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W A T F R E N E R G Y L RIVERSIDE PUBLIC UTILITIES .�W& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: JUNE 25, 2018 ITEM NO: 8 SUBJECT: CANAL PARCEL LICENSE AGREEMENT WITH MASJED OF RIVERSIDE (ISLAMIC CENTER) FOR USE OF 1045 LINDEN AVENUE AND A PORTION OF THE GAGE CANAL, 37,724 SQUARE FEET OF LAND, FOR A FIVE-YEAR TERM —IN THE MINIMUM AMOUNT OF $96,367.38 ISSUE: Recommend that the City Council approve the Canal Parcel License Agreement with Masjed of Riverside (Islamic Center) for use of 1045 Linden Avenue and a portion of the Gage Canal, 37,724 square feet of land, for a five-year term — in the minimum amount of $96,367.38. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the five-year Canal Parcel License Agreement with Masjed of Riverside (Islamic Center), a non-profit corporation, for 1045 Linden Avenue and a portion of the Gage Canal; and 2. Authorize the City Manager, or his designee, to execute the Canal Parcel License Agreement with Masjed of Riverside (Islamic Center), including making minor non -substantive changes, and to sign all documents necessary to complete the transaction. BACKGROUND: The Masjed of Riverside (Islamic Center) has operated a mosque at 1038 Linden Avenue since April 2003. Vehicle parking is severely limited by space requirements. The Islamic Center requested the City to enter into a license agreement that would allow for the construction of a parking lot on City -owned property across from the mosque at 1045 Linden Avenue. The vacant land surrounds the Lemona Booster Station and abuts a portion of the Gage Canal (see aerial on next page highlighted in blue). On April 3, 2007, City Council approved a six-year license agreement with the Islamic Center for use of a portion of the Gage Canal located at 1045 Linden Avenue near the intersection of Linden and Rustin Avenues. The license agreement became effective on May 24, 2007, and expired on May 24, 2017, after the exercise of four one-year extensions. A new license agreement was delayed while arrangements were made to establish a set and uniform rental fee for the issuance of Canal License Agreements for permitted uses of undevelopable Riverside Canal and Gage Canal parcels such as this one. On April 10, 2017, the Board of Public Utilities (Board) approved the establishment of a set and uniform rental fee for the issuance of Canal License Agreements. An independent appraisal of the canal parcels determined the fair market value for canal parcels adjacent to single-family residential zoned parcels and for other zoned areas with an annual rate of return at 7.50%. Based on the appraised values multiplied by the annual rate of return, it was determined that $0.15 per Page 59