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BOARD OF PUBLIC UTILITIES GENERAL MANAGER'S REPORT UPDATE ON PUBLIC UTILITIES' OFFICE RELOCATION ITEM NO. 13 in Cir��r.Irts&Innoration city Council Memorandum pfpGAANppMA1111111111111$101 oil pill 111111111111111111111111111111111111111111111pNUllpppl[fillplflpfltltln11f111f Ii1i11111111111111111111111111111111111111111111111p111R11111111111111111tlf11111ppppMMM1[IIIIIIIIIIIIIIIIIIIIIIIIII g1111111111p111111111111111uH[I[I EN TO: HONORABLE MAYOR AND CITY COUNCIL DATE. JULY 26, 2011 FROM: GENERAL SERVICES DEPARTMENT ITEM NO: 40 PUBLIC UTILITIES DEPARTMENT POLICE DEPARTMENT WARD: '1 SUBJECT: ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT FOR PROPERTY LOCATED AT 3750 UNIVERSITY AVENUE TO RIVERSIDE PUBLIC UTILITIES ISSUE: That the City Council consider approval of an Assignment and Assumption of Lease Agreement for property located at 3750 University Avenue to Riverside Public Utilities. RECOMMENDATION: That the City Council approve the attached Assignment and Assumption of Lease Agreement for property located at 3750 University Avenue. BACKGROUND: Riverside Public Utilities (RPU) is interested in consolidating its current leased office space into one location downtown to gain operational efficiencies. A suitable site has been located at 3750 University Avenue and encompasses 70,281 square feet. A port ion of this office space will be sub- leased to existing tenants, leaving an estimated 53,784 square feet for RPU. This office space is currently occupied by Best, Best and Krieger(BB&K)which will soon be moving to a new downtown Riverside location that is currently under construction. On July 1, 2011, the Public Utilities General Manager briefed the Board of Public Utilities on this item. No formal action was taken. As part of the consolidation, RPU will vacate its leased space at Garage 6—Orange Square(9th and Orange Streets) and Garage 3 (Market Street and University Avenue). It will also shift some of the employees from the 311 Call Center at Utilities Plaza (Orange and 5th Streets) to a new location near the Airport. However, RPU will continue to have a downtown customer service presence for payment processing at the Utilities Plaza. Also, the Federal Courts have recently expressed an interest in the Gateway facility (corner of 14th and Lime Streets) and this facility may become a component of this consolidation at a future point in time. 40-1