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HomeMy WebLinkAbout14. Authorize lease of 0.75-acre portion of Kiewit property Page 1 of 4 Item 14. CENTRAL SAN BOARD OF DIRECTORS ' POSITION PAPER MEETING DATE: JUNE 7, 2018 SUBJECT: AUTHORIZE THE GENERAL MANAGER, OR HIS DESIGNEE, TO ENTER INTO A ONE-YEAR LEASE WITH LIEDSTRAND LANDSCAPE CONSTRUCTION, INC. ON A 0.75-ACRE PORTION OF THE KI EW IT PROPERTY(APN 159-140-051), W ITH AN OPTION TO EXTEND FOR UP TO FIVE ADDITIONAL YEARS SUBMITTED BY: INITIATING DEPARTMENT: RICK HERNANDEZ, SENIOR RIGHT OF WAY ENGINEERING AND TECHNICAL SERVICES - AGENT PDS - DEVELOPMENT SERVICES - RIGHT OF WAY REVIEWED BY: TOM GODSEY SENIOR ENGINEER DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES 46' Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE Board authorization is required for execution of lease agreements. BACKGROUND Recently, homeless encampments had to be removed on the Kiewit property along the Walnut Creek June 7, 2018 Regular Board Meeting Agenda Packet- Page 391 of 446 Page 2 of 4 Channel. The bill for cleanup of the area was approximately$3,600. Staff has looked to the concept of Crime Prevention through Environmental Design (CPTED)to discourage future trespasses onto the property; a tenant regularly occupying an area will provide built in surveillance. Liedstrand Landscape Construction, I nc. approached Central San staff about the possibility of leasing a portion of the Kiewit property as a contractor yard to store equipment, materials, and storage containers (three containers). Staff has determined that the proposed use is compatible with Central San's operations and would benefit Central San by having a presence on land that has had recent issues with trespassing and vagrancy and will be an onsite recycled water customer. The proposed lease is for a 0.75-acre parcel labeled Parcel D on the attached map. The tenant will install new perimeter fencing and lay down aggregate where needed to protect the land. Hazardous materials and construction debris are not allowed to be stored on the property. Staff has discussed the importance of routine maintenance to keep the site tidy and not allowing construction debris to be stockpiled onsite. Current terms being discussed are a year-long lease for$2,000 per month with an option to extend up to five years if the agreed by both sides. CEQA: This project is exempt under Central San's CEQA Guidelines Section 15061(b)(3), since it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. This certainty is based on Central San's past, successful experience with management of similar land uses, the relatively small amount of acreage and stored materials involved, and the property's distance from sensitive receptors. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS The Board of Directors may decline to authorize a new lease agreement. FINANCIAL IMPACTS Central San will receive $2,000 per month for a 0.75-acre parcel. After one year if the option is extended there will be an annual three percent increase adjustment until June 30, 2024. COMMITTEE RECOMMENDATION The Real Estate, Environmental and Planning Committee recommended approval of this proposed lease at its April 25, 2018 meeting. RECOMMENDED BOARD ACTION Authorize the General Manager, or his designee, to enter into a one-year lease agreement with Liedstrand Landscape Construction, Inc. commencing on July 1, 2018, with an option to extend for up to five additional years through June 30, 2024, for a 0.75-acre portion of the Kiewit property (APN 159-140-051). Strategic Plan Tie-In GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage Costs June 7, 2018 Regular Board Meeting Agenda Packet- Page 392 of 446 Page 3 of 4 ATTACHMENTS: 1. Kiewit Property Site Map June 7, 2018 Regular Board Meeting Agenda Packet- Page 393 of 446 Page 4 of 4 CCC Flood Control and Water CCC Flood Control Conservation District and Water Conservation District COUNTY -� QUARRY g�4 f PP CCCSD x i ^ / + >,— x k _IMHOFF DR X_ X TREATMENT X— x— -k +` PLANT _ X —X — x REW Hydrant + D +� B .75 acre +♦ 2.2 acres + E .75 acre �c a� A C +�+ 14.8 acres 3.1 acres +/ / / / / / 0 o A- N N k / m k A- / `7 x — Fence k / Recycled Water Sewer Main / x/ k Potential Roadway x� / x Potential Lease Area x x Fill Dirt Staging Y x Sustainable Farm Y Gravel Road (Future) a N Buchanan Field Paved Road 0 125 250 Airport Runway Protection Zone rY Slope (10:1) w Feet N U 0CENTRAL SAN Kiewit Site Plan Map Potential Lease Areas Z June 7, 2018 Regular Board Meeting Agenda Packet- Page 394 of 446