BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Conduct a Public Hearing to Consider Adopting a Resolution of Necessity Relating to the Acquisition of Real Property Interests from Pedro D. Valdez, Maria C. Valdez, and Tomasa S. Valdez, Necessary to Complete the Coyote Creek Flood Protection Project, Project No. 26174043, APN 467-13-007, Real Estate File Nos. 4021-487 and 4021-490 (San Jose, District 2).
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RECOMMENDATION: Recommendation
A. Open and conduct a Public Hearing to consider adoption of a Resolution of Necessity relating to the acquisition of real property interests from Pedro D. Valdez, Maria C. Valdez, and Tomasa S. Valdez, necessary to complete the Coyote Creek Flood Protection Project, Project No. 26174043;
B. Close the Public Hearing; and
C. Adopt the Resolution DETERMINING AND DECLARING THE PUBLIC NECESSITY FOR THE ACQUISITION OF CERTAIN REAL PROPERTY OR INTERESTS IN REAL PROPERTY BY EMINENT DOMAIN FOR THE COYOTE CREEK FLOOD PROTECTION PROJECT (PROJECT NO. 26174043) (CODE OF CIVIL PROCEDURE SECTIONS 1245.220, et seq.), by a two-thirds vote.
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SUMMARY:
The Santa Clara Valley Water District (Valley Water) is undertaking the Coyote Creek Flood Protection Project (CCFPP or Project) to provide flood protection against a flood event equivalent to the February 2017 flood or approximately a 20-year flood event. The CCFPP is approximately nine (9) miles long and located within the City of San Jose. The Project is part of the Safe, Clean Water and Natural Flood Program that voters renewed in November 2020.
To implement the flood protection elements of the CCFPP, Valley Water must acquire a permanent water management easement and a temporary construction easement (Property Interests) over a portion of the following property owned by Pedro D. Valdez, Maria C. Valdez, and Tomasa S. Valdez (collectively, Owner): APN 467-13-007 in San Jose, California (Property).
Valley Water staff recommends proceeding with the acquisition of the Property Interests through eminent domain to meet the Project objectives and schedule. However, staff will continue to negotiate a purchase of the Property Interests during these proceedings.
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 the Federal Energy Regulatory Commission (FERC) regarding Anderson Dam, the original Coyote Creek Flood Protection Project 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 Coyote Creek Flood Protection Project, so the creek can handle the potential release of higher flows from the larger outlet tunnel from the Anderson Dam Tunnel Project. The Valley Water Board of Directors (Board) awarded the CCFMMP construction contract in May 2023 and accepted the work as completed in June 2025.
Construction of the remaining components of the original CCFPP, the current CCFPP, is planned for completion before the Anderson Dam Seismic Retrofit Project (ADSRP) Stage 2 Diversion is in operation (estimated in 2028). In total, the Project includes constructing approximately 17,060 feet of improvements along the 9-mile stretch of Coyote Creek from Montague Expressway to Tully Road. The Project will result in flood risk reduction benefits to homes, businesses, schools, and transportation infrastructure, including disadvantaged communities along Coyote Creek.
Acquisition of the Property Interests
To construct the flood protection features of the CCFPP, Valley Water must acquire the Property Interests as more particularly described and depicted in Attachment 1 to the proposed Resolution of Necessity (RON), Exhibits A and B, which consist of a permanent easement and temporary construction easement.
Valley Water made good faith attempts to negotiate a voluntary acquisition from the Owner. An offer was mailed to Owner on February 20, 2026, for the Property Interests and Valley Water confirmed the offer was delivered on February 21, 2026. Owner did not respond to multiple phone calls and emails by Valley Water over the next thirty (30) days. On April 6, 2026, a Valley Water representative visited the Property and encountered a relative (son) of the Owner. This relative was asked to alert his father and suggested that his father contact Valley Water as soon as possible about the offer. On April 14, 2026, Valley Water received an email in the real estate services general inbox from a person claiming to be a relative (daughter) of the Owner. On April 22, 2026, Valley Water representatives responded to this email with an offer to meet and clear up any misunderstandings regarding the offer and the CCFPP improvements. Valley Water continued to reach out to Owner and finally arranged to meet with Owner at the Property on May 22, 2026. Owner expressed concerns about temporary relocation of personal property and compensation for improvements not being replaced by Valley Water. Valley Water has responded to these concerns but has been unable to schedule another meeting with Owner. To date, Valley Water has been unable to acquire the Property Interests through a negotiated purchase.
In conformance with Code of Civil Procedure Section 1245.235, on July 14, 2026, Valley Water sent a Notice of Intent (Attachment 2) to hold a hearing to consider adoption of a RON (Attachment 1) by certified mail to the Owner, to provide them with a reasonable opportunity to be heard by the Board.
The Hearing by the Board and the adoption of the RON are legal preconditions to the exercise of Valley Water’s power of eminent domain. This statutory requirement is designed to ensure that public entities verify and confirm the validity of their intended use of the power of eminent domain. A RON must contain a general statement of the intended public use for which the property is taken, a reference to the authorizing statutes, a description of the property, and a declaration stating that the Board has found and determined each of the following underlined findings to be true:
1. The public’s interest and necessity require the Project. The Project is necessary, and in the public interest to provide flood protection within the City of San Jose to protect against a flood event equivalent to the February 2017 flood or approximately a 20-year flood event.
2. The Project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury. The Project design as a whole impacts the fewest private properties to the least extent possible while providing the conveyance capacity necessary to afford the desired level of flood protection. The Project’s use of the Owner’s Property was located, planned and designed in a manner compatible with the greatest public good and the least private injury to the Owner.
3. The Property Interests are necessary for the Project. The Project cannot be executed without the Property Interests because the configuration of the creek dictates the project alignment; without this property there would be a gap in the flood protection structures, thereby eliminating their ability to provide the planned level of protection to this property and downstream properties.
4. The Government Code Section 7267.2(a) offer has been made to the owner or owners of record. On February 20, 2026, Valley Water representatives mailed a written offer to the Owner to acquire the Property Interests, and Valley Water received confirmation of the offer being delivered on February 21,2026. Valley Water’s offer complies with California Government Code Section 7267.2.
Attached for the Board’s consideration is the proposed RON. The RON includes authorization to acquire the Property Interests described therein by eminent domain.
As stated above, Valley Water has attempted to acquire the Property Interests through a negotiated purchase, but the Owner is non-responsive and we have reached an impasse; therefore, adoption of the RON should be considered to meet the Project objectives and schedule. Whether or not the RON is adopted, Valley Water will continue efforts to make contact and achieve a mutual settlement with Owner.
ENVIRONMENTAL JUSTICE IMPACT:
The CCFPP will have beneficial Environmental Justice impacts. The intent of CCFPP is to protect the public from dangers associated with flooding similar to the flooding event that occurred in February 2017. Acquisition of right-of-way on the Property is required to achieve flood protection for all in the surrounding community.
During the planning phase, Valley Water staff evaluated multiple flood protection alternatives and implementation sites, met with the community numerous times, and determined that the preferred alternatives presented in the community meetings would best serve the area. The completion of the Project will directly benefit the adjacent disadvantaged communities along the full stretch of Coyote Creek between Montague Expressway and Tully Road.
Additionally, the Valley Water design team continues to coordinate with the community and key stakeholders as the project advances by holding public meetings and soliciting community feedback.
FINANCIAL IMPACT:
The CCFPP, Project No. 26174043, is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2027-31 Five-Year Plan and in the FY 2026-27 Adopted Budget. The statutory offer of compensation for the right-of-way for this Resolution of Necessity is $103,000 and does not change the overall Total Project Cost reflected in the CIP FY 2027-31 Five-Year Plan. There are adequate funds in the Project’s FY 2026-27 Adopted Budget to encumber funds for the right-of-way purchase.
CEQA:
Valley Water is the lead agency under the CEQA for the implementation of the Project. On March 11, 2025, the Board adopted a resolution (Resolution No. 2025-16) certifying the Final Environmental Impact Report (EIR), adopting the Mitigation Monitoring and Reporting Program and approved the CCFPP. On April 14, 2026, the Board considered the first Addendum to the Final EIR, which analyzed the environmental impacts associated with design changes, and a Notice of Determination was filed on April 16, 2026.
The CCFPP Final EIR and Addendum(s), describes the acquisition of temporary and permanent easements for project construction and maintenance, and identifies environmental impacts associated with specific project construction and maintenance activities. Activities that will be occurring within the permanent easement and the temporary construction easement on the Property are wholly consistent with the activities described in the Final EIR. Appropriate best management practices (BMPs), mitigation measures, and Santa Clara Valley Habitat Plan (VHP) conditions and avoidance and minimization measures (AMMs) will be implemented as required to reduce impacts from these activities to the extent feasible.
ATTACHMENTS:
Attachment A: Gov. Code 84308
Attachment 1: Resolution
Attachment 2: Notice of Intent
Attachment 3: PowerPoint
UNCLASSIFIED MANAGER: Manager
Bhavani Yerrapotu, 408-630-2735