05-01-15 BPU RPT 10 - Laserfiche WebLink

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W t is Li,� r R 9y Lau' i'-: RIVERSIDE PUBLIC UTILITIES r Y W& Board Memorandum BOARD OF PUBLIC UTILITIES DATE: MAY 1, 2015 ITEM NO: 10 SUBJECT: LEASE AGREEMENT AND WATER SALE AGREEMENT WITH AMERICAN YOUTH SOCCER ORGANIZATION REGION 47 FOR USE OF AB BROWN SPORTS COMPLEX ISSUE: The issue for Board of Public Utilities consideration is approval of the Lease Agreement and Water Sale Agreement with American Youth Soccer Organization Region 47 (AYSO) for use of the 56-Acre Ab Brown Sports Complex (Complex), Assessor Parcel Number 246-060-001 (Exhibit A). RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council approve: 1. The Lease Agreement with American Youth Soccer Organization (AYSO); and 2. The Water Sale Agreement with AYSO. BACKGROUND: AYSO has leased the RPU-owned Complex since 1992. Under the terms of the original and subsequent agreements, AYSO and the City's Parks, Recreation and Community Services Department have developed the existing soccer fields, parking lots and concession buildings. AYSO currently provides all maintenance of the facilities, including watering, mowing, weed control, graffiti abatement and security. This maintenance activity generates significant value when compared to the cost the RPU would incur absent a tenant. The most recent agreement with AYSO expired in August 2014 and AYSO has requested a lease agreement for the continued use of the Complex. Staff has determined that there is no current operational need for this property and therefore recommends entering into a lease agreement with AYSO. The new proposed lease is for a one-year period through June 2016. AYSO would pay the City an annual lease fee of $12,000. Additionally, AYSO agrees to keep the premises in a neat and clean condition free of all weeds, trash and refuse, and to keep any walls, fences, gates, signs and any other improvements adjacent to the licensed premises free from graffiti. As has been the case since inception of this agreement, RPU continues to reserve its water rights, to include the installation of pipelines and wells (among other items) over all of the property without further consent by AYSO. The proposed water sales agreement provides for the delivery of non-potable water for irrigation to the fields through a service and meter connected to the well system collection pipelines at the cost of service. Domestic (drinking water) for the facility is provided through separate services and meters under standard rate tariffs and are not subject to this agreement.