COMMITTEE AGENDA MEMORANDUM
Recycled Water Committee
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: title
Receive an Update on the Site Works Agreement with the City of San Jose, Valley Water and Microsoft Corporation.
End
RECOMMENDATION: Recommendation
Receive an update on the Site Works Agreement with the City of San Jose, Valley Water, and Microsoft Corporation.
Body
SUMMARY:
Microsoft Corporation (Microsoft) is developing a new data center on private property east of the existing Silicon Valley Advanced Water Purification Center (SVAWPC). As part of this project, Microsoft will be extending McCarthy Lane. Microsoft’s project conflicts with the current location of the SVAWPC visitor center trailer on McCarthy Lane. To address this conflict, Microsoft, Valley Water, and the City of San Jose are completing negotiations on an agreement under which Microsoft would construct a new parking lot and required improvements and relocate the visitor center trailer. The Site Works contemplated in the agreement are attached (Attachments 1 and 2) and include:
• Construction of a new visitor parking lot with 48 vehicle and three bus parking spaces adjacent to the SVAWPC, including storm drainage, utility and communication connections and landscaping
• Relocate the current visitor center trailer to the new parking lot, including packing and unpacking of contents
• Relocate signage and install security fencing
• Move manhole for source water line serving SVAWPC outside of widened Zanker Road roadway
The Site Works are scheduled for 2027 and are at no cost to Valley Water. Microsoft is scheduled to break ground on the data center in June 2026.
Concurrently, the City of San Jose is negotiating a Master Easement Agreement with Microsoft to convey permanent easements for utilities, temporary construction easements, extension of McCarthy Lane, and widening and improvements of Zanker Road. The Site Works Agreement, if approved, must be executed prior to, or simultaneous with, the Master Easement Agreement.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with this item.
ATTACHMENTS:
Attachment 1: Draft Site Works Description
Attachment 2: PowerPoint
UNCLASSIFIED MANAGER:
Manager
Kirsten Struve, 408-630-3138