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Home My WebLink About04.b. Hold public hearing re lease of property located at 5501 Imhoff Drive, MartinezY.6. 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 property located at 5501 Imhoff Drive in Martinez (APN 159- 140 -052) as currently unneeded and authorizing the General Manager, or his designee, to extend the current lease with County Quarry (for use as a concrete /asphalt operation and for storage of crushed rock) 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 RESPOLUTION TO DECLARE LAND AS CURRENTLY UNNEEDED AND AUTHORIZE STAFF TO EXECUTE A ONE -YEAR LEASE AGREEMENT AMENDMENT WITH COUNTY QUARRY Submitted By: Initiating Dept /Div.: RANDALL M. MUSGRAVES ADMINISTRATION DIRECTOR OF ADMINISTRATION REVIEWED AND RECOMMENDED FOR BOARD ACTION: rrves K. Alm Jam elly, Gener I Manager ISSUE: The Board must conduct a public hearing to declare District land as unneeded and authorize staff to execute lease agreements. RECOMMENDATION: Conduct a public hearing to consider adopting a resolution declaring 5501 Imhoff Drive, Martinez, California (APN 159 - 140 -052), currently leased by County Quarry, as currently unneeded and authorizing the General Manager, or his designee, to execute and administer a one -year lease agreement, to end December 31, 2012. FINANCIAL IMPACTS: The District will receive additional rental income. The current annual income is approximately $215,000. The proposed two and one -half percent (2 -1/2 %) increase would provide $220,932 in 2012 for County Quarry lease income. Various leases would provide income to the District based on actual areas leased and agreement terms. 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: December 15, 2011 Subject CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING A RESPOLUTION TO DECLARE LAND AS CURRENTLY UN- NEEDED AND AUTHORIZE STAFF TO EXECUTE A ONE -YEAR LEASE AGREEMENT WITH COUNTY QUARRY The District has been leasing the parcel or site to County Quarry for the past 26 years. 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: Conduct a public hearing to consider adopting a resolution declaring 5501 Imhoff Drive, Martinez, California (APN 159 - 140 -052), currently leased by County Quarry, as currently unneeded and authorizing the General Manager, or his designee, to execute and administer a one -year lease agreement, to end December 31, 2012. RESOLUTION NO. 2011 -067 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 LOCATED AT 5501 IMHOFF DRIVE WHEREAS, the District owns approximately seven (7) acres of land northeast of the Martinez Treatment Plant, as shown in Exhibit A, located at 5501 Imhoff Drive, and currently leased by County Quarry (the "Property "); and WHEREAS, the Property is more specifically identified as APN 159 - 140 -052; and WHEREAS, the Property has been leased to County Quarry for approximately twenty - six 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 storage of used equipment at 5501 Imhoff Drive where their daily operations occur; and WHEREAS, County Quarry has significantly improved their operations and response to the District's concerns over the past eleven months; however, the District seeks a longer period of time to verify their continued performance and response; 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 Resolution 2011 -067 Page 2 ending December 31, 2012. 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. 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 s • 3 � • ii 7''r � •�. $i Imhoff birive x '- 3 CCCS - :w Treatment Plant t + 1 �. - :r'�crc3'S�r',�.'i viu�,R.- �c:i.�p�' ►�� r ,�::,. - - -_ - � — ' a. ` .� - - — EXHIBIT A