02-14-2022 BPU RPT 05 - Laserfiche WebLink

Home

RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: FEBRUARY 14, 2022 SUBJECT: REVISED RENTAL FEES FOR THE USE OF UNDEVELOPABLE RIVERSIDE CANAL AND GAGE CANAL PARCELS ISSUE: Consider recommendation that the City Council approve the revised rental fees for the use of undevelopable Riverside Canal and Gage Canal parcels owned by the City. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the proposed increased rental rates for the use of undevelopable Riverside Canal and Gage Canal parcels for Open Space or Single-Family Residential use at $0.17 per square foot annually, and all other uses including Multi-Family, Commercial, Industrial, etc., at $0.66 per square foot annually; and 2. Authorize the City Manager, or designee, to execute Canal Use License Agreements for undevelopable Canal Parcels under the terms set forth in this staff report. BACKGROUND: the Gage Canal Company in 1965 included ownership of approximately 100+ Canal Parcels. Approximately 95% of the Canal Parcels are undevelopable and range between 25 and 66 feet in width and between 0.01 to 2.0 acres in size. Currently, there are active license agreements on some of the Riverside Canal and Gage Canal parcels (Canal Parcels) with permissible uses such as utility crossings by other utility companies/cities, vehicular ingress and egress, access to land- locked parcels, parking, bridge crossings, and landscaping. Over the years, rental amounts for the active licenses were as low as $1.00 per year, with the only consideration that the licensee be responsible for property maintenance and weed abatement of the Canal Parcels. Rental rates were inconsistent, with some carrying a fixed rental rate and others having annual increases. In several cases, annual rents were waived in lieu of the licensee making major canal/waterline improvements and relocations to accommodate development at the sole cost and expense. On April 10, 2017, the Board of Public Utilities (Board) recommended the approval of establishing a set and uniform rental fee for the issuance of Canal License Agreements for permitted uses for undevelopable Riverside Canal and Gage Canal