HomeMy WebLinkAboutCC 11-04-2025 Item No. 5 Santa Clara Valley Water District_Written CommunicationsCC 11-04-2025
Item #5
Santa Clara Valley Water
District on recent updates
from the district
Written Communications
For City of Cupertino
November 4, 2025
Overview of SCVWD Water Charges & Key Projects
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
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
RWTP Reliability Improvements
($720 Million)
San Jose Purified Water Program
($2.6 Billion)
Dam Seismic Retrofits/Improvements
($3.4 Billion)
Pacheco Reservoir Expansion
($3.2 Billion)
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
Infrastructure Repair and Water Supply Investments
Drive Water Rate Projection
Water Supply Master Plan 2050 is nearly finished and includes adaptive management framework to provide Valley
Water’s Board with flexibility to make incremental investment decisions and refine them over time.
Project
Suspended
District Managed Water Usage
REFLECTS MORE MODERATE REBOUND FROM 2023 DROUGHT
285
237
200
215
232
216
230
247
224
198 203 219 219 224 225 226 228 229 230 231 232 233
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
Ac
r
e
-fe
e
t
(
1
,
0
0
0
s
)
District Managed Water Usage (TAF)
FY 26 Projection Actuals FY 25 Estimated Actuals
Treated Water
Historic
Drought
Wet Spring
Recent Drought
Groundwater Charge Increase Projection
M&I Groundwater Charge Year to Year Growth %
North County Zone W-2 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
Baseline 9.9%9.9%9.9%9.9%9.9%9.9%9.9%9.9%9.9%7.0%
Scenario w/o Pacheco & with
Expanded Sites 9.9%9.2%9.2%9.2%9.2%6.8%6.8%6.8%6.8%6.8%
M&I Groundwater Charge Monthly Impact to Average
Household
North County Zone W-2 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35
Baseline $7.60 $8.35 $9.18 $10.09 $11.09 $12.19 $13.39 $14.72 $16.18 $12.57
Scenario w/o Pacheco & with
Expanded Sites $7.60 $7.76$8.48$9.26$10.11$8.16$8.71$9.31$9.94$10.61
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 WRAP (Water
Rate Assistance Program) is
budgeted at $1M per year.
Summary
Valley Water’s “era of investment” is driving water charge projection
•Needed infrastructure repair coupled with climate change driving planning efforts for
investments
•Water charge projection adjusted downward due to Pacheco Project suspension
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 Anderson Dam Seismic Retrofit Project