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HomeMy WebLinkAboutMINUTES - 12142004 - C.26 TO: BOARD OF SUPERVISORS, CONTRA COSTA COUNTY FROM: FINANCE COMMITTEE DATE: December 14, 2004 SUBJECT: APPROVE second extension of time to complete conservation easement on the North Gate Road property (District III) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&.BACKGROLND AND JUSTIFICATION I. Recommended Action: APPROVE a seven-month extension of time to the East Bay Regional Park District to June 21, 2005 to complete the conservation easement document and purchase on the 36-acre parcel owned by the Flood. Control District adjacent to the Milton F. Kubicek (Pine Creek) Detention Basin located on North Crate Road. (District III) DIRECT staff to work expeditiously and diligently with the Coastal Conservancy and the East Bay Regional Park District to finalize the conservation easement document and report to the Finance Committee upon completion of the conservation easement document or within three months, which ever is later, and to provide a status on the funding for the close of escrow on the easement. II. FiscallmDact: The Flood Control&Water Conservation District will receive$1.559 million for a conservation easement on a Continued on Attachment: X SIGNATURE: --IfECOMMENDATION Of BOARD COMMITTEE —. AP'PROVE ;' BOTHER SIGNATURES .: 14e&.-- L -..; ACTION OF BOA-b ON DEC. 14, 2004 APPROVED AS RECOMMENDED xx OTHER VOTE OF SUPERVISORS xx UNANIMOUS(ABSENT V } AYES: :NOES: I hereby certify that this is a true and correct copy of an action ABSENT: ABSTAIN: taken and entered on the minutes of the Board of Supervisors on Rt4A:lzcw the date shown, G:\GrpData\Admin\Mitch\bo\2004\Nonh Gate Con Easement Extension of Time 12-14-0,lAoc Orig.Div: Public Works(Admin Svcs) Contact: Mitch Avalon(925)313.2203 John Sweeten,County Administrator ATTESTED: DECEMBER 14 2004 M.Shiu,Public Works l G.Connaeghton,Flood Control JOHN SWEETEN,Clerk of the Board of Supervisors and K.Laws,Real Property D.Barry.Community Development Dept. County Administrator S.Anderson,County Counsel P.Roche,Community Development Dept. Joanna Hannah,Mt.Diablo Gateway Alliance Seth Adams,Save Mt,Diablo Nancy Wenninger,EBRPD By deputy Kevin Safine,City of Walnut Creek �.�.�..�� SUBJECT: APPROVE second extension of time to complete conservation casement on the North Gate Road property (District III) DATE: December 14,20104 PAGE: 2 parcel the District owns on North Gate Road. Pursuant to an agreement with the State Department of Water Resources,all revenue generated from the conservation easement must go towards Flood Control infrastructure improvements in the Walnut Creek watershed. There is no interest provision for delays in securing the funding. As more time passes the real value of the$1.559 million is decreased as the cost of the projects continues to go up. 111. Reasons for Recommendations and Background: On November 22, 2004 the Finance Committee considered a status report on the conservation easement. Attached is the staff report to the Finance Committee dated November 15, 2004 outlining the issues considered by the Finance Committee. The Committee was presented with five options to move forward with the conservation easement. After receiving comments from staff and the public, the Committee decided to recommend to the Board a seven-month extension of time with a review in three months. In addition, the Committee directed staff to work diligently and expeditiously with the Coastal Conservancy and the East Bay Regional Park District to complete the conservation easement document and if any policy issues with the conservation easement language cannot be worked out,then the easement document should be brought back to the Finance Committee for review. If that occurs before the three-month review period then it should be brought back to the Finance Committee at that time. If language cannot be agreed to with the Coastal Conservancy then a detailed risk analysis should be included with the report to the Finance Committee. The Finance Committee also recommends that the price for the conservation easement remain at$1.559 million and there be no interest charged for the second extension. IV. Consequences of Neeative Action: The conservation easement deadline would not be extended. PUBLIC WORKS DEPARTMENT Contra Costa County 255 Glacier Drive Martinez, CA 94553 (925) 313-2000 DATE: November 15, 2004 TO: ;unace Committee FRO rice M. Shiu, Public Warks Director SUBJECT: STATUS REPORT ON CONSERVATION EASEMENT FOR NORTH GATE ROAD PROPERTY, WALNUT CREEK AREA The Flood Control District owns 36-acres on North Gate Road adjacent to the Milton F.Kubicek(Pine Creek) Detention Basin. On May 21, 2002, the Board approved in concept a conservation easement over the property with the East Bay Regional Park District as the grantee. On May 18,2004, the Board of Supervisor's approved a six-month extension of time to the East Bay Regional Park District to complete the Conservation Easement document and the purchase of the North Gate Road property from the Flood Control District. The Board further stated that if,by November 21, 2004, the easement document or funding were not in place, then this item would be referred to the Finance Committee. Attached for reference is the May 18, 2004 Board Order. The following is a status report on the conservation easement and funding. 1. Funding Package The Flood Control District will receive$1.559 million for the conservation easement. The funding package for the conservation easement is proposed to be $200,000 from Save Mt. Diablo, $250,000 from. the East Bay Regional Park District, $250,000 from the City of Walnut Creek,$246,250 from the Coastal Conservancy,and$612,750 from an agricultural contract termination exchange. All funding will go through the Park District so that escrow will be between the Flood Control District and the Park District. The Coastal Conservancy funding will expire on April 1,2005. At that time, escrow must close on the conservation easement or the funding is lost. It is anticipated that the proceeds from the cancellation of the agricultural contract will not be available until after April 1, 2005. The Coastal Conservancy has been asked if the deadline can be extended. Their response is that the funding deadline cannot be extended. The funds from the termination of the agricultural contract are from a development project on the Humphrey's property located on Stone Valley Road in the Alamo area. The cancellation of the agricultural contract will generate$1.17 million,which will be transferred to Save Mt.Diablo for various open space 1 acquisition projects, $612,750 of which is earmarked for the Northgate Road conservation easement. If the escrow for the conservation easement does not close by April 1,2005 then the grantee,the East Bay Regional Park District, will need to locate additional funding to replace the Coastal Conservancy grant funds. 2. Conservation Easement Document County staff has been working with the East Bay Regional Park District and Coastal Conservancy staff to finalize the conservation easement document. There were several contentious provisions in the easement which staff has been able to reduce. All the issues stem from the inclusion of the Coastal Conservancy into the easement document. Staff from the three agencies are continuing to work to come to agreement on a document that meets the needs of each agency. It is expected that the conservation easement will be completed within six weeks. 3. The Cost of Time The original price for the conservation easement was established in March 2000. The agreed to price was $1.559 million based upon a value of $7,025,984, which was the average of two appraisals done in 1999 by the Flood Control District and Mount Diablo Gateway Alliance. Four and a half years later escrow has not yet closed on the conservation easement and the price is still set at $1.559 million. This issue was raised six months ago when there was a request for an extension of time, and the Board approved the extension without consideration for an increase in the payment to reflect the increase in the value of the property since March 2000. It is anticipated that escrow will close between six and nine months from now. The value of the property has certainly increased from the appraisal that was done five years ago. The Board will once again have to consider whether or not to approve an extension of time with the same payment amount. 4. Time Extension Escrow was to close on the conservation easement and funds transferred by May 21,2004. The Board approved a six-month time extension, which expires on November 21, 2004. Another extension will need to be granted if the conservation easement is to move forward. It appears at this time that there is some question whether the Coastal Conservancy funding will be part of the funding package for the conservation easement. This depends on the timing of the Humphrey's agricultural contract termination. The Finance Committee may want to "continue" this item until their January 2005 meeting. This would entail a recommendation to the Board for a three-month extension. By January the timing for the Humphrey's property agricultural contract exchange will be much clearer, and the conservation easement document will have been completed. If the Coastal Conservancy funding is not part of the funding package, then the easement document will need to be revised to remove the Coastal Conservancy. 5. Options/Recommendations In a letter dated November 15, 2004, staff has asked the Park District what their plan is to fund the conservation easement, given the likelihood the Humphrey's project will not be 2 approved by April 1, 2005, and what the expected timeline is to close escrow. This information may be available by the November 22, 2004 Finance Committee meeting, otherwise there are several options the Finance Committee can consider at this time as follows: a. No Extension The Finance Committee could recommend to the Board to not grant another extension, which would effectively nullify the conservation easement. b. Three Month Extension The Finance Committee could recommend a three-month extension. This would allow all parties to have a better understanding whether the time line will be met for the funding associated with the Humphrey's project. c. Six Month Extension with Finance Committee Review in Three Months The Committee would recommend a six month extension which would provide time beyond the April 1,2005 Coastal Conservancy timeline. The Finance Committee would review the timeline in three months at their February meeting to ensure everything is on track. This would result in a full one-year extension from the original deadline. d. Require Adjustment of Easement Price The Committee could consider adjusting the price for the conservation easement to reflect current market value, since the original timeline and extension has expired. e. Require Interest Payment The Committee could consider leaving the price for the conservation easement at$1.559 million but require interest to be paid at a 2.20% rate (the current rate for 90 day Certificates of Deposit) .from May 21, 2004 until close of escrow. Without any current information from the Park District on their latest financing strategy and timeline, staff recommends the Finance Committee approve option"c"and"e"above. Staff further recommends that this should be the last extension granted. MMS:RMA:Ia G:\GrpData\Adrnin\SHIU\2004\Status Report on Conservation Easernent.doc c: John Sweeten,CAO Mitch Avalon,Public Works Greg Connaughton,Public Works Karen Laws,Public Works Dennis Barry,CDD Pat Roche,CDD Sharon Anderson,County Counsel Seth Adarns,Save Mt.Diablo Nancy Wenninger,EBRPD Kevin Safine,City of Walnut Creek J TO: BOARD OF SUPERVISORS FROM: FINANCE COMNETTEE DATE: MAY 18, 2004 SUBJECT: APPROVE EXTENSION OF TIME TO COMPLETE CONSERVATION EASEMENT ON NORTH GATE ROAD PROPERTY SPECIFIC REQUEST(S)OR RECOMMENDATION(S)7 BACKGROUND AND JUSTIFICATION I. Recommended Action: APPROVE a six-month extension of time to East Bay Regional Park District to November 21,2004 to complete the conservation easement document and the purchase on the surplus parcel adjacent to the Milton F.Kubicek (Pine Creek) Detention Basin located on North Gate Road, and if at the end of the six month extension the document or funding are still not in place then REFER this item back to the Finance Committee to review the status of completing the document and funding. 11. Fiscal impact: The Flood Control & Water Conservation District will receive $1.559 million for a conservation easement on a parcel the District owns on North Gate Road. Pursuant to a" aWement with the State Department of Water Resources, all revenue generated from the conservatio7ien, asst 10 ards Flood Control infrastructure Continued on Attachment: X SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR _&,' COMMENDATION OF BOARD COMMITTEE -,-'APPROVE —OTHER SIGNATURE(S): ... ACTION OF BOARD ON MAY 18, 704 APPROVED AS RECOMMENDED= OTHER VOTE OF SUPERVISORS NONE Xx UNANIMOUS(ABSENT AYES- NOES: ABSENT: ABSTAIN: MMS:RMA:lz G:1Grpl:)atxlAtimin\Mttth\bo12004North Ckto Con Easement Extension ofTmit,doc Attachment I hereby certify that this is a true and correct copy Orig.Div: Public Works(Admin Svot) Contact: Mitch Avalon(313-2203) of an action taken and entered on the minutes of c 1.Sweeten,County Administrator the Board of Supervisors on the date shown. M.Shiu,Public Works G.Connsughton.Flood Control K.Laws,Real Prop" D.B",Community Development Dept S.Anderson,County Counsel MAY 18, 2004 P.Roche,Community Development Dept. ATTESTED: Joarma Hassrah,Mt-Diablo Gateway Allianct Seth Adams Save Mt.Diablo John Sweeten, Clerk of the Board of Supervisors Nxncy Wanninger,EBRPI) Kevin Saftne,Chy of Walnut Creek and County Administrator By Deputy .SUBJECT: APPROVE EXTENSION OF TIME TO COMPLETE CONSERVATION EASEMENT ON NORTH GATE ROAD PROPERTY DATE: MAY 18, 2004 PAGE: 2 improvements in the Walnut Creek watershed. There is no interest provision for delays in securing the funding. As more time goes on the real value of the$1.559 million is decreased as the cost of the projects continues to go ur). III. Reasons for Recommendations and Background: On May 21,2002,the Board of Supervisors approved in concept a conservation easement on the 36-acre parcel the Flood Control &Water Conservation District(District)owns on North Gate Road in the Walnut Creek area, adjacent to the Milton F.K,ubicek(Dine Creek)Detention Basin. Since that time District staff has been working with the East Bay Regional Park District, Save Mt.Diablo,the City of Walnut Creek,and the Mt.Diablo Gateway Alliance to develop a conservation easement document. Attached is a letter from the Mt. Diablo Gateway Alliance, dated March 21, 2000, which outlines the concept of the conservation easement. Any proceeds from the property must be shared with the State Department of Water Resources(DWR)because State funds were used to help purchase the property as part of the original flood control project. However,DWR has agreed that the District can retain all of the funds from the conservation easement if two conditions are met: The District must use the funds for flood control purposes in the Walnut Creek watershed and the property must be permanently kept in open space. When the Board approved the concept of conservation easement on the property,they gave the proponents two years to complete the document and provide the funding necessary to complete the transaction. Although the parties of interest have been diligently working on the conservation easement,the easement document has not been completed and the parties of interest have requested the County to extend the deadline for completion of the document. At the time staff began discussions with the parties of interest to develop the conservation easement,the County had never drafted such a document. As a result, Save Mt. Diablo offered to draft the document using a format they had used on other conservation easements. It was also uncertain at the outset who the easement would be granted in favor of, As time went on, the East Bay Regional Park District agreed to be the grantee for the conservation easement. Most of the discussions with the parties of interest related to what uses would be appropriate for the property and what uses would be restricted, A draft document was completed last month for review by each party's attorney's, in preparation for formal approval. The draft conservation easement document is currently being reviewed by County Counsel. The comments from the legal review will take some time to accomplish, review, and approve by all the parties of interest. In addition, not all of the funding for the conservation easement is in place at this time but should be available soon. The funding is corning from several sources and the commitments for the funding are in place but in some cases needs more time to become available for the conservation easement. As a result, it is anticipated that the extension of time needed to complete the document and funding is about six months. Staff supports the request for an extension of time,and the project the proceeds from the conservation easement are ear-marked for can accommodate the time extension, as the project has been delayed for other reasons. Even though it is anticipated the document and funding will be completed in six months, if either one is not completed by November 21,2004,then this issue should be referred back to the Finance Committee, The Finance UBJEC'T: APPROVE EXTENSION OF TIME TO COMPLETE CONSERVATION EASEMENT ON NORTH GATE ROAD PROPERTY DATE: MAY 18, 2004 PAGE: 3 Committee would then review the status of providing the funding and completion of the document and report back to the ward. W. Consequences ofNezative Action: The conservation easement deadline would not be extended. &to urtt 1) "Lab to CT' ateway ARmce. ENSUR.1NCrPRESBW+4."f"t0}v' OF0UVL5C.EN1C.0-O rL1DOR March 21, ZDDO Mr.Mitch Avalon, Director Contra Costa County Flood Control District 255 Glacier Drive Martinez, CA 94553.4897 Ez. Proposal to Acquire n Conservation Easement on 36-Acre Pine Creek Detention Basin, Shown in the Assessor's Records as APN 138.1.50-007, 136-154-00I., 138-160,002, 138,160'-003, 138-170-001 and 138-170-007. Dear Mitch. We appreciate that representatives of the Mount Diablo Gateway Alliance had the opportunity to meet with you and Supervisor .Gerber on March 11. As a~result of this productive meeting, in accordance with our verbal understancding, we are prepared.to make an offer consistent with the following stat6d`tirm. 1. The subject parcel grill be retained by the CCC Flood Control District, as essential to ehe rrian'agernent'6f the adjacent,downstream detention basin. It will r) preserved in perpetuity via creation of a conservation easement benefiting the public and to be held by a local agency`for joint uses including: public open space and recreational uses, watershed andd water duality protection, wetland preservation, and wildlife habitat restoration: and enhancement.projects, such as those benefiting state or federally listed species including the California red-legged frog. The consideration for the Easement,eased on recent appraisals and expected returns to the District were the property sold,but with the understanding that the appraisals are for".highest and best use" and do not include possible additional.development costs andmitigations which could decrease a potential sale price,is to be$1,559,000, The funding corm' 'd.eration for the easementis to be obtained through a public/private partnership which rrri.ght.include the State of California. 3. This proposal is sub;ect to the ratification by the.Contra Costa County Board of. Supervise*s, The terrn within w iich funding coinrnitments will be procured-is to be by July 31, 2002, or 24 months from signing of a Memorandum of Understanding approvedby the Centra Costa Counry Board of Supervisors,whichever is longer. Mr. Mitch Avalon March'21 1,2000 Page Two 4, The conservation easernent may include joint uses acceptable to the funding partners and the District within designated areas of the parcel,to belirnitedin size and located as described in the easement language. Such acceptable joint uses might include! A.) as a deposit site for dredged materials from the adjacent detention basin, subject to environmental analysis and subject to use of these deposited materials to recreate more natural contours on the site without harming the visual corridor from t1ht detention basin to the scare and regional parks, B.) for wetland and wildlife enhancement or mitigation projects, C.) recreational staging and trails segments for adjacent State, regional or local parks and trails, D.) a small administrative building for one of these park agencies, E.) equestrian uses such as an equestrian center. 5. Out time line chart be updated and monitored every sixty (60) days to insure that significant benchmarks are being met in the process of developing a successful partnership. We understand your dedication to your primary obligation of water management. We trust that our proposal provides adequate consideration. Mount'Diablo Gateway Alliance Supervisor Donna Gerber iu Contra Public Works Department M.Sh ment Public Works Director Costa 1 255 Glacier Drive R.Mitch Avalon County Martinez,CA 94553-4825 Deputy Directo- Telephone: (925) 313-2000 Heather;.Ballenger FAX: (925) 313-2333 Deputy Director Web site!www.co.co-ntra-costa.ca.us/depart/pw Julia R.Bueren November 15, 2004 Deputy Director Patricia R.McNamee Deputy Director Nancy Wenninger East Bay Regional Park District L- 2950 Peralta Oaks Court Oakland, CA 94612 RE: Conservation Easement for North Gate Road Property Dear Nancy: The Flood Control District and Park District have been workinc,for several years to complete a conservation easement for property the Flood Control District owns on North Gate Road. The Board of Supervisors originally approved the conservation easement in concept on May 21, 2002. The conservation easement document and funding was to be in place two years later on May 21, 2004. This deadline was subsequently extended by the Board of Supervisors to November 21,2004. 1 understand that all of the funding for the conservation easement is not yet in place and escrow will not close by November 21, 2004. As a result, the Board of Supervisors Finance Committee will be reviewing the conservation easement funding and timeline at their November 22, 2004 meeting. The Committee will be considering whether to extend the deadline once again,or to not grant an extension,which would effectively nullify the conservation easement. The Finance Committee and the Board of Supervisors will need to know what the Park District's financing plan is to fund the conservation easement. The funding package is particularly critical given the probability that the Humphrey's project will not be approved before the Coastal Conservancy grant expires. The Park District should also provide the Board with their expected timeline, for the close of escrow on the conservation easement. It would be helpful for the Finance Committee to have a response from the Park District on their finficing plan for funding the conservation easement and expected timeline for closing escrow at the Finance Committee',s' November 22,2004 meeting, If you have any questions please call me at(925) 313-2204. Very truly yours, R. Mitch Avalon Deputy Public Works Director RMA:1z G:\GrnData\AdminlMitch\Forms\North Gate Conservation Easemer.t.doc: Maurice Shiu,Administration Greg Connaughton,Flood Control Karen Laws,Real Property Dick Awenius,Real Property judy Lytle,Accounting Pam zaid,County Counsel