TO: HONORABLE MAYOR FROM: Nanci Klein
AND CITY COUNCIL Matt Cano
Robert Sapien Jr.
Kerrie Romanow
SUBJECT: SEE BELOW DATE: November 21, 2022
Approved Date
12/2/22
COUNCIL DISTRICT: 7
SUBJECT: ACQUISITION OF PROPERTY AT TUERS ROAD AND CAPITOL
EXPRESSWAY
RECOMMENDATION
Adopt a resolution authorizing the City Manager to negotiate and execute a purchase and sale agreement, and all other documents necessary, to effectuate the property transfer to the City, with the County of Santa Clara for the purchase by the City of 0.85 acres of land located at the southwest corner of Tuers Road and Capitol Expressway, as described and depicted in Attachment A, for a price of $645,000.
OUTCOME
Approval of the resolution authorizes the City to negotiate and execute a purchase and sale agreement with the County of Santa Clara (County) to acquire the property as described and depicted in Attachment A (Property) located at the southwest corner of Tuers Road and Capitol Expressway.
Project planning for a potential new Fire Station 36 and continued use by the San José Municipal Water System Headquarters (Municipal Water), including planning for any potential redevelopment of the Municipal Water facility, would commence upon the City’s ownership of the Property.
BACKGROUND
On November 6, 2018, the City of San José voters passed Measure T, the Disaster Preparedness, Public Safety and Infrastructure Bond, which authorized the City to issue up to $650 million in general COUNCIL AGENDA: 12/13/22
FILE: 22-1851
ITEM: 2.27
HONORABLE MAYOR AND CITY COUNCIL
November 21, 2022
Subject: Acquisition of Property at Tuers Road and Capitol Expressway
obligation bonds to fund public safety, emergency and disaster responses, infrastructure, and roads. On November 27, 2018, City Council unanimously approved a report titled General Obligation Bond (Measure T Public Safety and Infrastructure Bond) which included Mayor Sam Liccardo’s recommendation to expedite the construction of Fire Station 37, rebuild/relocate Fire Stations 8 and 23, and build at least two new fire stations, including Fire Station 36.
Emergency response to the Ramblewood/Sylvandale areas near Capitol Expressway and McLaughlin Avenue has been challenged by distance and traffic which is further limited by the 101 Freeway corridor. The four fire stations surrounding this area (Stations 16, 18, 24, and 26) accounted for 19.6% of the more than 7,500 responses Citywide in 2018, which exceeded the four-minute travel time goal.
The Fire Department identified the new Fire Station 36 as the third most important addition to address the coverage issue noted by this delay in travel time.
After an extensive property search, staff identified a portion of the City-owned property located at the northwest corner of Tuers Road and East Capitol Expressway, Assessor’s Parcel Number 499-35-001, as a suitable and potential site for the new Fire Station 36. The City-owned property is unused land to the south of the Los Lagos Golf Course. The Coyote Creek Trail borders the potential Fire Station site to the west. However, the City site alone is not sufficient to construct the new Fire Station 36. The adjacent County frontage is necessary to acquire, to provide a sufficient land area for Fire Station 36 and access to Tuers Road for the Fire Station.
Adjacent to the site identified as suitable for the new Fire Station 36 is the Municipal Water Headquarters, located at 3025 Tuers Road. A gate and paved lot area used by Municipal Water has encroached into the County’s right-of-way. The Municipal Water Headquarters is currently being considered for redevelopment. Acquisition of the frontage will allow for the continued use of the facility, and allow for planning for the redevelopment to include the extent of the facility’s current operational area.
The purchase of the County’s Property will facilitate both the construction of Fire Station 36 and the continued use/potential redevelopment of the Municipal Water Headquarters. Attachment B is an aerial map of the Property to be acquired.
ANALYSIS
The subject Property is 37,080square feet in size, or approximately 0.85 acres, located at the northwest corner of Tuers Road and East Capitol Expressway. The Property is part of the County’s Tuers Road right-of-way frontage area and has not been assigned an assessor's parcel number. The current use of the Property is as vacant roadway frontage with landscaping and a gated, paved lot used by Municipal Water, as shown in Attachment B.
The site has an irregular shape and runs along the western frontage of Tuers Road extending to the northwest of the intersection of Tuers Road and East Capitol Expressway. The intersection has no signal, and site access is limited to concrete curbs and gutters. The site has no identified agricultural
HONORABLE MAYOR AND CITY COUNCIL
November 21, 2022
Subject: Acquisition of Property at Tuers Road and Capitol Expressway
history, and the Environmental Services Department identified no environmental concerns with the site after conducting a Phase I site assessment.
The Property has a General Plan designation of Open Space, Parklands and Habitat, and is in the R-1-8 Single-Family Residence zoning district.
The County commissioned an appraisal of the Property and has agreed to sell it for the value of its appraisal, or $645,000. Should the City acquire the Property, 19,295 square feet (0.44 acres) would continue to be used by Municipal Water, including in any potential redevelopment of the Municipal Water Headquarters; 2,000 square feet (0.05 acres) adjacent to the Municipal Water fence line and currently within the golf course driving range would be for a future potential water utility use; and 15,785 square feet (0.36 acres) would be incorporated into the potential Fire Station 36 development.
Measure T and Municipal Water would each fund their portion of the acquisition price. The planning, design, and construction of any new Fire Station or any new Municipal Water facilities is subject to CEQA review.
The County requires the Board of Supervisors’ approval before executing a purchase and sale agreement. The County will seek this authorization after the City Council approves the City’s acquisition.
Summary of Key Terms
• Purchase price of $645,000 reflects a $17.39 per square foot value with o $274,577 to be paid by Measure T, and
o $370,423 to be paid by Municipal Water
• As-is sale
• City is responsible for escrow closing costs, to be paid proportionally by Measure T and Municipal Water.
• Transaction to close within 90 days of execution of a purchase and sale agreement. The County’s sale to City is contingent on approval by its Board of Supervisors.
CONCLUSION
Approval of the recommendation will authorize the City Manager to negotiate and execute a purchase and sale agreement with the County of Santa Clara to acquire 0.85 acres of right-of-way frontage land located at the southwest corner of Tuers Road and Capitol Expressway. This purchase will support the potential construction of Fire Station 36 and Municipal Water’s ongoing use and the potential redevelopment of the Municipal Water Headquarters.
EVALUATION AND FOLLOW-UP
The acquisition of the subject Property is anticipated to be completed within 90 days upon
HONORABLE MAYOR AND CITY COUNCIL
November 21, 2022
Subject: Acquisition of Property at Tuers Road and Capitol Expressway
execution of a purchase and sale agreement. The Public Works Department will be responsible for the delivery of any new Fire Station and Municipal Water Headquarters redevelopment.
CLIMATE SMART SAN JOSE
The recommendation in this memorandum aligns with one or more Climate Smart San José energy, water, or mobility goals.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council agenda website for the December 13, 2022 City Council meeting.
COORDINATION
This memorandum has been coordinated with Planning, Building, and Code Enforcement, the City Attorney’s Office, and the City Manager’s Budget Office.
COMMISSION RECOMMENDATION/INPUT
No commission recommendation or input is associated with this action.
FISCAL/POLICY ALIGNMENT
The proposed acquisition aligns with the City’s General Plan and the Measure T Bond program.
COST SUMMARY/IMPLICATIONS
Costs to facilitate the recommended land acquisition of $645,000 will be partially funded by the Measure T, New Fire Station 36 appropriation ($274,577) in the Public Safety and Infrastructure Bond Fund which has a project budget of $16.6 million. Fire Station 36 is expected to open in 2025-2026.
Furniture, fixtures, and equipment for the newly constructed Fire Station 36, which are not eligible to be paid for with general obligation bond proceeds, and ongoing operations and maintenance (O&M) costs will be provided by the City’s General Fund. The 2023-2027 Five-Year General Fund Forecast, released in February 2022, included $5.0 million in 2025-2026 for O&M for Fire Station 36. Once the scope of this project is refined, the anticipated project cost and corresponding estimates for O&M will be updated accordingly.
HONORABLE MAYOR AND CITY COUNCIL
November 21, 2022
Subject: Acquisition of Property at Tuers Road and Capitol Expressway
The Water Resources Administration and Operations Facility appropriation in the Water Utility Capital Fund has a project budget of $8.5 million and will be used to fund the remaining costs of $370,423 for the land acquisition. The preliminary cost estimate for the complete redevelopment of the Municipal Water Headquarters facility is $40 million, with the costs expected to be refined once a more detailed project scope and design are finalized. It is anticipated that either commercial paper or other financing mechanisms will be utilized to fund the remaining project costs. The O&M costs for this facility will be determined once the project scope and design are finalized.
BUDGET REFERENCE
The table below identifies the fund and appropriation proposed to fund the purchase of Property recommended as part of this memorandum.
Fund
#
APPN
# Appn. Name
Current Total
Appn
Amount for
Purchase
2022-2023
Adopted
Capital Budget
Page
Last
Budget
Action
(Date, Ord.
No.)
498 415B Measure T - New
Fire Station 36
$2,183,000 $274,577 781 10/18/2022,
Ord No.
30833
500 421C Water Resources
Administration and
Operations Facility
$6,305,000 $370,423 309 10/18/2022,
Ord No.
30833
CEQA
Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment.
/s/ /s/
NANCI KLEIN MATT CANO Director of Economic Development Director of Public Works and Cultural Affairs
/s/ /s/
ROBERT SAPIEN JR KERRIE ROMANOW Fire Chief, Fire Department Director of Environmental Services
HONORABLE MAYOR AND CITY COUNCIL
November 21, 2022
Subject: Acquisition of Property at Tuers Road and Capitol Expressway
For questions, please contact Kevin Ice, Senior Manager of Real Estate Services, at (408) 535-8197; Robert Sapien Jr., Fire Chief at (408) 794-6952; Katherine Brown, Deputy Director of Public Works, at (408) 795-1679, or Jeffrey Provenzano, Deputy Director of Water Resources, Environmental Services, at (408)-277-3288.
Attachments:
• A - Legal Description and Plat Map of Property
• B - Aerial Map of Property
ATTACHMENT A
Legal Description and Plat Map of Property
ATTACHMENT B
Aerial Map of Property