REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Action on a Resolution of Necessity to Acquire Certain Real Property Interests on 3800 Bassett Street, Santa Clara, California, from the Owner of Record for Purposes of Implementing the Silicon Valley Power 115kV Transmission Line Project
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
To support the growing electric demand and service needs within the City of Santa Clara (City), Silicon Valley Power (SVP) has identified the need for the construction of a 115-kilovolt (kV) transmission line connecting the Northern Receiving Station (NRS) and the Kifer Receiving Station (KRS) (the “Project”). This new transmission line will enable SVP to transfer additional power, balance electric loads across the City’s three receiving stations, and enhance overall system reliability.
After evaluating three potential transmission routes, the City Council approved the preferred route on November 12, 2024 (RTC #24-1040), an overhead alignment along Lafayette Street, Bassett Street, and Duane Avenue. The route was selected based on its overall feasibility, least impact to residents and businesses, permitting constraints, ability to meet the schedule, flexibility in power delivery, ease of maintaining the system, and reduced construction disruption to the public as compared to the other alternatives.
The City Council has previously taken several actions on the Project:
• March 19, 2024 - RTC #24-1614 - Informational Report
• November 12, 2024 - RTC #24-1040 - Action on a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP) and Route Approval for the Project
o Approved the Adoption of a Mitigated Negative Declaration and the Mitigation Monitoring and Reporting Program
o Approval of Route A, Option 1, for an entirely overhead alignment of the new 115kV transmission line
• February 25, 2025 - RTC #25-212 - Authority to Execute PSA for Easement Acquisitions
Other actions taken for this Project include two virtual community meetings held on April 25, 2024, and May 23, 2024, as well as an in-person public engagement meeting held on August 22, 2024, to present and take comments from the community on the transmission line route.
The Project requires the acquisition of twenty (20) easements for SVP’s electrical facilities, including an easement located on 3800 Bassett Street, Santa Clara, California (Easement Area), comprised of approximately 6,200 square feet of property as more fully described in the Resolution of Necessity, attached to this Report to Council.
DISCUSSION
On August 8, 2024, the City conducted an appraisal of the Easement Area and, subsequently, sent an offer for the Easement Area to the property owners on November 13, 2024. The property owner is concerned about the operation of their business and the need for crane access despite a 60kV transmission line already existing along their property frontage. On February 14, 2025, the property owner provided a letter declining the purchase of the easement. The right-of-way agents continue to reach out to the property owner; however, the property owner has not accepted the City’s offer.
City acquisition of the Easement Area is necessary for the Project and City’s reasonable efforts to acquire it through negotiations have not been successful. Therefore, it has become necessary for the City to acquire the Easement Area through the eminent domain process. At this point, in order to proceed with acquisition of the Easement Area under the eminent domain process, the law requires the City Council to hold a public hearing, consider all testimony presented and, in the Council’s discretion, adopt a Resolution of Necessity making certain findings. These findings, along with the factual basis necessary to make the findings, are set forth below:
• The public interest and necessity require the Project.
The completion of the Project is one of the key projects that are needed to increase SVP’s system capacity to approximately 1300-megawatt (MW). Until the Project is completed, SVP’s system capacity will be limited to 819MW. This is insufficient to meet projected electric loads within the City. This Project will enable SVP to transfer additional power, balance electric loads across the City’s three receiving stations, and enhance overall system reliability.
• The Project is planned or located in a manner that will be the most compatible with the greatest public good and the least private injury.
The SVP evaluation team for the Project consisted of internal SVP staff, design and environmental engineering consultants, and program management staff. The SVP evaluation team conducted a comprehensive analysis and evaluation, employing various methodologies such as potholing and Ground Penetrating Radar (GPR) surveys. This in-depth assessment took into consideration SVP’s load growth and system planning projections, schedule, cost estimation, required easements and permits, and engineering judgment. The goal was to determine feasible route alignments, identify a preferred route, and explore potential overhead and underground options within the preferred route. The findings favored the preferred route for the Project, which is the all-overhead option set forth in Attachment 2 of RTC #24-1614. The Project alignment chosen will be achieved at less cost, be delivered more quickly, and will impact fewer residents and businesses than the other considered alignments.
• The Easement Area sought to be acquired is necessary for the Project.
The Easement Area is necessary to achieve the technical needs of the Project, as it is within the alignment of the selected route. The majority of the route will be built within the public right-of-way; however, the Easement Area adjacent to the right-of-way is required for maintenance purposes and to ensure the proper electrical conductor clearances are met. The Easement Area also needs to take into account the necessary clearances from the blowout or sway of the electrical conductors.
• The offer required by Section 7267.2 of the Government Code has been made to the owner of record for the full amount established as the fair market value of the Easement Area.
On November 13, 2024, the City made an offer to the Owner of Record to acquire the Easement Area for an electric overhead easement upon the value determined by an independent state licensed and certified appraiser in accordance with the above referenced Government Code section.
The Resolution of Necessity requires approval by a two-thirds vote of the Council. If the City Council adopts the recommended Resolution of Necessity, the City would deposit the necessary funds for the Easement’s probable compensation with the State Condemnation Deposit Fund and file an eminent domain complaint with the Santa Clara County Superior Court to seek possession of the property.
As always, the parties can continue to negotiate in an effort to come to a mutual agreement on compensation for the easement, including any compensation due for furniture, fixtures, and equipment, and any loss of business goodwill.
ENVIRONMENTAL REVIEW
The Mitigated Negative Declaration (MND) and Mitigation and Reporting Program (MMRP) were prepared for the Project in conformance with CEQA. These documents and Notice of Availability were posted on the City’s website at http://www.santaclaraca.gov/ceqa and circulated for 30-day 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 & MMRP were adopted by City Council on November 12, 2024, by Resolution No. 24-9386.
FISCAL IMPACT
There is no fiscal impact to the City for adopting the action on a resolution of necessity to acquire certain real property interests on 3800 Bassett Street, Santa Clara, California, from Reed and Graham, Inc., associated with this item other than administrative staff time and expense. The anticipated easement costs for the Project are currently budgeted within the Electric Utility Capital Fund.
COORDINATION
This report has been coordinated with the Finance Department and the 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 or at the public information desk at any City of Santa Clara public library.
Additionally, on June 5, 2025, a letter (attached) was mailed to the property owner, as verified on the Title Report. The letter included notification of the public hearing and consideration of a Resolution of Necessity. A Notice of Intention to Adopt a Resolution of Necessity stating that the hearing before City Council is scheduled for June 24, 2025, and Request to be Heard documentation were also included as attachments to the letter.
ALTERNATIVES
1. Adopt a Resolution of Necessity to Acquire Certain Real Property Interests.
2. Do not adopt a Resolution of Necessity.
RECOMMENDATION
Recommendation
Adopt a Resolution of Necessity Making the Required Findings to Acquire Certain Real Property Interests on 3800 Bassett Street, Santa Clara, California, from the Owner of Record for Purposes of Implementing the Silicon Valley Power 115kV Transmission Line Project (Five affirmative votes required [California Code of Civil Procedure section 1245.245]).
Staff
Reviewed by: Nico Procos, Acting Director of Silicon Valley Power
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. 3800 Bassett Street, November 13, 2024, Offer Letter
2. Resolution of Necessity
3. 3800 Bassett St, Intent of Resolution of Necessity and Notice of Intention