REPORT TO COUNCIL
SUBJECT
Title
Action on Authorizing the City Manager to Execute Purchase and Sale Agreements for Easement Acquisitions for the 115kV Transmission Line for Silicon Valley Power
Report
BACKGROUND
On March 19, 2024, the City Council received an informational Report to Council (RTC 24-1614) regarding the new 115 kilovolt (kV) transmission line from Northern Receiving Station (NRS) to Kifer Receiving Station (KRS). This informational report identified three possible routes that Silicon Valley Power (SVP) evaluated.
On November 12, 2024, the City Council approved Route A for a 115kV transmission line from NRS to KRS and adopted a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP) (RTC 24-1040). Route A begins at NRS exiting southeast toward Lafayette Street and continues southeast within the median of Lafayette Street to Agnew Road, where it transitions to the east side of Lafayette Street until Montague Expressway. From there, Route A shifts and enters Bassett Street proceeding southeast down the west side of Bassett Street to Bayshore Freeway, where the route crosses Bayshore Freeway and continues south along Duane Avenue interconnecting to KRS from the north side.
For the section south of Agnew Road to KRS, the 115kV project requires easements from 20 properties (Attachment 1).
DISCUSSION
The easement acquisition process will require the City to enter into Purchase and Sale Agreements (PSA) with the property owners along this route. On September 10, 2024, in closed session, the City Council authorized the City Manager to negotiate easements for the 115kV transmission line. Negotiations with the property owners are ongoing and staff is requesting authority to enter into PSAs with the property owners within the purchase price authority which the City Council authorized in closed session. Any PSA’s exceeding the approved City Council authority will be brought back for additional City Council consideration.
ENVIRONMENTAL REVIEW
The MND and MMRP were prepared for the 115kV Project in conformance with the California Environmental Quality Act. These documents and Notice of Availability were posted on the City’s website at <http://www.santaclaraca.gov/ceqa> and circulated for 30-days review from July 31, 2024, to August 30, 2024.
The MND examined environmental impacts associated with the Project. The MND identified potentially significant impacts to air quality, biological, cultural resources, geology and soils, hazards and hazardous materials, hydrology and water, noise, and traffic/transportation. However, the MND and MMRP incorporates mitigation measures to reduce the potentially significant impacts to less-than-significant.
The MND and MMRP were approved by the City Council on November 12, 2024. No additional environmental review is required by the proposed action.
FISCAL IMPACT
There will be a fiscal impact that will vary on the final price of easements. The anticipated easements costs are currently budgeted within the Electric Utility Capital Fund in the NRS-KRS 115kV Line Project.
COORDINATION
This report has been coordinated with the Finance Department, City Manager’s Office, and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to enter into Purchase and Sale Agreements for easements in connection with the 115kV Transmission Line Project, which aggregate acquisition costs shall not exceed the existing allocation of funds for such purpose, subject to review and approval by the City Attorney; and
2. Authorize the City Manager or designee to (a) take any and all actions as are necessary or advisable to implement and administer the Purchase and Sale Agreements, including, without limitation, acceptance of any associated deeds on behalf of the City of Santa Clara; and (b) approve and execute future amendments to the Purchase and Sale Agreements, subject to the review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. List of Easements