Valley Water outlines large capital program, projects higher North County water charges; previews Pure Water Silicon Valley timetable

Valley Water officials told the Santa Clara City Council on Oct. 21 that the agency is entering “an era of investment” to repair aging dams and treatment plants and to build new drought‑resilient supply, and that those capital costs are driving substantial rate increases in the North County groundwater charge.

The presentation by Valley Water Vice Chair Richard Santos, Director Shiloh Ballard, CFO Darren Taylor and Chief Operating Officer Aaron Baker laid out a multi‑billion‑dollar set of capital programs — seismic work at Anderson Dam, the Rinconada Water Treatment Plant reliability program, and the Pure Water Silicon Valley potable reuse project — and projected significant rate pressure as a result.

Valley Water staff said the largest individual projects include $3.4 billion in dam seismic retrofits, a $720 million reliability upgrade at the Rinconada plant and a $2.6 billion Pure Water Silicon Valley program. Darren Taylor said that under the agency’s baseline forecast the North County groundwater charge could rise by roughly 9.9% per year in the near term; under a scenario without the Pacheco Reservoir project the agency projects a somewhat lower trajectory but still multi‑year increases. Taylor said the bottom‑line impact to a typical household would be on the order of $7.60 to $10.61 per month depending on the scenario and year shown in Valley Water’s model.

Why it matters: Valley Water supplies wholesale water and manages groundwater and large regional infrastructure used by Santa Clara. Council members framed the rate projections as a key driver of the city’s future utility costs and emphasized the need to explain those drivers to local customers.

Council members pressed Valley Water on specifics. Taylor said the agency is pursuing low‑cost federal loans and has paused positions to contain costs; he said the agency has applied for WIFIA‑style loans and is seeking roughly $1.3 billion in low‑cost federal lending for dam safety and other projects. Ballard and Baker described the Pure Water Silicon Valley program as the agency’s principal drought‑resilience project: “Pure Water Silicon Valley is that new source,” Baker said, and he repeated the agency’s goal to develop roughly 24,000 acre‑feet of purified water by 2035.

On Pure Water specifically, Valley Water said it is funding and planning a demonstration facility required by newly finalized state direct potable reuse regulations. Kirsten Stroup, assistant officer for the water supply division, noted the regulations require at least two years of demonstration testing with additional treatment processes beyond reverse osmosis and that the demonstration phase is meant to reduce regulatory and technical risk prior to a full‑scale plant.

Valley Water also described timing: the demonstration and public‑education components are active now; preliminary full‑scale operations are planned through the early 2030s in Valley Water’s capital schedule. Baker said planning and agreements with partners, including the San Jose–Santa Clara Regional Wastewater Facility, are under way and that the project still faces substantial financing and permitting tasks.

Quotes from the meeting: “Valley Water is in an era of investment,” Taylor said. Aaron Baker said, “Pure Water Silicon Valley is that new source.” Kirsten Stroup said the new DPR rules “require two years of studies.”

What the council did: The council did not vote on Valley Water policy or funding at the Oct. 21 meeting; members asked questions and requested coordinated public messaging about rate drivers and project timelines. Valley Water said it would provide follow‑up materials and that staff will continue working with city staff on technical and public‑education steps.

Ending: Valley Water framed the investments as necessary to avoid future shortages and subsidence and to add drought‑resilient local supply; the council signaled interest in continued briefings and in messages the city can use to explain rate drivers to residents.