The URL can be used to link to this page

Home My WebLink About12.b. Public hearing re lease agreement with Aglantis / CoCo San Sustainable FarmCentral Contra Costa Sanitary District ia.6 ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 17, 2014 Subject: CONDUCT A PUBLIC HEARING TO CONSIDER APPROVING A LEASE WITH AGLANTIS, A PUBLIC BENEFIT CORPORATION FOR THE COCO SAN SUSTAINABLE FARM ON THE KIEWIT PROPERTY, AUTHORIZE STAFF TO APPROVE A LEASE WITH AGLANTIS, AND DECLARE THE PROPERTY AS CURRENTLY UNNEEDED Submitted By: Initiating Dept. /Div.: Danea Gemmell, Environmental Services Engineering / Environmental Services Division Manager REVIEWED AND RECOMMENDED FOR BOARD ACTION: K. Alm R. Bailey Counsel for the District General Manager ISSUE: The Board must conduct a public hearing prior to entering into any lease for real property owned by the District which has been deemed unneeded. ALTERNATIVES /CONSIDERATIONS: The Board may decline to authorize a lease agreement. BACKGROUND: The District owns a parcel known as Kiewit Property, which was purchased as buffer in Martinez, California. The Kiewit site (see Attachment 1 for a site map) is located between Grayson and Walnut Creeks, Highway 4, and Imhoff Drive. Land uses near the site include a quarry to the north, industrial and commercial uses to the east, and the District's wastewater treatment facility to the west, and Buchanan Field Airport to the south. The property is designated as Public /Quasi - Public on the Contra Costa County General Plan land use map and is zoned Heavy Industrial (H -1) on the County's zoning map. As described in Division 84 of County's zoning code, allowable uses in H -1 zones include a variety of industrial and manufacturing uses and retail commercial districts, general commercial districts, and agricultural districts after the granting of land use permits. In 2012, the proponents of the CoCo San Sustainable Farm (Farm) approached the District to create a sustainable urban farm with teaching facilities on the Kiewit site. The mission of the Farm would be as follows: • Support the District's mission to foster sustainable and renewable practices, including recycled water; C: \Users \danderson \Desktop \PP Conduct PH for Kiewit Prop FINAL.doc Page 1 of 4 POSITION PAPER Board Meeting Date: April 17, 2014 Subject. CONDUCT A PUBLIC HEARING TO CONSIDER APPROVING A LEASE WITH AGLANTIS, A PUBLIC BENEFIT CORPORATION FOR THE COCO SAN SUSTAINABLE FARM ON THE KIEWIT PROPERTY, AUTHORIZE STAFF TO APPROVE A LEASE WITH AGLANTIS, AND DECLARE THE PROPERTY AS CURRENTLY UNNEEDED • Teach sustainable living practices, recycled water science, Delta awareness, sustainable watershed practices, integrated pest management, pollution prevention, soils science and other science related to District's educational programs; • Promote the District's environmental messages, including collecting and diverting household hazardous waste for proper reuse or disposal; • Showcase green technologies, including fostering green building practices and green jobs; and • Demonstrate how to reduce the carbon and environmental footprint of food production and distribution." On October 3, 2013, the Board directed staff to (1) pursue a lease agreement with CoCo San Sustainable Farm covering an approximate 14.8 -acre portion on the western side of the approximately 33 -acre Kiewit property for operation of an urban sustainable farm and agricultural educational program; (2) proceed with a Request for Proposal (RFP) for potential uses of the remaining eastern portion of the property; and (3) proceed with obtaining a Land Use Permit (LUP) from Contra Costa County for the entire property. On November 7, 2013, the Board formed an Ad Hoc Committee to review the proposed terms of the agreement before being brought back to the full Board. Staff has been working with the Farm proponents and the Ad Hoc Committee to develop the lease agreement. Following are highlights of the terms of the lease agreement: Term - The proposed ten -year lease would terminate on April 16, 2024 and is subject to performance conditions. At any time during the term, if the Board declares a public need, the lease agreement may be terminated with notice to the Farm. Rent - The proposed rent, which includes the cost of recycled water, would be $1 per year. In order to address the potential that the Farm may have sufficient revenues in the future to pay additional rent, the lease agreement allows the District to review the financial records annually after three years to determine if the rent can be adjusted. Performance Standards — The farm would be required to meet performance standards that include housekeeping of the site, minimum educational outreach C: \Users \danderson \Desktop \PP Conduct PH for Kiewit Prop FINAL.doc Page 2 of 4 POSITION PAPER Board Meeting Date: April 17, 2014 Subject CONDUCT A PUBLIC HEARING TO CONSIDER APPROVING A LEASE WITH AGLANTIS, A PUBLIC BENEFIT CORPORATION FOR THE COCO SAN SUSTAINABLE FARM ON THE KIEWIT PROPERTY, AUTHORIZE STAFF TO APPROVE A LEASE WITH AGLANTIS, AND DECLARE THE PROPERTY AS CURRENTLY UNNEEDED and teaching goals, operating requirements, limitations on fertilizing chemicals, farming, and general farm milestones to ensure success of the demonstration project. A Performance Agreement would be submitted annually as part of the business plan, which includes an estimated annual operating budget and an annual capital improvement budget for the coming year, as well as, after the first year of operation, a report on the previous performance results. Insurance and Indemnity — The Farm would provide, at no cost to the District, appropriate insurance coverage and indemnify the District from exposure to any liability. Regulatory Compliance — The Farm would be required to comply with all Applicable Laws, Rules and Regulations pertaining to the use, operation and management of the premises, including but not limited to all laws relating to the use of property adjacent to airports and /or navigation easements, specifically including selection of crops and maintenance of the property or to minimize or limit the potential for attraction of birds. The lease agreement also provides that any conditions of a LUP from Contra Costa County must be incorporated into the agreement. Capital Improvements —The cost of any site improvements would be the responsibility of the Farm and would include all permit costs after the initial LUP is provided by the District. Anticipated improvements for the first three years include fencing, roads, irrigation lines, a 46'x150' donated greenhouse, cooler, barn and solar panels. Staff has concluded that approval of this lease agreement is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15301, since it would involve leasing of existing District property with negligible or no expansion of use at this time. The lease agreement reserves the property for possible future actions to which the District has not approved and would not be legally bound to allow without additional CEQA compliance documentation and a land use approval by Contra Costa County. Approval of this lease agreement would establish the Board of Directors' independent finding that the lease is exempt from CEQA. FINANCIAL IMPACTS: If, after conducting the public hearing, the Board authorizes approval of the lease agreement, CoCo San Sustainable Farm would lease approximately 14.8 acres of the Kiewit property for $1 per year. C: \Users \danderson \Desktop \PP Conduct PH for Kiewit Prop FINAL.doc Page 3 of 4 POSITION PAPER Board Meeting Date: April 17, 2014 Subject CONDUCT A PUBLIC HEARING TO CONSIDER APPROVING A LEASE WITH AGLANTIS, A PUBLIC BENEFIT CORPORATION FOR THE COCO SAN SUSTAINABLE FARM ON THE KIEWIT PROPERTY, AUTHORIZE STAFF TO APPROVE A LEASE WITH AGLANTIS, AND DECLARE THE PROPERTY AS CURRENTLY UNNEEDED AD HOC COMMITTEE RECOMMENDATION: The Ad Hoc Committee participated in developing the terms and preparation of the draft lease agreement to protect the interests of the District. The Committee reviewed the draft lease agreement at its meeting on April 7, 2014. RECOMMENDED BOARD ACTION: Conduct a public hearing to consider entering into a lease agreement with AgLantis of an approximate 14.8 -acre portion of the District's Kiewit property (APN 159- 140 -051) for the CoCo San Sustainable Farm Project for a term of up to ten years in the amount of $1 per year. If a majority of the Board agrees to enter into a lease agreement, take the following actions: 1. Authorize the General Manager or his designee to execute the lease agreement; and 2. Declare the property as currently unneeded for a period not to exceed ten years. Attached Supporting Documents: 1. Map 2. Draft Resolution C: \Users \danderson \Desktop \PP Conduct PH for Kiewit Prop FINAL.doc Page 4 of 4 Suisun Bay DETAIL AREA 4 Martinez • Concord Pleasant* Hill V f Lafa ette •Walnut y • Creek "w "0' �• 141HOFF OR N 81 °46'53' E XS °yss„ P.O. B. 246.60' 1 ;W22'— X I x I AIRPORT SAFETY ZONE 2 (30 PEOPLE /ACRE) %� I 0') lo:. �1M OZ F Xm c", _ AIRPORT SAFETY ZONE 4 (100 -150 PEOPLE /ACRE) X 1. '. �r N 27 °08'57" W 15.88' low MN 7 0\ Existing Fence V x — New Fence Recycle Water C �'. Q - •y Sewer Main 14.8 acres 6 Gravel r / Slope (10:1) m a 1 f Wetland lop- �� f • Runway Protection Zone r r f Source: Esri, DigitalGlobe, GeoEye, i- cubed, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GIS User Community ' c entral Contra Costa 0 100 200 APN: 159 - 140 -051 Exhibit Sanitary District A Proposed Sustainable B Feet Farm Lease ATTACHMENT 2 RESOLUTION NO. 2014- p 1r A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT AUTHORIZING THE GENERAL MANAGER, OR HIS DESIGNEE, TO EXECUTE A LEASE AGREEMENT FOR A PORTION OF 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, California ( "Property "), as shown in Exhibit A; and WHEREAS, the Property is more specifically identified as APN 159 - 140 -051; and WHEREAS, the District has received a proposal from AgLantis, a public benefit corporation, for lease of a portion of the property to create a sustainable urban farm with teaching facilities on the Kiewit site; and WHEREAS, the Board of Directors held a noticed public hearing on April 17, 2014 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. THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: 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. 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 for the District's duties and functions. 3. That the General Manager or his designee is authorized to execute a lease agreement for an approximate 14.8 -acre portion of the Property to April 16, 2024. Such lease shall be made for creation of a sustainable urban farm with teaching facilities on the Property. 4. That the environmental effects of this action were determined to be exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15301. 5. That staff is authorized to record the documents in the office of the Recorder of Contra Costa County. Resolution No. 0/1 Central Contra Costa Sanitary District Page 2 of 2 6. That the Board of Directors has determined that the Kiewit parcel is currently unneeded for purposes of Health and Safety Code Section 6514.1. 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 17th day of April, 2014, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: David R. Williams 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 EXHIBIT A AN