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HomeMy WebLinkAbout03. Draft Position Paper to execute agreement with Contra Costa Water District for operating drying basins3. Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: December 15, 2016 Subject: CONDUCT A PUBLIC HEARING TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE A LEASE AGREEMENT WITH CONTRA COSTA WATER DISTRICT FOR A PERIOD NOT TO EXCEED 10 YEARS; AND DECLARE THE PROPERTY AS UNNEEDED FOR THE TERM OF THE LEASE (APN 159-140-057, PORTION) Submitted By: Rick Hernandez Senior Right of Way Agent Initiating Dept./Div.: Engineering and Technical Services/ Planning and Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: T. Godsey — Senior Engineer D. Gemmell — Planning & Development Svcs. Division Mgr. J.M. Petit — Director of Engineering & Technical Services Kent Alm Roger S. Bailey Counsel for the District General Manager ISSUE: Prior to entering into any lease of real property owned by the District, the Board must conduct a public hearing. The subject property must be used for compatible uses and for public benefit, and the term may not exceed ten years. Leased property also must be declared unneeded for District purposes during the term of the lease. BACKGROUND: The Contra Costa Water District (CCWD) has been leasing a portion of District property to operate drying basins used for times when the primary basins at the Bollman Water Treatment Plant reach capacity or require maintenance (map attached). Alum and other residuals from the Bollman Plant are piped to the drying basins where they are air dried and then hauled off. The drying basins have been in operation since 1997 and it is estimated that 64 cubic yards of solids will be processed per year. Staff monitors the operation via a current Class!! Industrial User Permit issued by the District. The proposed lease will extend the current lease for another five years with options for additional years, but not exceeding ten years in total. The lease with CCWD was last renewed in 2007. ALTERNATIVES/CONSIDERATIONS: The lease agreement has cancellation provisions to accommodate unanticipated use of the land for District operations. The current draft of the District's Comprehensive Wastewater Master Plan has not determined an operational need for this property over the next 10 years. FINANCIAL IMPACTS: The negotiated annual rent per acre of land is $20,700. The total annual lease amount will be between $126,270 and $195,650, depending on whether CCWD's process requires two basins or three. COMMITTEE RECOMMENDATION: Approval of this lease was recommended by the Real Estate, Environmental & Planning Committee at its November 22, 2016 meeting. Page 1 of 2 POSITION PAPER Board Meeting Date: December 15, 2016 Subject: SET PUBLIC HEARING FOR DECEMBER 15, 2016, TO CONSIDER AUTHORIZING STAFF TO EXECUTE AN AGREEMENT WITH CONTRA COSTA WATER DISTRICT TO LEASE DISTRICT PROPERTY, AND TO DECLARE THE PROPERTY AS CURRENTLY UNNEEDED (APN 159-140- 057, PORTION) RECOMMENDED BOARD ACTION: Adopt a resolution authorizing the General Manager, or his designee, to lease a portion of District property located on the treatment plant site in Martinez (APN 159-040-057, portion) to the Contra Costa Water District for operating drying basins for a term not to exceed ten years; and declaring the property as unneeded for District purposes during the term of the lease. Attached Supporting Document: 1. Map of CCWD Drying Basins Page 2of2 0 2 E 0) . _ 0 0 0 c -63 0 0 6) QJ 0 uJ ATTACHMENT 1 Central Contra Costa Sanitary District Protecting Public Health antl the Environment CCWD Drying Basins Exhibit