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Home My WebLink About04.a. Hold public hearing re lease of Kiewit propertyy a. PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTIONS TO DECLARE CERTAIN DISTRICT PROPERTY AS CURRENTLY UNNEEDED AND AUTHORIZE STAFF TO EXTEND CURRENT LEASE SUGGESTED AGENDA December 15, 2011 Request staff presentation. II. Public Hearing: A. Receive public comments. B. Request staff response, as appropriate. C. Close public hearing. III. Board deliberation regarding proposed resolutions. IV. Recommended Action: Adopt proposed resolutions declaring the District's Kiewit property located off Imhoff Drive in Martinez (APN 159- 140 -051) as currently unneeded and authorizing the General Manager, or his designee, to extend the current lease with County Quarry (for use as a clean fill site) to extend it to December 31, 2012. Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: December 15, 2011 Subject: CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION DECLARING CERTAIN DISTRICT LAND AS CURRENTLY UNNEEDED AND AUTHORIZING STAFF TO EXECUTE A LEASE EXTENSION TO DECEMBER 31, 2012 WITH COUNTY QUARRY FOR THE KIEWIT SITE Submitted By: Initiating Dept. /Div.: RANDALL M. MUSGRAVES ADMINISTRATION DIRECTOR OF ADMINISTRATION REVIEWED AND RECOMMENDED FOR BOARD ACTION: M rave K. Alm "s Kelly, Kelly, G eral Manager ISSUE: The Board must conduct a public hearing, under Health and Safety Code 6514.1, to declare District land as un- needed and authorize staff to execute lease agreements. RECOMMENDATION: Conduct a public hearing to consider adopting a resolution declaring the Kiewit Property (APN 159- 140 -051) as currently unneeded, ,and authorize the General Manager or his designee to amend the current lease with independent operator, County Quarry (for use as a clean fill site), to extend it to December 31, 2012. FINANCIAL IMPACTS: The District will receive additional income by allowing clean fill to be deposited on the site for a fee and the additional lease of property on the Kiewit site for the storage of crushed rock. ALTERNATIVES /CONSIDERATIONS: The alternative to this action is to abandon clean fill operation lease income from this property and therefore, the Board of Directors may decline to establish the recommended hearing date. BACKGROUND: The District has leased its Kiewit Property parcel for a clean fill site to obtain revenue. The site is approximately 33 acres and located between Grayson and Walnut Creeks, Highway 4, and Imhoff Drive adjacent to the District wastewater treatment plant in Martinez, Contra Costa County, California. The vacant property is owned by the District and used as a buffer zone for the wastewater treatment plant located to the west of the project, across Grayson Creek. The project scope consists of filling the site with clean fill to match the elevation of Imhoff Drive to the north. The site will be raised a nominal five feet to an elevation estimated to range from 20 to 23 feet above sea level. A private lessee /clean fill site operator, County Quarry, was selected by the District to design the project, obtain permits, and operate the project over its expected five -year life. POSITION PAPER Board Meeting Date: December 15, 2011 subject CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION DECLARING CERTAIN DISTRICT LAND AS CURRENTLY UN- NEEDED AND AUTHORIZING STAFF TO EXECUTE A LEASE EXTENSION TO DECEMBER 31, 2012 WITH COUNTY QUARRY FOR THE KIEWIT SITE The District has raised concerns with County Quarry regarding their performance. A one -year lease extension was provided to the Lessee to monitor their performance to ensure compliance with District expectations. Staff can report that over the past ten months, the Lessee has been in full compliance. However, the Real Estate Committee has recommended to the Board to provide another one -year extension in order to ensure full compliance over a longer period of time. Due to the one -year lease extension for County Quarry (APN 159 - 140 -052), staff is recommending the Board extend the Kiewit Clean Fill Operation lease with County Quarry for one year. In addition, County Quarry has requested the ability to lease one and one -half (1.5) acres of Kiewit property to store the crushed rock from their operation across the street. Staff is recommending the lease at a pro -rated amount equivalent to the County Quarry site, or $3,757. The storage of crushed rock requires a permit from the County. All costs and activities to obtain the permit will be born by the Lessee, County Quarry. The Board previously held a public hearing under Health and Safety Code 6514.1 on the Kiewit Property on August 11, 2005. At that hearing, the Board considered such things as the compatibility of the proposed clean fill operation with District activities and whether the Kiewit property would be needed during the proposed term of the new lease. The environmental effects of this action were addressed in the Kiewit Property Clean Fill Lease Project Mitigated Negative Declaration approved by the Board of Directors on September 1, 2005. Subsequently, a Notice of Determination was filed in compliance with the California Environmental Quality Act (CEQA). RECOMMENDED BOARD ACTION: Conduct a public hearing to consider adopting a resolution declaring the Kiewit Property (APN 159- 140 -051) as currently unneeded, and authorize the General Manager or his designee to amend the current lease with independent operator, County Quarry (for use as a clean fill site), to extend it to December 31, 2012. RESOLUTION NO. 2011 -066 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT DECLARING A PORTION OF DISTRICT LAND UNNEEDED AND AUTHORIZING THE GENERAL MANAGER, OR HIS DESIGNEE, TO NEGOTIATE, EXECUTE AND ADMINISTER A TERM LEASE FOR THE PROPERTY KNOWN AS THE KIEWIT SITE WHEREAS, the District owns approximately thirty -three (33) acres of land located between Grayson and Walnut Creeks, Highway 4, and Imhoff Drive adjacent to the District's wastewater treatment plant in Martinez, Contra Costa County, California, as shown in Exhibit A, currently leased by County Quarry (the "Property "); and WHEREAS, the Property is more specifically identified as APN 159 - 140 -051; and WHEREAS, the Property has been leased to County Quarry for approximately five years; and WHEREAS, the District has received a request for a long -term lease renewal; and WHEREAS, before the consideration of the lease renewal, County Quarry was to address the District's concerns regarding pile height, dust, traffic and their bone yard; and WHEREAS, the Board of Directors held a noticed public hearing on December 15, 2011, to determine whether the proposed lease of the Property would be compatible with surrounding uses and zoning and land use regulations, and would provide a public benefit; and BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: 1. That, after holding a noticed public hearing, the Board of Directors finds that the Property is currently unnecessary for the performance of the District's purposes, functions, and duties, although this assessment may change at some point in the future as conditions and factors evolve. Furthermore, the Board of Directors finds that the proposed leases for the use of the subject property are compatible with the District's activities and functions and the uses of surrounding properties, and would fully comply with local land use requirements and zoning. 2. That, after holding a noticed public hearing, the Board of Directors finds that the lease of the Property would provide a public benefit by generating funds for the District's important duties and functions; and 3. That the General Manager or his designee is authorized to negotiate, execute and administer a lease agreement for the Property for a term not in excess of one year. Such lease shall be made at competitive market rates to private parties which have uses compatible with the activities, duties and functions of the District. Resolution 2011 -066 Page 2 4. That the General Manager or his designee is authorized to fill vacancies, evict delinquent or defaulting tenants, and conduct other day -to -day property leasing activities as they might arise, without seeking further authorization or permission from the Board of Directors, so long as the proposed uses of such lessee is consistent with the use considered herein and the lease does not exceed ten years in length. 5. That, notwithstanding the above authorizations and delegation, the General Manager shall present any proposed lease of the Property that exceeds one year in length, or might significantly impact District business or the community, pose a financial or physical risk to the District, or be incompatible with District activities, functions or duties, to the Board of Directors for full consideration, review and approval prior to execution. 6. That the proposed lease and operation of the existing structures and facilities at the Property are exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to 14 Cal. Code Regs. § 15301 (existing facilities). 7. That each portion of this resolution is severable. Should any portion of this resolution be adjudged to be invalid and unenforceable by a body of competent jurisdiction, then the remaining resolution portions shall be and continue in full force and effect. PASSED AND ADOPTED this 15th day of December, 2011, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Barbara Hockett President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm Counsel for the District --Mpg Imhoff Drive CCCSD, reatment Plant __777727'1' f, kt, twig EXHIBIT A