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- RIVERSIDE PUBLIC UTILITIES Board Memorandum P 11 8 L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: January 21, 2011 ITEM NO: 9 SUBJECT: CASA, BLANCA SUBSTATION EXPANSION PROJECT - PROPERTY ACQUISITION EXPENDITURE FOR THE ACQUISITION OF 7605 EVANS STREET ISSUE: That the Board of Public Utilities considers approval of an expenditure in an amount not to exceed $375,000 for the acquisition, relocation and related costs in acquiring the 0.20-acre parcel located at 7605 Evans Street, for the expansion of the Casa Blanca Substation located at 7615 Evans Street, (Exhibit A). RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve the capital expenditure of an amount not to exceed$375,000 forthe acquisition, relocation and related costs in the acquisition of 7605 Evans Street; 2. Recommend that the City Council approve the proposed Purchase and Sale Agreement executed by Juan Landeros in the amount of$245,000; and 3. Authorize the City Manager, or his designee,to execute the documents necessary to complete the proposed purchase. BACKGROUND: The Casa Blanca Substation was built in the early 1950's and consists of a step-down transmission substation where voltage is brought in from subtransmission lines at a strength of 33,000 volts (33 kV) and reduced to a 4 W. The resultant voltage is then transmitted onto outgoing power lines for distribution to residential and commercial users. In its Electric System Master Plan, Riverside Public Utilities (RPU) identified the Casa Blanca Substation for upgrades to provide needed capacity forthe existing service areas of Casa Blanca, Freeman and Harvey Lynn Substations. The upgrades will result in an improvement of electrical service that wil include extension of 69 W subtransmission lines into the new facility, new 12 kV distribution feeder lines, improvement of critical load relief, and add to the existing backup reliability. The Utility has initiated the necessary upgrades,including the expansion of the Substation,which requires the acquisition of the adjacent 6,500 square foot parcel. City property negotiators have successfully reached an agreement with Mr. Landeros, the current property owner, for the purchase of his property at the purchase price of$245,000. The property is currently under lease to a tavern business, therefore, as required by the Uniform Relocation Assistance and Real Property Acquisition Policies Act, staff has contracted with Romo Acquisitions and Relocation Services, LLC to work with the current tenant in finding a suitable and reasonable replacement property, with estimated relocation costs estimated at an amount not to exceed $105,000.