BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Authorize Acquisition of Real Property from Patrick T. Ferraro and Cari Lynn Hoyt Ferraro, Trustees, for the Coyote Creek Flood Protection Project, Project No. 26174043, APN 467-51-070, Real Estate File No. 4021-323 (San Jose, District 2).
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RECOMMENDATION: Recommendation
A. Authorize the Interim Chief Executive Officer to execute a Right of Way Agreement between Patrick T. Ferraro and Cari Lynn Hoyt Ferraro, Trustees, and the Santa Clara Valley Water District, for acquisition of APN 467-51-070, located at 315 Brookwood Avenue, San Jose, California, based upon the terms and conditions as set forth in the Agreement;
B. Authorize an incentive payment of $83,000 to Patrick T. Ferraro and Cari Lynn Hoyt Ferraro, Trustees for the Option to Acquire Real Property Interest based on the terms and conditions as set forth in the Agreement; and
C. Authorize the Interim Chief Executive Officer to accept a Grant Deed from Patrick T. Ferraro and Cari Lynn Hoyt Ferraro, Trustees, conditioned upon certification of the Coyote Creek Flood Protection Project Environmental Impact Report.
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SUMMARY:
Acquisition of residential real property located at 315 Brookwood Avenue, in San Jose, California, according to the terms of the Right of Way Agreement (Attachment 1) would be necessary to implement flood risk reduction elements of the proposed Coyote Creek Flood Protection Project (CCFPP or Project). The property is owned by Patrick T. Ferraro and Cari Lynn Hoyt Ferraro, Trustees and is shown on the plat and description of Grant Deed No. 4021-323 (Attachment 2). Acquisition of this property is conditioned upon certification of the Final Environmental Impact Report (EIR) and approval of the CCFPP.
PROJECT BACKGROUND
The CCFPP’s primary objective is to provide protection from floods up to the level that occurred on February 21, 2017, equivalent to approximately a 5% flood (also referred to as a 20-year event), along Coyote Creek, between Montague Expressway and Tully Road, in San Jose. The CCFPP involves construction of multiple floodwalls, passive barriers and earthen berms along a nine (9) mile stretch of Coyote Creek.
Following a February 2020 order from Federal Energy Regulatory Commission (FERC) regarding Anderson Dam, the original CCFPP was split into two projects to accommodate construction of a new outlet tunnel at Anderson Dam. As a result, Valley Water accelerated the design and construction of an initial project, the Coyote Creek Flood Management Measures Project (CCFMMP), representing 40% of the original CCFPP, so the creek can handle the potential release of higher flows from the larger outlet tunnel from the Anderson Dam Tunnel Project. The Board awarded the CCFMMP construction contract in May 2023 and construction completion is anticipated to be presented to the Board in early Spring 2025.
Construction of remaining components of original CCFPP will result in flood risk reduction benefits to homes, businesses, schools, and transportation infrastructure, including disadvantaged communities along Coyote Creek.
Approximately 100 permanent and temporary easements would be required for construction purposes from a variety of property owners, including private residents, owners of commercial properties, City of San Jose, San Jose Unified School District, San Jose Water Company, Caltrans and the Santa Clara Valley Transportation Authority.
CONDITIONAL ACQUISITION OF 315 BROOKWOOD AVENUE
The property located at 315 Brookwood Avenue has been identified as a property where flood reduction measures are warranted and acquisition of the property for flood protection purposes is appropriate, pending Board certification of the CCFPP EIR and approval of the proposed project.
Valley Water obtained an appraisal of the real property which established the fair market value as $830,000. Valley Water is providing each property owner that accepts the initial offer within 30 days an incentive payment equal to 10% of market value of the property rights to be acquired (capped at $100,000). An offer in this amount was made to the owners on October 18, 2024. The owners signed the Agreement on October 30, 2024, accepting the Valley Water offer to acquire the entire property for appraised value, to include an incentive payment of $83,000. The Agreement provides that Valley Water would acquire the property for $830,000, conditioned upon certification of the CCFPP EIR. The Board is expected to consider certification of the EIR in March 2025.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
Execution of the Agreement is not subject to environmental justice analysis because the Agreement would not impact disadvantaged communities as defined per SB 535.
FINANCIAL IMPACT:
The CCFPP, Project No. 26174043 is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2025-29 Five-Year Plan and in the FY 2024-25 Adopted Budget. The purchase price for the right-of-way from the Owner is $830,000 and the incentive payment is $83,000, and there is sufficient funding in the FY 2024-25 Adopted Budget to encumber the total acquisition cost of $913,000. The CCFPP is funded by the Safe, Clean Water & Natural Flood Protection Program (Fund 26) and Department of Water Resources Proposition 1 Integrated Regional Water Management Round 2 Implementation Grant. In addition, a portion of the CCFPP cost is expected to be financed by the Water Infrastructure Finance and Innovation Act (WIFIA) pursuant to the United Stated Environmental Protection Agency WIFIA Master Agreement with Valley Water dated February 14, 2023.
CEQA:
The recommended actions in this item do not constitute a project under CEQA because they do not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment. The proposed acquisition of the property is contingent upon Board certification of the CCFPP EIR and approval of the project. Should the Board not certify the EIR and/or deny the project, the acquisition would not proceed, and there would be no impact to the environment.
ATTACHMENTS:
Attachment A: Gov. Code 84308
Attachment 1: Right of Way Agreement
Attachment 2: Grant Deed
UNCLASSIFIED MANAGER: Manager
Bhavani Yerrapotu, 408-630-2735