BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Adopt a Resolution Declaring a Portion of Real Property Owned by the Santa Clara Valley Water District (APN: 652-03-020) to be Exempt Surplus Land and Authorize the Exchange of Real Property Interests with San Jose Water Company on APN 477-12-024. (San Jose, District 1).
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RECOMMENDATION: Recommendation
A. Adopt the Resolution Declaring a Portion of Real Property Owned by the Santa Clara Valley Water District (APN: 652-03-020) as Exempt Surplus Land under California Government Code § 54221(f)(1)(C), DETERMINING THAT THE REAL PROPERTY BEING EXCHANGED IS NOT REQUIRED FOR DISTRICT USE AND THAT THE PROPERTY BEING ACQUIRED IS REQUIRED FOR SANTA CLARA VALLEY WATER DISTRICT USE, AND AUTHORIZING THE EXCHANGE OF PROPERTY PURSUANT TO SECTION 31(D) OF THE DISTRICT ACT (SAN JOSE, DISTRICT 1); and
B. Authorize the Interim Chief Executive Officer to execute the Real Property Exchange Agreement (Agreement) between the Santa Clara Valley Water District and San Jose Water Company for acquisition of a permanent easement (Easement) on APN 477-12-024, in exchange for a portion of APN 652-03-020 based upon the terms and conditions as set forth in the Agreement; and
C. Authorize the Interim Chief Executive Officer to accept a Grant of Easement Deed identified as Real Estate File No. 4021-282, from San Jose Water Company on APN 477-12-024; and
D. Authorize the Interim Chief Executive Officer to execute a Quitclaim Deed identified as Real Estate File No. 9435-6.1, to San Jose Water Company for a .643-acre portion of APN 652-03-020.
Body
SUMMARY:
In May 2023, San Jose Water offered to acquire fee title of a .643-acre portion of a 11.4-acre parcel owned by Santa Clara Valley Water District (Valley Water), APN 652-03-020, located at the corner of Klein Road and Pleasant Acres Drive (Pleasant Acres Parcel). The appraised value of the Pleasant Acres Parcel is $89,740. At the time, the Pleasant Acres Parcel was being assessed by Valley Water staff for use as part of the Distribution System Master Plan Implementation Project (DSMPIP). The Pleasant Acres Parcel was subsequently determined to be neither required for the DSMPIP nor for other Valley Water use.
Section 31(d) of the Santa Clara Valley Water District Act states that the Board of Directors may by majority vote exchange real property of equal value where the real property to be exchanged is not required for Valley Water use and the property to be acquired is required for Valley Water use As described above, easement rights over the San Jose Water parcel are required for the planned Coyote Creek Flood Protection Project and the Pleasant Acres Parcel conveyed to San Jose Water Company is not required for Valley Water use.
Surplus Lands Act
The Surplus Land Act (Gov. Code, § 54220 et seq; SLA), places requirements upon local agencies before disposing of excess land. The local agency’s governing body must declare excess land “either ‘surplus land’ or ‘exempt surplus land,’ as supported by written findings, before a local agency may take any action to dispose of it consistent with an agency’s policies or procedures.” “Exempt surplus land” according to Gov. Code section 54221(f)(1), includes land “that a local agency is exchanging for another property necessary for the agency’s use. ‘Property’ may include easements necessary for the agency’s use.” ‘(Gov. Code § 54221(f)(1)(C)).
Staff recommend that the Board declare and find the Pleasant Acres Parcel as exempt surplus land (Attachment 1) per Gov. Code § 54221(f)(1)(C) because it is excess land that is being exchanged for another property necessary for Valley Water use. If the Board approves this recommendation, the Resolution declaring the subject land as exempt surplus land will be provided to the California Department of Housing and Community Development (HCD).
Staff also recommend that the Board authorize the interim CEO to execute the Real Property Exchange Agreement (Attachment 2), accept the grant of easement deed (Attachment 3) on the San Jose Water parcel, and execute the Quitclaim Deed (Attachment 4) for the portion of the Pleasant Acres Parcel, only upon written confirmation from the HCD that the proposed disposition of surplus land qualifies for an exemption as defined within the SLA. Staff have received preliminary concurrence from the HCD and anticipate this confirmation within 30 days following receipt of the Resolution.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There is no environmental justice impact with this item.
FINANCIAL IMPACT:
There is no financial impact associated with this item, which is an exchange of real property of equal value.
CEQA:
On March 11, 2025, the Board certified the Environmental Impact Report (EIR) for the Coyote Creek Flood Protection Project (Resolution No. 2025-16). The recommended action is wholly consistent with the EIR, which describes the acquisition of permanent easements for project maintenance.
ATTACHMENTS:
Attachment A: Gov. Code § 84308
Attachment 1: Exempt Surplus Resolution
Attachment 2: Real Property Exchange Agreement
Attachment 3: Easement Deed to Valley Water
Attachment 4: Quitclaim Deed to San Jose Water
UNCLASSIFIED MANAGER: Manager
Lisa Bankosh, 408-630-2618