HomeMy WebLinkAbout02. Consider a new lease to AgLantis for CoCo Sustainable Farm on the Kiewit buffer property Page 1 of 8
Item 2.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: SEPTEMBER 22, 2022
SUBJECT: CONSIDER A NEW 14.8 ACRE LEASE AGREEMENT ON A PORTION OF
THE "KIEWIT PROPERTY' WITH AGLANTIS FOR THE COCO SAN
SUSTAINABLE FARM FOR A TERM NOT TO EXCEED TEN YEARS WITH
LEASE TERMS SATISFACTORY TO THE GENERAL MANAGER AND
DISTRICT COUNSEL; ADOPT RESOLUTION NO. 2022-072 TO AUTHORIZE
THE NEW LEASE AGREEMENTAND FIND THE LEASE IS EXEMPT FROM
THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA)
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 of Directors (Board) must conduct a public hearing to consider leases with comparable public
benefit for District purposes for approval.
BACKGROUND
In 2012 AgLantis, the proponents of the CoCo San Sustainable Farm (Farm) approached Central San to
create a sustainable urban farm on a portion of the 33-acre Kiewit site, which is identified as a buffer
property. After two years of negotiations and due diligence by Central San and AgLantis, the
Board approved a ten-year lease on April 17, 2014. Terms for this 14.8-acre lease on the western side of
the Kiewit parcel included a lease rate of one-dollar ($1) per year and supplying recycled water to the Farm
at no additional cost.
September 22, 2022 Special Board Meeting Agenda Packet- Page 9 of 16
Page 2 of 8
The mission of the Farm was aligned to directly support District purposes and Central San's mission to
protect public health and the environment. The AgLantis 2014 Lease included the following requirements:
• "Support Central San's mission to foster sustainable and renewable practices, including recycled
water.
• Teach sustainable living practices, recycled water science, Delta awareness, sustainable watershed
practices, Integrated Pest Management, pollution prevention, soils science and other science related
to District's educational programs.
• Promote the District's environmental messages, including collecting and diverting household
hazardous waste for proper reuse or disposal.
• Showcase green technologies, including fostering green building practices and green jobs; and
• Demonstrate how to reduce the carbon and environmental footprint of food production and
distribution."
Also included in the lease was the requirement to provide annual reports by April 1 of each year to the
Board to ensure performance and monitor progress against metrics provided in the lease, which AgLantis
has completed each year.
Performance from 2014 to 2022
AgLantis supplemented the sterile soil with mulch and manure across the property and implemented a no-
till approach to farming to reduce greenhouse gas emissions and foster carbon sequestration. Challenges
in securing a land use permit for agricultural operation delayed the planting of crops until 2018. A wide
variety of crops are grown including peas, beans, zucchini, winter squash, tomatoes, potatoes, kale,
lettuce, pumpkins, chard, peppers, eggplant, melons, cabbage, broccoli, Romanesco, cauliflower,
cabbage, beans, dill, basil, rosemary, and other herbs. All produce is grown with Central San's recycled
water, tended by volunteers and donated to the food bank and non-profits in order to address food equity
and public health for the community. In 2018 AgLantis donated 12,000 pounds of produced which has
increased in 2021 to over 40,000 pounds, which was donated to Contra Costa/Solano Food Bank and Mt.
Diablo High School (Cindy Gershen's Nutrition Program).
A focus on the environment and education by AgLantis is seen in both its farming methods and educational
programs. Regenerative agriculture methods are utilized including organic, no-till, Integrated Pest
Management, cover crops, and hedgerows which focus on increasing carbon sequestration in soil and
production. AgLantis holds summer classes for students and teaches these methods with discussions
about recycled water and its benefits to all volunteers. I n 2021, over 1,000 volunteers, several hundred of
which were high school students, participated in tending the farm.
Approximately seven of the 14.8 acres have been improved and are currently used for farming and site
improvements. AgLantis installed a fence around the 14.8 acres and constructed other infrastructure
improvements at the site including storage tanks for recycled water to address the need to for the Contra
Costa County Fire Department to respond in case of emergency. A 6,000 square foot Agratech Solar
Light greenhouse was donated valued at$100,000 but has not yet been constructed, as it has been
challenging to receive a building permit for this permanent structure. A temporary high hoop greenhouse
was installed for propagation of seeds and plants a few years ago and a second one is close to
completion.
AgLantis intends to grow field crops on 10 acres with the remaining 4.8 acres used for buildings, irrigation
pipes, water tanks for fire, roads and other infrastructure. With full production of the parcel and its
regenerative farming methods for the field crops, Dr. Phinney projects growing up to 500,000 pounds of
produce available for donation to non-profits to combat hungry or nutritionally challenged people in Contra
Costa County. She anticipates achieving this over the next ten years, but could reduce it in half with the
construction of the Solar Light greenhouse.
September 22, 2022 Special Board Meeting Agenda Packet- Page 10 of 16
Page 3 of 8
Lease Request
I n late January 2022, Dr. Carolyn Phinney sent an email requesting the start of negotiations for an
extension to the AgLantis Lease Agreement(Attachment 1)for the Farm. Dr. Phinney has requested 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$1 per year and continuation of recycled water supplied at no additional cost.
Further discussions with Dr. Phinney disclosed that a 2022 AgLantis grant request in the amount of
$30,500 to the United States Department of Agriculture (USDA)for construction of high hoop
greenhouses was declined since only two years was remaining on the lease (expiring on April 16, 2024).
Recently, USDA contacted Dr. Phinney to provide the funding subject to extension of the AgLantis lease,
as funds are available at the end of the federal fiscal year for an expenditure by the end of October 2022.
As a"beginning farmer",AgLantis is eligible to apply over the next few years for grants for infrastructure.
On June 16, 2022, the Board held a discussion related to the AgLantis request for an additional ten years
and directed the Real Estate, Environmental & Planning Committee (RE EP)to review the lease terms and
conditions, address any questions, and provide a recommendation for Board consideration at a future
Board meeting. All Board Members concurred with two requesting additional information.
On August 23, 2022, the REEP Committee discussed the Farm's renewal request and either extending
the lease for 8 more years or executing a new ten-year lease starting from the date the Kiewit property is
declared unneeded. Staff recommends a new ten-year lease be developed which will allow Central San an
opportunity to update the terms and expand upon an existing clause which allows Central San the right to
have the Farm vacate the property for District purposes with a minimum of a one-year notice. The Kiewit
site is a likely location for a long-term future project, related to a regional wastewater solids handling facility
or expansion of Central San's recycled water program.
Lease Terms
A separate consent item on this September 22, 2022, agenda will conduct a public hearing to declare the
full 33-acre Kiewit property unneeded and authorize the General Manager or his designee, to execute
lease agreements on the Property for terms not to exceed ten years. Such leases shall be made at
competitive market rates to private parties which have uses compatible with the activities, duties, and
functions of the District.
The REEP 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 CoCo San
Sustainable Farm provides a comparable public benefit to the market lease rate. Providing recycled water
at no-charge to AgLantis is consistent with Central San policy of allowing residential customers to pick-up
recycled water at the treatment plant at no charge, and non-residential customers receiving their first
100,000 gallons at no charge by utilizing the recycled water fill station located on the Kiewit site. Besides
serving as a recycled water demonstration project, the Farm also showcases carbon sequestration through
regenerative agriculture and offsetting greenhouse gases (GHG) emissions, which is in Central San's
Strategic Plan to reduce reliance on non-renewable energy and responsibly manage GHG emissions.
Comparable Public Benefit to District
Dr. Phinney advised at the RE EP meeting that the Farm's mission includes food equity and public heath,
environment, public education, economic development, and job training. Its mission is compatible with
Central San's mission to protect public health and the environment. However, a discussion of the Farm's
comparable public benefit is necessary before executing a new lease with the proposed favorable terms,
to ensure no gift of public funds.
September 22, 2022 Special Board Meeting Agenda Packet- Page 11 of 16
Page 4 of 8
• Food Equity and Public Health: AgLantis'goal for the next ten years is to increase food donation
to 500,000 pounds of produce annually to non-profits that feed the homeless and nutritionally
challenged. With a nominal cost of$1 per pound this would provide a comparable public benefit for
the current market lease rate of$21,500 per month or an annual lease rate of$258,000.
• Environment: AgLantis is utilizing recycled water in its agricultural practices and serving as a
demonstration of its high productivity. Its regenerative farming methods are showcasing organic, no-
till, Integrated Pest Management, cover crops, hedgerows and focus on increasing carbon
sequestration in soil and production.A new Monarch butterfly habitat was planted and is already
yielding Monarch caterpillars this year. These practices support Central San's mission to foster
sustainable and renewable practices, including recycled water. Continuing these practices support
CoCo San Sustainable Farm as a demonstration project for Central San going forward.
• Public Education: The CoCo San Sustainable Farm has extensively focused on education by hosting
summer farm camps, community education to new volunteers on sustainable farm practices, and
publishing articles. Dr. Phinney recently presented to Google on August 8, 2022, on the Farm and
recycled water. AgLantis has a strong social media outreach presence as well on Facebook and
Instagram. These efforts to teach sustainable practices also provide direct value for public benefit related
to recycled water and protecting public health and the environment.
• Economic Development and Job Training: AgLantis collaborated with Mount Diablo Unified
School District to mentor students and encourage jobs related to farming and high-tech
greenhouses. Its goals are to increase these efforts once the Agratech Solar Light greenhouse is
constructed. These efforts are admirable and provide benefit to Contra Costa County and the
community, though they are outside of Central San's core mission.
If these efforts continue for the next ten years, it appears that comparable public benefit for the District is
provided by AgLantis, that meets or exceeds the market lease rate value.
California Environmental Quality Act(CEQA)
Staff has concluded that approval of this lease agreement is exempt from CEQA under District CEQA
Guidelines Section 15301, since it would involve leasing of existing District property with negligible or no
expansion of use at this time. The lease agreement reserves the property for possible future actions to
which the District has not approved and would not be legally bound to allow without additional CEQA
compliance documentation and a land use approval by Contra Costa County.Approval of this lease
agreement would establish the Board of Directors' independent finding that the lease is exempt from
CEQA.
ALTERNATIVES/CONSIDERATIONS
The Board may elect to not lease the property or seek an alternative use for this land. For the AgLantis
request there are several options that may be considered with respect to the new ten-year lease:
1. Lease for five years on 14.8 acres and an option for an additional five years, with similar terms.
2. Lease for ten years on 14.8 acres, with an adjusted lease rate, such as $1 per year plus the cost of
recycled water.
3. Lease for ten years on some lesser acreage than 14.8 acres with no change in terms.
4. Do not grant a new lease.
5. Any other options not presented herein.
FINANCIAL IMPACTS
There is minimal financial impact to the District.
September 22, 2022 Special Board Meeting Agenda Packet- Page 12 of 16
Page 5 of 8
COMMITTEE RECOMMENDATION
The REEP Committee considered the request for a new AgLantis lease at its meeting on August 23, 2022 and
recommended the full Board hold a discussion to consider a new lease and to continue the existing lease terms
in the new ten-year lease.
RECOMMENDED BOARD ACTION
Staff recommends the Board:
1. Consider a new lease agreement on 14.8 acres of the Kiewit property (APN 159-140-051)with
AgLantis for the CoCo San Sustainable Farm for a term not to exceed ten years with lease terms
satisfactory to the General Manager and District Counsel; and
2. Adopt the proposed resolution to authorize the execution of the lease and to find the lease
agreement is exempt from CEQA.
Strategic Plan re-In
GOAL ONE: Customer and Community
Strategy 3- Build neighborhood and industry relations
GOAL TWO: Environmental Stewardship
Strategy 3- Be a partner in regional development of local water supply
ATTACHMENTS:
1. AgLantis Request for Renewal dated January 30, 2022
2. Proposed Resolution
September 22, 2022 Special Board Meeting Agenda Packet- Page 13 of 16
Page 6 of 8
Attachment 1
Danea Gemmell
From: carolynphinney@comcast.net
Sent: Sunday, January 30, 2022 9:05 AM
To: Danea Gemmell
Subject: Lease Renewal
Dear Danea,
AgLantis would like to start the process of renewing our CoCo San Sustainable Farm lease. The next
few years will be very exciting and securing a renewal is important before we move forward.
We are now working with the NRCS/USDA on a federal grant to build 5 more hoop greenhouses to
grow our most vulnerable crops in greater protection. We hope to secure this funding this spring. We
are also applying for federal funding for hedgerows and trees that will protect the farm from wind and
bring more pollinators.
The USDA is also helping us plan our irrigation system extension to be sure we have enough
pressure for the whole design.
As you know, AgraTech in Pittsburg donated a 144' X 42' hydroponic greenhouse and we have finally
received approval from Contra Costa County Public Works and CoCoCo Fire. We still need approval
from the Building Department, but we are making progress! This is a HUGE project that involves
bringing PGE to the farm and so much more. We would like to have our lease renewal in place before
we make these investments.
Finally, we are exploring replicating the farm on another sanitary/sanitation district. CoCoCo has other
districts who have expressed a desire to replicate and contribute to our goals:
Food Equity, Education, Environmental Protection and Economic Development and Job Training
(Internships for disadvantaged youth).
Please let me know what I can do to facilitate this process. We had 35 volunteers, ages 3 to 70s, at
the farm this Saturday and we are so excited about how much momentum we have created for this
farm being a wonderful community builder and for our families. Volunteers came from John Muir
Health, a local builder, local high schools, California Conservation Service, Google, a local
architecture firm, Walnut Creek Boys Team Charity, Sustainable Contra Costa and more. It's
particularly great that everyone can work outdoors, during this public health crisis. Most of our
volunteers live in the Central San service district and are receiving unique benefits from their sanitary
district.
Thank you so much for all your help over the years!
Carolyn
Carolyn Phinney, Ph.D.
President,AgLantis (501 c-3)
www.Salads4Schools.org
925-788-7374
1
September 22, 2022 Special Board Meeting Agenda Packet- Page 14 of 16
Page 7 of 8
Attachment 2
RESOLUTION NO. 2022-072
A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
AUTHORIZING STAFF TO EXECUTE A LEASE AGREEMENT WITH AGLANTIS, A PUBLIC
BENEFIT CORPORATION FOR A 14.8-ACRE PORTION OF THE KIEWIT PROPERTY FOR
A PERIOD NOT TO EXCEED TEN YEARS
WHEREAS, the Central Contra Costa Sanitary District (District) owns approximately 33 acres
on Imhoff Drive, commonly known as the "Kiewit Property"just east of the Martinez
Treatment Plant; and
WHEREAS, the Property is more specifically identified as a portion of APN 159-140-051; and
WHEREAS, the District has received a request from AgLantis, a public benefit corporation,
for a new ten-year lease of a 14.8-acre portion of the property to operate the CoCo San
Sustainable Farm (Farm) shown in Exhibit A; and
WHEREAS, AgLantis is currently donating produce to non-profit entities that feed the
homeless and nutritionally challenged and intends to increase the donation to 500,000
pounds per year during the ten-year term of the lease; and
WHEREAS, AgLantis is operating the Farm as a demonstration project for recycled water
and sustainable agricultural practices including regenerative farming methods showcasing
organic, no-till, Integrated Pest Management, cover crops, hedgerows and focus on
increasing carbon sequestration in soil and high yield crop production; and
WHEREAS, the District has a Strategic Plan measure to reduce reliance on non-renewable
energy and responsibly manage greenhouse gas emissions and AgLantis is providing a
demonstration of regenerative agriculture processes and carbon sequestration to capture and
store atmospheric carbon dioxide to reduce the impact of greenhouse gases; and
WHEREAS, providing recycled water at no charge to AgLantis is consistent the District's
policy to allow residential customers to pick-up recycled water at the treatment plant at no
charge, and for non-residential customers to receive their first 100,000 gallons at no charge
utilizing the recycled water fill station located on the Kiewit Property site; and
WHEREAS, the educational opportunities provided by AgLantis to teach sustainable
practices also provide direct value for public benefit related to recycled water and protecting
public health and the environment.
WHEREAS, the Board of Directors held a noticed public hearing on September 22, 2022, to
determine whether the proposed lease of the Property would be compatible with zoning, land
use regulations, District activities and functions, and would provide public benefit to the
District.
September 22, 2022 Special Board Meeting Agenda Packet- Page 15 of 16
Page 8 of 8
Central Contra Costa Sanitary District
Resolution No. 2022-072
Page 2 of 2
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District as follows:
1. THAT, after holding a noticed public hearing of the Kiewit Property, the Board finds
that the leasing of the Property would provide a public benefit that is compatible with
the activities, duties, and functions of the District.
2. THAT, these sustainable agricultural practices showcase the Farm as a demonstration
project that supports Central San's mission to foster sustainable and renewable
practices, including recycled water.
3. THAT the proposed lease is exempt from the California Environmental Quality Act
(CEQA) under District CEQA Guidelines Section 15301, since it involves leasing an
existing public facility of use.
4. 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, then
the remaining resolution portions shall be and continue in full force and effect.
5. THAT staff is authorized to record documents related to leases on the Property with
the Contra Costa County Recorder.
PASSED AND ADOPTED this 22nd day of September 2022, by the following vote:
AYES: Members:
NOES: Members
ABSENT: Members:
David R. Williams
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
COUNTERSIGNED:
Katie Young
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
September 22, 2022 Special Board Meeting Agenda Packet- Page 16 of 16