UPDATE: The public hearing started at the Board meeting on Feb. 11, 2025, and was continued to the meeting on Feb. 25. Valley Water has since updated the staff recommendations to the board to provide two options for their consideration. To view the agenda item and related documents, including the updated recommendation, click here.
The public hearing will be held on Feb. 25, 2025, at 1 p.m. You can attend in person at Valley Water headquarters at 5700 Almaden Expressway in San Jose or via Zoom at valleywater.zoom.us/j/84454515597.
The first option is to reallocate funds from one phase of the San Francisco Bay Shoreline Protection Project (Shoreline Project) that is not currently moving forward due to a decision by the U.S. Army Corps of Engineers (USACE). These funds would be reallocated to a separate project phase within the Shoreline Project that is already under construction and needs additional funding to complete and deliver community benefits. To achieve this, the Board would consider modifying one of the Shoreline Project’s key performance indicators, which measure the project’s performance over time.
The second option is to consider holding a public hearing during next year’s Capital Improvement Program (CIP) Annual Development Cycle to align with the development of the CIP FY 2027-31 Five-Year Plan and direct staff to return to the Board with a resolution forming a Board Ad Hoc Committee for the purpose of engaging with the cities of Palo Alto and Mountain View to discuss the Shoreline Project.
The Safe, Clean Water and Natural Flood Protection Program is funded by a special parcel tax approved by Santa Clara County voters in 2012 and renewed in 2020. This program funds 31 projects, including the Shoreline Project, and provides approximately $52.3 million annually for local projects that deliver safe, clean water, natural flood protection and environmental stewardship.
The Shoreline Project involves multiple agencies, including USACE, U.S. Fish & Wildlife Service, Valley Water, the California State Coastal Conservancy and regional stakeholders. It aims to provide tidal flood protection, restore and enhance tidal marsh and related habitats, and improve recreational and public access along Santa Clara County’s shoreline.
Due to its size and complexity, the original Shoreline Project area was broken up into 11 more manageable pieces, known as Economic Impact Areas (EIAs). Led by the USACE, the Shoreline Project is being done in three phases:
Phase 1 covers EIA 11 and includes the urban area of North San José, the community of Alviso, and the San José-Santa Clara Regional Wastewater Facility. This phase is currently under construction.
Phase 2 covers EIAs 1-4 and includes Palo Alto and parts of Mountain View.
Phase 3 covers EIAs 5-10, encompassing Sunnyvale, unincorporated Santa Clara County, and portions of Mountain View, San Jose, and Santa Clara.
In fiscal year 2024, the USACE concluded a study for Phase 2. It determined there are not enough overall project benefits from the Phase 2 project to justify federal investment. They concluded that the damages from coastal flooding were not great enough to justify the cost of a levee until sea level rise is greater in several decades.
While Shoreline Phase l (EIA 11) is included in the renewed Safe, Clean Water Program as part of the project description, it is not currently reflected in the key performance indicator. The Shoreline Project has the following two key performance indicators:
- Provide a portion of the local funding for planning, design, and construction phases for the Santa Clara County shoreline area, EIAs 1-4 (Phase 2).
- Provide a portion of the local funding for planning and design phases for the Santa Clara County shoreline area, EIAs 5-9 (Phase 3).
Without federal participation for Phase 2, Valley Water cannot implement the planning, design, and construction independently due to limited funding. Consequently, Valley Water cannot implement the Shoreline Project's first key performance indicator during the first 15-year funding cycle (2022-2036) of the renewed Safe, Clean Water Program.
The means about $23 million in unused funding for the first key performance indicator needs to be reallocated. This money could be allocated to Phase 1 of the project to help build the last two sections. Phase 1 is currently facing a funding shortfall, and the reallocation of funds could help complete this phase of the project.
Once completed, Phase 1 will protect approximately 5,500 people, vital infrastructure, including the San José-Santa Clara Regional Wastewater Facility, and businesses. The project will also restore 2,900 acres of tidal marsh and enhance public recreation opportunities.
To learn more, visit our project page for the San Francisco Bay Shoreline Project.