s meeting. Please advise the Clerk of the Board Office of any special needs by calling (408) 265-2600.
Santa Clara Valley Water District
Board of Directors Meeting
Teleconference Zoom Meeting
SPECIAL JOINT MEETING WITH
CITY OF SANTA CLARA
AGENDA
Tuesday, February 15, 2022
5:00 PM
City of Santa Clara
Joint Meeting Agenda
Santa Clara Valley Water District Board of Directors
Call and Notice of Special Meeting
City Council
Virtual Meeting 5:00 PMTuesday, February 15, 2022
NOTICE IS HEREBY GIVEN that, pursuant to the provisions of California Government Code §54956 (“The Brown Act”) and Section 708 of the Santa Clara City Charter, the Mayor calls for a Special Meeting of the City Council of the City of Santa Clara to commence and convene on February 15, 2022, at 5:00 pm for a Special Meeting with Santa Clara Valley Water District Board of Directors held virtually, to consider the following matter(s) and to potentially take action with respect to them.
Pursuant to California Government Code Section 54953(e) and City of Santa Clara Resolution 22-9051, the City Council meeting will be held by teleconference only. No physical location will be available for this meeting; however, the City of Santa Clara continues to have methods for the public to participate remotely:
• Via Zoom:
o https://valleywater.zoom.us/j/86411747617
Meeting ID: 864-1174-7617 or
o Phone: 1(669) 900-9128
• Via the City’s eComment (now available during the meeting) • Via email to [email protected]
As always, the public may view the meetings on SantaClaraCA.gov, Santa Clara City Television (Comcast cable channel 15 or AT&T U-verse channel 99), or the livestream on the City’s YouTube channel or Facebook page.
City of Santa Clara Printed on 2/11/2022
Santa Clara Valley Water District
Board of Directors
SPECIAL JOINT MEETING WITH
CITY OF SANTA CLARA AGENDA
5:00 PMTuesday, February 15, 2022 Teleconference Zoom Meeting ***BY VIRTUAL TELECONFERENCE ONLY***
Pursuant to California Government Code section 54953(e), this meeting will be held by teleconference only. No physical location will be available for this meeting; however, members of the public will be able to participate in the meeting as noted below.
In accordance with the requirements of Gov. Code Section 54954.3(a), members of the public wishing to address the Board/Committee at a video conferenced meeting, during public comment or on any item listed on the agenda, should use the “Raise Hand” tool located in the Zoom meeting link listed on the agenda, at the time the item is called.
Speakers will be acknowledged by the Board Chair in the order requests are received and granted speaking access to address the Board.
Santa Clara Valley Water District (District), in complying with the Americans with Disabilities Act (ADA), requests individuals who require special accommodations to access and/or participate in District Board meetings to please contact the Clerk of the Board’s office at (408) 630-2711, at least 3 business days before the scheduled District Board meeting to ensure that the District may assist you.
This agenda has been prepared as required by the applicable laws of the State of California,
including but not limited to, Government Code Sections 54950 et. seq. and has not been prepared with a view to informing an investment decision in any of Valley Water’s bonds, notes or other obligations. Any projections, plans or other forward-looking statements included in the information in this agenda are subject to a variety of uncertainties that could cause any actual plans or results to differ materially from any such statement. The information herein is not intended to be used by investors or potential investors in considering the purchase or sale of Valley Water’s bonds, notes or other obligations and investors and potential investors should rely only on information filed by the District on the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System for municipal securities disclosures and Valley Water’s Investor Relations website, maintained on the World Wide Web at https://emma.msrb.org/ and https://www.valleywater.org/how-we-operate/financebudget/investor-relations, respectively.
February 15, 2022 Page 1 of 3
Under the Brown Act, members of the public are not required to provide identifying information in order to attend public meetings. Through the link below, the Zoom webinar program requests entry of a name and email address, and Valley Water is unable to modify this requirement. Members of the public not wishing to provide such identifying information are encouraged to enter “Anonymous” or some other reference under name and to enter a fictional email address (e.g., attendee@valleywater .org) in lieu of their actual address .
Inputting such values will not impact your ability to access the meeting through Zoom.
Join Zoom Meeting:
https://valleywater.zoom.us/j/86411747617
Meeting ID: 864 1174 7617
Join by Phone:
1 (669) 900-9128, 86411747617#
CALL TO ORDER:1.
Roll Call.1.1.
Pledge of Allegiance/National Anthem.1.2.
Time Open for Public Comment on any Item not on the Agenda.1.3.
Notice to the public: Members of the public who wish to address the Board on any item not listed on the agenda should access the ”Raise Hand” tool located in Zoom meeting link listed on the agenda. Speakers will be acknowledged by the Board Chair in order requests are received and granted speaking access to address the Board. Speakers comments should be limited to three minutes or as set by the Chair. The law does not permit Board action on, or extended discussion of, any item not on the agenda except under special circumstances.
If Board action is requested, the matter may be placed on a future agenda. All comments that require a response will be referred to staff for a reply in writing.
The Board may take action on any item of business appearing on the posted agenda.
Introductions/Opening Comments.1.4.
TIME CERTAIN:2.
5:00 PM
Receive Information on Drought and Water Supply Conditions, Future Planning Update, and Call for Conservation.
22-02052.1.
Receive Information on Drought and Water Supply Conditions, Future Planning Update, and Call for Conservation.
Recommendation:
Kirsten Struve, 408-630-3138Manager:
Attachment 1: PowerPointAttachments:
Est. Staff Time: 10 Minutes
February 15, 2022 Page 2 of 3
Anderson Dam Seismic Retrofit Project Status Update. 22-02072.2.
Receive information on the Anderson Dam Seismic Retrofit Project.
Recommendation:
Chris Hakes, 408-630-3796Manager:
Attachment 1: PowerPointAttachments:
Est. Staff Time: 15 Minutes
Update on the Purified Water Project. 22-02092.3.
Receive an Update on the Purified Water Project.Recommendation:
Kirsten Struve, 408-630-3138Manager:
Attachment 1: PowerPointAttachments:
Est. Staff Time: 10 Minutes
Update on South San Francisco Bay Shoreline Project - Phase I. 22-02112.4.
Receive an Update on South San Francisco Bay Shoreline
Project - Phase I.
Recommendation:
Rechelle Blank, 408-630-2615Manager:
Attachment 1: PowerPointAttachments:
Est. Staff Time: 10 Minutes
Receive Information on Preliminary Groundwater and Treated Water Rates for Fiscal Year 2022 - 2023.
22-02142.5.
Receive Information on Preliminary Groundwater and Treated Water Rates for Fiscal Year 2022 - 2023.
Recommendation:
Darin Taylor, 408-630-3068Manager:
Attachment 1: PowerPointAttachments:
Est. Staff Time: 10 Minutes
ADJOURN:3.
Closing Remarks.3.1.
Adjourn to 4:00 p.m. Closed Session and 6:00 p.m. Regular Meeting on February 22, 2022.
3.2. February 15, 2022 Page 3 of 3
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Santa Clara Valley Water District
File No.: 22-0205 Agenda Date: 2/15/2022
Item No.: 2.1.
BOARD AGENDA MEMORANDUM
SUBJECT:
Receive Information on Drought and Water Supply Conditions, Future Planning Update, and Call for Conservation.
RECOMMENDATION:
Receive Information on Drought and Water Supply Conditions, Future Planning Update, and Call for Conservation.
SUMMARY:
Drought Conditions
On June 9, 2021, the Valley Water Board of Directors declared a water shortage emergency condition pursuant to California Water Code §350, called for water use restrictions of 15% compared to 2019, and urged the County of Santa Clara to proclaim a local emergency. The County ratified a proclamation of a drought emergency on June 22, 2021. Valley Water has been working closely with our retailers in the face of this drought. The City of Santa Clara City Manager in her role as the Director of Emergency Services declared a local drought emergency. The Santa Clara City Council ratified the emergency proclamation at the scheduled City Council meeting on July 13, 2021. The emergency proclamation in Santa Clara required the implementation of the City of Santa Clara Water Shortage Contingency Plan (Stage 2), with modifications.
Despite storms received since October 2021, Santa Clara County remains in drought. The U.S.
Drought Monitor Report from January 25, 2022, indicates that the county is in severe drought. The northern Sierra Nevada snowpack, a primary source of imported water, has shown improvement as a result of the storms, but is slightly below normal as of February 1, 2022.
Reflecting critically dry conditions across the state, the Central Valley Project and State Water Project drastically reduced imported water allocations in 2021, which typically comprise half of Valley Water’s annual water supply. Valley Water entered 2022 with over 65,000 acre-feet of imported supplies stored in San Luis Reservoir. This amount is higher than normal and is intended to provide reliability in the event dry conditions continue in 2022, while also mitigating for the reduction in storage in Anderson Reservoir. On January 20, 2022, the Department of Water Resources (DWR) stated that the 2022 SWP allocation is 15 percent, which may be adjusted for human health and safety.
Allocations on the Central Valley Project (CVP) are expected to be announced by the U.S. Bureau of Santa Clara Valley Water District Printed on 2/10/2022Page 1 of 3 powered by Legistar™
File No.:22-0205 Agenda Date:2/15/2022
Item No.:2.1.
Reclamation (Reclamation) in late February.
Although groundwater levels have declined over recent years due to the drought, groundwater conditions improved in fall 2021 due to seasonal recovery, emergency imported water supplies, and water use reduction by the community. However, if dry conditions continue and the Board’s water use reduction target is not met, there remains some risk of resumed land subsidence, which is the ground sinking due to over pumping of groundwater, in North County and wells going dry, particularly in South County where groundwater is the only drinking water supply. That risk increases as the drought persists. Land subsidence can have significant impacts on infrastructure.
Consequently, water conservation is an important strategy to help alleviate these negative impacts.
Water Conservation Programs
Given that half of the water use at an average residence is outdoors, Valley Water doubled its rebate rate for its landscape program to encourage lawn conversions to high-efficiency landscape. Valley Water continues to conduct public outreach to encourage water conservation and participation in Valley Water’s conservation programs. Participation in these programs greatly increased in 2021 and continues to be high. As part of Resolution 21-68 adopted on June 9, 2021, Valley Water commits to aggressively promote water conservation programs to all water users.
Countywide Water Use Reduction
Valley Water is engaging with retailers and cities to encourage drought response actions. As of January 31, 2022, the County of Santa Clara and 13 cities in Santa Clara County have taken formal action to their elected boards in response to the drought and to Valley Water's call to reduce water use by 15% compared to 2019 levels. All cities in Santa Clara County have increased conservation messaging in response to the drought.
Santa Clara County has made consistent progress in reducing water use since Valley Water’s call to reduce water use in June 2021. Valley Water’s retailers used the least amount of water in December 2021 compared to other months following Valley Water’s call in June 2021. The cumulative water savings since Valley Water’s call was made in June 2021 through December 2021 is 8% for the City of Santa Clara as well as for the total of all retailers. Winter months reflect indoor water use as most homes reduce or shut off irrigation during these months. As indoor water use is less discretionary and more difficult to cut back than outdoor use, we anticipate that consistently maintaining a 15% reduction in water use during winter months will be particularly challenging. Valley Water continues its outreach to the media and community to encourage residents, businesses, farms, and others to save water in order to achieve a cumulative 15% reduction in water use in 2022. In addition, Valley Water continues to work closely with its retailers, including Santa Clara.
The Model Water Efficient New Development Ordinance (MWENDO) would ensure new developments meet strong water efficiency standards. Valley Water works with cities to encourage adoption of MWENDO, including Santa Clara. Valley Water has shared resources and information on water-efficiency measures with City staff.
Santa Clara Valley Water District Printed on 2/10/2022Page 2 of 3 powered by Legistar™
File No.:22-0205 Agenda Date:2/15/2022
Item No.:2.1.
Drought Planning
Valley Water utilizes an adaptive management approach to address drought by tracking water supply, hydrologic variables, and other changing conditions, and proposing decisions as needed. In spring 2022, Valley Water plans to assess continuation of the drought and its impact to water supply. If needed, Valley Water will pursue additional emergency transfer supplies and increase the countywide call for water use reduction at that time.
FINANCIAL IMPACT:
There are adequate funds in the Adopted FY 2021-22 Budget and Water Utility Enterprise (WUE) reserves to carry out the operations described in this memo. There are adequate funds in the Safe Clean Water Program to carry out the expansion of Landscape Rebate Program in addition to the ongoing Water Utility funded water conservation program efforts. With the rebate amount increase, additional staffing resources are needed to support the expanded conservation program. A budget adjustment from WUE reserves for these additional resource needs may be brought to the Board in FY 2021-22.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
None.
UNCLASSIFIED MANAGER:
Kirsten Struve, 408-630-3138
Santa Clara Valley Water District Printed on 2/10/2022Page 3 of 3 powered by Legistar™
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valleywater.org
1 Drought and Water Supply Conditions, Call for
Conservation, and Future Planning
Special Joint Meeting with City of Santa Clara
February 15, 2022
Presenter: Neeta Bijoor, Ph.D.
Attachment 1
valleywater.org
2 Drought Status
Data sources: U.S. Drought Monitor
Attachment 1
valleywater.org
3 Countywide Water Savings in 2021
Attachment 1
valleywater.org
4 City of Santa Clara’s Water Savings in 2021
Attachment 1
valleywater.org
5 Drought and Conservation Public Outreach
49ers and Sharks PSAs
Movie theater ads
Influencer campaign
Media outreach
Social media messaging
Speakers Bureau presentations
Youth Commission
Attachment 1
valleywater.org
6 Expanded Purified Water Campaign
Attachment 1
valleywater.org
7 • Participation remains high
• Reduced program
p
rocessing time
• Vendor assistance
Water Conservation
2021
Attachment 1
valleywater.org
8 Imported Water Supplies
2021
• Success in receiving emergency transfers, banked water 2 022
• State Water Project (15%), C entral Valley Project (TBD) • Pursuing emergency transfers, banked water
Attachment 1
valleywater.org
9 Groundwater
Attachment 1
valleywater.org
10 Next Steps
• Assess scenario we are in by Spring 2022
• If drought continues, emergency imported supplies and inc
reased call for water use reduction
• Monitor water supply indicators and adapt as needed
Attachment 1
QUESTIONS
Attachment 1
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Santa Clara Valley Water District
File No.: 22-0207 Agenda Date: 2/15/2022
Item No.: 2.2.
BOARD AGENDA MEMORANDUM
SUBJECT:..Title
Anderson Dam Seismic Retrofit Project Status Update.
RECOMMENDATION:..Recommendation
Receive information on the Anderson Dam Seismic Retrofit Project.
SUMMARY:
The Anderson Dam Seismic Retrofit Project (ADSRP) will correct dam seismic deficiencies and otherwise meet all current Federal Energy Regulatory Commission (FERC) and California Department of Water Resources, Division of Safety of Dams (DSOD) dam safety design standards.
The full reservoir capacity will be restored upon completion of the Project.
Throughout 2019 to early 2020, project staff and consultants had been progressing with preparation of 90% design plans and specifications and supporting environmental and permitting documents. On February 20, 2020, the Santa Clara Valley Water District (Valley Water) received a letter order from FERC to immediately implement ADSRP-related interim risk reduction measures.
Valley Water is undertaking the Anderson Dam Federal Energy Regulatory Commission Order Compliance Project (FOCP) as a result of the February 20, 2020 directive from FERC to implement interim risk reduction measures at Anderson Dam. One of those measures is the Anderson Dam Tunnel Project (ADTP). The ADTP will construct a diversion system to augment the existing outlet, which will consist of a new diversion tunnel, an outlet structure, a micro-tunnel lake tap, and modifications to Coyote Creek just downstream of the base of the dam. The ADTP also includes reservoir bank and rim stability improvements and existing intake structure modification.
On April 27, 2021, Valley Water’s Board of Directors awarded the construction contract for the Anderson Dam Tunnel Project (ADTP) to the top ranked best value proposer, Flatiron West, Inc., in the sum of $161,140,321 and approved a contingency amount of $40,000,000 (25% of the contract price).
A second FOCP measure is the Cross Valley Pipeline Extension Project (CVPEP). The CVPEP entails constructing a new pipeline to convey imported water from the Cross Valley Pipeline to Coyote Creek to supplement flows during the construction of the ADSRP downstream of Ogier Ponds. The Project scope includes constructing an outfall which will include an energy dissipator, and Santa Clara Valley Water District Printed on 2/10/2022Page 1 of 2 powered by Legistar™
File No.:22-0207 Agenda Date:2/15/2022
Item No.:2.2.
creek bank improvements.
On November 9, 2021, Valley Water’s Board of Directors awarded the construction contract for the CVPEP to the lowest responsible, responsive bidder, Garney Pacific, Inc., in the sum of $12,867,059 and approved a contingency amount of $1,930,059 (15% of the contract price).
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice impacts associated with this item.
FINANCIAL IMPACT:
Although there is no financial impact associated with this item, the Total Project Cost of the ADSRP has increased by $589 million from $647 million (FY2022-FY26 CIP) to $1.236 billion (all dollar values referenced are inflated). Broadly, the reasons for this cost increase include the extension of the project construction schedule from 5 years to 10 years, additional environmental and permitting related costs, design changes, dam safety regulator mandated modifications and the previous undervaluation of Anderson Dam Tunnel Project cost. Further details are explained in the presentation (Attachment 1).
CEQA:
The recommended action does not constitute a project under CEQA because it does not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: PowerPoint
UNCLASSIFIED MANAGER:..Manager
Chris Hakes, 408-630-3796
Santa Clara Valley Water District Printed on 2/10/2022Page 2 of 2 powered by Legistar™
valleywater.org
1 Anderson Dam Seismic Retrofit Project
February 15, 2022
Attachment 1
valleywater.org
2 Anderson Dam Seismic Retrofit Project
October 28, 2021
Agenda
Background
Project Cost
Current Status
Attachment 1
valleywater.org
3 Background
• Anderson Dam forms Anderson Reservoir, holding 90,000 acre feet o
f water when full and the largest of Valley Water’s reservoirs. • In 2012, following a seismic stability analysis, Valley Water began pl
ans to retrofit the dam to meet current safety standards, creating the Anderson Dam Seismic Retrofit Project (ADSRP).
• On February 20, 2020, the Federal Energy Regulatory Commission (
FERC) issued an order to Valley Water to undertake early implementation interim risk reduction measures associated with ADSRP immediately.
Attachment 1
valleywater.org
4 ADSRPAnderson Dam Federal Energy Regulatory
Commission Order Compliance Projects (FOCP)
Anderson
Dam Tunnel
Project Coyote Percolation
Pond Dam
Replacement
Coyote
Creek Flood
Protection
Measures
Coyote Creek
Stream
Augmentation Fish
Protection
Measure
Cross Valley
Pipeline Extension
• Seismic retrofit of dam embankment
• C
onstruction of new higher capacity
outlet tunnel and outlet works
• Replacement of concrete spillway
and raising wall height 9-feet to
safely discharge large storm flows
• Increase dam crest height 7-feet
Attachment 1
valleywater.org
5 High Level Outlet Pipe
Anderson Dam Seismic Retrofit Project Components
Remove all liquefiable material and
reconstruct embankment
Replace
Spillway
Low Level Outlet Pipe
Temporary Diversion System
Attachment 1
valleywater.org
6 FERC Directive: Risk Reduction Measures
2. Take all necessary measures to safely prepare and drain the reservoir to El. 488’
3. Oct. 1 - Begin draining reservoir to dead pool (El. 488’)
4. Develop plan to maintain dead pool elevation in event of significant inflow
5. Expedite design and construction of new Outlet Tunnel
6. Secure permits and complete design of larger Seismic Retrofit Project
1. Lower reservoir to new restriction (El. 565’)
Attachment 1
valleywater.org
7 Anderson Reservoir at 3% Capacity - Map
Attachment 1
valleywater.org
8 Anderson Dewatered
Attachment 1
valleywater.org
9 Anderson Dam Seismic Retrofit Project
October 28, 2021
Agenda
Background
Project Cost
Current Status
Attachment 1
valleywater.org
10 Additional
Environmental/Permit
Related Costs,
$128
Extending Project
from 5 Years to 10
Years, $340
Valley Water
Controlled Design
Options, $75
DAM Safety Regulator
Mandated
Modifications, $20
ADTP Undervaluation,
$26
• FY 21: $576M (Inflated)
• FY 22: $647M (Inflated)
• FY 23: $1.236B (Inflated)
Anderson Dam Seismic Retrofit Project - Cost Increases
($ in millions, estimated inflated values)
+ $589M
Attachment 1
valleywater.org
11 Anderson Dam Seismic Retrofit Project
October 28, 2021
Agenda
Background
Project Cost
Current Status
Attachment 1
valleywater.org
12 • Reservoir Drawdown to Deadpool and Maintain Level at Deadpool – C omplete • Anderson Dam Tunnel Project (ADTP) Construction – On-go ing • Anderson Dam Tunnel Operation and Maintenance – P ost ADTP Construction • Bank and Rim Stability Improvements ( Included in ADTP) • Existing Intake Structure Modifications ( Included in ADTP) • Creek Channel and Bank Erosion Control Modifications ( Included in ADTP) • Imported Water Releases and Cross Valley Pipeline Extension –On-go ing • Coyote Percolation Dam Replacement – I n Design
• Coyote Creek Flood Management Measures – I n Design
• Steelhead Fish Avoidance and Minimization Measures – I n Design • Implementation of Additional Project Specific Avoidance and Minimization M
easures - In Planning/Design
FOCP Elements - Current Status
Attachment 1
valleywater.org
13 Typical Equipment
Attachment 1
valleywater.org
14 Tunneling Equipment
Attachment 1
valleywater.org
15 ADTP Potential Impacts
Potential impacts include:
• After storm events, the water level in the reservoir will rise temporarily • Increased flows in Coyote Creek, downstream of the dam, after storm events • Noise from construction equipment (large diesel engines) and backup alarms • Work activities will mainly be Monday through Friday during the daytime, but s
ome Saturdays may be required
• Smells caused by elevated levels of algae in the summer.
Alg
al blooms can deplete oxygen levels in the water and produce hydrogen sulfide (rotten egg taste and odor)
Attachment 1
valleywater.org
16 Project Schedule
Attachment 1
Regulatory Agencies
Federal
• FERC - F ederal Energy Regulatory
Commission lead on design and
environmental
• USACE - U
S Army Corps of
Engineers
• US Fish and Wildlife Service
• US Environmental Protection
A
gency
• National Oceanic and Atmospheric
As
sociation - NOAA
• National Marine Fisheries
S
ervice - NMFS
State
• Division of Safety of Dams – D SOD
• California Office of Historic Preservation
(
SHPO)
• California Department of Fish and Wildlife
• State Water Resources Control Board
• Regional Water Quality Control Board
County
• Valley Habitat Agency
• Santa Clara County Parks
Cities of:
• Morgan Hill
• Gilroy
• San José
Attachment 1
valleywater.org
18 Attachment 1
Santa Clara Valley Water District
File No.: 22-0209 Agenda Date: 2/15/2022
Item No.: 2.3.
BOARD AGENDA MEMORANDUM
SUBJECT:..Title
Update on the Purified Water Project.
RECOMMENDATION:..Recommendation
Receive an Update on the Purified Water Project.
SUMMARY:
The Santa Clara Valley Water District (Valley Water) continues to collaborate with its wastewater partners on recycled and purified water planning and expansion projects. The Purified Water Project (proposed Project) would include the construction of a new advanced water purification facility (AWPF), pump station and conveyance pipelines from the Palo Alto Regional Water Quality Control Plant (RWQCP) to the AWPF, conveyance pipelines to Valley Water’s existing Los Gatos Recharge System complex located in the City of Campbell, lateral pipelines, and associated facilities. The purpose of the proposed Project is to establish greater water supply reliability for Santa Clara County and to help ensure continued groundwater sustainability.
The Santa Clara City Council received an update on the proposed Project on December 7, 2021.
This report is an update of progress since then.
On December 14, the Valley Water Board of Directors directed staff to finalize agreements with the City of Palo Alto to locate the proposed Project at the Former Los Altos Treatment Plant (FLATP) site in Palo Alto. The Board also directed staff to continue discussions with the cities of San José and Santa Clara for a potential future potable water reuse project at the existing Silicon Valley Advanced Water Purification Center at the San José-Santa Clara Regional Wastewater Facility.
In addition to developing needed agreements with the City of Palo Alto, continued development of the technical analyses, regulatory analysis and specification development is ongoing. Specifically, Valley Water and Santa Clara staff have continued to meet on the preferred pipeline alignment and the need for a future pipeline operating agreement between Santa Clara and Valley Water. Outreach to other municipalities and property owners along the pipeline as well as stakeholders and the public is being conducted.
Valley Water’sprocurement process is ongoing. A Request for Qualification (RFQ) was released and eight statements of qualifications were submitted. Valley Water shortlisted four proposers who will be Santa Clara Valley Water District Printed on 2/10/2022Page 1 of 3 powered by Legistar™
File No.:22-0209 Agenda Date:2/15/2022
Item No.:2.3.
invited to submit proposals. A tentative timeline is as follows:
· Spring 2022: Release of Request for Proposal (RFP) and draft Environmental Impact Report (EIR)
· Late 2022: Selection and contract award
· 2022 - 2024: Design by selected entity
· 2024-2028: Construction and beginning of operations
ENVIRONMENTAL JUSTICE IMPACT:
Further analysis is necessary to determine the Environmental Justice impacts associated with this item and will be included in a future update to the Board. To ensure meaningful engagement, outreach on the proposed Project is conducted in multiple languages. Outreach was conducted to encourage attendance at the public scoping meeting via an outreach mailer, announcements at tours of the Silicon Valley Advanced Purification Center, and continued engagements with staff from the Cities of San José and Palo Alto to reach key stakeholder groups.
FINANCIAL IMPACT:
The Purified Water Project, Project No. 91304001 is included in the Five-Year 2022-26 Capital Improvement Program (CIP) and in the Board-adopted FY2021-22 budget. The IPR Project is funded by the Water Utility Enterprise Fund. There is no financial impact associated with the recommendations.
CEQA:
Valley Water, acting as lead agency for the proposed Indirect Potable Reuse (IPR) Project, has determined that an Environmental Impact Report (EIR) is required to satisfy the requirements of the California Environmental Quality Act (CEQA). The draft EIR will evaluate the proposed IPR Project’s environmental conditions, range of alternatives, potential environmental impacts associated with the proposed IPR Project implementation, and provide mitigation measures. The EIR analyzes both potential locations at an equal level of detail. A Notice of Preparation (NOP) was released on March 19, 2021, and the public scoping meeting was held on March 29, 2021. The draft EIR is anticipated to be released in the first quarter of 2022 for public review.
ATTACHMENTS:
Attachment 1: PowerPoint
UNCLASSIFIED MANAGER:..Manager
Santa Clara Valley Water District Printed on 2/10/2022Page 2 of 3 powered by Legistar™
File No.:22-0209 Agenda Date:2/15/2022
Item No.:2.3.
Kirsten Struve, 408-630-3138
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v a l l e y w a t e r. o r g
1 Purified Water Project in Santa Clara County
February 15, 2022 Update
Attachment 1
Purified Water Project
Treated Wastewater
Supply from
Palo Alto Regional
Water Quality Control
Plant
Purification Center
Purified Water Pump
Station and Pipeline
Los Gatos Recharge
System
RO
Concentrate
Attachment 1
Valley Water
Preferred Alignment:
Bowers-Kiely
Alignment
Alignment is 4.9 miles
Benefits:
Shortest alignment = faster
construction and less disruption
Minimal environmental impacts
Lower impact to residents
Attachment 1
v a l l e y w a t e r. o r g
4 Community: Communication and
Outreach
• Public meetings
• Website and media outreach
• Public education campaign on
Purified W
ater and Conservation
• Tours of the Purification Facility
• Stakeholder outreach
• Project specific/construction
• Continued collaboration with City staff
• Future Council updates
Attachment 1
Timeline/Next Steps
• Spring 2022: release RFP and draft EIR
• Late 2022: Valley Water plans to award the
project
• 2022-24: work with cities to finalize pipeline
alignment.
• 2024: Private partner completes design and
permitting
• 2024-28: work with cities along the pipeline
alignment on construction
• 2028: Construction will be completed and
water flowing to the Los Gatos Recharge
system
Attachment 1
QUESTIONS
Attachment 1
Attachment 1
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Santa Clara Valley Water District
File No.: 22-0211 Agenda Date: 2/15/2022
Item No.: 2.4.
BOARD AGENDA MEMORANDUM
SUBJECT:..Title
Update on South San Francisco Bay Shoreline Project - Phase I.
RECOMMENDATION:..Recommendation
Receive an Update on South San Francisco Bay Shoreline Project - Phase I.
SUMMARY:
The South San Francisco Bay Shoreline Project - Phase I (Project) is being undertaken by Valley Water in partnership with the United States Army Corps of Engineers (USACE) and the State Coastal Conservancy (Conservancy) and with other stakeholders such as the U.S. Fish and Wildlife Service.
The Project looks at restoring tidal marsh and related habitat that was lost due to former salt production activities, providing recreational opportunities and public access along the bay shoreline, and takes into consideration safeguarding against sea level rise over a 50-year period.
Valley Water and the Conservancy are the non-federal sponsors, also referred to as “local study sponsors.” The Project’s study efforts began in 2005 for all of Santa Clara County, which was divided into 11 areas, called Economic Impact Areas (EIA). In September 2010, Valley Water requested that USACE re-evaluate the study scope and conduct the study in phases beginning with the area of highest potential for flood damages and economic impacts. Conducting the study in phases was requested because studying the entire 18 miles was proving to take too long and resulting in study cost overruns. Valley Water’s Board endorsed this new study scope in March 2011, and the study was thereafter refocused to the EIA 11 area located in north San Jose between the Alviso Slough and Coyote Creek.
The Project area consists of five reaches broken up into Reaches 1-3 located between the Alviso Slough and Artesian Slough and Reaches 4-5 located between Artesian Slough and Coyote Creek.
The Project received authorization for design and construction in December 2015 at a cost of $194 million. The Project then received the full federal cost share in July 2018 of a fixed federal fund amount of $124.3 million from the 2018 Bipartisan Budget Act to design and construct the Project.
The Project has since realized significant cost increases. In early 2021, USACE updated the Project costs to $545 million, which nearly tripled the 2015 authorized design and construction cost. Prior to the 2021 Project cost increase, Valley Water’s Fiscal Year 2022-2026 Project budget included planned expenditures for the entire Project, but as a result of the significant project cost increase the majority of planned funding was reallocated to Reaches 1-3 in order to advance construction of the Reaches 1-3 elements. The revised Project cost leaves Reaches 4-5 largely unfunded, posing a Santa Clara Valley Water District Printed on 2/10/2022Page 1 of 2 powered by Legistar™
File No.:22-0211 Agenda Date:2/15/2022
Item No.:2.4.
significant challenge to fully implement the Project by the partners. The partners are exploring ways to lower the cost of construction for Reaches 4-5 and identify additional funding sources.
ENVIRONMENTAL JUSTICE IMPACT:
While the Project has environmental justice impacts this update has no environmental justice impact.
The project team has conducted significant outreach to the impacted community and engaged with them in educating them on the impacts and benefits of the project.
The Project exists in a known environmental justice area that includes 1,100 structures, 2,500 residents and 3,000 commuters who work and travel through the area each day and includes the community of Alviso, a disadvantaged community. Completion of this Project would have a positive impact on this low-income community by reducing the potential for economic flood damages caused by any coastal flood event. The Project would provide integrated 100-year coastal and fluvial flood protection, as well as resiliency against projected sea level rise. Without this Project, the community of Alviso would remain at risk to flooding that would continue to grow due to impending rising seas.
The community of Alviso sits at 13 feet below sea level and has experienced severe flooding many times, specifically in 1973, 1983, 1998, 2003, 2005 and 2014. A single flood event that would occur today, would result in more than $100 million dollars in structure and content damages to the Alviso community with a 100-year flood event resulting in more than $200 million in structure and content damages. These damage estimates are projected to increase over the next 50 years as seas rise.
FINANCIAL IMPACT:
There is no financial impact associated with this item.
CEQA:
The recommended action does not constitute a study under CEQA because it does not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: PowerPoint
UNCLASSIFIED MANAGER:..Manager
Rechelle Blank, 408-630-2615
Santa Clara Valley Water District Printed on 2/10/2022Page 2 of 2 powered by Legistar™
South San Francisco Bay Shoreline Project
– Phase I
Attachment 1
PROJECT
PARTNERS
Reach 4/5
Reach 2/3
South San Francisco Bay Shoreline Project – Phase 1
PROJECT ELEMENTS
Attachment 1
Reaches 1-3 (all elements)
Design and Construction Costs
• $247.6M (fully funded)
Reaches 1-3 (levee)
Construction Underway
• $129.8M Construction Contract (Valley Water’s share = $58.4M, paid in full) Reaches 4-5 (all elements)
Design and Construction Costs
• $270.4M (partially funded)
*
No funds received for Phase I from the Infrastructure Investment and Jobs Act South San Francisco Bay Shoreline Project – Phase 1
PROJECT ELEMENTS
PHASE 1: DESIGN AND
CONSTRUCTION COSTS
(REACHES 1-5)
2015 Authorized Cost: $194M
2021 Updated Cost: $545M
NEXT STEPS
• Eliminate contractor competition for fill and incorporate lessons learned from Reaches 1-3 construction. • Explore ways to lower the cost of construction for Reaches 4-5 and identify additional funding sources. • Look into cost sharing a nd assistance on right-of-way needs for Reaches 4-5. • Need continued support for requesting federal funds and determining funding sources and ways to lower t
he Reaches 4-5 project costs.
Attachment 1
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Santa Clara Valley Water District
File No.: 22-0214 Agenda Date: 2/15/2022
Item No.: 2.5.
BOARD AGENDA MEMORANDUM
SUBJECT:..Title
Receive Information on Preliminary Groundwater and Treated Water Rates for Fiscal Year 2022 - 2023.
RECOMMENDATION:..Recommendation
Receive Information on Preliminary Groundwater and Treated Water Rates for Fiscal Year 2022 - 2023.
SUMMARY:
Summary of Preliminary Groundwater Production Charge Analysis:
Staff prepared the preliminary FY 2022-23 groundwater production charge analysis, which includes several scenarios for Board review to seek Board input on the preliminary analysis to incorporate into the development of the groundwater production charge recommendation.
The groundwater production charge pays for District activities to protect and augment groundwater supplies and is applied to water extracted from the groundwater basin in Zones W-2, W-5, W-7, and W-8. Zone W-2 encompasses the Santa Clara groundwater subbasin north of Metcalf Road or the North County. Zone W-5 overlays the Llagas subbasin from northern Morgan Hill south to the Pajaro River. Zone W-7 overlays the Coyote Valley south of Metcalf Road to northern Morgan Hill, and W-8 encompasses the area below Uvas and Chesbro Reservoirs.
The groundwater production charge recommendation will be detailed in the Annual Report on the Protection and Augmentation of Water Supplies that is planned to be filed with the Clerk of the Board on February 25, 2022. The public hearing on groundwater production charges is scheduled to open on April 12, 2022. It is anticipated that the Board would adopt the FY 2022-23 groundwater production charges by May 10, 2022, that would become effective on July 1, 2022.
The FY 2022-23 groundwater production charge and surface water charge setting process will be conducted consistent with the District Act, and Board resolutions 99-21 and 12-10.
Water Usage Trend
Valley Water’s managed water use for the fiscal year ended last June 30, 2021 (FY 2020-21) is Santa Clara Valley Water District Printed on 2/10/2022Page 1 of 4 powered by Legistar™
File No.:22-0214 Agenda Date:2/15/2022
Item No.:2.5.
estimated to be approximately 246,500 acre-feet (AF), roughly 16,000 AF higher than was budgeted due to a dry winter and dry spring. For current FY 2021-22, due to drought conditions and the Board’s call for 15% mandatory conservation compared to 2019, if drought conditions continue and conservation goals are achieved, there could be a reduction of approximately 32,000 AF in water usage versus the budgeted amount of 232,000 AF. This could translate to upwards of $50 million in reduced revenue this fiscal year. Water use projections for FY 2022-23 and beyond have been adjusted due to the current drought and mandatory calls for conservation. Based on trends from the last drought (2014-2017) returning to “normal” water use is projected by FY 2025-26.
Staff are carefully monitoring monthly water use actuals and working closely with the water retailers during the drought and will continue to do so during the upcoming rate setting process, modifying the water usage forecast as necessary.
Groundwater Production Charge Projection Scenarios
Staff has prepared a preliminary baseline groundwater production charge projection scenario for Board review, with additional scenarios based on various levels of conservation and projected water use. The ongoing drought has significantly impacted near-term rate projections.
For the baseline scenario, the increase in the North County Zone W-2 Municipal and Industrial (M&I) groundwater production charge is 15.0% for FY 2022-23. The overall impact of the preliminary analysis baseline scenario for FY 2022-23 to the average household would be an estimated increase of $7.75 per month in North County.
Staff proposes to set the Contract Treated Water Surcharge at $115/AF to maintain alignment with the cost that retailers would incur to pump water from their wells. Based on information gathered from retailers, staff believes that setting the Contract Treated Water Surcharge at $115/AF would be close to the point of neutrality where a retailer would be indifferent in the short term as to whether to pump water from the ground or take treated water.
Staff has prepared the following scenarios for Board consideration:
Scenario 1) Baseline with Return to Prior Projection Water Use by FY26:
This scenario includes the following projects and assumptions:
· Conservation: 15% achieved by FY 2022-23, returning to prior projections of around 236kAF by FY 2025-26
· Anderson Reservoir leveraging WIFIA loans (up to 49% of total project cost (TPC)) · Pacheco Reservoir Expansion Project (PREP) with $496 Proposition 1 grants, WIFIA loans (up to 49% of TPC) and Partnership Participation at 35% of TPC · Purified Water Expansion operational by FY28, assumes 100% debt financed by P3 entity · Los Vaqueros (Transfer Bethany Pipeline)
· Delta Conveyance SWP portion at 3.23%
· Master Plan Project Placeholder - Assumes $369M in anticipated costs from FY 2022-23 to FY 2031-32 for new pipelines, pipeline rehabilitations, treatment plant upgrades and SCADA Santa Clara Valley Water District Printed on 2/10/2022Page 2 of 4 powered by Legistar™
File No.:22-0214 Agenda Date:2/15/2022
Item No.:2.5.
implementation projects.
· New, additional emergency water supply purchases in FY 2022-23, FY 2023-24, and FY 2024- 25 ($67.7M total)
· Transfer $39M near-term surplus funds from PREP to rate stabilization reserve in FY 2021-22; future PREP cost projection has been adjusted such that TPC is unchanged · Leverage existing Drought Contingency, Supplemental Water and Rate Stabilization Reserves ($25M plus $39M PREP for a total of $64M used in FY 2022-23 and FY 2023-24) Scenario 2) Baseline with Return to Prior Projection Water Use by FY32:
Includes the same projects and assumptions as Scenario 1 except water use projections have a slower rebound, returning to prior projections of around 236kAF by FY 2031-32.
Scenario 3) Baseline with 10% and No Return to Prior Projection Water Use:
Includes the same projects and assumptions as Scenario 1 except 10% conservation is achieved (around 201kAF projected water use in FY 2022-23), with future water use projections having minimal rebound, growing to 211kAF by FY 2031-32.
Scenario 4) Baseline with 15% and No Return to Prior Projection Water Use:
Includes the same projects and assumptions as Scenario 1 except 15% conservation is achieved (around 190kAF projected water use in FY 2022-23), with future water use projections having minimal rebound, growing to 199kAF by FY 2031-32.
Scenario 5) Baseline with 20% and No Return to Prior Projection Water Use:
Includes the same projects and assumptions as Scenario 1 except 20% conservation is achieved (around 179kAF projected water use in FY 2022-23), with future water use projections having minimal rebound, growing to 187kAF by FY 2031-32.
Staff can model additional scenarios for the Board as needed.
Other Assumptions
All scenarios assume the continued practice of relying on the State Water Project (SWP) Tax to pay for 100% of the SWP contractual obligations. Pursuant to Water Code Section 11652, Valley Water, whenever necessary, is required to levy on all property in its jurisdiction not exempt from taxation, a tax sufficient to provide for all payments under its SWP contract with the California Department of Water Resources (DWR). All scenarios assume an increase in the SWP Tax for FY 2022-23, setting it at $27M. The SWP Tax for the average household in Santa Clara would increase to about $41 per year.
A Drought Reserve was established in FY 2015-16 and was budgeted at $10M for FY 2021-22. The purpose of this reserve is to help minimize future rate impacts and complements the Supplemental Water Supply Reserve. The preliminary groundwater production charge analysis includes full use of the reserve in FY 2022-23, with reserve levels building back up over subsequent years.
All scenarios assume Water Utility operations cost of $265.6M in FY 2022-23 versus the FY 2021-22 Santa Clara Valley Water District Printed on 2/10/2022Page 3 of 4 powered by Legistar™
File No.:22-0214 Agenda Date:2/15/2022
Item No.:2.5.
adopted budget of $247.2M.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice impacts associated with this item.
FINANCIAL IMPACT:
The preliminary analysis of the groundwater production charges does not have any immediate financial impact however, the adopted groundwater production charges will affect the future finances of the Water Utility Enterprise.
CEQA:
Establishment of groundwater production charges is not a project under CEQA Guidelines Section 15273(a) (CEQA does not apply to establishment or modification of charges by public agencies which the public agency finds are for the purpose of meeting operating expenses; purchasing or leasing supplies, equipment and materials; meeting financial reserve needs/requirements; and obtaining funds for capital projects needed to maintain service within existing service areas).
ATTACHMENTS:
Attachment 1: PowerPoint
UNCLASSIFIED MANAGER:..Manager
Darin Taylor, 408-630-3068
Santa Clara Valley Water District Printed on 2/10/2022Page 4 of 4 powered by Legistar™
PRELIMINARY FISCAL YEAR 2022 - 23
Groundwater Production Charge Analysis
Presented by
Darin Taylor, Chief Financial Officer
February 15, 2022
Attachment 1
Topics
1. Background & System Infrastructure
2. Drought Impact on Preliminary Analysis
3. Water Usage
4. Water Utility Cost Projection
5. Scenario Assumptions
6. Preliminary Groundwater Charge Forecast Scenarios
7. Other Information
8. Schedule
9. Summary
Attachment 1
A comprehensive, flexible water system
SERVING OVER 2.0 MILLION PEOPLE
10 Reservoirs
393 acres of recharge ponds
142 miles of pipelines
3 water treatment plants
1 water purification center
3 pump stations
Attachment 1
Valley Water Groundwater Charge Zones of Benefit
SERVING OVER 2.0 MILLION PEOPLE
Board Pricing Policy Summary
• Groundwater charges are levied within a
z
one for benefits received
• Modified zones shown became effective
o
n 7/1/2020
• All water sources and water facilities
c
ontribute to common benefit within a
zone regardless of cost, known as
“pooling” concept
• Helps maximize effective use of available
r
esources
• Agricultural water charge shall not exceed
10%
of M&I water charge
Attachment 1
Drought Emergency Cost increases
• Emergency Water Purchases projected to be $67.7M from FY23 to FY25 • Emergency Conservation activities projected to be $19.8M from FY23 to FY25 W
ater Usage down
• Mandatory 15% call for conservation compared to 2019 (achieved by FY23) • Results in lower revenue to pay for highly fixed cost structure Drought has significant impact on preliminary analysis
COSTS WATER
USAGE
WATER
RATES
DROUGHT IMPACT PUTS PRESSURE ON WATER RATES:
Attachment 1
202kAF
190kAF
278kAF 285kAF
237kAF
200kAF
215kAF
233kAF
216kAF
231kAF
247kAF
232kAF 234kAF 234kAF 235kAF 236kAF 237kAF
0 50
100
150
200
250
300
350
FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 Acre-feet (1,000s)
Actuals FY 22 Budget Prior Projection Prelim Baseline Projection Treated Water
Historic Drought
Wet Spring Current Drought
Water Usage (District Managed)
Attachment 1
FY23 Water User Scenarios & Water Usage (District Managed) 246.50
232.30 233.53 234.44 235.35 236.40 237.45 238.50 239.56 241.63 242.78 243.94 190.13
236.40
178.94
187.33
201.72
211.07
198.96
201.71
190.13
170
175
180
185
190
195
200
205
210
215
220
225
230
235
240
245
250
255
260
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 Acre Feet (AF)
Fiscal Year
FY2022-23 Water Use Scenarios (AF) with Various Conservation Levels & Rebounds FY22 Budget & Prior Projections 15% conservation in FY22 15% conservation by FY23 with low future rebound (Scenario 2) 20% conservation by FY23 with no future rebound (Scenario 5) 10% conservation by FY23 with no future rebound (Scenario 3) 15% conservation by FY23 with no future rebound (Scenario 4) 15% conservation by FY23 with future rebound (Baseline Scenario 1) Attachment 1
Preliminary Cost Projection
Attachment 1
Infrastructure Repair and Water Supply Investments
Drive Water Rates
Smart infrastructure investments needed today:
• Critical to providing safe, clean water to Santa Clara County • Investing now is most cost-e fficient way to get critical multi-year projects done Priority infrastructure investments needed include:
• Fixing Anderson Dam
• Address public health and safety concerns and relieve operational restrictions • Upgrading Rinconada Water Treatment Plant
• Extend service life of plant for next 50 years and expand plant capacity • Building local storage with Pacheco Reservoir Expansion Project • Add water storage to help face extended droughts
• Expanding Purified Water Project
• Provide incremental drought proof water supply
Attachment 1
Rate setting strategy for FY 2022-23
WATER RATE IMPACT MINIMIZATION STRATEGIES:
1. Transfer $39M unspent funds from PREP to Rate Stabilization R
eserve in FY 22; future PREP cost projection adjusted such that Total Project Cost (TPC) is unchanged
2. Leverage available reserves: draw down $64M total in FY 23 & FY 24 (
including $39M from PREP unspent funds)
3. One-t ime transfer of $25M from WSS Fund to Water Utility in FY 23 Attachment 1
Rate setting strategy for FY 2022-23, continued
FY 23 BASELINE CASE ASSUMPTIONS:
• Baseline Projects*
• SWP Tax pays for 100% of SWP costs (excludes SWP portion of Delta Conveyance) • Delta Conveyance SWP portion at 3.23%
• Los Vaqueros (Transfer Bethany Pipeline)
• Anderson Dam Seismic Retrofit with WIFIA loans (up to 49% of TPC) • Purified Water Expansion via P3 with operations beginning in FY28 • Assumes 100% debt financing through P3 entity
• Pacheco Reservoir Expansion Project (PREP) with $496M Proposition 1 grants, WIFIA loans (up to 49% of TPC) and P
artnership Participation at 35% of TPC
• Master Plan Projects Placeholder**: Assumes $369M from FY23-FY 32, mainly after 5 Year CIP * Includes but not limited to dam seismic retrofits, Rinconada WTP reliability improvement, 10-year pipeline rehabilitation program ** Master Plan Project Placeholder includes anticipated costs for new pipelines, pipeline rehabilitations, treatment plant upgrades & SCADA implementation projects TPC: Total Project Cost
Attachment 1
Preliminary Groundwater Charge Increase Scenarios
North County Zone W-2 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 Baseline Scenario #1
15% in FY23 returning to prior projection by FY26 15% 15% 15% 9.1% 9.1% 9.1% 9.1% 5% 5% 5% Scenario #2
15% in FY23 with lower future rebound 15% 15% 15% 9.8% 9.8% 9.8% 9.8% 5.6% 5.6% 5.6% Scenario #3
10% in FY23 and no future rebound 17% 16.3% 15.3% 13% 13% 13% 13% 5.5% 5.5% 5.5% Scenario #4
15% in FY23 and no future rebound 21% 21% 16% 12% 12% 12% 12% 6% 6% 6% Scenario #5
20% in FY23 and no future rebound 22.5% 22.5% 18.5% 12% 12% 12% 12% 6.2% 6.2% 6.2% M&I Groundwater Charge Year to Year Growth %
Attachment 1
Preliminary Monthly Impact to Average Household Scenarios M&I Groundwater Charge – Monthly impact to Average Household North County Zone W-2 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 Baseline Scenario #1
15% in FY23 returning to prior projection by FY26 $7.75 $8.91 $10.24 $7.15 $7.80 $8.51 $9.28 $5.56 $5.84 $6.13 Scenario #2
15% in FY23 with lower future rebound $7.75 $8.91 $10.24 $7.70 $8.45 $9.28 $10.19 $6.39 $6.75 $7.13 Scenario #3
10% in FY23 and no future rebound $8.78 $9.85 $10.75 $10.53 $11.90 $13.45 $15.19 $7.26 $7.66 $8.09 Scenario #4
15% in FY23 and no future rebound $10.85 $13.12 $12.09 $10.52 $11.79 $13.20 $14.78 $8.28 $8.78 $9.30 Scenario #5
20% in FY23 and no future rebound $11.61 $14.23 $14.33 $11.01 $12.34 $13.82 $15.47 $8.95 $9.51 $10.10 Note: Does not include any increase that a retailer would layer on top Attachment 1
Other Charges, Taxes, Reserves Information
FY 2022 FY 2023 FY 2024
Other Charges Budget Projection Projection
Contract TW Surcharge ($/AF) $115.00 $115.00 $115.00
Non-contract TW Surcharge ($/AF) $200.00 $200.00 $200.00 Surface Water Master Charge ($/AF) $40.90 $46.70 $53.30 Agricultural Groundwater Charge ($/AF) $34.15 $36.85 $39.80 SWP Tax
Revenue $26M $27M $28M
Cost per average household $40/Yr $41/ Yr $42/Yr
Reserves
Supplemental Water Reserve $7.9M $5.3M $2.7M
Drought Reserve $10.0M $0M $0M
Rate Stabilization Reserve $55.5M $42.5M $7.5M
Operating and Capital Reserve $60.6M $53.7M $62.7M
Attachment 1
Jan 3 Ag Water Advisory Committee
Jan 11 Board Meeting: Preliminary Groundwater Charge Analysis Jan 19 Water Retailers Meeting: Preliminary Groundwater Charge Analysis Jan 26 Water Commission Meeting: Preliminary Groundwater Charge Analysis Feb 8 Board Meeting: Set time & place of Public Hearing Feb 25 Mail notice of public hearing and file PAWS report Mar 8 Board Meeting: Budget development update
Mar 16 Water Retailers Meeting: FY 23 Groundwater Charge Recommendation Mar TBD Landscape Committee Meeting
Apr 4 Ag Water Advisory Committee
Apr TBD Water Commission Meeting
Apr 12 Open Public Hearing
Apr 14 Continue Public Hearing in South County
Apr 26 Conclude Public Hearing
Apr 27-28 Board Meeting: Budget work study session
May 10 Adopt budget & groundwater production and other water charges 2022 Schedule
Attachment 1
Summary
Key Drivers for Water Rate Increases:
• Emergency water purchases to ensure water supply for Silicon Valley and preparing for ongoing d
rought over next 2 years
• Smart infrastructure investments needed today:
• Investing now is most cost-e fficient way to get critical multi-year projects done Valley Water is leveraging all available tools to minimize rate impacts now • Continue to reassess drought status & recovery for future year rate impacts Seeking Board direction on following issues to be incorporated into Report on Protection and Augmentation of Water Supplies (PAWS) scheduled for February 25, 2022 • Rate Impact Minimization Strategies
• Water Use projection scenarios
Attachment 1