For City of Sunnyvale
April 8, 2025
FISCAL YEAR 2025- 26
SCVWD Groundwater Production and Other
Water Charges
valleywater.org
2 Agenda
Topic Presenter
Groundwater Production Charges Darin Taylor, CFO
Local & Imported Water Supply
Conditions
Aaron Baker, COO, Water Utility
Enterprise
Water Reuse Aaron Baker, COO, Water
Utility Enterprise
South San Francisco Bay Shoreline
Project
Bhavani Yerrapotu, DOO,
Watersheds Design and
Construction
54th Annual Report
Released
Annual Protection and Augmentation of Water
Supplies Report (PAWS) provides information &
accountability
Filed February 28, 2025
Available Online:
https://www.valleywater.org/ProposedWaterCharges
The PAWS report supports the proposed groundwater production charges for FY 2025-26, which are necessary to pay for ongoing operations and maintenance of the existing water utility system, investments in
water supply infrastructure rehabilitation and upgrades, and new water supply reliability investments.
A comprehensive, flexible water system serving over 2 million people Water Utility:
393 ACRES OF
RECHARGE
PONDS
142 MILES OF
PIPELINES
10 RESERVOIRS
3 WATER
TREATMENT
PLANTS
3 PUMP
STATIONS
1 WATER
PURIFICATION
CENTER
Groundwater Production Charges
Valley Water Groundwater Charge Zones of Benefit
Board Pricing Policy
Summary
• Groundwater charges are
levied within a zone for
benefits received
• All water sources and
water facilities contribute
to common benefit within
a zone regardless of cost,
known as “pooling”
concept
• Helps maximize
effective use of available
resources
• Agricultural water charge
shall not exceed 10% of
M&I water charge
Impact of Shortage
WHAT WOULD WATER SHORTAGE MEAN DURING A FUTURE MULTI - YEAR DROUGHT? During a 6-year drought in 2050:
• All four potential future conditions show some level of water supply shortfall. • Assumptions: Reliance on existing supplies and infrastructure only & water conservation goals are met, including short- term drought reductions. Future supply and demand conditions may vary.
Not investing wisely or forgoing rate increases may result in future supply shortages or lower levels of service.
Annual Water
Supply Shortage in AF
(6-year drought in 2050)
Moderately Impacted
Imported Water in AF
Severely Impacted
Imported Water in AF
Supply Shortage Supply Shortage
High Demand: 350,000 316,000
(19,000 GWB) 34,000 278,000
(3,000 GWB) 72,000
Stable Demand: 330,000 328,000
(33,000 GWB) 2,000 282,000
(11,000 GWB) 48,000
AF: Acre Feet (1 AF equals 325,851 gallons or enough water for 10 people for an entire year) GWB: Groundwater Banking water transfers
Impact of Shortage
Potential Impacts of Lower Levels of
Service:
• Quality of Life
• Economic Impact
• Irrigation for Parks & Trees
• Declining Agricultural Production
• Irreversible Subsidence
Estimated Costs of Water Supply Shortages
(2023$):
• Residential $1.6 – $2.8 Billion
• Agricultural $220 – $280 Million
• Commercial $1.2 – $14.2 Billion
• Subsidence Potentially Billions
COMMUNITY DISRUPTION AND POTENTIALLY STAGGERING ECONOMIC IMPACT Infrastructure Repair and Water Supply Investments Drive Water Rate Projection
RWTP Reliability Improvements
($720 Million)
San Jose Purified Water Program
($2,828 Million placeholder cost)
Dam Seismic Retrofits/Improvements
($3,382 Million)
Pacheco Reservoir Expansion
($2,732 Million)
Additional Planned
Investments in
Capital Projects Led
by Other Agencies
• Sisk Dam Raise –
Up to $563M in
2024 $’s
• Delta Conveyance
Project – Up to
$650M in 2023 $’s
District Managed Water Usage
REFLECTS MORE MODERATE REBOUND FROM 2023 DROUGHT
285
237
200
215
232
216
230
247
224
198 203
223 219 224 225 226 228 229 230 231 232 233
0 25
50 75
100
125
150
175
200
225
250
275
300
325
350
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 FY 28 FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 Acre-feet (1,000s)
District Managed Water Usage (TAF)
FY 26 Projection Actuals FY 25 Budget
Treated Water
Historic
Drought
Wet Spring
Recent Drought
Groundwater Charge Increase Projection
M&I Groundwater Charge Year to Year Growth %
FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
North County Zone W-2 9.9% 9.9% 9.9% 9.9% 9.9% 9.9% 9.9% 9.9% 9.9% 7.0% Prior Year 9.9% 9.9% 9.9% 9.9% 9.9% 9.9% 9.9% 9.9% 7.0% M&I Groundwater Charge Monthly Impact to Average
Household
Staff Recommendation FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 North County Zone W-2 $7.60 $8.35 $9.18 $10.09 $11.09 $12.19 $13.39 $14.72 $16.18 $12.57 Note: Does not include any increase that a retailer would layer on top Local Assistance Programs
Multiple Retailers offer
Customer Assistance
Programs (CAP) to help
residents with their water
bills.
Valley Water’s program WRAP
(Water Rate Assistance
Program) will be renewed later
this calendar year.
2025 Schedule
• Jan 6 Agricultural Water Advisory Committee
• Jan 14 Board Meeting: Preliminary Groundwater Charge Analysis • Jan 15 Water Retailers Meeting: Preliminary Groundwater Charge Analysis • Jan 22 Water Commission Meeting: Prelim Groundwater Charge Analysis • Feb 11 Board Meeting: Set time & place of Public Hearing • Feb 28 Mail notice of public hearing and file PAWS report • Mar 11 Board Meeting: Budget development update
• Mar 19 Water Retailers Meeting: FY 26 Groundwater Charge Recommendation • Mar 25 Long Range Financial Forecast Review
• Apr 7 Agricultural Water Advisory Committee
• Apr 8 Open Public Hearing
• Apr 9 Water Commission Meeting
• Apr 23-24 Board Meeting: Budget work study session
• Apr 25 Continue Public Hearing in South County (Morgan Hill) • May 16 Conclude Public Hearing
• May 27 Adopt budget & groundwater production and other water charges Summary
Valley Water remains in an era of investment
• Needed infrastructure repair coupled with climate change driving planning efforts for investments
Water Supply Master Plan 2050 is nearly finished
• Includes adaptive management framework to provide Board with flexibility to make incremental investment decisions and refine them over time
Water Utility Enterprise cost containment measures include:
• Pausing 45 positions district-wide
• Deferring unfunded capital projects (Almaden Calero Canal Phase 2, Alamitos Dam replacement) • Submitting applications for an additional $1.3B worth of low-cost federal loans for the Dam Safety Project and the ADSRP
Proposed FY 26 Groundwater Production Charge in terms of average household increase is:
• Increase of $7.60 per month in Zone W-2 for groundwater and treated water Local & Imported
Water Supply Conditions
valleywater.org
16 Water Supply Conditions – Local Water
• Groundwater Conditions:
o Basins are healthy
o Local groundwater storage > 400,000
AF
• Normal managed recharge operations
countywide
• Precipitation: ~ 9 in. in downtown
San José (75% of average)
• Local surface water reservoirs:
o Storage in 9/10 reservoirs: 55,165 AF
o 88% of restricted capacity
o 109% of the 20-year
average
(data as of March 24, 2025)
valleywater.org
17 Water Supply Conditions – Imported Water
• Statewide Conditions: Conditions this time last year o Shasta: 86% of capacity (112% of normal) 88% of capacity o Oroville: 86% of capacity (121% of normal) 89% of capacity o San Luis: 89% of capacity (104% of normal) 72% of capacity • VW Storage in San Luis into 2025: ~48,500 AF
• SWP Allocation: 40% (40,000 AF)
• CVP Allocation: 75% M&I/35% Ag (~105,000 AF)
https://cdec.water.ca.gov/resapp/RescondMain
89% | 104%
(Total
Cap)
(Hist.
Avg.)
San Luis
Reservoir
(data as of March 24, 2025)
valleywater.org
18 Water Reuse
valleywater.org
19 • Joint study to explore water reuse
opportunities
• Analyze anticipated and potential non-
potable expansion and impact on
possible potable reuse
• Continued collaboration on Wolfe
Road pipeline
Water Reuse in Sunnyvale
Sunnyvale Municipal Golf Course
valleywater.org
20 Regional Water Reuse Goals
• Potable reuse goal
o 24,000 AFY by 2035 – focus on a project in San
José
• Approved Capital Improvement Program
o San José Purified Water Project Phase 1
o Lays the groundwork for meeting DPR
regulations
• South County Reuse Collaboration
o Technical Working Group to enhance technical
collaboration
o Evaluate advanced water reuse
o Feasibility Study
South San Francisco Bay
Shoreline Project
South San Francisco Bay Shoreline Sunnyvale Feasibility Study Study Objectives:
1. Coastal Flood Protection:
Coastal flood protection
with sea level rise
2. Environmental
Restoration: Restore &
enhance tidal marsh and
other habitat
3. Recreation: Provide public
access to the bay (trails)
USACE Feasibility Study: $16 Million/8 Years
Scoping
Alternative
Evaluation &
Analysis
Feasibility
Analysis of
Selected Plan
Washington-
Level Review
Tentatively
Selected
Plan
Dec 2027
Currently
Here
Ongoing Stakeholder Check-ins (Schedule TBD)
Initial Stakeholder Check-ins
(Charrette, Public Scoping,
Individual Meetings)
Agency
Decision
Milestone
Sep 2031Mar 2031
Signed
Chief’s
Report
Alternatives
Milestone
Meeting*
Nov 2024
*HQ Approval Pending
Study
Begins
Aug 2023
VALLEY WATER LOCAL SHARE OF 50% = $8 MILLION
• Design – Estimated start 2032
• Construction – Estimated start between 2035 - 2040
Flood Protection Levee
Shoreline Sunnyvale Study - Possible Solutions to Prevent Coastal Flooding
Marsh Restoration
Horizontal Levee
Questions