Valley Water awards construction contract for the Coyote Creek Flood Protection Project

August 3, 2026

A look at the completed floodwall along William Street in San Jose, part of Valley Water’s first phase of flood risk reduction near Coyote Creek.

Valley Water has taken another major step toward improving flood protection along Coyote Creek. On July 24, 2026, its Board of Directors awarded the construction contract for Phase 2 of the Coyote Creek Flood Protection Project. The project will help reduce flood risk along a nine-mile stretch of the creek between Montague Expressway and Tully Road in San José.

Valley Water selected Shimmick Construction Company, Inc. for the approximately $124 million construction contract. The contract was awarded at a price nearly 18% below the engineer's estimate, helping maximize the value of this important public investment.

Construction will start in August 2026 and continue through October 2028. The project will create just over 3 miles of flood protection improvements, including floodwalls, self-raising passive barriers and earthen berms. Once complete, the project will help protect homes, businesses, schools, parks and transportation infrastructure. It will also reduce flood risk for disadvantaged communities during storms like the February 2017 Coyote Creek flood.

The Coyote Creek Flood Protection Project is the second and final phase of Valley Water's effort to reduce flood risks along Coyote Creek. The first phase of the flood risk reduction work along Coyote Creek was completed in 2025.

“Completing the first phase of this project was a major accomplishment, and this contract award keeps that momentum going,” Valley Water Board Vice Chair Richard P. Santos said. “This next phase moves us closer to delivering the long-term flood protection that communities along Coyote Creek deserve. Valley Water is doing everything in its power to help prevent another flood like the one we experienced in February 2017.”

Valley Water separated the flood protection efforts into two phases because of its work at Anderson Dam in Morgan Hill. To prepare for potential increased water flow from the new outlet tunnel at Anderson Dam, Valley Water accelerated the design and construction of the first phase, called the Coyote Creek Flood Management Measures Project. The first phase was 40% of the original Coyote Creek Flood Protection Project.

Phase 2 builds on those improvements by completing the remaining flood-risk-reduction measures along the corridor.

During construction, one trail and three parks will temporarily close. At Selma Olinder and William Street parks, crews will build floodwalls, earthen berms and self-raising passive barriers. These barriers will remain flat during normal conditions and automatically rise during high-water events to help keep floodwater within the creek corridor.

For more information about the project, including a Frequently Asked Questions (FAQ) document and a tentative schedule for trail and park closures, visit the Coyote Creek Flood Protection Project webpage. The FAQ is available in English, Spanish and Vietnamese.

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. Valley Water 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 280 acres of groundwater recharge ponds and 350 miles of waterways. 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.