Staff proposed an 8% ag groundwater charge increase to $46.50/AF for FY 2026-27 and reviewed the Open Space Credit ($217M/10 years). The committee discussed the proposal and approved amending the work plan to add a goal to identify preferred percolation regions with Valley Water and landowners. Staff outlined four South County recharge projects under evaluation and said there is no immediate rush.
A feasibility study found little to no additional wastewater effluent available for new recycled water projects during peak summer demand, with supply growth estimated 10–15 years away. Brown and Caldwell/staff identified near-term system improvements (storage, pumping, pipelines) as the preferred project for the Title 16 feasibility study. Separately, an Amazon data center project was reported, with Amazon funding pipeline and storage expansion that will double current storage capacity.
Reclamation raised CVP M&I allocation to 70% (~7,500 AF more for Valley Water); staff reported healthy groundwater. Board reviewed liabilities: retiree health (OPEB) ~61% funded ($108.9M unfunded), projected paid off by FY42; CalPERS 72.5% funded (6/30/2024), with extra contributions projected to reach full funding by FY2037-38. Board approved 2026 advisory work plans incl. AI/data center water-use research.
Water demand continues to decline and is largely price-inelastic (10% rate increase reduces demand ~2%). The study estimated ~37,000 households may face unaffordable bills. No formal action was taken; staff will gather more information on assistance programs (retailers and Sacred Heart) and may return to the committee.
A $10.3B CIP draft for FY2027–31 was approved for release to cities/land-use agencies for General Plan consistency review (42 water supply, 13 flood, 12 stewardship, 3 buildings/grounds, 3 IT). Staff presented FY27 outlays of $1.3B and assumed water charge increases of 6.6% (W5) and 9.4% (W7). Public comment was dominated by workplace culture/CEO issues; San Jose Water urged a $3M mobile DPR pilot.
