HomeMy WebLinkAbout03.e. Set public hearing re County Quarry lease of 5501 Imhoff Drive in MartinezCentral Contra Costa Sanitary District 3G
' BOARD OF DIRECTORS •
POSITION PAPER
Board Meeting Date: November 17, 2011
Subject: SET A PUBLIC HEARING TO DECLARE LAND AS CURRENTLY UN-
NEEDED AND AUTHORIZE STAFF TO AMEND THE CURRENT LEASE WITH
COUNTY QUARRY FOR THE PROPERTY LOCATED AT 5501 IMHOFF DRIVE IN
MARTINEZ
Submitted By: Initiating Dept. /Div.:
RANDALL M. MUSGRAVES ADMINISTRATION
DIRECTOR OF ADMINISTRATION
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
M graves . Alm
(
4 mes M. ly,
eneral Manager
ISSUE: The Board must conduct a public hearing to declare District land as un- needed
and authorize staff to execute lease agreements.
RECOMMENDATION: Set December 15, 2011 at 2:00 p.m. as the date and time for a
public hearing to receive comments on declaring the property located at 5501 Imhoff
Drive in Martinez (APN 159 - 140 -052) as currently un- needed, and authorize the
General Manager or his designee to amend the current lease with County Quarry to
extend it to December 31, 2012.
FINANCIAL IMPACTS: The District will receive additional rental income. The current
annual income is approximately $215,000. Various leases would provide income to the
District based on actual areas leased and agreement terms. A one -year lease would
generate a minimum of $220,000.
ALTERNATIVES /CONSIDERATIONS: The alternative to this action is to abandon
lease rental income from this property and therefore, the Board of Directors may
decline to establish the recommended hearing date.
BACKGROUND: The District has purchased property in the past for the possible use
and benefit of the District to conduct its business in the interest of the public. Not all of
the land is needed for physical use by the District at this time. It is beneficial to the
public and the District to pursue lease income to assist in District financing. The
Sanitary District Act requires a public hearing in order to execute leases on District land.
Staff requests that the Board conduct a public hearing for the parcel or site under
consideration for leasing.
POSITION PAPER
Board Meeting Date: November 17, 2011
subject. SET A PUBLIC HEARING TO DECLARE LAND AS CURRENTLY UN-
NEEDED AND AUTHORIZE STAFF TO AMEND THE CURRENT LEASE WITH
COUNTY QUARRY FOR THE PROPERTY LOCATED AT 5501 IMHOFF DRIVE IN
MARTINEZ
The District has been leasing the parcel or site to County Quarry for the past 26 years
(see Attachment 1 for a site map). County Quarry is a concrete and asphalt materials
recycling operation. The recycled material is a construction grade aggregate sold and
used for roadbed and other uses. New aggregate, asphalt and concrete are also sold
at the site. In addition, the District's lease provides for use of an additional 1.5 acres of
the Kiewit site for additional storage of crushed rock on an as needed basis with
additional rental payments The District became concerned about the Lessee's
performance regarding pile height, dust, traffic, and their storage of old equipment on
the property. The District extended the lease for the calendar year 2011 with stipulated
expectations. Staff has closely monitored the Lessee's performance for the past ten
months and can report complete compliance. However, the Real Estate Committee
desires a longer period of time to evaluate their performance and has recommended to
the Board to extend the lease for another one year. Staff will continue to monitor the
Lessee's performance.
RECOMMENDED BOARD ACTION: Set December 15, 2011 at 2:00 p.m. as the date
and time for a public hearing to receive comments on declaring the property located at
5501 Imhoff Drive in Martinez (APN 159 - 140 -052) as currently un- needed, and
authorize the General Manager or his designee to amend the current lease with County
Quarry to extend it to December 31, 2012.
Attachment 1
-lw