HomeMy WebLinkAbout03.e. Ten-year lease with Pacheco Comercial Properties re APN 125-250-002-8Central Contra Costa Sanitary District 3.e.
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: October 20, 2011
subject: APPROVE TEN (10) YEAR LICENSE WITH PACHECO COMMERCIAL
PROPERTIES FOR A STRIP OF LAND AT THE CONCORD COMMERCE CENTER
Submitted By: Initiating Dept. /Div.:
RANDALL M. MUSGRAVES ADMINISTRATION
DIRECTOR OF ADMINISTRATION
REVIEWED AND
A. M graves
FOR BOARD ACTION:
K. Alm
4"
James Y. Kelly,
GenerarManager
ISSUE: Board authorization is requested for the General Manager to execute a ten
(10) year license with Pacheco Commercial Properties.
RECOMMENDATION: Authorize the General Manager to execute a ten (10) year
license with Pacheco Commercial Properties.
FINANCIAL IMPACTS: The District has had a license agreement with the land owner
adjacent to the District's land overlying the A -line. The previous lease amount was
$2,223 annually. Staff negotiated an increase to $4,320 annually with a Consumer
Price Index (CPI) increase each year.
ALTERNATIVES /CONSIDERATIONS: The Board could deny the license; however,
there is no other practical use.
BACKGROUND: The updated 10 -year license with Pacheco Commercial Properties
for a strip of land at the Concord Commerce Center is paved and used for parking. The
District has had two 10 -year licenses, since September 1, 1991, with Cranmer
Associates, Inc. ( Cranmer Associates, Inc. has since reorganized as Pacheco
Commercial Properties.) The licensed property is a 30 -foot by 620 -foot strip of land
bordering Interstate 680 which was purchased for installation of the A -line interceptor.
The license includes requirements to allow District access for maintenance and
construction if needed.
The previous license fee was for $2,222.97. Staff has renegotiated a new annual
license fee for $4,320 with an annual CPI adjustment. Mr. Tom Cranmer, Pacheco
Commercial Properties representative, has agreed to the updated terms and conditions
and fee of the proposed license. The parties made only minor changes to the terms
and conditions.
POSITION PAPER
Board Meeting Date: October 20, 2011
subject: APPROVE TEN (10) YEAR LICENSE WITH PACHECO COMMERCIAL
PROPERTIES FOR A 'STRIP OF LAND AT THE CONCORD COMMERCE CENTER
Vehicles must pass through the Concord Commerce Center driveway and gate to
access the parking spaces. Staff sees no other practical use for the 30 -foot strip of land
at this time as construction of any facilities could compromise the integrity of the A -line
interceptor and would limit access.
The parties' previous license agreement ran from 1991 to 2001, and automatically
extended for another 10 -year period from 2001 to 2011. The license and fee was
discussed with the Real Estate Committee due to the ending of the most recent 10 -year
period and staff's desire for the Committee's concurrence regarding the new license fee
amount. Like the previous license, the new license is for 10 years, with automatic
extensions unless either party cancels.
The Real Estate Committee is recommending authorizing the General Manager to
execute a 10 -year license with Pacheco Commercial Properties.
RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a ten
(10) year license with Pacheco Commercial Properties.