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Home My WebLink About03.b. Draft Position Paper public hearing for December 5, 2024 at 2:30 p.m. to adopt Resolution 2024-xxx declaring portions of 4737 Imhoff Place (APN 159-150-057) as currently unneeded, execute lease agreements for a period not to exceed ten yearsPage 1 of 5 Item 3.b. DCENTRALSAN MEETING DATE: OCTOBER 15, 2024 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER TO CONSIDER SETTING A PUBLIC HEARING FOR DECEMBER 5, 2024 AT 2:30 P.M. TO RECEIVE COMMENTS AND ADOPT RESOLUTION 2024 - XXX DECLARING PORTIONS OF 4737 IMHOFF PLACE (APN 159-150-057)AS CURRENTLY UNNEEDED, AUTHORIZE THE GENERAL MANAGER OR DESIGNEE TO EXECUTE LEASE AGREEMENTS FORA PERIOD NOT TO EXCEED TEN YEARS SUBMITTED BY: INITIATING DEPARTMENT: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER ENG-PDS-DIVISION MANAGER REVIEWED BY: GREG NORBY, DEPUTY GM - ENGINEERING & OPERATIONS ROGER S. BAILEY, GENERAL MANAGER ISSUE The Board of Directors (Board) must conduct a public hearing to declare the land as unneeded and authorize staff to execute a lease agreement on this land. BACKGROUND Central Contra Costa Sanitary District (Central San) owns approximately one and a half acres at 4737 Imhoff Place, just west of the Martinez Treatment Plant (Property). The parcel features a pre-existing, permitted warehouse structure with 11 loading bays that have been used many years for commercial and light industrial uses, storage, and loading and unloading uses in conformity with the local zoning code and land use regulations. Central San has utilized portions of the Property in accordance with its needs, which use varies from time to time, and leased the unneeded portions of the Property to obtain revenue for Central San. The leased area to tenants is currently 7,974 square feet with three current tenants (Ferros Woodworking, Workman Glove and AgLantis); Central San staff occupies 13,776 square feet within the warehouse building. To enter into new lease agreements with a term not to exceed ten years, the Board must declare the Property as currently unneeded for Central San's purposes, functions, and duties. This designation will October 15, 2024 Special REEP Committee Meeting Agenda Packet - Page 10 of 31 Page 2 of 5 allow staff to lease unneeded bays and generate market -rate income. CEQA The proposed lease of the Property is exempt from the requirements of the California Environmental Quality Act (CEQA) under District CEQA Guidelines §15301, since it involves leasing an existing public facility use. 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 unneeded if the property is to be leased. Agreements to leases on property owned by Central San typically include provisions to terminate leases if the property is ever needed for Central San's operations. FINANCIAL IMPACTS Leasing Criteria Item No. 3 of Board Policy BP 043 — Buffer Property Management states that "Market lease rates or a comparable public benefit shall be charged to provide additional revenue to Central San and its ratepayers." A rental survey for the current market rental rate was completed by Dunn & Associates Real Estate Appraisers & Consultants on December 7, 2021, and a monthly lease rate was established for the current tenants. COMMITTEE RECOMMENDATION The Real Estate, Environmental and Planning Committee reviewed this matter at its meeting on October 15, 2024 and recommended RECOMMENDED BOARD ACTION Consider setting a public hearing for December 5, 2024 at 2:30 p.m. to receive comments and declare portions of 4737 Imhoff Place (APN 159-150-057) as currently unneeded, and authorize the General Manager or Designee to execute lease agreements for a period not to exceed ten years. Strategic Plan Tie -In GOAL FOUR: Governance and Fiscal Responsibility Strategy 3 - Maintain financial stability and sustainability ATTACHMENTS: 1. Location Map 2. Resolution 2024 - xxx October 15, 2024 Special REEP Committee Meeting Agenda Packet - Page 11 of 31 Page 3 of 5 Central San Property Management Attachment On 4737 Imhoff Place Map Date9+30%2024 Q Lease Number - - Central San Operations . Q Lease/Use Agreement a "I DW4 �1 W4�ti; { 1 C�7g 1 rQ A� Dom] 9 o a � kv c 30 Sheet Note: Central San data as of November, 2021 This map is intended for property management reference purposes only- F��t 2 of 2 October 15, 2024 Special REEP Committee Meeting Agenda Packet - Page 12 of 31 Page 4 of 5 Attachment 2 RESOLUTION NO. 2024 - A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT DECLARING DISTRICT LAND UNNEEDED AND AUTHORIZING THE GENERAL MANAGER TO EXECUTE LEASES FOR PORTIONS OF 4737 IMHOFF PLACE, MARTINEZ (APN 159-150-057) FOR A PERIOD NOT TO EXCEED TEN YEARS WHEREAS, the Central Contra Costa Sanitary District (Central San) owns approximately one and a half acres at 4737 Imhoff Place, just west of the Martinez Treatment Plant (Property); and WHEREAS, the Property is more specifically identified as portion of APN 159-150-057; and WHEREAS, this parcel features a pre-existing, permitted warehouse structure with 11 loading bays that have been used for many years for commercial and light industrial uses, storage and loading and unloading uses, in conformity with the local zoning code and land use regulations; and WHEREAS, Central San historically has utilized portions of the Property in accordance with its needs which use varies from time to time, and leased the unneeded portions of the Property to obtain revenue for Central San; and WHEREAS, the Board of Directors held a noticed public hearing on December 5, 2024, to determine whether the proposed lease agreements of the Property would be compatible with Central San activities and functions, and would provide a public benefit; and WHEREAS, Central San seeks to continue to allow the use of the warehouse facility by outside parties, which can be done without modification or with only minor alterations to the land; THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: THAT after holding a noticed public hearing, the Board of Directors finds that the Property is currently unneeded for the performance of Central San's purposes, functions, and duties for a period not to exceed ten years. Furthermore, the Board of Directors finds that the proposed lease for the Property is compatible with Central San's activities and functions; and THAT after holding a noticed public hearing, the Board of Directors finds that the lease of the Property would provide a public benefit by generating funds for Central San's duties and functions; and THAT the General Manager, or his designee, is authorized to execute lease agreements for the vacant bays at the warehouse, for a term not to exceed ten years. October 15, 2024 Special REEP Committee Meeting Agenda Packet - Page 13 of 31 Page 5 of 5 Such leases shall be made at competitive market rates to private parties which have uses compatible with the activities, duties, and functions of Central San; and THAT the proposed leases are exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines §15301, since it involves leasing an existing public facility of use; and 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. PASSED AND ADOPTED this 5th day of December, 2024, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members ABSENT: Members: Mariah N. Lauritzen President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young, CPMC, CIVIC Secretary of the District Central Contra Cosat Sanitary District County of Contra Costa, State of California Approved as to form: J. Leah Castella, Esq. Counsel for the District October 15, 2024 Special REEP Committee Meeting Agenda Packet - Page 14 of 31