HomeMy WebLinkAbout4.a. Review draft Posiiton Paper to Consider adopting new Board Policy No. BP 043 Buffer Property Management, effective immediately Page 1 of 5
Item 4.a.
CENTRAL SAN BOARD OF DIRECTORS
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POSITION PAPER
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DRAFT
MEETING DATE: APRIL 6, 2021
SUBJECT: REVIEW DRAFT POSITION PAPER TO CONSIDER ADOPTING NEW
BOARD POLICY NO. BP 043 - BUFFER PROPERTY MANAGEMENT,
EFFECTIVE IMMEDIATELY
SUBMITTED BY: INITIATING DEPARTMENT:
DANEA GEMMELL, PLANNING AND ENG-PDS-DIVISION MANAGER
DEVELOPMENT SERVICES DIVISION
MANAGER
REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
ISSUE
Board of Directors (Board) approval is required for adoption of new Board Policies.
BACKGROUND
Over the years, Central San has obtained buffer properties surrounding the treatment plant in order to
reduce any disturbances to nearby neighbors due to noise, odors, and land use. Some of these properties
have been leased out to tenants with compatible uses in compliance with Health and Safety Code §6514.1
(see Attachment 1), which provides a procedure to lease public lands that are unneeded for a period up to
ten years.
It would benefit Central San to adopt a policy on buffer properties to provide guidance to staff in evaluating
prospective and existing tenants. Criteria for consideration are proposed that prioritize Central San's
needs for its own use to operate and maintain the sanitary sewer system and wastewater treatment and
disposal facilities of the District. Secondarily, buffer properties provide additional lease revenue that help
keep sewer service charges lower for ratepayers. Finally, tenants that can provide a public benefit for
either the short term or long term, should be considered. Development of this criteria provides a
transparent metric for all tenants requesting use of Central San's buffer properties.
On January 21, 2021, staff presented an overview of District properties, including buffer properties
(located between the treatment plant and the surrounding properties not owned by Central San). The
Board directed staff to draft a new policy on buffer property management and present to the Administration
Committee for consideration.
April 6, 2021 Regular ADM IN Committee Meeting Agenda Packet- Page 4 of 80
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Attached for the Board' s consideration is a proposed new Board Policy No. B P 043 - Buffer Property
Management.
ALTERNATIVES/CONSIDERATIONS
The Board may choose not to adopt the proposed policy or may provide other direction to staff.
FINANCIAL IMPACTS
For Fiscal Year 2020-21, Central San anticipates approximately$719,000 in lease rental revenue. This
annual revenue is projected to escalate by approximately three percent per year.
COMMITTEE RECOMMENDATION
The Administration Committee reviewed this matter at its March 9, 2021 and April 6, 2021 meetings
and recommended
RECOMMENDED BOARD ACTION
Adopt new Board Policy No. BP 043 - Buffer Property Management, effective immediately.
Strategic Plan re-In
GOAL THREE: Fiscal Responsibility
Strategy 1—Maintain financial stability and sustainability,, Strategy 2—Ensure integrity and transparency in financial
management
ATTACHMENTS:
1. Health and Safety Code Section 6514.1
2. Proposed BP 043-Buffer Property Management with Revisions
April 6, 2021 Regular ADM IN Committee Meeting Agenda Packet- Page 5 of 80
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II STATE OF CALIFORNIA
LEGISLATIVE AUTHENTICATED
COUNSEL
BuaEAU ELECTRONIC LEGAL MATERIAL Attachment 1
State of California
HEALTH AND SAFETY CODE
Section 6514.1
6514.1. (a) A district may lease, for a term not exceeding 99 years, subject to
periodic review, district property that will not be needed for district purposes during
the term of the lease,as a means of providing revenues to the district for the operation
and maintenance of sanitary sewer system and waste water treatment and disposal
facilities of the district,and to finance the acquisition,construction,and improvement
of these facilities.
(b) Prior to entering into a lease, the board shall, except as otherwise provided in
subdivision (e),publish notice pursuant to Section 6066 of the Government Code of
the time and place of the meeting of the board at which the proposed lease will be
considered, and at that time and place shall afford all persons present an opportunity
to be heard with respect to the proposed lease.
(c) If the board finds that the subject property will not be needed by the district
and that it is in the best interests of the district and the users of its sanitary sewer
system that the lease be entered into, it may, by ordinance setting forth the findings,
authorize the lease. The ordinance shall be subject to Article 2 (commencing with
Section 9340) of Chapter 4 of Division 9 of the Elections Code.
(d) Every lease shall be awarded to the bidder which, in the determination of the
legislative body, offers the greatest economic return to the district after competitive
bidding conducted in the manner determined by the legislative body. Notice inviting
bids may be published pursuant to Section 6066,in one or more newspapers of general
circulation within the district.
(e) If the board makes a finding at a noticed public hearing that the subject property
will be used for compatible uses,that it will be of public benefit, and that the term of
the lease will not exceed 10 years, subdivisions (c) and (d) shall be optional.
(Amended by Stats. 1994,Ch. 923,Sec. 122. Effective January 1, 1995.)
April 6, 2021 Regular ADM IN Committee Meeting Agenda Packet- Page 6 of 80
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Attachment 2
Number: BP 043
Authority: Board of Directors
Effective: May 1, 2021
Revised: N/A &N
Reviewed: N/A ' CENTRALSAN
Initiating Dept./Div.: Engineering/Planning & Dev.
BOARD POLICY
BUFFER PROPERTY MANAGEMENT
PURPOSE
To provide guidance for management of Central San's buffer properties for prospective and
existing tenants. This policy is for buffer properties that are located between the treatment
plant and the surrounding properties not owned by Central San. Leasing criteria and
prioritization will be utilized for any unneeded buffer property that is proposed for lease to
others.
POLICY
It is Central San's policy to obtain and manage buffer property around the treatment plant to
avoid incompatible land uses with Central San and surrounding properties, and minimize
disturbances sucn as noise and odor, to the community. In applying this policy, Central San
shall review all District-owned property, every fivete-R years at a minimum, its buffer properties
to determine the need and use thereof, including if the inventory is best served as a source of
I�nc�� rw�ri
Central San will maintain a priority for its own use to operate and maintain the sanitary sewer
system and wastewater treatment and disposal facilities. Central San will then prioritize
prospective projects interested in leasing a buffer property that enhances Central San's vision,
mission, and purpose over those projects that do not relate to wastewater. fhe Board of
Directors can moaity tnis poiicy on a case-DV-case Dasis.
LEASING CRITERIA
For leasing the unneeded real property, Central San will comply with Health and Safety Code
§6514.1. The following factors will be taken into consideration when evaluating new lease
proposals for buffer properties.
1. Land use must be compatible with Central San's and surrounding property owner's
land use. (All leases shall include clauses allowing Central San to request
termination, if the Board declares property is needed for public use.)
2. Adherence to all applicable laws, rules, a-nd regulations ana permh,�i.
3. Market lease rates or a comparable public benefit shall be charged to provide
additional revenue to Central San and its ratepayers.
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Number: BP 043
BUFFER PROPERTY MANAGEMENT
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4. Other Public Agencies, then non-profits needs shall be given priority for temporary
uses over private entities.
5. Public and surrounding property owner's acceptability and aesthetics.
6. Avoid potential for adverse environmental impacts, such as hazardous material spills
or traffic congestion.
7. Financial stability to pay rent timely and address needed environmental cleanup,
infrastructure, or necessary improvements.
8. Housekeeping performance of existing tenants.
9. Lease terms shall be up to 10 years and all terms of Health and Safety Code
�6514.1 shall be met.
10.References and background checks.
[Original retained by the Secretary of the District]
April 6, 2021 Regular ADMIN Committee Meeting Agenda Packet- Page 8 of 80