The board kept the San Francisquito Creek Project E5 KPI intact and approved a letter proposing a joint working group with the JPA rather than changing the performance target. A $1.34 million payment was approved to advance planning for the B.F. Sisk Dam raise, a key water storage project with a final investment decision expected in 2028. The board also adopted a greenhouse gas reduction plan targeting carbon neutrality by 2045.
Short-term demand forecasts were highly accurate (met 8 of 9 best practices); auditors recommended stronger documentation. Chair Member raised rising bills and affordability; staff said price elasticity will be considered in the next rate cycle. JPA audits noted San Francisquito Creek backlog and San Luis & Delta-Mendota deficiencies; committee discussed a board oversight framework and handbook review.
Staff received updates on three programs: a multi-decade stream maintenance program covering Valley Water's stream facilities countywide (below 1,000 ft) under a new 10-year permit cycle, a direct potable reuse project targeting 24,000 acre-feet annually by 2035 at an estimated $2.45B, and two watershed master plans covering ~175 sq mi expected to finalize in spring 2027.
The Board set the time and place for a July 14 public hearing to consider proposed Safe, Clean Water Program modifications for Projects E5 and F6, including a proposed San Francisquito Creek KPI rewrite that drew significant debate and a proposed expansion of public art grant eligibility countywide. The Board also approved $1,776,760 in FY2026 standard grants to four organizations for water and environmental projects.
Golden mussels were detected at the Penitencia and Santa Teresa Water Treatment Plants, with no impact to drinking water quality. Valley Water previously suspended (Aug 2025) San Luis-to-Calero transfers and staff estimates about $2 million in near-term mitigation. Staff said 99 of 102 percolation ponds can receive imported water. The Board approved using CM/GC delivery for four dam/seismic projects.
