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RESOLUTION NO. 2015-245 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING A LICENSE AGREEMENT WITH AAAG-CALIFORNIA, LLC (AIM) FOR CITY-OWNED PROPERTY LOCATED AT 610 BAY BOULEVARD
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On September 15, 2015, City Council approved a license agreement AAAG-California, LLC (AIM) for a City owned property located at 610 Bay Boulevard for use in the auto action business. The License as approved does not allow for the washing of vehicles on site. AIM has requested that they be allowed, under specific guidelines, to rinse and dry cars on site immediately prior to sale. The purpose of this action is to consider an amendment to the License Agreement to allow this activity. .
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines because the action is approval of a lease of City property for a new permitted use (auto auction). Thus, no further environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The License Agreement with AIM that was recently approved by the City Council did not allow washing of vehicles on site due to current storm water regulations that severely limit how water run off can be managed. As owner of the property, City may be responsible for payment of any penalties for violations of these regulations. The Licensee has indicated that as part of its business, it needs to have the ability to at least rinse and dry cars prior to sale and has requested that the City amend the license to allow for such washing. Staff has reviewed the storm water regulations and has been able to develop a protocol that will allow AIM to rinse their cars prior to sale in a manner that complies with the regulations. The protocol requires that AIM construct two six-inch high asphalt berms to contain any run off from the rinsing operation. The water will then be retained until it evaporates.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, and has not been informed by any Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. By entering into this lease the City is utilizing un-used office space to create a revenue stream for the City. At the same time the City is relieved of the burden of utility cost and maintenance for space it cannot use. This furthers the City’s goal of maintaining Operational Excellence.
CURRENT YEAR FISCAL IMPACT
There is no current fiscal year impact associated with this action. The cost for the construction of the two six inch high asphalt berms to contain any run off from the rinsing operation will be borne by AIM.
ONGOING FISCAL IMPACT
There is no ongoing fiscal year impact associated with this action. The cost for maintaining the two six inch high asphalt berms to contain any run off from the rinsing operation will be borne by AIM.
ATTACHMENTS: Lease Amendment with attachment
Staff Contact: Rick Ryals, Real Property Manager, Economic Development Department