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W A T E R E N E R C Y I WI& P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: JULY 10, 2017 ITEM NO: 10 SUBJECT: LEASE OF VACANT PROPERTY WITH ROHR, INC., A UTC AEROSPACE SYSTEMS COMPANY, FOR APPROXIMATELY NINE (9) ACRES OF VACANT PROPERTY LOCATED AT 8200 ARLINGTON AVENUE, FOR THREE YEARS PLUS TWO ONE- YEAR OPTIONAL EXTENSIONS FOR USE AS A MATERIAL YARD FOR CONSTRUCTION OF THE RIVERSIDE TRANSMISSION RELIABILITY PROJECT (RTRP) 69KV POWER LINES, LEASE AMOUNT OF $500,002 — WORK ORDER 642975 FOR THE LEASE AND SITE IMPROVEMENTS, IN THE AMOUNT OF $600,000 ISSUES: Recommend that the City Council approve the Lease of Vacant Property with Rohr, Inc, a UTC Aerospace Systems Company, for approximately nine (9) acres of vacant property located at 8200 Arlington Avenue, for three years plus two one-year optional extensions, for use as a material yard for construction of the Riverside Transmission Reliability Project (RTRP) 69kV power lines, in the amount of $500,002; and that the Board of Public Utilities approve the expenditure of $600,000 for Work Order - 642975. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve the estimated expenditure of $600,000 for Work Order 642975 inclusive of the $500,002 rent for the three-year lease including the two one-year options and the approximate estimated cost of $100,000 for RPU to prepare the site to receive materials; 2. Recommend that the City Council approve the Lease of Vacant Property with Rohr, Inc, a UTC Aerospace Systems Company, for approximately nine (9) acres of vacant property located at 8200 Arlington Avenue, for three years plus two one-year optional extensions, for use as a material yard for construction of the Riverside Transmission Reliability Project (RTRP) 69kV power lines, in the amount of $500,002; and 3. Recommend that the City Council authorize the City Manager, or his designee, to execute the Lease of Vacant Property and the two one year options to extend, including making minor non - substantive changes, and to sign all documents necessary to complete the transaction. BACKGROUND: In January 2006, the Board of Public Utilities (Board) approved the Riverside Transmission Reliability Project (RTRP), a joint project with Southern California Edison (SCE) to provide Riverside Public Utilities (RPU) a second connection to the state electric transmission grid addressing long-term capacity and reliability needs of the City. The City Council certified the Final Environmental Impact Report (FEIR) for RTRP on February 5, 2013. SCE's portion of RTRP includes construction of telecommunication lines, 230kV transmission lines, and a