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Valley Water to hold a public hearing on a proposed change to the voter-approved Safe, Clean Water and Natural Flood Protection Program

July 29, 2024
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The Safe, Clean Water and Natural Flood Protection Program, a countywide special parcel tax that voters approved in 2012 and renewed in 2020, funds 31 projects across Santa Clara County. It provides approximately $52.3 million annually for local projects that deliver safe, clean water, natural flood protection and environmental stewardship.

While renewing the Safe, Clean Water Program in 2020, Valley Water gathered community feedback to help create six priorities for the renewed community-preferred program report. In the past few years, infrastructure construction projects within the Safe, Clean Water Program have experienced significant cost increases, resulting in funding shortfalls.

One such project is the Upper Llagas Creek Flood Protection Project (Upper Llagas Creek Project), which entails constructing improvements along 13.9 miles of channel from Buena Vista Avenue to Llagas Road, including the West Little Llagas Creek in downtown Morgan Hill.

Valley Water has completed the construction of two phases of the Upper Llagas Creek Project and is ready to construct the third and final phase, Phase 2B. With the construction of the third phase, Valley Water will deliver the entire project and provide flood protection for 1,100 homes and 500 businesses.

To adapt to the cost increases and address the Upper Llagas Creek Project funding shortfall, Valley Water staff recommends changing the funding allocation of Project E8: Upper Guadalupe River Flood Protection (Upper Guadalupe River Project) in the Safe, Clean Water Program.

The Valley Water Board of Directors will hold a public hearing on August 13, 2024, at 1 p.m. to discuss and consider the proposed Safe, Clean Water program change. Members of the public can attend in person at Valley Water headquarters, located at 5700 Almaden Expressway in San Jose, or via Zoom valleywater.zoom.us/j/84454515597.

Here is a brief overview of the project and the proposed funding changes.

The Upper Guadalupe River Project is a partnership with the U.S. Army Corps of Engineers (USACE). The project schedule forecasts the design phase to commence in 2026 and be completed in 2028, with construction to follow and finish in 2033.

Based on the latest USACE estimates and staff analysis, the majority of Valley Water’s estimated cost share for the Upper Guadalupe River Project will be made through real estate acquisitions. Valley Water has already acquired 95% of the required properties, and the remaining required are smaller fee title/easements.

Because Valley Water has already acquired most of the USACE-identified properties, staff estimates that the proposed remaining funding allocation will be sufficient for Valley Water to cover any remaining cost share required. If cost-share estimates change, staff will update this amount through the annual Capital Improvement Program Five-Year Plan Development Process.

Given the Upper Guadalupe River Project schedule and status, staff recommends reallocating the current planned cost-share funding allocation of approximately $42.7 million in future capital costs from the project to the Fund 26 Operating and Capital Reserves. This reallocation will help balance Fund 26 in the short term and provide funds now to award a construction contract and complete the final phase of the Upper Llagas Creek Project, which is anticipated in the next several years.


Valley Water manages an integrated water resources system that includes the supply of clean, safe water, flood protection and stewardship of streams on behalf of Santa Clara County's 2 million residents. The district effectively manages 10 dams and surface water reservoirs, three water treatment plants, an advanced recycled water purification center, a state-of-the-art water quality laboratory, nearly 285 acres of groundwater recharge ponds and more than 294 miles of streams. We provide wholesale water and groundwater management services to local municipalities and private water retailers who deliver drinking water directly to homes and businesses in Santa Clara County.