REPORT TO COUNCIL
SUBJECT
Title
Action to Approve an Agreement with the Santa Clara Valley Water District (Valley Water) Relating to Payment of up to $350,000 to the City for Providing Support Services for Valley Water’s Purified Water Project
Report
COUNCIL PILLAR
Deliver and Enhance High-Quality Efficient Services and Infrastructure
BACKGROUND
The City is a co-owner of the San José-Santa Clara Regional Wastewater Facility (RWF). The RWF processes the City’s wastewater for discharge to the San Francisco Bay. A portion of that wastewater is diverted to the Silicon Valley Advanced Water Purification Center (SVAWPC), and is further treated beyond the RWF’s regular tertiary treatment, so that it can be used as recycled water for non-potable uses or, potentially, as purified water that can ultimately be used as a potable source to offset groundwater and imported water demands for customers, including those in Santa Clara.
The Santa Clara Valley Water District (Valley Water) entered into an agreement with the City of San José in 2010 to share the costs of construction of the SVAWPC. Valley Water has indicated its interest in expanding the supply of treated wastewater to be processed by the SVAWPC (the facility was integrated into the RWF’s treatment processes as part of the 2010 agreement). This potential expansion requires time to be spent by City of Santa Clara staff, specifically Water & Sewer Utilities staff, on water supply planning, as well as design, agreements, and construction of new facilities.
Valley Water has developed a Water Supply Master Plan, with the intent to expand the use of purified water as a source of potable water for the County by treating wastewater at the RWF.
In 2022, the City of Santa Clara executed a letter of intent with the City of San José and Valley Water to join forces and collaborate on the expansion of recycled and purified water in the County. The agencies will work to develop a full-scale purified water facility while developing a feasibility study, demonstration facility, operational, ground lease and wastewater availability agreements, policy obligations, RO concentrate management responsibilities, public outreach, and educational programs.
Climate change will produce more frequent and severe droughts and limit current water supply. It is imperative to build-up local water supply resiliency as climate change makes the region more vulnerable to severe and long-term droughts. Santa Clara has made the use of recycled water a priority as a way to supplant the use of local potable water supplies. Approximately 23% of Santa Clara’s entire water portfolio is made up of recycled water, which serves over 300 customers across 33 miles of recycled water pipe. Santa Clara has a goal to expand the use of recycled water to 3.5 million gallons per day of recycled water by 2025.
DISCUSSION
Valley Water is the lead agency on the purified water project. Water & Sewer Utilities and Public Works staff are lending time and support to the project. Staff has been collaborating with Valley Water on the development of an Agreement regarding how Santa Clara can be reimbursed for staff time devoted to the project. The approved agreement would allow a pathway forward to develop a locally produced droughtproof water supply that will offset the use of limited imported and local potable water. The State has regulatory oversight on the purification of wastewater into drinking water and recently promulgated new regulations related to purified water that will produce safe and sustainable drinking water for the future. City support will include attending meetings, negotiating terms of agreements, providing technical data, regulatory coordination, and ensuring the collective rights of the City are represented. This item seeks approval of the attached Agreement for cost sharing. Water & Sewer Utilities staff that will be involved in the project include: the Director, Assistant Director, Utility Operations Engineer, Senior Civil Engineer, Assistant Civil Engineer, Associate Civil Engineer, Principal Engineer, and Senior Management Analyst. Public Works staff that will be involved include: the Assistant Director/City Engineer, Principal Engineer, Senior Civil Engineer, Assistant Civil Engineer, Associate Civil Engineer, and Public Works Inspector. Cost for staff time will be reimbursed by Valley Water up to $350,000 during the term of the agreement unless increased through a written amendment to the agreement.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
Staff time devoted to this project is assumed in the Adopted FY24-25 operating budget. Revenues for reimbursements will be added to the fund balance of the Water Utility.
COORDINATION
This item was coordinated with the City Attorney’s Office
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to execute the Agreement with the Santa Clara Valley Water District Relating to Valley Water’s Payment for City’s Support Services Related to Purified Water, in substantially the form presented subject to minor revisions approved or required by the City Manager or City Attorney
Staff
Reviewed by: Gary Welling, Director of Water & Sewer Utilities
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement Between the Santa Clara Valley Water District and the City of Santa Clara Relating to Valley Water’s Payment for City’s Support Services to Valley Water’s Purified Water Project