BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A – Gov. Code § 84308)
SUBJECT: Title
Adopt a Resolution Declaring Portions of Real Property Owned by the Santa Clara Valley Water District (APN: 015-35-033 and APN: 015-35-012) to be Exempt Surplus Land; Authorize Conveyance of Real Property Interests with City of Sunnyvale; Execution of Cost Sharing Agreement with City of Sunnyvale; and Execution of Operation and Maintenance Agreement with City of Sunnyvale for the Sunnyvale East and West Channels Flood Protection Project, Project No. 26074002 (Sunnyvale, District 3).
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RECOMMENDATION: Recommendation
A. Consider the environmental effects of modifications to the Sunnyvale East and West Channels Flood Protection Project, as discussed in the Third Addendum to the Final Environmental Impact Report;
B. Adopt a Resolution DECLARING PORTIONS OF REAL PROPERTY OWNED BY THE SANTA CLARA VALLEY WATER DISTRICT (APN 015-35-033 AND APN 015-35-012) AS EXEMPT SURPLUS LAND UNDER CALIFORNIA GOVERNMENT CODE § 54221(f)(1)(D), DETERMINING THAT THE REAL PROPERTY TO BE TRANSFERRED IS NOT REQUIRED FOR DISTRICT USE AND AUTHORIZING THE TRANSFER OF PROPERTY TO THE CITY OF SUNNYVALE PURSUANT TO SECTION 31(G) OF THE DISTRICT ACT (SUNNYVALE, DISTRICT 3);
C. Authorize the Interim Chief Executive Officer to execute a Quitclaim Deed identified as Real Estate File Nos. 2027-3.1 and 3015-445.1, to City of Sunnyvale with reservation of easement rights for flood protection and maintenance purposes;
D. Authorize the Interim Chief Executive Officer to execute the Cost Sharing Agreement by and between the City of Sunnyvale and the Santa Clara Valley Water District for Construction of a Joint Wall; and
E. Authorize the Chair of the Board to execute the West Channel Joint Wall Project: Operation and Maintenance Agreement.
Body
SUMMARY:
The Sunnyvale East and West Channels Flood Protection Project (Project) was included in the voter-approved 2012 Safe, Clean Water and Natural Flood Protection Program (Safe, Clean Water Program) and again in 2020 in the voter-approved renewed Safe, Clean Water Program as Project E2. The Project was approved by the Board of Directors in 2014 and will improve the conveyance capacity of two existing storm drain channels to provide flood protection from a 100-year riverine flood event.
A portion of the Project will involve the construction of floodwalls adjacent to the Donald M. Sommers Water Pollution Control Plant (WPCP) at 1444 Borregas Avenue in the City of Sunnyvale (City). The WPCP is owned and operated by the City, which is currently working to construct a new perimeter wall around the WPCP. If both projects proceed as previously planned, then portions of the City’s perimeter wall and the Project floodwalls would be separated by only a few feet. This would make maintenance activities in the area more difficult to complete, such as removal of brush and refuse for fire prevention measures.
The City and Santa Clara Valley Water District (Valley Water) have negotiated agreements to build and maintain a single “Joint Wall” that would serve the public’s best interest to achieve the economic benefits and efficiencies resulting from combining the design and construction of both public improvement projects. The Joint Wall would be approximately 1,100 feet in length and built to provide the same level of flood protection that Valley Water floodwalls would have provided. While both City and Valley Water will have shared responsibility for the Joint Wall, the City will retain ownership due to the Joint Wall also serving as a security boundary for the WPCP. Construction of the Joint Wall is currently expected to begin in Spring 2027.
Surplus Land Act
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.”
Staff recommends that the Board declare and find that portions of APN 015-35-012 and APN 015-35-033 are exempt surplus land (Attachment 1) per Gov. Code § 54221(f)(1)(D) because it is being conveyed by Valley Water to another public agency for the receiving agency’s 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 recommends that the Board authorize the Interim CEO to execute the Quitclaim Deed (Attachment 2) for APN 015-35-012 and APN 015-35-033 (portions of), Real Estate File Nos. 2027-3.1 and 3015-445.1. The HCD has to provide written confirmation that the proposed disposition of surplus land qualifies for an exemption as defined within the SLA prior to conveyance. Staff have received preliminary concurrence from the HCD and anticipate receiving this written confirmation within 30 days following receipt of the Resolution.
Cost Sharing Agreement
The purpose of the Cost Sharing Agreement (Attachment 3) is to define the City and Valley Water’s responsibilities for the construction of the Joint Wall and how the cost for its design and construction will be shared. The key terms are as follows:
• The City and Valley Water will split the engineering design and construction costs evenly (50%/50%).
• The City will administer, design and contract for the construction of the Joint Wall.
• Valley Water will remit $406,738.00 for its share of the engineering costs within thirty (30) calendar days of the execution of the Cost Sharing Agreement.
• Valley Water will deposit $3,905,000.00 with the City for its share of the construction costs thirty (30) calendar days prior to advertising the construction contract bid.
o If the bid price is less than the estimated cost, then Valley Water receives a proportional share of the funds returned.
o If the bid price exceeds the estimated cost by less than $3,000,000.00 then Valley Water will remit an additional deposit for their fifty percent (50%) cost share.
o If the bid price exceeds the estimated cost by more than $3,000,000.00 then the City must either reject all bids or negotiate and reach an agreement with Valley Water for a mutually agreed upon cost share.
• The City will promptly notify Valley Water of any modifications to the City’s engineering design and construction contracts and afford an opportunity to provide feedback.
o Valley Water will remit payments for its fifty percent (50%) share of any cost increase as a result of these modifications.
• Valley Water is entitled to a fifty percent (50%) share of any leftover funds at the termination of the Cost Sharing Agreement or completion of the Joint Wall Project.
• City assumes ownership of the Joint Wall upon completion of construction.
Operations and Maintenance (O&M) Agreement
The purpose of the O&M Agreement (Attachment 4) is to define the City and Valley Water’s responsibilities for the maintenance of the Joint Wall and how the cost for this maintenance will be shared. The key terms of the O&M Agreement are as follows:
• Valley Water shall have the right to inspect the structural integrity of the Joint Wall, as necessary.
o Valley Water may request access to the interior of the WPCP to conduct these inspections and the City will act in good faith to accommodate such requests.
• The City will be solely responsible for maintaining the structural integrity of the Joint Wall and graffiti removal.
• Repairs to the Joint Wall will be made by the City or by contractors procured by the City.
o Structural repairs will require mutual agreement from both parties.
o The cost of structural repairs will be split evenly (50%/50%) between the City and Valley Water.
§ Except, the City is responsible for any costs to repair a complete structural failure as a result of design failure or the City’s failure to take reasonable precautions to prevent the failure.
§ The timing of Valley Water payments to the City for repairs mirror the terms in the Cost Sharing Agreement.
§ Valley Water is entitled to a fifty percent (50%) share of any leftover funds upon completion of a repair.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with this Sunnyvale East and West Channels Flood Protection Project. This action is unlikely to or will result in disproportionate impacts on any specific community(ies) relative to the general population from the implementation of this project.
FINANCIAL IMPACT:
The Sunnyvale East and West Channels Flood Protection Project (E2), Project No. 26074002 is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2026-2030 Five-Year Plan and in the FY 2025-26 Adopted Budget. The Project is funded through the renewed Safe, Clean Water and Natural Flood Protection Fund (Fund 26).
Cost Sharing Agreement
The $406,738.00 share for engineering design work is budgeted in the Sunnyvale East and West Channels Flood Protection Project, Project No. 26074002, which is included in the FY2025-2026 Adopted Budget. There are adequate funds in the Project’s FY2025-2026 Adopted Budget to encumber the planned expenditures for the Cost Sharing Agreement during the fiscal year.
Funds to cover the remaining cost of the Cost Sharing Agreement will be included in the biennial budget process during the annual fiscal year budget process or through budget adjustment(s), if needed. This includes the $3,905,000.00 that is expected in the Spring of 2027.
Valley Water’s payments under the Cost Sharing Agreement are expected to be less than what Valley Water would have paid to build a separate floodwall.
O&M Agreement
Under the O&M Agreement, Valley Water should expect an incremental increase in maintenance cost to inspect the structural integrity of the Joint Wall and for its share of future repair costs. These costs are difficult to quantify but are expected to be less than what Valley Water would have paid if it was solely responsible for a separate floodwall.
CEQA:
On September 9, 2014, Valley Water’s Board of Directors certified the Final Environmental Impact Report (EIR) (SCH No. 2013012041) and approved the Sunnyvale East and West Channels Flood Protection Project as lead agency pursuant to CEQA. Valley Water has prepared a Third Addendum to the Final EIR (Attachment 5), which describes design changes to the previously approved Project associated with the Joint Wall and analyzes the environmental effects that could result from this project modification. As set forth in the Third Addendum, none of the conditions described in CEQA Guidelines Section 15162 would occur as a result of the project changes. Specifically, neither the proposed modifications nor the circumstances under which they are being undertaken would result in any new significant impacts not previously disclosed in the Final EIR, or any substantial increase in the severity of significant impacts identified in the Final EIR. Therefore, the Project modifications meet the criteria for project changes or additions that require preparation of an Addendum under CEQA Guidelines §15164(a).
ATTACHMENTS:
Attachment A: Gov. Code § 84308
Attachment 1: Exempt Surplus Resolution
Attachment 2: Quitclaim Deed
Attachment 3: Agreement, Cost Sharing
Attachment 4: Agreement, Operation & Maintenance
Attachment 5: Third Addendum to the Final EIR
UNCLASSIFIED MANAGER: Manager
Bhavani Yerrapotu, 408-630-2735