HomeMy WebLinkAbout03.a. Discuss potential 3.8-acre lease on portion of Kiewit property to County Quarry and possible development of a policy related to lease of District-owned buffer properties Page 1 of 5
Item 3.a.
CENTRAL
CENTRAL CONTRA COSTA SANITARY DISTRICT Central Contra Costa Sanitary District
September 19, 2018
TO: REAL ESTATE, ENVIRONMENTAL AND PLANNING COMMITTEE
FROM: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
REVIEWED BY:
JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
ROGER S. BAILEY GENERAL MANAGER
SUBJECT: DISCUSS POTENTIAL 3.8-ACRE LEASE ON PORTION OF KIEWIT
PROPERTY TO COUNTY QUARRYAND POSSIBLE DEVELOPMENT OF A
POLICY RELATED TO LEASE OF DISTRICT-OWNED BUFFER
PROPERTIES
On June 7, 2018, the Board conducted a public hearing to declare the remaining 18.2 acres of the Kiewit
property as unneeded for District purposes and authorized the General Manager or his designee to lease
the remaining portion. Two short term two-year leases have been executed; the first, to Liedstrand
Landscaping, utilizes 0.75 acres, and the second, to Bay Cities Paving & Grading, for three acres.
Accounting for non-leasable areas, including the seasonal wetland area and recycled water automatic filling
station, side slopes, and the runway protection zone area, there are approximately 3.8 level acres
remaining for lease.
Across the street at 5501 1 mhoff Drive, County Quarry operates a concrete and asphalt recycle center and
sells the recycled materials as well as new aggregate, concrete and asphalt on the site. County Quarry has
leased the 7.58-acre parcel for 31 years, and its current lease extends to December 31, 2022.
Current lease terms provide rent at$21,648 per month to the District, which has been escalated 3%
annually. The lease also provides specific terms for housekeeping of the property, including sweeping
mhoff Drive to keep it well maintained, and has penalties for non-compliance.
Staff was approached by County Quarry looking to expand their operations across the street and relocate
the existing concrete ready-mix plant to the Kiewit property. This would allow expansion to both the
concrete and asphalt operations. County Quarry is proposing to amend their existing lease terms to
include the remaining 3.8 acres, which would generate approximately$10,850 per month. While the parcel
is zoned heavy-industrial, consistent with this type of operation, it will require an amendment to the land use
permit by Contra Costa County to outline compliance with airport, traffic, and other general requirements.
With the previous land use permit efforts for the Sustainable Farm and County Quarry's existing operation,
a revised land use permit is most likely a three-to four-month process. Staff recommends facilitating the
process, but letting County Quarry lead the effort.
Proposals for interest in leasing District buffer properties have typically come in piecemeal, and evaluated
on a case-by-case basis. Central San does not currently have a prioritization of criteria for buffer
September 19, 2018 REEP Committee Meeting Agenda Packet- Page 3 of 46
Page 2 of 5
properties, and leases have been treated individually looking at near-term impacts only. Direction from the
Board on whether lease rates or strategic goals of environmental sustainability goals have a higher priority
would assist staff in evaluating these proposals.
Staff is bringing the County Quarry proposal to the Real Estate, Environmental & Planning (REEP)
Committee meeting as this proposal may develop beyond a short-term duration, unlike the previous two
leases. While the Kiewit parcel has been declared unneeded for the next 10 years by the Board, this short-
term, unneeded process is one that County Quarry has utilized with successive lease terms that has
become a 31-year history. Staff is seeking input from the RE E P Committee before moving forward with
this proposal and would like to receive input on both development of a policy for prioritization of criteria for
District-owned buffer properties and the County Quarry proposal on the remaining 3.8 acres on Kiewit
property.
Strategic Plan Tie-In
GOAL ONE:Provide Exceptional Customer Service
Strategy 1 - Build external customer relationships and awareness
ATTACHMENTS:
1. Kiewit Parcel and County Quarry Site Map
2. Staking Exhibit showing Available 3.8 Acres
3. Map of District Buffer Properties
September 19, 2018 REEP Committee Meeting Agenda Packet- Page 4 of 46
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September 19, 2018 REEP Committee Meeting Agenda Packet- Page 5 of 46
Page 4 of 5
EXHIBIT "A" Attachment 2
CENTRAL CONTRA COSTA SANITARY DISTRICT
LEASE AREAS - KIEWIT BUFFER PROPERTY
LEGEND WALNUT CREEK
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SCALE: DATE: ASSESSOR'S PARCEL NO.(APN): PARCEL NO.:
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1" = 200' 9/7/18 159-140-051
September 19, 2018 REEP Committee Meeting Agenda Packet- Page 6 of 46
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