BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Adopt a Resolution Authorizing Conveyance of a Real Property Interest to the Santa Clara Valley Transportation Authority (VTA) for the Bay Area Rapid Transit Silicon Valley Berryessa Extension Project; Authorize the Interim Chief Executive Officer to Execute the Quitclaim Deed and the Agreement to Acquire Easement Interests, and to Accept an Assignment of Utility and Ingress/Egress Easements (Milpitas, District 3).
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RECOMMENDATION: Recommendation
A. Adopt the Resolution DECLARING THAT A REAL PROPERTY INTEREST (EASEMENT 9433-3) OWNED BY THE SANTA CLARA VALLEY WATER DISTRICT ON APN 092-07-010 IS NO LONGER REQUIRED FOR DISTRICT USE AND THAT THE REAL PROPERTY INTEREST BE CONVEYED BY QUITCLAIM DEED TO THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY AS OWNER OF APN 092-07-010 PURSUANT TO SECTION 31(g) OF THE DISTRICT ACT (SAN JOSE, DISTRICT 3);
B. Authorize the Interim CEO to execute a Quitclaim Deed (9433-3.1) conveying a Real Property Interest (Easement 9433-3) owned by Santa Clara Valley Water District on APN 092-07-010 to Santa Clara Valley Transportation Authority (VTA).
C. Authorize the Interim CEO to approve an Easement Agreement with VTA, for acquisition of easement interests (9433-18, 9433-19, 9433-20, 9433-21, and 9433-23) on APNs 092-08-083 and 092-08-002; and
D. Authorize the Interim CEO to accept the Assignment of Utility and Ingress/Egress Easements (9433-22) from VTA.
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SUMMARY:
The Bay Area Rapid Transit Silicon Valley Berryessa Extension (BART Extension) project, completed in 2020, is a 10-mile rapid transit project that begins in Fremont and ends in the Berryessa area of San Jose. Construction of the Milpitas and North San Jose/Berryessa stations required the realignment of Valley Water’s Milpitas and Central pipelines, which was authorized by encroachment permit. The Board is now being asked to consider a series of property rights transactions related to the new pipeline alignment through the VTA Milpitas Transit Station (Attachment 1, Station Map). Additional real property exchanges and minor boundary line adjustments associated with the BART Extension will be brought before the Board for consideration at a later date.
Background
In 2013, the Board of Directors authorized issuance of a Water Resource Protection Ordinance encroachment permit to VTA for construction of the Milpitas Transit Station and realignment of the Milpitas Pipeline (MPL). The permit was issued prior to the transfer of real property land rights to allow VTA to proceed expeditiously with construction of the BART Extension project. Valley Water and VTA also entered into a pipeline relocation agreement requiring VTA to pay relocation costs and to provide replacement right of way for the new segment of the MPL. The relocation of the MPL and removal of the abandoned portions of the pipeline have been completed and VTA opened the BART Extension for revenue ridership in 2020.
Valley Water and VTA staff have now finalized negotiations on mutually acceptable terms for the land rights transfers. While the discussions were consistently cooperative, the negotiations were complicated by several factors. The former alignment of the MPL was in the parking area of a commercial truck yard with relatively unrestricted access for operations and maintenance. The relocated segment of the pipeline is within the main thoroughfare of a public transit facility (Attachment 1; “Water Pipeline Easement from VTA to VW”). Provision of Valley Water access to the new alignment required consideration of traffic patterns, Homeland Security guidelines, transit operations, and other utilities located in proximity to the relocated pipeline. In addition, VTA engaged in lengthy litigation with prior owners of the properties delaying completion of this exchange of easements.
Land Rights Exchange
Staff recommends that the Board approve the conveyance of Valley Water’s easement rights on APN 092-07-010 to VTA (Attachment 2, Resolution, and Attachment 5, Quitclaim Deed). These rights allowed Valley Water to operate and maintain the MPL, which VTA has relocated off the property on which the easement rights are located as part of the BART Extension project construction. Therefore, these rights are now excess, and may expose Valley Water to unnecessary liability. Section 31(a) of the District Act states that the Board “may determine, by resolution duly entered in their minutes, that any real property, or interest therein, held by the district is no longer necessary to be retained for the uses and purposes thereof, and may thereafter sell, lease, or otherwise dispose of the property pursuant to this section.” Section 31(g) of the District Act provides for the transfer of such land rights to public agencies by terms and conditions that are agreed upon by the Board.
In exchange, and to allow Valley Water to operate and maintain the pipeline in its new location within the Milpitas Transit Station, VTA would grant Valley Water a pipeline easement, construction staging easement, and an access easement on its property APNs 092-08-083 and 092-08-002. These land rights would be provided by VTA to Valley Water via the Easement Agreement (Attachment 3; See Parcels 1, 1A, 2, 2A and 2B on Station Map). Additionally, as part of the exchange, VTA would assign Valley Water easement rights which VTA acquired from private property owners to construct the Extension. These easement rights would be transferred to Valley Water via the Assignment of Utility and Ingress/Egress Easements (Attachment 4; See Parcels 3 and 3A on Station Map). Staff recommends the Board approve these agreements to accept the easements from VTA, as an equivalent exchange for the quitclaim of the excess easement to VTA.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with this item. This action is unlikely to or will not result in disproportionate impacts on any specific community(ies) relative to the general population from the implementation of this project/program.
FINANCIAL IMPACT:
There is no financial impact associated with the exchange of land rights with VTA, which are considered of equivalent value due to the release of potential liability associated with excess easement rights and the need for Valley Water to maintain operations and maintenance access to the Milpitas Pipeline. In addition, VTA has borne all costs associated with relocation of the MPL and removal of abandoned portions of the pipeline. Staff costs for reviewing the Extension project, construction coordination and oversight, the processing of the land rights transfers, and issuance of encroachment permits are reimbursed to Valley Water by VTA.
CEQA:
VTA certified an Environmental Impact Report (EIR) for the BART extension in December 2004. VTA certified a Supplemental EIR in June 2007 to update information from the original EIR, and a second Supplemental EIR in 2011 verifying the project’s applicability to the first phase of the BART Silicon Valley to San Jose.
Valley Water, acting as a Responsible Agency, made required findings on December 13, 2011 (Resolution No. 11-80) in support of the project and specific improvements to Valley Water property and facilities. Based on these findings, the Board authorized the issuance of encroachment permits for the relocation of the Milpitas Pipeline and considered the transfer of associated land rights on March 12, 2013. The real estate transactions under consideration are consistent with those previous actions and the Board can rely on the CEQA findings made under Resolution No. 11-80. No further action is required under CEQA.
ATTACHMENTS:
Attachment A: Gov. Code § 84308
Attachment 1: Map of Milpitas Transit Station
Attachment 2: Resolution
Attachment 3: Easement Agreement
Attachment 4: Ingress/Egress Easements
Attachment 5: Quitclaim Deed
UNCLASSIFIED MANAGER: Manager
Lisa Bankosh, 408-630-2618