04-10-2017 BPU RPT 14 - Laserfiche WebLink

Home

L'; A I= R E N E R U Y I I F F PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: APRIL 10, 2017 ITEM NO: 14 SUBJECT: ESTABLISH UNIFORM RENTAL FEES FOR USE OF UNDEVELOPABLE RIVERSIDE CANAL AND GAGE CANAL PARCELS AND APPROVE CANAL USE MASTER LICENSE AGREEMENT — NEW REVENUE DEPENDENT UPON FUTURE CANAL PARCELUSE ISSUE: Recommend that the City Council approve the establishment of a set and uniform rental fee for the issuance of Canal License Agreements for permitted uses of undevelopable Riverside Canal and Gage Canal parcels. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the establishment of a set rental rate for the use of undevelopable Canal Parcels at $0.15 per square foot for Open Space and Single Family Residential adjacent zoned properties and $0.60 per square foot for all other adjacent zoned properties, with a minimum $300 per license; 2. Approve an annual 2% escalation of the rate for licensed uses; 3. Authorize the City Manager, or his designee, to execute Canal Use License Agreements for undevelopable Canal Parcels under the terms set forth in this staff report; and 4. Direct staff to return every 5 years to update the rental rates and fees. BACKGROUND: The City of Riverside Public Utilities Department's (RPU) acquisition of the Riverside Canal in 1961 and the Gage Canal Company in 1965 included ownership of approximately 100+ canal parcels ("Canal Parcels"). Approximately 95% of Canal Parcels are undevelopable and range between 25 and 66 feet in width and between .01 to 2.0 acres in size. Currently, there are 38 active license agreements for Canal Parcels with permissible uses such as utility crossing by other utility companies/cities, access, access to land -locked parcels, parking, bridge crossings and landscaping. Due to the various management styles and opinions of fair market value over the years, current rental amounts for the active licenses are as low as $0.00 - $1.00 per year, with the only consideration that the Licensee would be responsible for property maintenance and weed abatement of the Canal Parcels. The existing rental rates are inconsistent; while some carry a fixed rental rate and others have an annual increase. In several cases, annual rents have been waived in lieu of the Licensee making, at the Licensee's sole cost and expense, major canal/waterline improvements and relocations to accommodate development. In many cases, license agreement compensation is inadequate to cover the cost of agreement administration, which includes review and documentation of ongoing insurance requirements. For illustration purposes, twenty-five (25) agreements were randomly selected to create the matrix below: