The URL can be used to link to this page

Home My WebLink About12. Set a public hearing for 09-22-22 to declare the Kiewit buffer property as unneeded and authorize lease agreements Page 1 of 4 Item 12. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: SEPTEMBER 1, 2022 SUBJECT: SETA PUBLIC HEARING FOR SEPTEMBER 22, 2022 AT 12:00 P.M. TO RECEIVE COMMENTS AND CONSIDER AUTHORIZING THE GENERAL MANAGER, OR DESIGNEE, TO EXECUTE LEASE AGREEMENTS FOR THE PROPERTY COMMONLY KNOWN AS "KI EWIT PROPERTY" BUFFER PROPERTY(APN 159-140-051) FOR A PERIOD NOT TO EXCEED TEN YEARS AND DECLARE THE PROPERTYAS UNNEEDED FOR THE TERM OF THE LEASE AGREEMENTS SUBMITTED BY: INITIATING DEPARTMENT: DANEA GEMMELL, PLANNING AND ENG-PDS-DIVISION MANAGER DEVELOPMENT SERVICES DIVISION MANAGER Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE The Board must conduct a public hearing to declare District land as unneeded and authorize staff to execute lease agreements on this land. BACKGROUND The District owns a parcel known as Kiewit Property, which was purchased as buffer in Martinez, California. The Kiewit site is located between Grayson and Walnut Creeks, Highway 4, and Imhoff Drive (see Attachment 1 for a location map). Land uses near the site include a quarry to the north, industrial and commercial uses to the east, the District' s wastewater treatment facility to the west, and Buchanan Field Airport to the south. The property is designated as Public/Quasi-Public on the Contra Costa County General Plan land use map and is zoned Heavy Industrial (H -1) on the County's zoning map. September 1, 2022 Regular Board Meeting Agenda Packet- Page 47 of 86 Page 2 of 4 On April 17, 2014, the Board adopted Resolution 2014-011 to declare the western 14.8 acres of the property unneeded for ten years. On May 17, 2018, the Board adopted Resolution 2018-011 to declare the eastern 18.2 acres on the property unneeded for ten years. To continue leasing this property, the Board must declare the land currently unneeded for Central San's purposes, functions, and duties. I n order to allow the District to lease any portions of the Kiewit Property, the Board must make a finding 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 ten years. The Board must also declare the property as unneeded for District purposes during the term of the lease. Approval of the proposed resolution will allow the entire 33-acres on the Kiewit site to be available for leasing in part or in its entirety for a ten-year period without having to come back to the Board for approval to declare the property as unneeded. I n late January 2022, Dr. Carolyn Phinney sent an email requesting the start of negotiations for an extension to the AgLantis Lease Agreement for the CoCo San Sustainable Farm (Farm). Dr. Phinney would like to extend the lease for another ten years, as allowed in the lease, with the previous terms for this 14.8-acre parcel for a lease rate of one dollar ($1) per year and continuation of recycled water supplied at no additional cost. On June 16, 2022, the Board held a discussion related to the request to extend the lease for an additional ten years and directed the Real Estate, Environmental and Planning (REEP) Committee to reviewthe lease terms and conditions, address any questions, and provide a recommendation for Board consideration at a future Board meeting. All Board Members concurred. On August 23, 2022, the REEP Committee discussed the Farm's renewal request and either extending the lease for eight more years or executing a new lease. After discussion with staff and Dr. Phinney, the Committee recommended a new lease on the 14.8-acre parcel for ten more years that would extend through the period that Kiewit is declared unneeded, with a lease rate of$1 per year and continuation of recycled water supplied at no additional cost, subject to findings that the Farm provides a comparable public benefit to the market lease rate. ALTERNATIVES/CONSIDERATIONS The Board may decline to establish the recommended public hearing date or may elect to choose a different date; however, a public hearing must be held and the property must be declared as "currently un- needed" if the property is to be leased. FINANCIAL IMPACTS Leasing Criteria Item No. 3 of Board Policy BP 043 - Buffer Property Management states that "Market lease rates ora comparable public benefit shall be charged to provide additional revenue to Central San and its ratepayers." All new leases on the Kiewit Property will have the lease rate established through a market rate valuation or a comparable public benefit valuation. COMMITTEE RECOMMENDATION This setting of the public hearing date was not reviewed by a Board Committee. September 1, 2022 Regular Board Meeting Agenda Packet- Page 48 of 86 Page 3 of 4 RECOMMENDED BOARD ACTION Set a public hearing for September 22, 2022 at 12:00 p.m. to consider authorizing the General Manager, or designee, to execute lease agreements for the property commonly known as "Kiewit Property" buffer property(APN 159-140-051)for a period not to exceed ten years and declare the property as unneeded for the term of the lease agreements. Strategic Plan Tie-In GOAL SIX: Infrastructure Reliability Strategy 1 - Manage assets optimally ATTACHMENTS: 1. Location Map September 1, 2022 Regular Board Meeting Agenda Packet- Page 49 of 86 Page 4 of 4 Kiewit Site Plan Attachment 1 Declare Entire 33 Acre Parcel Unneeded Map Date:8/24/2022 ' CCC Flood Control and Water CCC Flood Control Conservation District n and Water Conservation District` COUNTY QUARRY CCCSD x,�.� k' IMHOFF DR x• x-. TREATMENT x k +� PLANT �' - �'` X r k `� �� u\ k 18.2 acres ' •►` 14.8 acres /k �+. / of k 011, � k r.•' � - Fence A! / Slope (10:1) Unneeded 14.8 acres <� (Sustainable Farm) N Unneeded 18.2 acres 0 125 250 Buchanan Field 0 Paved Road ` Airport Feet Runway Protection Zone September 1, 2022 Regular Board Meeting Agenda Packet- Page 50 of 86