Valley Water’s annual Capital Improvement Program: Projects to reduce flood risk

Editor's Note: This is the first in a three-part series highlighting some of the projects included in the Capital Improvement Program Fiscal Year 2027-2031 Preliminary Five-Year Plan.

Every year, Valley Water develops its Capital Improvement Program (CIP) Five-Year Plan, which is a rolling annual plan for funding the projects needed to maintain a strong and reliable water system for Santa Clara County. The plan includes project descriptions, estimated schedules, costs and planned funding sources for these critical infrastructure investments.

As we prepare the CIP Preliminary Five-Year Plan for fiscal years 2027-2031, we focus on enhancing flood protection through strategic initiatives that allocate significant resources to combat potential flooding risks. Last year's Five-Year Plan featured 14 projects aimed at increasing flood protection, which accounted for $2.1 billion of the total budget.

Santa Clara County is home to approximately 850 miles of creeks and waterways. Valley Water is responsible for caring for about one-third of those miles, focusing on reducing flood risk and helping keep people, homes, businesses, and visitors safe, both today and in the years ahead. This work centers on maintaining natural flood protection systems and supporting communities before, during, and after flooding events.

These efforts have made a meaningful difference across Santa Clara County. Flood protection projects have already reduced the frequency and severity of flooding in many neighborhoods. Of the more than 166,000 parcels located in flood-prone areas, about 100,000 are now better protected because of Valley Water's work. Over the next five years, projects currently planned are expected to extend that protection to roughly 25,000 additional parcels.

Here's a look at some of the water resources stewardship projects included in last year's adopted CIP fiscal year 2026-2030 Five-Year Plan.

Coyote Creek Flood Protection Project

Coyote Watershed

In June 2025, Valley Water completed the Coyote Creek Flood Management Measures Project, one of two major initiatives to reduce flood risk along Coyote Creek. This phase included the construction of more than 8,500 feet of floodwalls along a four-mile stretch of the creek between Old Oakland Road and Highway 280.

A look at a completed flood wall as part of the Coyote Creek Flood Management Measures Project.

Valley Water is now advancing the second initiative, the Coyote Creek Flood Protection Project, which will add floodwalls, passive barriers, and berms across five segments of the creek between Montague Expressway and Tully Road. This project is currently in the final design, with staff evaluating key data from multiple areas along Coyote Creek. This phase will complete the remaining flood risk reduction measures in reaches 4 through 8. Construction is anticipated to begin in mid-2026 and is expected to be completed by the end of 2028.

Upper Llagas Creek Flood Protection Project

Uvas/Llagas Watershed

Valley Water is making significant progress on the Upper Llagas Creek Flood Protection Project, which spans approximately 13.9 miles through Gilroy, Morgan Hill, and the unincorporated area of San Martin. The project provides vital flood protection along portions of East Little Llagas Creek, West Little Llagas Creek, and Llagas Creek.

Crews build a box culvert in West Little Llagas Creek at Cosmo Avenue as part of the Upper Llagas Creek Flood Protection Project.

In September 2024, construction began on the final phase, Phase 2B, covering roughly 8 miles of Upper Llagas Creek and its tributaries from Highway 101 to Llagas Road. Project completion is anticipated in March 2027. Scan this QR code to watch a video of our work in summer 2025. https://youtu.be/8hO24fWm9do?feature=shared

When completed, the project will provide 100-year flood protection for urban areas of Morgan Hill, meaning it will help safeguard the community against a storm with a 1% chance of occurring in any given year.

Sunnyvale East and West Channels

West Valley Watershed

Valley Water is also bolstering flood protection in our community by advancing critical upgrades to the Sunnyvale East and West Channels. These enhancements will cover approximately 6.4 miles of the East Channel and three miles of the West Channel, providing vital 1% flood protection (equivalent to a 100-year event) for 1,618 parcels and safeguarding 47 acres of valuable industrial land, including the Onizuka Air Force Base.

The Sunnyvale West Channel, looking south at Carl Road.

The Sunnyvale East and Sunnyvale West Channels Flood Protection Project's planning phase is complete. Valley Water is actively coordinating with state and federal regulatory agencies to acquire the necessary project permits. The construction phase is anticipated to begin in 2026 and be completed by December 2028, pending the issuance of regulatory permits.

Upcoming CIP meetings

Valley Water staff will hold a series of meetings and presentations to the Board of Directors during the annual CIP process.

On March 10, 2026, staff will present the CIP Draft FY 2027-31 Five-Year Plan for Board approval, after which it will undergo a 60-day public review period. Additionally, Valley Water will share the Draft with local cities and the County of Santa Clara for review to ensure consistency with their general plans.

On April 28 and 29, 2026, Valley Water will hold a public hearing and formally receive community input. The Board will close the hearing on May 12, 2026, when staff presents the CIP Final FY 2027-31 Five-Year Plan and the FY 2027-28 biennial budget for approval.