TITLE
Recommendation to authorize City Manager to execute a new License Agreement and any necessary documents with Southern California Edison for the City's continued use of Southern California Edison-owned land, which comprises a portion of the EI Dorado Nature Center, for a term of five years. (District 4)
DISCUSSION
For more than 32 years, the City of Long Beach (City) and Southern California Edison (SCE) have entered into License Agreements that allow the City to use approximately 14.77 acres of SCE-owned land, which comprises the westerly edge of the EI Dorado Nature Center. License Agreement No. 32317 will expire on June 30, 2015. SCE forwarded a newly prepared License Agreement to the Department of Parks, Recreation and Marine on April 29, 2015. The new License Agreement will allow the City's continued use of SCE-owned land through June 30, 2020.
The proposed License Agreement contains the following major terms and conditions:
• Term: Five years, commencing on July 1,2015.
• Fee: The City shall pay SCE an annual license fee of $3,043 in FY15, which represents a three percent increase to the current license fee of $2,954. Beginning in FY16, and annually thereafter, the license fee shall be subject to three-percent increases.
• Maintenance: All costs for the maintenance of the underlying improvements, i.e., trees, shrubbery, and foliage, which shall not exceed the heights and limitations prescribed by SCE, shall continue to be borne solely by the City.
This matter was reviewed by Deputy City Attorney Kendra L. Carney on May 18, 2015, and by Budget Management Officer Victoria Bell on May 21, 2015.
TIMING CONSIDERATIONS
City Council action is requested on June 9, 2015, in order to enable the execution of a new License Agreement with Southern California Edison prior to the current License Agreement's expiration on June 30,2015.
FISCAL IMPACT
The proposed action will result in an expenditure of $3,043 in FY15, and annual expenditures of $3,134 in FY16, $3,228 in FY17, $3,325 in FY18, and $3,425 in FY19. The FY15 cost is budgeted in the General Fund (GF) in the Parks, Recreation and Marine Department (PR). There is no impact to jobs associated with the recommended action.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
GEORGE CHAPJIAN
DIRECTOR OF PARKS, RECREATION AND MARINE
APPROVED:
PATRICK H. WEST
CITY MANAGER