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Home My WebLink About07.c. Public hearing re lease of property at 5501 Imhoff Drive, Martinez7c. PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION TO DECLARE CERTAIN DISTRICT PROPERTY AS CURRENTLY UNNEEDED AND AUTHORIZE STAFF TO EXTEND CURRENT LEASE SUGGESTED AGENDA December 20, 2012 I. 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 resolution. IV. Recommended Action: Adopt proposed resolution declaring the District's property located at 5501 Imhoff Drive in Martinez (APN 159 - 140 -052) as currently unneeded for a period not to exceed ten years, and authorizing the General Manager or her designee to extend the current lease with County Quarry Products LLC on a month -to -month basis for up to three months until lease negotiations can be concluded for continued use of the property as a concrete and asphalt materials recycling operation. Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: December 20, 2012 Subject: CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION DECLARING CERTAIN DISTRICT LANDS (5501 IMHOFF DRIVE, MARTINEZ - APN 159 - 140 -052) AS CURRENTLY UNNEEDED AND AUTHORIZING STAFF TO NEGOTIATE AND EXECUTE A LEASE EXTENSION WITH COUNTY QUARRY PRODUCTS LLC Submitted By: Initiating Dept. /Div.: Michael J. Penny, Senior Engineer Engineering / Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: M. Penny D. Gemmell K. Alm Ann E. Farrell General Manager ISSUE: The Board must conduct a public hearing to declare District land as currently un- needed. Board authorization is required for 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) as currently unneeded for a period not to exceed ten years, and authorizing the General Manager or her designee to extend the current lease with County Quarry Products LLC (County Quarry) on a month to month basis for up to three months until lease negotiations can be concluded for continued use of the property as a concrete and asphalt materials recycling operation. FINANCIAL IMPACTS: The District will continue to receive rental income if the lease is extended. ALTERNATIVES /CONSIDERATIONS: The Board of Directors may decline to declare the property as currently unneeded and /or authorize a lease extension. BACKGROUND: The District purchased the property at 5501 Imhoff Drive, Martinez, currently leased to County Quarry and used for concrete and asphalt recycling, as buffer for the treatment plant. That is, the land is to be used for District operations, if needed; however, if it is not needed, it may be leased for uses compatible with the need for a treatment plant buffer to generate revenue. The Sanitary District Act requires that the Board conduct a public hearing to declare property as "currently un- needed ", will be used for compatible uses, will be of public benefit, and that the term will not exceed ten years in order for the property to be leased. The District has leased the 7.58 acre parcel at 5501 Imhoff Drive to County Quarry for the past 27 years (see Attachment 1 for site map). County Quarry is a concrete and asphalt materials recycling operation. The recycled material is a construction grade N: \ENVRSEC \Position Papers \Penny\2012 \12- 20 -12 \PP PH County Quarry 12 -20 -12 Final.doc Page 1 of 3 POSITION PAPER Board Meeting Date: December 20, 2012 subject: CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION DECLARING CERTAIN DISTRICT LANDS (5501 IMHOFF DRIVE, MARTINEZ - APN 159 - 140 -052) AS CURRENTLY UNNEEDED AND AUTHORIZING STAFF TO NEGOTIATE AND EXECUTE A LEASE EXTENSION WITH COUNTY QUARRY PRODUCTS LLC aggregate sold and used for roadbed and other uses. New aggregate, asphalt, and concrete are also sold at the site. Over a number of years, the District became concerned about County Quarry's performance regarding pile height, dust, traffic, and their storage of old equipment on the property. The lease was extended for calendar year 2011 and again for 2012 to allow time for County Quarry to demonstrate that is could comply with the District's performance expectations. Staff has closely monitored performance for the past 23 months and can report substantial compliance. The Real Estate Committee recommends that the property be declared as "currently un- needed ", but that the lease be extended for only two years to provide additional time for monitoring and evaluation of County Quarry's performance. Staff is currently in negotiations with County Quarry on a lease extension. The District has proposed a two -year lease extension starting at a market rate of $26,415 per month based on the District's Market Rate Survey performed by Denton Valuation. County Quarry has proposed a rent of $18,411 per month based on their Market Value Appraisal performed by VELCO Appraisal Services. The current rent is $18,411 per month. Staff has concluded that the proposed lease extension and continuation of the concrete and asphalt materials recycling operation are exempt from the requirements of the California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15301, since it involves extension for existing facilities. Approval of this lease extension will establish the Board of Directors' independent finding that this approval is exempt from CEQA. RECOMMENDED BOARD ACTION: Conduct a public hearing to consider adopting a resolution declaring 5501 Imhoff Drive, Martinez, California (APN 159 - 140 -052) as currently unneeded for a period not to exceed ten years, and authorizing the General Manager or her designee to extend the current lease with County Quarry Products LLC on a month to month basis for up to three months until lease negotiations can be concluded for continued use of the property as a concrete and asphalt materials recycling operation. N: \ENVRSEC \Position Papers \Penny\2012 \12- 20 -12 \PP PH County Quarry 12 -20 -12 Final.doc Page 2 of 3 1 l Attachment 1 t v N: \ENVRSEC \Position Papers \Penny\2012 \12- 20 -12 \PP PH County Quarry 12 -20 -12 Final.doc Page 3 of 3 RESOLUTION NO.. 2012-102 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT DECLARING A PORTION OF DISTRICT LAND UNNEEDED AND AUTHORIZING THE GENERAL MANAGER, OR HER DESIGNEE, TO NEGOTIATE AND EXECUTE A TERM LEASE EXTENSION FOR THE PROPERTY LOCATED AT 5501 IMHOFF DRIVE WHEREAS, the District owns seven and fifty eight hundredths (7.58) acres of land northeast of the Wastewater Treatment Plant located at 5501 Imhoff Drive, Martinez, as shown in Exhibit A (the "Property "), which is currently leased by County Quarry Products LLC ( "County Quarry"); 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 - seven years; and WHEREAS, the District has received a request for a lease renewal or extension; and WHEREAS, before the consideration of the lease renewal or extension, County Quarry was to address the District's concerns regarding pile height, dust, traffic and storage of used equipment at the Property; and WHEREAS, over the past twenty three months, County Quarry has significantly improved their operations in response to the District's concerns; however, the District seeks a longer period of time to monitor their continued performance and response; and WHEREAS, the Board of Directors held a noticed public hearing on December 20, 2012, to determine whether the proposed lease of the Property would be compatible with District activities and functions, and would provide a public benefit. THEREFORE, 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 unneeded for the performance of the District's purposes, functions, and duties for a period not to exceed ten years. Furthermore, the Board of Directors finds that the proposed lease for the Property is compatible with the District's activities and functions. 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 duties and functions. 3. That the General Manager or her designee is authorized to extend the current lease for up to three months on a month -to -month basis to complete negotiations for a longer term lease extension. Resolution No. 2012 -102 Central Contra Costa Sanitary District Page 2 of 2 4. That the General Manager or her designee is authorized to negotiate a lease agreement for the Property for a term not in excess of ten years. Such lease shall be made at competitive market rates to County Quarry for the current use of the Property as a concrete and asphalt recycling operation. 5. That the General Manager shall present any proposed lease of the Property 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) under District CEQA Guidelines Section 15301, since it involves extension for 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 20th day of December, 2012, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District