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 as Exempt Surplus Land, Making Responsible Agency Findings Under the California Environmental Quality Act, and Authorize Conveyance of Real Property Interest to the City of Milpitas; Authorize the Interim Chief Executive Officer to Negotiate and Execute a Purchase and Sale Agreement for the South Milpitas Vehicular Bridge Project, APN No. 086-37-018, Real Estate File No. 4049-6.1 (Milpitas, District 3).
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RECOMMENDATION: Recommendation
A. Consider the potential environmental effects of the project as discussed in the Initial Study/ Mitigated Negative Declaration for the South Milpitas Boulevard Bridge Project;
B. Adopt a Resolution DECLARING A PORTION OF REAL PROPERTY OWNED BY THE SANTA CLARA VALLEY WATER DISTRICT (APN 086-37-018) AS EXEMPT SURPLUS LAND UNDER CALIFORNIA GOVERNMENT CODE 54221 (f)(1)(D), DETERMINING THAT THE REAL PROPERTY TO BE TRANSFERRED IS NOT REQUIRED FOR VALLEY WATER USE,CONSIDERING THE MITIGATED NEGATIVE DECLARATION FOR THE SOUTH MILPITAS BOULEVARD BRIDGE PROJECT AND MAKING RESPONSIBLE AGENCY FINDINGS PUSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND AUTHORIZING THE CONVEYANCE OF REAL PROPERTY TO THE CITY OF MILPITAS PURSUANT TO SECTION 31(D) OF THE DISTRICT ACT (MILPITAS, DISTRICT 3);
C. Authorize the Interim Chief Executive Officer to negotiate and execute the Purchase and Sale Agreement between the City of Milpitas and Santa Clara Valley Water District, for the conveyance of real property interest located in Penitencia East Channel, in substantially the same form as the attached draft based upon the terms and conditions as set forth in the Agreement; and
D. Authorize the Interim Chief Executive Officer to negotiate and execute the Grant Deed to the City of Milpitas in substantially the same form as the attached draft, Real Estate File No. 4049.
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SUMMARY:
The City of Milpitas (City), in collaboration with the California Department of Transportation, plans to construct the new South Milpitas Vehicular Bridge Project (Project; Attachment 1), south of the existing Milpitas BART station. The Project will connect South Milpitas Boulevard to the north to a new connector street to the south and will serve vehicles, pedestrians, and cyclists. The new bridge will be constructed over Penitencia East Channel which is owned by the Santa Clara Valley Water District (Valley Water). The City has secured federal grant funding for its Project and has requested Valley Water’s expeditious cooperation to ensure funding milestones are met.
With the proposed actions, the City would acquire fee title ownership from Valley Water of the section of the Penitencia East Channel within the footprint of the Project, which includes the proposed vehicular bridge and incidental improvements to the existing maintenance roads, for a purchase price of $270,000. As fee owner, the City will be responsible for maintenance associated with the Project, with Valley Water retaining water management easement rights within the fee area. Transfer of the underlying fee to the City reduces Valley Water’s risk exposure related to the public use of the bridge.
Valley Water’s fee conveyance to the City is conditioned on Valley Water maintaining unimpeded access to the creek following Project construction. First, the City will construct and maintain bridge abutments and ramps for Valley Water to access the creek from the public road on three adjacent parcels. Second, under the Purchase and Sale Agreement, Valley Water will receive the necessary easement rights at or before closing. The City will grant Valley Water an easement for water management and stormwater drainage over the conveyed property and over a southern adjacent city-owned parcel. The City will also secure water management and stormwater drainage easements over two northern privately-owned parcels in a form satisfactory to Valley Water. Valley Water would receive these easement rights at no cost. The City Council will be considering the above actions at its August 12, 2025, meeting.
Section 31 of the District Act (Cal. Water Code App. 60-31) allows the Board, by a majority vote, to sell or otherwise transfer any real property interest within the Santa Clara Valley Water District upon the terms and conditions that are agreed upon, provided that the property is not required for Valley Water use. As described above, Valley Water will retain a water management and stormwater drainage easement over the subject property and fee title interest is therefore not required.
Surplus Lands Act
The Surplus Lands Act (Gov. Code, 54220 et seq; SLA), places requirements upon local agencies before disposing of excess land. Staff recommend that the Board declare and find the subject 0.4343 acres of Valley Water Property as exempt surplus land per Gov. Code 54221(f)(1)(D) because it is excess land that is being transferred to another local agency for the receiving agency’s use. If the Board approves this recommendation, the Resolution (Attachment 2) declaring the subject land as exempt surplus land will be provided to the California Department of Housing and Community Development (HCD).
The transaction would proceed only upon written confirmation from the HCD that the proposed disposition of surplus land qualifies for an exemption as defined within the SLA. Staff anticipates this confirmation within 30 days following receipt of the Resolution.
ENVIRONMENTAL JUSTICE IMPACT:
There is no environmental justice impact associated with this item. There are no environmental justice and equity impacts associated with the conveyance of land rights to support the South Milpitas Vehicular Bridge Project.
FINANCIAL IMPACT:
Proceeds from the sale of APN No. 086-37-018 in the amount of $270,000 will be allocated to the General Fund.
CEQA:
The City approved an Initial Study/Mitigated Negative Declaration (IS/MND) for the South Milpitas Boulevard Bridge Project on May 21, 2024, which describes the impacts associated with the Project and the real estate transactions being considered by Valley Water. The IS/MND identified potentially significant impacts to air quality, biological resources, cultural resources, geology and soils, and hazardous materials; however, these impacts could be reduced to a level that is less-than-significant with the implementation of appropriate mitigation measures. The full description of mitigation measures can be found in the IS/MND, which is included as Attachment 4. Valley Water is not responsible for implementation of any of the mitigation measures.
Staff reviewed and considered the MND and concluded it is adequate for Valley Water to rely on to approve the proposed Project, including executing property agreements and permitting. The Resolution includes findings for Valley Water to adopt the City’s IS/MND as a Responsible Agency under CEQA. If the Board approves the project, staff will file a Notice of Determination for the Board’s action.
ATTACHMENTS:
Attachment A: Gov. Code 84308
Attachment 1: Project Map
Attachment 2: Resolution
Attachment 3: Agreement
Attachment 4: IS/MND
UNCLASSIFIED MANAGER: Manager
Lisa Bankosh, 408-630-2618