REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution Approving a Purchase and Sale Agreement for an Easement on the Memorex Junction Transmission Line Extension Project
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Electric Utility, Silicon Valley Power (SVP), is proposing to construct approximately 0.6 miles of new single circuit 60 kilovolt (kV) overhead transmission line within the eastern area of the City of Santa Clara. One of the objectives of the Memorex Junction Transmission Line Extension Project (Project) is to provide service to the new Memorex Junction Substation to be constructed as a part of the 1200 Memorex Development and potential other datacenter or industrial developments within the vicinity.
The new 60 kV transmission line would be constructed along or crossing the following city streets: Lafayette Street, Shulman Avenue, Memorex Drive, Ronald Street and Di Giulio Avenue.
The City Council has previously taken several actions on the Project:
• April 14, 2021: Approved a Funding Agreement with 1220 Santa Clara PropCo, LLC, relating to City predesign engineering activities for the Memorex Junction Substation Project and related budget amendment.
• November 9, 2021: Action on the adoption and certification of an Environmental Impact Report; adoption of a Mitigation Monitoring or Reporting Program; and Architectural approval of a data center project located at 1200-1310 Memorex Drive.
• March 22, 2022: Delegated authority to the Office of the City Manager to negotiate and execute the substation agreement for Silicon Valley Power with 1220 Santa Clara Propco, LLC for Memorex Junction Substation.
• July 12, 2022: Council took three actions:
o Adopted a Resolution approving the purchases of overhead electric easements at 2380 Lafayette Street [224-63-020], 1045 Shulman Avenue [224-63-006], and 2206 Lafayette Street [224-67-042]; and
o Adopted a Resolution of Necessity to Acquire Certain Real Property Interests on 1040 Di Giulio Avenue, Santa Clara, California, from John P. Anderson; and
o Adopted a Resolution of Necessity to Acquire Certain Real Property Interests on 2265 Lafayette Street, Santa Clara, California, from SEW, LLC.
• September 12, 2022 - Adopted the Resolution approving the purchases of overhead electric easements at 2191 Ronald Street [224-63-023], 2122 Ronald Street [224-66-003], and 2265 Lafayette Street [224-03-080].
Other actions taken for this Project include a November 1, 2021, community meeting to present and take comments from the community on the transmission line route.
The Project requires the acquisition of eight (8) parcel easements to facilitate construction of new monopole steel structures and results in the acquisition of new easements for electrical facilities.
DISCUSSION
The City has negotiated the proposed purchase of an easement from the following property owner of a certain parcel necessary for the Project, upon the terms set forth below.
|
Address |
Grantors |
APN |
Purchase Price |
|
1040 Di Giulio Avenue |
Jon P. Anderson |
224-05-093 |
$52,000 |
ENVIRONMENTAL REVIEW
The potential impacts to the Project were analyzed in the Final Environmental Impact report for the Memorex Data Center Project, which was adopted by the City Council on November 9, 2021, (Resolution No. 21-9017).
FISCAL IMPACT
The total cost of the easement purchase is $52,000 and the funding is available in the Memorex Junction Substation Project, budgeted in the Electric Utility Capital Fund. This cost will be covered per the executed substation agreement with 1220 Santa Clara Propco, LLC. This action has no fiscal impact to the General Fund as the Project is fully funded by developer contributions.
COORDINATION
This report has been coordinated with the Finance Department 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> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Adopt the Resolution approving the purchase of an overhead electric easement at 1040 Di Giulio Avenue [224-05-093] and authorize the City Manager to execute the related Purchase and Sale Agreement and accept associated easement deed; and
2. Authorize the easement deed to be recorded in the Office of the County Clerk-Recorder of the County of Santa Clara.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Resolution
2. Agreement for Purchase and Sale - 1040 Di Giulio Avenue [224-05-093]