TO: HONORABLE MAYOR FROM: John Ristow
AND CITY COUNCIL
SUBJECT: SEE BELOW DATE: March 21, 2022
Approved Date
3/30/2022
COUNCIL DISTRICT: 4
SUBJECT: CALIFORNIA STATE LANDS COMMISSION LEASE AGREEMENT
FOR CITY OWNED AND MAINTAINED INFRASTRUCTURE ON STATE
OWNED LAND
RECOMMENDATION
Adopt a resolution authorizing the City Manager to execute the California State Lands Commission Lease Agreement for a 25-year term to allow the continued use of City of San José owned and maintained infrastructure on state owned land.
OUTCOME
Approval of this 25-year Lease Agreement with the State Lands Commission will allow the continued use of City of San José (City) owned and maintained infrastructure, which includes the Gold Street bridge, on State of California (State) owned land. This City owned and maintained bridge infrastructure provides public vehicular and pedestrian transportation for the adjacent commercial and residential neighborhoods.
BACKGROUND
The State Lands Commission and the Santa Clara Valley Water District (SCVWD) entered a previous lease agreement on September 22, 1970, which encompassed property on State owned land, for a term of 49 years ending on February 28, 2019. On July 1, 1975, the SCVWD transferred the associated property in a grant deed to the City , which in tandem effectively transferred all rights and provisions of the original lease agreement. As the previous agreement term has ended with the State Lands Commission, a new agreement between the City and the State Lands Commission is needed to continue the use of City owned infrastructure on State owned land.
COUNCIL AGENDA: 4/12/2022
FILE: 22-481
ITEM: 2.13
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: State Lands Commission Lease Agreement
ANALYSIS
As part of the transferred property from the SCVWD grant deed, the City owns and maintains public use infrastructure containing the Gold Street bridge. The Gold Street bridge crossing is located within a residential and commercial area of Santa Clara County. The bridge crosses the Guadalupe River and provides both a pedestrian and vehicular crossing and is located approximately 0.4 miles north of State Route 237.
The bridge also provides beneficial use for the State and its constituents as the Gold Street bridge provides an alternative route to access State Route 237 and provides a connection to central Santa Clara County’s roadways. If the associated bridge and property were inaccessible, the sole accessible route to access State Route 237 would be detoured to North First Street which is approximately 1.5 miles east of the structure and approximately 3.5 miles southwest to access Santa Clara County’s roads. Additionally, in the event of development projects, detour routes, and/or emergency responses, the Gold Street bridge crossing would provide an alternative route for detours and road closures and faster emergency response times for the State’s constituents.
With the approval of the new 25-year agreement, the City owned infrastructure would be exempt from land-use rent collection by the State Lands Commission. It should be noted, the Lease Agreement contains a standard State provision that broadly defines damages to include attorneys’, investigators’, and experts’ fees and requires that the City indemnify and reimburse the State for any damages arising from the City’s lease.
CONCLUSION
Based on staff and the City Attorney’s Office evaluation of the Lease Agreement provisions and terms, the agreement is considered acceptable and staff recommends approving the 25-year term Lease Agreement.
EVALUATION AND FOLLOW-UP
No additional follow up action with City Council is expected at this time.
CLIMATE SMART SAN JOSE
The recommendation in this memorandum has no effect on Climate Smart San José energy, water, or mobility goals.
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: State Lands Commission Lease Agreement
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the April 12, 2022 Council Meeting.
COORDINATION
This Lease Agreement memorandum has been coordinated with the City Attorney’s Office, Risk Management, and the City Manager’s Budget Office.
COMMISSION RECOMMENDATION/INPUT
No commission recommendation or input is associated with this action.
FISCAL/POLICY ALIGNMENT
This program aligns with the City’s General Plan and supports the Transportation and Aviation Services City Service Area goal to Preserve and Improve Transportation Assets and Facilities.
COST SUMMARY/IMPLICATIONS
With the approval of the State Lease Agreement, cost implications to provide for continued use of the Gold Street bridge will consist of long-term general maintenance. The magnitude of long- term general maintenance costs will vary due to unknown and unforeseen conditions that may arise within the 25-year lease agreement period. Therefore, a value of maintenance cost cannot be easily determined at this time. General maintenance may consist of work, such as but not limited to, deck treatment, concrete repairs, bridge railing repairs, and scour countermeasure projects. In the event the infrastructure requires structure rehabilitation and/or replacement, a potential major project could also arise within the time period.
Bi-annual bridge inspection reports provided by the Caltrans Structures Maintenance and Investigations Department provide bridge condition assessments and maintenance recommendations. The Gold Street bridge is currently rated under the poor condition. However, this assessment was provided prior to recently performed maintenance work in 2021, funded by Measure T, that included bridge deck treatment with methacrylate and concrete spalling repairs.
The bridge rating is anticipated to increase to the fair or good condition in the next Caltrans evaluation.
General maintenance costs are currently funded through the annual Department of Transportation Capital Improvement Budget Bridge Maintenance repair funding and 2018
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: State Lands Commission Lease Agreement
Measure T Bonds, and when applicable, federal grant funding may also be utilized for major rehabilitation and/or replacement bridge projects.
CEQA
Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment.
/s/
JOHN RISTOW
Director of Transportation
For questions, please contact Rick Scott, Deputy Director, (408) 794-1925.