11-25-2019 BPU RPT 14 - Laserfiche WebLink

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W A T E R E N E R G Y I L F F E RIVERSIDE PUBLIC UTILITIES 1A_AW._ -'W-. - . . W& Board Memorandum PUBLIC U T I L I T I F 5 BOARD OF PUBLIC UTILITIES DATE: NOVEMBER 25, 2019 ITEM NO: 14 SUBJECT: UPDATE ON THIRD AMENDMENT TO GROUND LEASE AGREEMENT AND THIRD AMENDMENT TO WATER SALE AGREEMENT WITH THE AMERICAN YOUTH SOCCER ORGANIZATION — REGION 47 ISSUE: That the Board of Public Utilities receive an update on the Third Amendment to the Ground Lease Agreement and the Third Amendment to Water Sale Agreement Ab Brown Sports Complex with the American Youth Soccer Organization — Region 47 and approve that staff not recommend that City Council exercise the right to terminate the Ground Lease Agreement and the Water Sale Agreement with the American Youth Soccer Organization — Region 47. RECOMMENDATIONS: That the Board of Public Utilities: 1. Receive this update on the Ground Lease Agreement and the Water Sale Agreement Ab Brown Sports Complex with the American Youth Soccer Organization — Region 47; and 2. Approve that staff not recommend that City Council exercise the right to terminate the Ground Lease Agreement and the Water Sale Agreement with the American Youth Soccer Organization — Region 47. BACKGROUND: On June 10, 2019, the Board of Public Utilities (Board) received and filed an update on the Ground Lease Agreement (Lease Agreement) and the Water Sale Agreement (Water Sale Agreement) with the American Youth Soccer Organization — Region 47 (AYSO) and designated the Board Chair to attend the City Council meeting on June 18, 2019 to inform the City Council of the RPU Board's concerns regarding these agreements. However, because City Council action was not needed to extend the term of the Lease and Water Sale Agreements, therefore, it was not presented at the June 18, 2019 City Council meeting. On June 27, 2019, the City of Riverside (City) executed the Third Amendment to Lease Agreement and the Third Amendment to Water Sale Agreement Ab Brown Sports Complex with AYSO for the first of two optional one-year extensions. DISCUSSION: AYSO's current Lease will expire on June 30, 2020. According to the terms of the Lease Agreement, the City may terminate the Lease Agreement by providing 180 days' notice to AYSO prior to the expiration of extended term, which would be January 1, 2020. AYSO would need to satisfy the conditions set forth in the Lease Agreement to extend their term, which include providing a written request to the City by March 2, 2020. Although the City has currently not received any notification from AYSO regarding their intent to extend the current Lease, it is anticipated that a request for extension from AYSO for the second