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The Mountain View City Council signed a $5 million deal Tuesday night to sell off water rights to East Palo Alto to help end the city’s yearlong moratorium on development.
Under the deal, Mountain View agreed to transfer 1 million gallons per day to East Palo Alto, which would single-handedly boost the northern city’s water supply by more than 50 percent. In exchange, Mountain View will receive a one-time lump payment of $5 million.
The agreement was approved by the City Council in a 6-1 vote, with Councilman John McAlister opposed.
The deal is a lifesaver for East Palo Alto, which effectively ran out of water last June and had to call an emergency moratorium on a range of new construction. That action brought a sudden halt to a series of expansive developments already in the city’s pipeline, including a 1.4-million-square-foot office campus at 2020 Bay Road that would be the city’s largest-ever project. The water shortage also stalled a 120-unit affordable-housing project at 965 Weeks St. and the launching of The Primary School, a Mark Zuckerberg and Priscilla Chan-funded private school.
Many of those big-ticket developers agreed to pitch in money to help facilitate the water transfer agreement, according to an East Palo Alto staff report. In exchange, those projects will reportedly receive priority on any new water connections that become available.
On Tuesday night, a line of East Palo Alto officials came out to Mountain View to urge their Peninsula neighbors to approve the deal. Skipping his own city’s council meeting that evening, East Palo Alto Mayor Larry Moody described the water as a game-changer for the future of his city.
“This comes from a heartfelt desire for residents of East Palo Alto to change our narrative,” he said. “We can become a community that’s pursuing our hopes and dreams; we can become a community like Mountain View.”
By most accounts, the trade is a win-win for both cities. The region’s major water provider, the San Francisco Public Utilities Commission (SFPUC), has allocated a meager 1.9 million gallons per day to East Palo Alto, giving it the lowest per-capita amount on the Peninsula.
Conversely, Mountain View has the problem of too much water. Under its SFPUC contract, the city must purchase at least 8.93 million gallons per day even if that full amount is never consumed. Mountain View officials reported that around 2011 and 2012, they ended up wasting $440,000 on water that wasn’t needed. More recently, the SFPUC lifted those contract rules during the statewide drought years.
Mountain View’s elected leaders were reassured by Public Works staff that the city should have plenty of water for its long-term growth over the coming decades. But council members still exhibited some caution toward what would be an irreversible sale of their water rights. Councilwoman Pat Showalter, who just retired as a water utility engineer, pointed out it wasn’t a decision to be made lightly.
The uncertainty was too much for Councilman McAlister, who said he couldn’t approve the deal while unsure if it would disadvantage Mountain View. Other council members were happy to approve it.
In addition to the water from Mountain View, East Palo Alto officials are also hoping to sign a deal with the city of Palo Alto for an extra 500,000 gallons per day.
Any transferring of water rights will still need to be given final approvals by the SFPUC.
Aren’t we in the process of building 10,000 new housing units?
I thought the report I read stated that Mountain View was expected to hit its cap on water use in 2040. It was unclear what the population projection number was used for that that 2040 water cap projection, and whether that number is inclusive of daytime population growth (businesses). However, while 2040 is the technically “decades” away, it is also just 23 years away.
Mountain View just sold off water rights forever for a one time payment of $5MM.
Ridiculously shortsighted.
Curious how much a water desalination plant would cost, the city is literally next to the bay.
one time payment of $5M for 1M gal/day! Seems like an incredible bargain for EPA, and especially for the developers who will be funding it. And when/if we run out of water in our own development-happy community, we are going to feel awfully stupid and start looking at who to blame. I can almost hear the future city council debates …
Although it was a nice thing to do, this was very shortsighted by the city council. The city should have kept the rights but allowed East Palo Alto to use the water for x number of years for a lesser amount of money. We will need the water in the future as Mountain View grows. But now we have given the rights away for $5 million!!!
Is this clean Hetch-Hetchy water or TCE-laced well water that the city doesn’t want its own residents to drink?
Well, thus aughtta be good. Mt. View seriously needs a moratorium on building. Now that we’re giving away our water, maybe we’ll have a reason now, when we run out if water, to stop our insane development.
Trading one stupidity for another.
Selling city infrastructure for a one-time payment is not in the best interests of the City of Mountain View. Was any study done to determine the actual market value of the water rights? How was $5 million determined to be a fair price? Let me guess — it’s the price EPA offered! And dumb Mountain View City Council accepted, without negotiation, study, counter-offer, etc. They should just put a “For Sale” sign outside of City Hall, if you want it and Mountain View has it, then make and offer and it’s yours! Next on the agenda we’ll sell Cuesta Park to Los Altos, and Shoreline Lake to Google.
Sadly while East Palo Alto is enjoying the lovely Hetch Hetchy water we in Waverly Park are using the VERY HARD and frankly disgusting California Water Company well water. Thank you city council.
@Lynda Meyer
It’s for the kids
This should NOT have been for perpetuity. Perhaps 10 years and reassess at that time as to whether to renew. As the developer of the Bay Road Campus in EPA also does development in MV I would hope all is in order that there was no conflicts or inappropriate lobbying.
Well Mountain View is crazy about ultra high density to please for some reason the developers. I see this Ridiculously shortsighted move as hasting the day for water rationing in Mountain View. We need to throw out the current City council and get new people with a sense of prospecting.
This seems like a good decision.
Mtn view sold an asset that was costing $500,000/year, Which means the positive benefit to the city includes the annual savings of $500k.
This allows development to occur in a city that is not mtn view. I would think that the slow growth people and the people who don’t like all the traffic will like that.
Let me see if I understand this correctly . . . EPA’s need for Mountain View water is so they CAN CONTINUE BUILDING A 1.4 MILLION SQUARE FOOT OFFICE COMPLEX AND A ZUCKERBERG FUNDED PRIVATE SCHOOL????? Yes. the caps were intentional. Apparently the residents of EPA don’t need the water, just the businesses!
The suggestion by Leslie M above is an excellent one. It is increasingly obvious the city council has little common sense and very few negotiating skills. There is no way that giving away this much water, after experiencing the previous several years draught, makes any sense. Throw in the building boom and exploding population in Mountain View and we will very soon have a water crisis of our own in Mountain View.
So you prefer that those developments happen in mountain view?
East Palo Alto 15 years ago asked others to give it water rights based on “social justice” because of their lack of planning and maintenance.
The Mountain View City Council has made a colossal mistake and those who voted for this should be voted out of office – this is ridiculous what this Council has done! Hopefully the decision can be reversed before it becomes final.
It’s a sham that the City Council voted for this. No thought on all the buildings coming in and needing water. McAlister was the only one opposed this plan. Everyone else should be called out for selling out.
When Mountain View run out of water, they will be welcome to get all the water they’ll need from our Bay !
Just realized, this comes as our neighborhood appears to be having water quality problems that often occur with low water levels. My laundry had a bunch of weird brown spots last week. Others posted similar problems on another forum. Selling off our water supply is criminal.
I don’t understand the current city council we have in City Hall. They seem to be bought by developers and lack any common sense or concern for the residents of Mountain View. Look around all the crazy buildings going up around town and now selling permanent water right for a mere $5mil! This city council needs to be voted out as soon as possible!!
Besides, is it right for a mere 6 people to decide this for the 70+K residents of Mountain View, shouldn’t the city council have asked the residents for their opinions before deciding?!
I’m not sure what to think of our city officials. Are they on crack? Are the corrupt, foolish, stupid? There’s just NO WAY to rationalize giving away the water of .Mountain View residents. That’s what this is. Giving away our water, when we aren’t in much better shape than EPA, with our massive overdevelopment without proper environmental impact studies.
The giving away our water, when we already don’t have enough is just another INSANE move at giving away Mountain Biew’s public assets. This is so far beyond sick, it’s pretty unbelievable.
This is so far from the way Mountain View operated when I first moved here. Absolutely irresponsible dissolution of public assets in so many ways. Do people know that the shoreline Google development is actually a nature preserve? Why isn’t the city grabbing up land to make parks and preserves rather than skyscrapers and concrete? Who’s pockets are our officials in?
A back room deal with billionaire developers….disgusted. kudos to John McCalister for being the only NO vote
‘Many of those big-ticket developers agreed to pitch in money to help facilitate the water transfer agreement, according to an East Palo Alto staff report. In exchange, those projects will reportedly receive priority on any new water connections that become available’
Irreversible and ONLY 5M? Who brokered this deal and what is their connection?
Can’t believe the council did this. How many children will die of thirst? How many pets will die of dehydration? How many people will starve to death because they will not have enough water to feed their fruit trees and vegetables? How many cars will look dirty because of a lack of water to clean them. This is horrible.
@water is like Gold…your snarky response is ridiculous. Is your last name Sobrato?
The report prepared by city staff shows that in a “high growth” scenario Mountain View is projected to hit it’s cap on water use in 2037/2038…if water rights are transferred to East Palo Alto. The report also states, it has not incorporated “the impacts of an active conservation program or the recently adopted requirement for dual-plumbing recycled water use. Specific factors that are likely to reduce the high growth consumption projections”
“The resulting population supported is 93,330 under the General Plan scenario and 135,080 under the High Growth scenario. Employment supported is 99,655 under General Plan scenario and 111,322 under the High Growth scenario. These are compared to a 2015 population of 75,430 and employment of 80,817.”
In short, if the city’s growth continues as per the general plan, then transferring 1MM gallons of water per day (in perpetuity) to East Palo Alto should not harm the residents of Mountain View over the long term – well past 2040 . However, if Mountain View’s growth proceeds in a “high growth” scenario, for example massive development in North Bayshore both in terms of employment numbers and housing units, and/or massive housing development in the North Whisman area, then the city is projected to reach it’s water cap in the 2037/2038 year, and then be left hoping that technology and conservation measures will keep Mountain View from existing in a perpetual water emergency going forward. And, I suppose all growth would then need to cease once the city hits that cap.
The city is going forward betting the come that lack growth and/or technological advances will save the residents from running out water before 2037/2038.
@Water like Gold
Are you implying that this is a good idea, and there is no reason Mountain View residents should be concerned, despite the fact that this is being pushed and subsidized by developers? It’s a bad deal for Mountain View especially when you consider it is permanent and that the council is determined to build may more thousands of housing units.
Right after the council gave away 1 million gallons daily of our water we residents received a 7% increase in our water rates along with higher tier rates. Makes me wonder who is the city of mountain view working for certainty not the residents? I have lived here for 62 years and have seen various council members makes horrific decisions. This by far is one of the worst! Why was there no termination date set? VJAp1
@MV Resident
None of us should be surprised by this short-sighted and foolish move by the city council. Sell our water, yet continue to build. We should also not be surprised when this same city council tells us our water bills will double or triple because we have to continue to build to meet their ABAG quotas and we don’t have the infrastructure to support the new residents.
I won’t be surprised at all. Both Pat Showalter and Ken Rosenberg have shown that they are willing to say whatever it takes to get voted into office, then do whatever they like once they get there. Remember the two of them saying they would vote against handing over a lane of the El Camino to the VTA, then voting to give them that control be cause their views had “evolved”?
My views have evolved too. This city council crew thinks they know better what the citizens want than the citizens do. We need to hold them to account. They all need to go if they can’t do the job they were elected to do, which is to serve the people of MOUNTAIN VIEW, not East Palo Alto or anywhere else. Any decision this encompassing should be VOTED on by the people who pay the bills, not a group of social engineers.