03-09-2004 CC RPT 27 - Laserfiche WebLink

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CITY OF RIVERSIDE CITY COUNCIL MEMORANDUM People Serving People Riverside Ali-America Cit~ HONORABLE MAYOR AND CITY COUNCIL DATE: March 9, 2004 ITEM NO: 27 SUBJECT: RESOLUTION TRANSFER ,OF A PORTION OF THE PROPERTY LOCATED AT 5950 ACORN STREET FROM PUBLIC WORKS TO PUBLIC UTILITIES ELECTRIC BACKGROUND: Public Works operates a water treatment plant on a 121.95 acre site located at 5950 Acorn Street. Public Utilities would like to acquire 16.18 acres of this parcel (see attached maps) to build a 100 mega-watt Electdc Generating Station herein referred to as the Riverside Energy Resource Center (RERC). Public Works has no plans for this portion of their property except to serve as a buffer area for the treatment plant. Public Utilities and Public Works discussed this matter and agreed it would be mutually beneficial to both departments and to the City of Riverside to proceed with transferring 16.18 acres to Public Utilities. Public Works will benefit from this transaction since the power plant would help serve as a buffer to the treatment plant and save on those maintenance costs. Additionally, a power plant is a much more compatible neighbor to a wastewater treatment facility than other commercial and industrial users. Public Utilities will benefit since the location is close to a natural gas fuel pipeline, the surrounding area is industrial use, and its Mt. View Substation, for which RERC will need to connect, is 1.2 miles away. Both departments will benefit with the proposed co-location as they can share compressed/instrument air; capability of providing emergency power; and steam potential and feed water, which are common between the two sites, thus reducing some operating costs. FISCALIMPACT: Public Utilities, Public Works and Real Property Services have agreed that $1 million is a fair and just amount of compensation for the subject 16.18 acres. The money received from this transfer can be used by Public Works to fund other Public Works projects. ALTERNATIVE: If the resolution is not adopted, Public Utilities could not proceed with the construction of their generating plant at this location and would have to look at alternative sites. However, locating other sites that offer the same infrastructure Utilities requires and Iow impact on area residences would be difficult to find. RECOMMENDATION: That the City Council adopt a resolution transferring the 16.18 acre parcel from Public Works to Public Utilities Electrical to construct the Riverside Energy Resource Center. 27-1