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Home My WebLink About07.b. Public hearing regarding lease agreement with Contra Costa Water District for a portion of property on Central San's Martinez treatment plant site (Alum Sludge Ponds) for less than 10 years, and declaring the property as unneededCentral San BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: December 15, 2016 Subject: 7.b. 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. JM. Petit — Director of Engineering & Technical Services Kenton L. Alm Counsel for the Distri l•A.�w Roger S. Bailey) General Manager ISSUE: Prior to entering into any lease of real property owned by CeTrtral San, 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 10 years. Leased property also must be declared unneeded for Central San's purposes during the term of the lease. BACKGROUND: The Contra Costa Water District (CCWD) has been leasing a portion of Central San's 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 II Industrial User Permit issued by Central San. The proposed lease will extend the current lease for another five years with options for additional years, but not exceeding 10 years in total. The lease with CCWD was last renewed in 2007. ALTERNATIVES/CONSIDERATIONS: The lease agreement has cancellation provisions to accommodate currently unanticipated use of the land for Central San's operations. The current draft of Central San'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. Page 1 of 2 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) COMMITTEE RECOMMENDATION: Approval of this lease was recommended by the Real Estate, Environmental & Planning Committee at its November 22, 2016 meeting. RECOMMENDED BOARD ACTION: Adopt a resolution authorizing the General Manager, or his designee, to lease a portion of Central San's property located on the treatment plant site in Martinez (APN 159-140-057, portion) to CCWD for operating drying basins for a term not to exceed 10 years; and declaring the property as unneeded for Central San's purposes during the term of the lease. Attached Supoortina Documents: 1. Map of CCWD Drying Basins 2. Proposed Resolution Page 2 of 2 ATTACHMENT 1 DETAIL nAR.EA 680 le ,41 APN 159-140-057 • 0 0 0 N co m x E y N f0 m c C f0 a • Central Contra Costa Sanitary District CCWD Drying Basins Exhibit A ATTACHMENT 2 RESOLUTION NO. 2016-050 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT AUTHORIZING THE GENERAL MANAGER TO EXECUTE A LEASE AGREEMENT WITH THE CONTRA COSTA WATER DISTRICT FOR A PORTION OF APN 159-140-057 FOR A PERIOD NOT TO EXCEED 10 YEARS AND DECLARE THE PROPERTY AS UNNEEDED FOR THE TERM OF THE LEASE AGREEMENT NOW THEREFORE BE IT RESOLVED by the Board of Directors (Board) of the Central Contra Costa Sanitary District (Central San) as follows: WHEREAS, Central San owns approximately 9.5 acres of land, being a portion of APN 159-140-057, and commonly referred to as the Alum Sludge Ponds (Property); and WHEREAS, Central San historically has utilized the Property in accordance with its needs, and from time to time leased the Property when unneeded to obtain revenue for Central San; and WHEREAS, the Board held a noticed public hearing on December 15, 2016, to determine whether the proposed lease of the Property would be compatible with Central San's activities and functions, and would provide a public benefit; and WHEREAS, Central San seeks to continue to allow the use of the Property by outside parties, NOW, THEREFORE, BE IT RESOLVED by the Board of Central San as follows: 1. THAT, after holding a noticed public hearing, the Board finds that the Property is currently unneeded for the performance of Central San's purposes, functions, and duties. Furthermore, the Board finds that the proposed lease for the Property is compatible with Central San's activities and functions. 2. THAT, after holding a noticed public hearing, the Board finds that the lease of the Property would provide a public benefit by generating funds for Central San's duties and functions. 3. THAT the General Manager, or his designee, is authorized to execute a lease agreement for the Property for a term not to exceed 10 years. Such lease shall be made at competitive market rates to parties which have uses compatible with the activities, duties, and functions of Central San. 4. THAT the proposed lease is exempt from the California Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines adopted by Central San under Resolution No. 2001-89, since it involves leasing an existing public facility in use. Resolution No. 2016-050 Central Contra Costa Sanitary District Page 2 of 2 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 jurisdiction, the remaining resolution portions shall be and continue in full force and effect. PASSED AND ADOPTED this 15th day of December, 2016, by the Board of Directors of Central San by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Tad J. Pilecki President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CMC 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