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Home My WebLink About03. Draft Position Paper re Conduct Public Hearing to Declare Land Un-Needed and Authorize Staff to Execute Lease with WIllows Center Concord, LLC (APN 126-440-003)Central Contra Costa Sanitary District �- ' BOARD OF DIRECTORS POSITION PAPER DRAFT Board Meeting Date: November 6, 2014 Subject: CONDUCT A PUBLIC HEARING TO DECLARE CERTAIN DISTRICT LAND UN- NEEDED AND AUTHORIZE STAFF TO EXECUTE A LEASE AGREEMENT WITH WILLOWS CENTER CONCORD, LLC (APN 126- 440 -003) Submitted By: Initiating Dept. /Div.: Lisa Hiddleson, Prov. Sr. Right of Way Agent Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: T. Brightbill — Senior Engineer D. Gemmell — Environmental Services Division Manager K. Alm Roger S. Bailey J. Petit — Director of Engineering Counsel for the District General Manager ISSUE: The Board must conduct a public hearing to declare District land un- needed and authorize staff to execute a lease agreement. RECOMMENDATION: Adopt the resolution declaring the surface of the District property adjacent to the Willows Shopping Center as un- needed property and authorize the General Manager, or his designee, to execute a lease agreement for the surface rights to the property, consistent with Board direction. FINANCIAL IMPACTS: The District will receive additional rental income. The proposed yearly rent is $15,256.00 per year with annual increases at the lesser of 4% or San Francisco Region Consumer Price Index. ALTERNATIVES /CONSIDERATIONS: The alternative to this action is to abandon lease income. BACKGROUND: The lease is for a portion of the 53,579- square foot strip of land that the District owns in fee and through which the District's existing 72 -inch diameter A -Line Interceptor passes. The fee strip is located between the Willows Shopping Center in Concord and Interstate 680. Willows Center Concord, LLC, Lessee has been in continuous possession of the property since January 1983. The District and the Lessee entered into a property lease agreement for the subject property on January 20, 1983. The lease had an initial term of twenty years, and was to automatically extend for an additional twenty years at the end of the initial term, unless cancelled by either property. California Health & Safety Code Section 6514.1(d), which became effective after the date of the original lease, required that leases for periods longer than 10 years be awarded through a competitive bid process. In light of the new regulation, the District and Lessee mutually agreed to terminate the original lease on May 9, 2005 and entered into the current lease for a term of ten years, expiring May 9, 2015. The lease use is compatible with District use and County requirements. C:\ Users \CGranzella\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \YTOD71 EQ \PP to Conduct PH for Willows Center 11- 6- 14.docx Page 1 of 2 POSITION PAPER Board Meeting Date: November 6, 2014 Subject- CONDUCT A PUBLIC HEARING TO DECLARE CERTAIN DISTRICT LAND UN- NEEDED AND AUTHORIZE STAFF TO EXECUTE A LEASE AGREEMENT WITH WILLOWS CENTER CONCORD, LLC (APN 126 -440- 003) RECOMMENDED BOARD ACTION: Adopt the resolution declaring the surface of the District property adjacent to the Willows Shopping Center property (APN 126- 440 -003) as un- needed property and authorize the General Manager, or his designee, to execute a lease agreement for the surface rights to the property, consistent with Board action. Attached Supporting Document. 1. Proposed Resolution C:\ Users \CGranzellaWppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \YTOD71 EQ \PP to Conduct PH for Willows Center 11- 6- 14.docx Page 2 of 2 RESOLUTION NO. 2014 - A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT DECLARING A PORTION OF DISTRICT LAND AS CURRENTLY UNNEEDED AND AUTHORIZING THE GENERAL MANAGER TO NEGOTIATE A LEASE FOR A PORTION OF THE PROPERTY LOCATED AT 1975 DIAMOND BOULEVARD, CONCORD WHEREAS, the District owns the property located at 1975 Diamond Boulevard, Concord, as shown in Exhibit A - Map (Property), a portion of which is currently leased by Willows Center Concord, LLC (Willows); and WHEREAS, the Property is more specifically identified as a portion of APN 126 -440- 003; and WHEREAS, a portion of the Property has been leased to Cingular for nine years; and WHEREAS, the District has received a request from Cingular for a lease amendment to increase the land area of the lease; and WHEREAS, the Board of Directors held a noticed public hearing on November 6, 2014, 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 is authorized to execute a lease or lease amendment with a term of less than ten years. 4. That the proposed lease or lease amendment are exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15301, since it involves leasing an existing public facility involving a negligible expansion of use beyond that currently existing. 5. 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 Resolution No. 2014 - Page 2 of 2 Central Contra Costa Sanitary District jurisdiction, then the remaining resolution portions shall be and continue in full force and effect. PASSED AND ADOPTED this 6th day of November, 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