AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Real Estate Services Division
AGENDA NUMBER: 7
MEETING DATE: May 12, 2026
Calendar: Regular Calendar
Real Estate Director: Rosanna Russell
Authorize No-Fee Revocable License to the City of Sunnyvale
Summary of Proposed
Commission Action:
Approve the terms and conditions and authorize the
General Manager to execute a no- fee, month- to-month
revocable license to the City of Sunnyvale to use
approximately 17 acres of SFPUC land, consisting of portions of SFPUC Parcel Nos. 144, 145A, 146, 148, 152, 154B,
156A, 159, and 165, and the entirety of SFPUC Parcel Nos. 145, 149, 150, 151, 153, 154A, 155, 161, 162, and 164 in Sunnyvale, California for (i) operating, maintaining, managing and repairing an existing public recreational pedestrian and bicycle path; (ii) maintaining existing landscaping in
accordance with the SFPUC Vegetation Management Policy; (iii) maintaining and repairing a portion of an existing pedestrian and bicycle ramp; (iv) maintaining certain
permitted encroachments consisting of light poles, picnic tables, barbecues, and shade structures; (v) maintaining and repairing existing public street crossings; (vi) installing new educational signage regarding the SFPUC water system; (vii) operating, maintaining, and repairing the existing ir rigation systems; and (viii) maintaining the existing Manzano Way park area improvements consisting of picnic tables, parkour structures, and a horseshoe pit.
Background: The San Francisco Public Utilities Commission ( SFPUC) Real Estate Services Division conducts a program of
negotiating the replacement of outdated and/or expired
SFPUC revocable permits with new revocable licenses on the City’s current license form. The current license form contains provisions mandated by federal and state law, City and County of San Francisco ordinances and policies, and other terms and conditions not found in older permits. These new and updated legal requirements provide greater protection to the SFPUC.
If approved, the proposed license would replace some of the oldest and least comprehensive revocable permits in
SFPUC’s real estate portfolio. The proposed license would also include a formerly unlicensed 8,986 square foot parcel as a new portion of the License Area.
Agenda Title: Authorize No-Fee Revocable License to the City of Sunnyvale Commission Meeting Date: May 12, 2026
Existing Permits and Proposed License
The City and County of San Francisco (City), under the
jurisdiction of the SFPUC, operates Bay Division Pipeline Nos. 3 and 4, as well as other appurtenant facilities, on land under the SFPUC’s jurisdiction in Sunnyvale. Over time, the SFPUC issued several revocable permits to the City of
Sunnyvale (Sunnyvale) for the use of approximately 17 acres of SFPUC land, namely SFPUC Parcel Nos. 144, 145, 145A, 146, 148, 149, 150, 151, 152, 153, 154A, 154B, 155, 156A, 159, 161, 162, 164, and 165 in Sunnyvale, California
(together, License Area):
• In 1957, the SFPUC issued a no- fee revocable permit
to Sunnyvale for street crossings, utilities, and one
storm drain on the License Area (“1957 Permit”).
• In 1958, the SFPUC issued a no- fee revocable permit
to Sunnyvale for street widening on Lawrence Station
Road and street extensions on Blazingwood Drive,
Fairwood Avenue, and Manzano Way on the License
Area (“1958 Permit”).
• In 1959, the SFPUC issued a no- fee revocable permit
to Sunnyvale for a street extension on Silverlake Drive on the License Area (“1959 Permit”).
• In 1973, the SFPUC issued a no- fee revocable land
use permit to Sunnyvale for a public park on the
License Area (“1973 Permit”).
• In May 1976, the SFPUC issued a no- fee revocable
permit to Sunnyvale for certain public recreational
uses on the License Area (“ May 1976 Permit”).
• In June 1976, the SFPUC issued a no- fee revocable
permit for a pedestrian and bicycle path for public
recreational purposes with landscaping on the License
Area (“June 1976 Permit”).
• In 1985, the SFPUC issued a no- fee revocable permit
for a public park on the License Area (“1985 Permit”).
• In 1993, the SFPUC issued a no- fee revocable land
use permit for landscaping and a bicycle path for
public recreational use on the License Area (“1993
Permit”).
• In 1994, the SFPUC issued a no- fee revocable permit
for a bicycle path for public recreational use and
landscaping on the License Area (“1994 Permit”).
• In 1996, the SFPUC issued a no- fee revocable permit
for landscaping and/or community garden purposes on
the License Area (“1996 Permit”).
Agenda Title: Authorize No-Fee Revocable License to the City of Sunnyvale Commission Meeting Date: May 12, 2026
The 1957 Permit, the 1958 Permit, the 1959 Permit, the 1973 Permit, the May 1976 Permit, the June 1976 Permit, the 1985 Permit, the 1993 Permit, the 1994 Permit, and the 1996
Permit are together referred to as the “Existing Permits”.
The SFPUC desires to enter into one proposed license to revoke, supersede and replace the Existing Permits with the updated terms and conditions of City’s current form of
license, as set forth in the proposed license.
Consideration
In accordance with Commission Resolution No. 24- 0185, the SFPUC may issue real estate agreements for third- party use of SFPUC property at below fair market value with
Commission approval.
The SFPUC desires to enter into the proposed license to revoke, supersede, and replace the Existing Permits with the updated terms and conditions of City’s current form of
license, as set forth in the proposed license; and include a formerly unlicensed 8,986 square foot parcel as a new
portion of the License Area.
The SFPUC seeks to issue a no- fee License to Sunnyvale because Sunnyvale would provide the following non-
monetary consideration:
• Sunnyvale would fully maintain and repair the 17-acre License Area. The License terms would require
Sunnyvale to perform vegetative maintenance,
including costly tree removal, and regularly remove
trash, debris, and graffiti, not only for the recreational use portions of the License Area, but also for an
additional 8,986-square foot “Maintenance Parcel”
that SFPUC would otherwise maintain but for this
License to Sunnyvale. Sunnyvale’s use of the License
Area would thus benefit the SFPUC by alleviating the
SFPUC’s maintenance obligations for the License
Area; and
• Sunnyvale would reimburse the SFPUC for the
property taxes assessed by Santa Clara County on
the License Area.
The proposed license would also benefit SFPUC by
Sunnyvale occupying the License Area with uses that would not interfere with, endanger, or damage the SFPUC’s current or future operations, security or facilities.
Finally, the proposed license w ould benefit SFPUC’s primary utility purposes. The License would require Sunnyvale to Agenda Title: Authorize No-Fee Revocable License to the City of Sunnyvale Commission Meeting Date: May 12, 2026
Description of License:
Parties to
Agreement:
The City and County of San Francisco, through its Public Utilities Commission, and the City of Sunnyvale
Purpose: For the City of Sunnyvale to use parcels for: (1) operating, maintaining, managing and repairing an existing pedestrian and bicycle path for public recreational use; (2) maintaining existing landscaping in accordance with the SFPUC Vegetation
Management Policy; (3) maintaining and repairing a portion of an existing pedestrian and bicycle ramp; (4) maintaining certain permitted encroachments; (5) maintaining and repairing existing public street crossings; (6) installing new educational signage regarding the SFPUC water system; (7) operating, maintaining, and repairing the existing irrigation systems; and (8) maintaining the existing Manzano Way Park Area improvements.
Location: Sunnyvale, California
Commencement
Date:
Upon this Commission’s approval of the license.
Budget & Costs: Sunnyvale will pay all costs associated with its use of the License Area, including property and possessory interest taxes.
Schedule: N/A
Environmental
Review:
This action does not constitute a project under the California Environmental Quality Act (CEQA) Guidelines Section 15378(a) because it will not result in physical changes in the environment.
The Licensee would not make any improvements to, or alteration of, the License Area without the SFPUC’s prior written consent, and staff will not authorize improvements until any necessary environmental review has been completed as required by the CEQA.
Attachments License
install and maintain educational signage along the pathway to educate users about the Hetch Hetchy Regional Water
System and the important role the SFPUC Right -of-Way
plays in the SFPUC’s transportation of water.
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO. __________________
WHEREAS, The City and County of San Francisco (City) owns certain real property presently under the jurisdiction of the San Francisco Public Utilities Commission (SFPUC) designated as portions of SFPUC Parcel Nos. 144, 145A, 146, 148, 152, 154B, 156A, 159, and 165, and the entirety of SFPUC Parcel Nos. 145, 149, 150, 151, 153, 154A, 155, 161, 162, and 164 in Sunnyvale, California (License Area); and
WHEREAS, The SFPUC currently operates and maintains two subsurface water transmission pipelines and surface appurtenances under and within the License Area; and
WHEREAS, In 1957, the SFPUC issued a no- fee revocable permit to the City of Sunnyvale (Sunnyvale) for street crossings, utilities, and one storm drain on the License Area (1957 Permit). In 1958, the SFPUC issued a no-fee revocable permit to Sunnyvale for street widening on Lawrence Station Road and street extensions on Blazingwood Drive, Fairwood Avenue, and Manzano Way on the License Area (1958 Permit). In 1959, the SFPUC issued a no- fee revocable permit to Sunnyvale for a street extension on Silverlake Drive on the License Area (1959 Permit). In 1973, the SFPUC issued a no-fee revocable land use permit to Sunnyvale for a public park on the License Area (1973 Permit). In May 1976, the SFPUC issued a no- fee revocable permit to Sunnyvale for certain public recreational uses on the License Area (May 1976 Permit). In June 1976, the SFPUC issued a no-fee revocable permit for a pedestrian and bicycle path for public recreational purposes with landscaping on the License Area (June 1976 Permit).
In 1985, the SFPUC issued a no- fee revocable permit for a public park on the License Area (1985 Permit). In 1993, the SFPUC issued a no- fee revocable land use permit for landscaping and a bicycle path for public recreational use on the License Area (1993 Permit). In 1994, the SFPUC issued a no- fee revocable permit for a bicycle path for public recreational use and landscaping on the License Area (1994 Permit). In 1996, the SFPUC issued a no- fee revocable permit for landscaping and/or community garden purposes on the License Area (1996 Permit). Collectively, the 1957 Permit, the 1958 Permit, the 1959 Permit, the 1973 Permit, the May 1976 Permit, the June 1976 Permit, the 1985 Permit, the 1993 Permit, the 1994 Permit, and the 1996 Permit are together referred to as the “Existing Permits”; and
WHEREAS, Sunnyvale desires to continue to use and maintain the existing improvements allowed under the Existing Permits; and
WHEREAS, The SFPUC desires to enter into one new replacement license (License) to (i) include updated legal terms not stated in the Existing Permits, (ii) to allow Sunnyvale to use the License Area for the existing uses and for maintaining the existing improvements within the License Area, and (iii) include a formerly unlicensed
8,986 square foot parcel as a new portion of the License Area that would be maintained by Sunnyvale; and
WHEREAS, The SFPUC adopted the Matrix of Statutory Approval Authorities, Commission Delegations to General Manager, Commission Calendar Instructions, and Board of Supervisors Approval Requirements on August 27, 2024, which states the SFPUC may issue real estate agreements for third- party use of SFPUC property at below fair market value with Commission approval; and
WHEREAS, Sunnyvale would fully maintain and repair the 17- acre License Area at its sole cost, reimburse the SFPUC for taxes assessed by Santa Clara County on the License Area, and would not use the License A rea for any purposes that may interfere with, endanger, or damage the SFPUC’s current or future operations, security or facilities; and
WHEREAS, The Licensee would not make any improvements to, or alteration of, the License Area without the SFPUC’s prior written consent, and staff will not authorize improvements until any necessary environmental review has been completed as required by the CEQA; now, therefore, be it
RESOLVED, That this Commission hereby approves the terms and conditions of this License; and be it,
FURTHER RESOLVED, That this Commission hereby ratifies, approves, and authorizes all actions taken to date by any City official in connection with this License; and be it,
FURTHER RESOLVED, That this Commission authorizes the General Manager to enter into any amendments or modifications to this License, including, without limitation, the exhibits, that the General Manager determines, in consultation with the City Attorney, are in the best interest of the City; do not materially increase the obligations or liabilities of the City; are necessary or advisable to effectuate the purposes and intent of the License or this resolution; and are in compliance with all applicable laws, including the San Francisco Charter.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of May 12, 2026.
_________________________________
Director of Commission Affairs
San Francisco Public Utilities Commission
WHEREAS, This action does not constitute a project under the California Environmental Quality Act (CEQA) Guidelines Section 15378(a) because it will not result in physical changes in the environment; and