REPORT TO THE CITY COUNCIL
FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager
Interim Director - Capital Projects Director
BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: ANTONIO M. BUELNA, PE, Assistant Director
Capital Projects Department, Capital Administration Division
NANCY BRUNO, Right of Way Manager
Capital Projects Department, Capital Administration Division
SUBJECT
Title
Approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee title interest of a 71.65-acre (3,121,074 square feet) parcel, identified as Assessor’s Parcel Number 505-021-01 owned by J.S.A. Farms, a California general partnership, for an amount of $3,224,250 for the Northwest Fresno Recharge Basin Project (County of Fresno).
Body
RECOMMENDATION
Staff recommends the City Council approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee title interest of a 71.65-acre (3,121,074 square feet) parcel located at 5245 North Chateau Fresno Avenue, Fresno, California, identified as APN 505-021-01 (Subject Property), owned by J.S.A. Farms, a California general partnership, for an amount of $3,224,250 for the Northwest Fresno Recharge Basin Project (Project), and authorize the City Manager or designee to sign all documents necessary to complete the subject acquisition.
EXECUTIVE SUMMARY
The acquisition of APN 505-021-01 will grant the City fee title ownership of the property located at 5245 North Chateau Fresno Avenue, Fresno, California. This acquisition is essential to the implementation of the Northwest Fresno Recharge Basin Project (Project). The Subject Property, currently owned by J.S.A. Farms, a California general partnership (Owner), will serve as a recharge basin to support local groundwater sustainability. The Project is necessary to offset groundwater pumping in areas not served by surface water treatment plants and aligns with the requirements set forth in the City’s Urban Water Management Plan and the Metropolitan Water Resources Management Plan, which call for restoring groundwater levels to a balanced and sustainable condition.
City staff searched for parcels that were large enough to accommodate the space necessary to create a new recharge basin and identified the Subject Property, listed for sale by Pearson Realty, Fresno, California, with an asking price of $3,224,250. Following a review and evaluation, City staff determined that the listing price represented fair market value and proceeded to offer the full amount. An Agreement for Purchase and Sale of Real Property and Escrow Instructions was executed on December 10, 2024, by James S. Anderson and Christine S. Holt, partners in J.S.A. Farms.
BACKGROUND
The City of Fresno manages its water supply through a combination of groundwater from the North Kings Subbasin, surface water from the Central Valley Project (CVP) via a contract with the U.S. Bureau of Reclamation (USBR), and Kings River water through a contract with Fresno Irrigation District (FID). Historically, the City relied solely on groundwater until 2004, when its first Surface Water Treatment Facility (SWTF) was commissioned. Since then, the City has expanded its surface water treatment capabilities, now producing approximately half of the potable water supply from three SWTFs.
To support groundwater sustainability, the City coordinates with FID and the Fresno Metropolitan Flood Control District (FMFCD) for recharge efforts. Surface water from the USBR and FID is diverted into recharge basins across the city through FID’s existing system of channels and pipelines to convey the raw water. FID also assists in delivering water to either FMFCD’s stormwater retention and recharge basins or the City’s own recharge basins, contributing to the replenishment of the groundwater basin. The City manages water resources by maximizing surface water use during wet and normal years while relying on groundwater during dry years. In years of low surface water availability, the City increases pumping of recharged groundwater to meet demand.
Although the City has made tremendous strides in diversifying its use of available water resources, the City can still benefit by continued expansion of intentional groundwater recharge. Expanding the City’s recharge capacity provides multiple long-term benefits. Strategically positioned recharge basins can enhance aquifer sustainability and provide opportunities to actively capture urban stormwater runoff. Intentional groundwater recharge is the most cost-effective and operationally sustainable method for replenishing the aquifer.
Continued and expanded recharge is a cost-effective means for the City to avoid otherwise costly operational challenges. Challenges may include the need to deepen existing wells and higher energy costs required to sustain minimum system pressures and ensure reliable water delivery across an expanding service population. Proactive investment in new recharge facilities is therefore essential to preserving the long-term viability of Fresno’s water supply system.
To address these challenges, the City has implemented strategies such as enhanced groundwater management, recycled water use, and conservation measures. Projections indicate that with adequate surface water recharge (60,000 to 70,000 acre-feet per year), the City can meet future water demands even during extended droughts. Continued investment in recharge infrastructure is vital to maintaining water supply reliability and ensuring long-term system viability.
City staff searched for parcels that were large enough to accommodate the space necessary to create a new recharge basin and identified the Subject Property, listed for sale by Pearson Realty, Fresno, California, with an asking price of $3,224,250. Following a review and evaluation, City staff determined that the listing price represented fair market value and proceeded to offer the full amount. An Agreement for Purchase and Sale of Real Property and Escrow Instructions was executed on December 10, 2024, by James S. Anderson and Christine S. Holt, partners in J.S.A. Farms.
The City Attorney’s Office has reviewed and approved the Purchase and Sale Agreement as to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378 the award of this contract does not qualify as a “project” for the purpose of CEQA.
LOCAL PREFERENCE
Local preference was not considered because this agreement does not include a bid for or award of a construction or services contract.
FISCAL IMPACT
There is no impact to the General Fund. The Project is located in unincorporated Fresno County. Funding for this Project is included in the Fiscal Year 2026 capital improvement budget within the Water Division’s Water Capacity Fee Fund 4000-4011.
Attachments:
Purchase and Sale Agreement
Vicinity Map
Location Map