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HomeMy WebLinkAboutReal Estate, Environmental & Planning MINUTES 08-23-22 (Special) Page 2 of 5 CENTRALSAN CONTRACENTRAL •STA SANITARY DISTRICT 5019 IMHOFF BOARD OF DIRECTORS: SPECIAL MEETING OF THE DAVID R. WILLIAMS President CENTRAL CONTRA COSTA BARBARA D.HOCKETT SANITARY DISTRICT President Pro Tem REAL ESTATE ENVIRONMENTAL MARCAHELR.MCGILL ESTATE, MICHAEL R.MCGILL & PLANNING COMMITTEE TAD PILECKI PHONE: (925)228-9500 M I N U T E S FAX- (925)372-0192 www.centralsan.org Tuesday, August 23, 2022 10:00 a.m. (All attendees participated via videoconference) Committee: Chair Barbara Hockett Alternate Member Tad Pilecki Guest: Dr. Carolyn Phinney, AgLantis Co-Founder Staff.- Roger S. Bailey, General Manager Katie Young, Secretary of the District Kent Alm, District Counsel Steve McDonald, Director of Operations Danea Gemmell, Planning and Development Services Division Manager 1 . Notice This meeting was conducted virtually in accordance with the provisions stipulated in Assembly Bill 361 and adopted on August 4, 2022, by the Central San Board of Directors. The agenda included instructions for options in which the public could participate in the meeting. 2. Call Meeting to Order Chair Hockett called the meeting to order at 10:00 a.m. September 1, 2022 Regular Board Meeting Agenda Packet- Page 74 of 86 Page 3 of 5 Special Real Estate, Environmental & Planning Committee Minutes August 23, 2022 Page 2 3. Public Comments None. 4. Agenda Items a. Hold discussion on lease terms for AgLantis Lease renewal for CoCo San Sustainable Farm on Central San's Kiewit parcel Ms. Gemmell provided a thorough background and history of the AgLantis lease and the CoCo San Sustainable Farm. She reviewed the memorandum included in the agenda materials which answered several questions posed by the Committee. One question in particular was regarding the amount of recycled water being used, approximately 1 million gallons to 2.5 million gallons of recycled water are used a year. Ms. Gemmell advised that AgLantis would like to apply for some grants and funding through the USDA and is requesting for an extension to the current lease. She advised the Committee of the necessary steps, including declaring the property unneeded for Central San use with a public hearing. Ms. Phinney provided some clarifying facts regarding the farm and the purpose. She advised that the farm's mission includes food equity and public heath, environment, public education, economic development, and job training. A goal is to produce half-million crops per year. Member Pilecki stated that during the public hearing the Board needs to make sure the farm is meeting certain criteria and to reiterate and show the comparable public benefit versus the lease of the property. In response to a question posed by the Committee, Ms. Gemmell advised that an analysis provided by Dunn & Associates valued the 14.8 acres of the property rental income to be approximately $21,500 per month or an annual lease of$258,000. There was a discussion about the current lease provision of the option to remove the farm from the land with a one year notice. Member Pilecki mentioned the public benefit is comparable to the monthly lease rate. Mr. Alm discussed the terms of the Health and Safety Code Section 6514.1 in the Sanitary District Act, which states that the District can lease a property to September 1, 2022 Regular Board Meeting Agenda Packet- Page 75 of 86 Page 4 of 5 Special Real Estate, Environmental & Planning Committee Minutes August 23, 2022 Page 3 provide revenues for operations and maintenance but must clearly indicate part of reason to lease is for revenues. Furthermore, the criteria for leasing the property for over 10 years would have to be put out for bid and his recommendation would be to have a lease for less than 10 years. Mr. Alm stated that regarding the gift of public funds, as long as the purpose of the use of recycled water is consistent with the District's overall mission, vision, and values, there would be no issue. He stated that based on the discussion held, he believes there is worthy justification that it is not a gift of public funds. He advised staff to point out the justifications at the public hearing, including but not limited to, the demonstration of carbon emitter, the use of recycled water, and the elimination of alternative pesticides in the water stream. There was a discussion regarding the terms of the current lease versus creating a new lease. Member Pilecki inquired about the use of the site in the future for a filter or desalination plant for recycled water. Mr. Bailey responded that the site would be used for a regional solids handling facility in approximately 10 years. Member Pilecki requested staff expand the language regarding site removal should the District want to put a facility on the property. Mr. Alm advised that the Committee could make the recommendations and the approach would be worked out at the September 1 Board meeting. Member Pilecki provided two options: 1) extending the current lease for an additional eight years; or 2) negotiate a new lease starting at a specific date effective for 10 years. Both options would need to outline the criteria for the comparable public benefit and strengthen the language about the future. The cost of the lease would continue to be one dollar($1). Mr. Alm advised that he prefers a new lease for 10 years or less from a defined started date. The Committee recommended bringing the above-mentioned terms for the new 10-year lease for further discussion to the full Board. COMMITTEE ACTION: Received the update, held discussion and recommended lease terms for Board discussion. 5. Announcements None. September 1, 2022 Regular Board Meeting Agenda Packet- Page 76 of 86 Page 5 of 5 Special Real Estate, Environmental & Planning Committee Minutes August 23, 2022 Page 4 6. Suggestions for future agenda items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items None. COMMITTEE ACTION: Received the list and provided input to staff. 7. Future scheduled meetings Wednesday, September 21, 2022 at 9:00 a.m. Wednesday, October 19, 2022 at 9:00 a.m. Wednesday, November 16, 2022 at 9:00 a.m. 8. Adjournment— at 11:09 a.m. September 1, 2022 Regular Board Meeting Agenda Packet- Page 77 of 86