Council creates ad hoc to press Valley Water concern after announcement of $23 million transfer

The Palo Alto City Council announced on Feb. 24 that it has formed an ad hoc committee to address a proposal by Valley Water to reassign about $23 million originally allocated for North County sea-level rise work to San Jose.

At the meeting Mayor Laowing briefed the council that staff and the mayor’s office had contacted Valley Water and requested that a related agenda item (item 3.4 on the Valley Water schedule) be deferred while the city pursues options. The mayor said an ad hoc committee made up of Council Members Burt, Rechtold and Stone would meet over roughly 60 days to consider responses and recommend next steps.

Council members said the ad hoc’s work will include outreach to Valley Water, coordination with staff and consideration of legal or policy avenues to preserve funding for projects that would benefit Palo Alto neighborhoods. The city manager confirmed the memos and related materials have been posted to the city website and added to the council packet for transparency.

Why it matters: The $23 million referenced by council members is material to local sea‑level rise planning and flood protection projects that staff and the public have prioritized. Council members said the ad hoc will seek to protect Palo Alto interests and coordinate with regional partners to preserve funding for local project needs.

What’s next: The ad hoc will meet in the coming weeks and return recommendations to the full council after the roughly 60‑day review period. The council asked staff to coordinate posting and public notification for any meetings and to report back with potential legal and policy options.