09-18-2015 BPU RPT 04 - Laserfiche WebLink

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CITY OF RIVERSIDE P U B L I C U T I L I T I E S RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: SEPTEMBER 18, 2015 ITEM NO: 4 File ID — 15 -2967 — C SUBJECT: APPROVAL OF WORK ORDER NO. 1601113 AND PROPOSED PURCHASE AND SALE AGREEMENT TO ACQUIRE 1.5 ACRES OF VACANT LAND LOCATED AT THE SOUTHEAST CORNER OF INDIANA AVENUE AND GIBSON STREET IN CONNECTION WITH THE FREEMAN SUBSTATION EXPANSION PROJECT FOR $402,040 ISSUES: The issues for Board of Public Utilities consideration are to approve: 1) Work Order No. 1601113; and 2) the purchase and sale agreement with the Gerald H. Brandon and Carol L. Brandon 2004 Trust and the Traver Family Trust for the acquisition of vacant land located at the southeast corner of Indiana Avenue and Gibson Street, Riverside, California. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve Work Order No. 1601113 for $402,040; 2. Approve the purchase and sale agreement with the Gerald H. Brandon and Carol L. Brandon 2004 Trust and the Traver Family Trust for the acquisition of vacant land located at the southeast corner of Indiana Avenue and Gibson Street, Riverside, California, Assessor Parcel Numbers (APNs) 233 - 170 -002 and 233 - 170 -003 for $392,400; 3. Approve the expenditure of $402,040, inclusive of the purchase price, due diligence, title, escrow fees and related miscellaneous closing costs; 4. Recommend that the City Council approve the purchase and sale agreement with the Gerald H. Brandon and Carol L. Brandon 2004 Trust and the Traver Family Trust for the purchase of the 1.5 acres of vacant land located at the southeast corner of Indiana Avenue and Gibson Street; and 5. Recommend that the City Council authorize the City Manager or his designee to execute the Agreement, including making any minor non - substantive changes and to sign all documents and instruments necessary to complete the transaction. BACKGROUND: Purchasing this property creates an opportunity to address two separate needs at this location: 1) to acquire property rights for the construction of the 69kV element of the Riverside Transmission Reliability Project (RTRP); and 2) to address operational needs for storage and outdoor training. The RTRP provides a second connection to the state electric grid and bolsters the 69kV interconnection ties between Riverside Public Utilities' (RPU) 69kV substations. As part of the project, RPU is currently securing easements for the 69kV transmission lines. One of the properties affected by the RTRP is