BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Authorize Acquisition of Real Property Interests from San Jose Water Company for the Coyote Creek Flood Protection Project, Project No. 26174043, APNs 467-13-055, 467-13-056, 467-13-002, 467-13-003, 472-11-016, 472-12-058, 472-12-071, 477-12-024, and 477-20-033, Real Estate File Nos. 4021-367, 4021-458, 4021-464, 4021-465, 4021-472, 4021-473, 4021-498, 4021-506, 4021-521, 4021-525, and 4021-526 (San Jose, Districts 2 and 6).
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RECOMMENDATION: Recommendation
A. Authorize the Interim Chief Executive Officer to execute a Right of Way Agreement between San Jose Water Company and the Santa Clara Valley Water District for acquisition of real property interests on APNs 467-13-055, 467-13-056, 467-13-002, 467-13-003, 472-11-016, 472-12-058, 472-12-071,477-12-024, and 477-20-033, for the price of $2,932,950, based upon the terms and conditions as set forth in the Agreement;
B. Authorize the Interim Chief Executive Officer to accept the Quit Claim Deed (4021-525 and 4021-526) from San Jose Water Company;
C. Authorize the Interim Chief Executive Officer to accept the Easement Deeds (4021-367 and 4021-498) from San Jose Water Company; and
D. Authorize the Interim Chief Executive Officer to accept the Temporary Construction Easement Deeds (4021-506, 4021-521, 4021-458, 4021-464, 4021-465, 4021-472, and 4021-473) from San Jose Water Company.
Body
SUMMARY:
The Santa Clara Valley Water District (Valley Water) is undertaking the Coyote Creek Flood Protection Project (CCFPP or Project) to provide flood protection against a flood event equivalent to the February 2017 flood or approximately a 20-year flood event. The CCFPP is approximately nine (9) miles long and located within the City of San Jose. CCFPP is part of the Safe, Clean Water and Natural Flood Program that voters renewed in November 2020.
Staff recommends acquisition of fee title on APNs 467-13-055, 467-13-056, permanent easements over 467-13-002, 477-20-033, and temporary construction easements over APNs 467-13-002, 467-13-003, 472-11-016, 472-12-058, 472-12-071, 477-12-024, and 477-20-033 (collectively referred to as Property Interests), located in San Jose, California, owned by San Jose Water Company (Owner), according to the terms of the Right of Way Agreement (Attachment 1). The Property Interests are shown on the plat and description of Quitclaim Deeds 4021-525 and 4021-526 (Attachment 2), Water Management Easement Deeds 4021-367 and 4021-498 (Attachment 3), and Temporary Construction Easement Deeds 4021-506, 4021-521, 4021-458, 4021-464, 4021-465, 4021-472 and 4021-473 (Attachment 4). Acquisition of the Property Interests from Owner is necessary to implement flood risk reduction elements of the CCFPP.
PROJECT BACKGROUND
The CCFPP’s primary objective is to provide protection from floods up to the level that occurred on February 21, 2017, equivalent to approximately a 5% flood (also referred to as a 20-year event), along Coyote Creek, between Montague Expressway and Tully Road, in San José. The CCFPP involves construction of multiple floodwalls, passive barriers and earthen berms along a nine (9) mile stretch of Coyote Creek.
Following a February 2020 order from Federal Energy Regulatory Commission (FERC) regarding Anderson Dam, the original Coyote Creek Flood Protection Project was split into two projects to accommodate construction of a new outlet tunnel at Anderson Dam. As a result, Valley Water accelerated the design and construction of an initial project, the Coyote Creek Flood Management Measures Project (CCFMMP), representing 40% of the original Coyote Creek Flood Protection Project, so the creek can handle the potential release of higher flows from the larger outlet tunnel from the Anderson Dam Tunnel Project. The Valley Water Board of Directors (Board) awarded the CCFMMP construction contract in May 2023 and accepted the work as completed in June 2025.
Construction of the remaining components of the original CCFPP is planned for completion before the Anderson Dam Seismic Retrofit Project Stage 2 Diversion is in operation (estimated in 2028). In total, the Project includes constructing approximately 17,060 linear feet of improvements along the 9-mile stretch of Coyote Creek from Montague Expressway to Tully Road. The Project will result in flood risk reduction benefits to homes, businesses, schools, and transportation infrastructure, including disadvantaged communities, along Coyote Creek.
ACQUISITION OF REAL PROPERTY INTERESTS
Valley Water obtained appraisals of the properties which established the fair market value of the permanent easements and temporary construction easements at $2,818,400. Valley Water made a Government Code 7267.2 offer to Owner for the fair market value of the easements on April 4, 2025, which was not initially accepted. During negotiations, it was determined that acquiring two (2) APNs (467-13-055 and 467-13-056) in fee simple in lieu of permanent easements would better serve the Project and Owner’s interests. On September 11, 2025, Valley Water presented a revised offer to the Owner to acquire the Property Interests for $2,932,950. The Owner accepted Valley Water’s offer and signed the revised Right of Way Agreement on October 28, 2025.
ENVIRONMENTAL JUSTICE IMPACT:
The CCFPP will have beneficial Environmental Justice impacts. The intent of CCFPP is to protect the public from dangers associated with flooding similar to the flooding event that occurred in February 2017. Acquisition of right-of-way from the Owner is required to achieve flood protection for all in the surrounding community.
During the planning phase, Valley Water staff evaluated multiple flood protection alternatives and implementation sites, met with the community numerous times, and determined that the preferred alternatives presented in the community meetings would best serve the area. The completion of the Project will directly benefit the adjacent disadvantaged communities along the full stretch of Coyote Creek between Montague Expressway and Tully Road.
Additionally, the Valley Water design team continues to coordinate with the community and key stakeholders as the project advances by holding public meetings and soliciting community feedback.
FINANCIAL IMPACT:
The CCFPP, Project No. 26174043 is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2026-30 Five-Year Plan and in the FY 2025-26 Adopted Budget. The acquisition price of the Property Interests is $2,932,950 and does not change the overall Total Project Cost reflected in the CIP FY 2026-30 Five-Year Plan. There are adequate funds in the Project’s FY 2025-26 Adopted Budget to encumber the funds for the real property interests. The CCFPP is funded by the Safe, Clean Water & Natural Flood Protection Program (Fund 26).
CEQA:
Valley Water is the lead agency under the California Environmental Quality Act for the implementation of the Project. On March 11, 2025, the Board adopted a resolution (Resolution No. 2025-16) certifying the Final Environmental Impact Report (EIR), adopting the Mitigation Monitoring and Reporting Program and approved the CCFPP.
The CCFPP Final EIR describes the acquisition of real property interests for project construction and maintenance, and identifies environmental impacts associated with specific project construction and maintenance activities. Activities that will be occurring within the fee title, permanent and temporary construction easements are wholly consistent with the activities described in the Final EIR. Appropriate best management practices (BMPs), mitigation measures, and Santa Clara Valley Habitat Plan (VHP) conditions and avoidance and minimization measures (AMMs) will be implemented as required to reduce impacts from these activities to the extent feasible.
ATTACHMENTS:
Attachment A: Gov. Code § 84308
Attachment 1: Right of Way Agreement
Attachment 2: Quitclaim Deeds
Attachment 3: Water Management Easement Deeds
Attachment 4: Temporary Construction Easement Deeds
UNCLASSIFIED MANAGER: Manager
Bhavani Yerrapotu, 408-630-2735