BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Resolution Authorizing the Acquisition of a Grant Deed from, and Conveyance of a Quitclaim Deed to, Patrick V. Simpson and Mary Aileen Simpson, Trustees of the Simpson Living Trust, dated March 14, 2003 for the Upper Llagas Creek Flood Protection Project, Project No. 26174051 (Morgan Hill), (District 1).
End
RECOMMENDATION:
Recommendation
Adopt the Resolution AUTHORIZING THE ACQUISITION OF A GRANT DEED FROM AND CONVEYANCE OF A QUITCLAIM DEED TO PATRICK V. SIMPSON AND MARY AILEEN SIMPSON FOR THE UPPER LLAGAS CREEK FLOOD PROTECTION PROJECT, PROJECT NO. 26174051 (MORGAN HILL), by unanimous vote, that does the following:
A. Approves the Real Property Exchange Agreement for Real Estate File Nos. 5027-111 & 5027-100.1 and authorizes the Interim Chief Executive Officer to execute the Real Property Exchange Agreement;
B. Authorizes the Interim Chief Executive Officer to execute the Certificate of Acceptance for Grant Deed 5027-111; and
C. Authorizes the Interim Chief Executive Officer to execute the Quitclaim Deed 5027-100.1.
Body
SUMMARY:
The Santa Clara Valley Water District (District) is undertaking the Upper Llagas Creek Flood Protection Project (Project) in partnership with the U.S. Army Corps of Engineers (Corps) and the City of Morgan Hill (City) to provide 1% flood protection to approximately 1100 homes and 500 businesses along West Little Llagas Creek, East Little Llagas Creek, and Llagas Creek. The Project is approximately 13.9 miles long and encompasses the City, City of Gilroy, and various unincorporated areas of Santa Clara County, including San Martin.
The proposed acquisition of a Grant Deed from Patrick V. Simpson and Mary Aileen Simpson, Trustees of the Simpson Living Trust, dated March 14, 2003, Real Estate File No. 5027-111, is required for Phase 2 construction of the Project. In 2015, a Hazardous Substance Liability Assessment (HSLA) Phase I investigation was performed and the results were satisfactory (Attachment 2).
The District will quitclaim a portion of its existing fee title interests described in Deed Document No. 5027-100.1 to the property owners, Mr. and Ms. Simpson. The District previously acquired lands (Deed #18391862, Recorded May 27, 2005) from Dana L. Dollar, Trustee of the Dana L. Dollar Trust, dated December 8, 1989, and Franco De Cicco and Sonia De Cicco, Trustees of the De Cicco Family Revocable Living Trust 1993. This acquisition was primarily lands within Llagas Creek and along the eastern riverbank. However, a triangular shaped parcel on the opposite west riverbank was included in the acquisition as not to create a remnant parcel. This west bank parcel is immediately adjacent to the back of the Simpson property. Please refer to Quitclaim Deed 5027-100.1 for the legal plat and description for the proposed portion of the existing District fee property not required for the construction of the Project. This remnant parcel has no access to a public road. Quitclaim Deed 5027-100.1(7,504± square feet) from the District to the property owners, Mr. and Ms. Simpson, is requested for approval. The District Act requires that the disposition of real property that has no access to a public road must be by the unanimous approval of the board.
The District hired an independent appraiser, Smith and Associates, Inc., to appraise the subject parcels. The appraisal evaluated "just compensation" for the Conveyance of Fee Title Quitclaim Deed (5027-100.1) from the District to Mr. and Ms. Simpson at $15,000.00 and evaluated the Grant Deed (5027-111) from Mr. and Ms. Simpson to the District at $13,500.00. Additional compensation of $1,500.00 (cost-to-cure) and $3,174 (based on a Contractor’s bid for horse fencing) was agreed for the cost to re-install approximately 138 linear feet of existing horse fencing impacted by the Project, not addressed in the independent appraisal, for a total of $18,174.00. The District presented an offer package to Mr. and Ms. Simpson to acquire their lands for $18,174.00 or, in the alternative, accept the District Conveyance of Fee Title Quitclaim Deed (appraised value of $15,000.00), plus $3,174.00 for the cost of horse fencing to Mr. and Ms. Simpson. Mr. and Ms. Simpson accepted and signed the District offer involving the Real Property Exchange Agreement.
Background
The Project was originally administered by the United States Natural Resources Conservation Service (NRCS), formally known as the Soil Conservation Service (SCS). In 1999, the Corps was authorized by Congress to take over from NRCS and construct the remaining portion of the Project. However, due to lack of federal funding, the Corps’ progress on the Project stalled. To get the Project back on schedule, the Corps approved the District’s request to take over the Project’s lead to administer the planning (preparation of the environmental documents) and design phases.
On September 22, 2009, the Board approved a cost sharing agreement (Agreement A3313S) with the City to prepare the environmental document, the design plans and the specifications for the Project. The City agreed to reimburse the District up to $3 million of the total anticipated cost of these work efforts. On April 7, 2014, the District received final payment in full from the City of Morgan Hill. This Board action set the course for the District to take on Project tasks normally performed by the Corps, so as to advance the Project.
Following approval of the cost sharing agreement with the City of Morgan Hill, the Board approved design services agreement A3366A with RMC Water and Environment (RMC) on May 11, 2010 to prepare the design plans and specifications. The Board later approved a consultant agreement A3399A to assume responsibility (due to lack of federal funding) of the Corps’ environmental consultant contract with Cardno ENTRIX (ENTRIX) on July 19, 2011, to complete the environmental document, EIS/EIR for the Project. More recently, the Board approved consultant agreement A3685A with Overland, Pacific and Cutler, Inc. (OPC) on October 22, 2013 for real estate services to acquire the 146 parcels required to construct the Project.
An Environmental Impact Statement/Environmental Impact Report (EIS/EIR) was prepared in 1982 that analyzed the original Llagas Creek Flood Watershed Project developed by the United States Department of Agriculture’s SCS in the late 1960s. Since the approval of the 1982 EIS/EIR, numerous changes have occurred within the Project limits, including increased urbanization and riparian habitat, changes in runoff conditions, the federal listing of steelhead, and state/federal listings of California Tiger Salamander as threatened species, have resulted in refinements to the original Project design.
Project elements include:
1. Widening (generally by constructing against one bank) and deepening the channel in all reaches;
2. Construction of a geomorphically stable channel form that includes a sinuous low-flow channel, with geomorphic benches at bankfull elevation where the channel is widened;
3. Permanent maintenance access roads along the top of both banks;
4. Aquatic habitat enhancements;
5. Grade control structures;
6. Modifications to culverts and bridges;
7. Construction of a tunnel beneath Nob Hill through downtown City of Morgan Hill to bypass high flows from a portion of existing West Little Llagas Creek through the City’s downtown that can remain natural (as-is), thus preserving the existing vegetation and habitat;
8. New 1.25-mile-long diversion channel (Reach 7a).
Certification of the Final EIR and Adoption of the Findings and MMRP
The Draft EIR was completed and a Notice of Completion was filed with the California Office of Planning and Research (OPR) and the Draft EIR was released for public review from January 6, 2014. A public meeting to receive comments on the Project was held on January 15, 2014 within the 45-day public review period. Resource agencies requested additional time for review and comment, which District staff granted. Ten letters with comments were received from the public and agencies in addition to oral comments received at the public meeting. Formal responses to each comment were incorporated into the Final EIR.
On June 10, 2014, the District’s Board certified the Final EIR and approved the recommended Tunnel Alternative as the Project.
Certification of the Final EIS
U.S. Army Corps of Engineers (USACE) San Francisco Regulatory Division released the Project’s Draft Environmental Impact Statement (EIS) for Public Review and 45-day comment period on December 31, 2015. The Public Review comment period ended on February 16, 2016, when USACE Regulatory addressed comments in their Final EIS, with Corps Regulatory certification of the EIS anticipated in approximately August 2016.
The Project includes modifications to approximately 6.3 miles of Upper Llagas Creek and approximately 4 miles of West Little Llagas Creek. Construction of the improvements will result in the need to acquire additional right-of-way for the Project. Phase I construction (Reach 4, Reach 7a diversion, and the on-site mitigation - Lake Silveira) is scheduled to begin in late 2014 and will require approximately 40 parcels to be acquired by September 2014. Phase II construction (all remaining reaches) will require approximately an additional 100 parcels to be acquired by May 2015. Property acquisitions are eligible at 100% reimbursement by the Department of Water Resources State Subventions Program.
Next Steps
Phase I construction (Reach 4, Reach 7a diversion, and the on-site mitigation - Lake Silveira) is scheduled to begin in Fall 2016 and will require approximately 10 additional parcels within the Phase I Project limits to be acquired prior to advertisement of the Project for construction Phase II construction (all remaining reaches) will require approximately an additional 100 parcels to be acquired. Approximately 35 of these parcels have been acquired to date with the remaining parcels to be acquired by December 31, 2016. It is anticipated that staff will request Board adoption of the Phase I final plans and specifications and authorizing the advertisement of the Project for obtaining construction bids in Fall 2016, subject to receipt of Resource Agency permits. Award of the Phase I construction contract is anticipated to occur in Spring 2017.
FINANCIAL IMPACT:
There is sufficient Project funding in the FY17 budget for the acquisition of this parcel.
Property acquisition costs, including appraisal costs and fees, for the Project are eligible at 100% reimbursement by the Department of Water Resources State Subventions Program.
CEQA:
On June 10, 2014, the Board certified the Environmental Impact Report for the Upper Llagas Creek Project, Resolution no. 14-67. The Notice of Determination is attached (Attachment 3).
ATTACHMENTS:
Attachment 1: Resolution
Attachment 2: Phase I HSLA
Attachment 3: Notice of Determination
UNCLASSIFIED MANAGER:
Manager
Ngoc Nguyen, 408-630-2632