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CC - Item 4F - Jay Imperial Park Lease Agreement with SCEROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: JEFF ALLRED, CITY MANAGER DATE: January 12, 2016 SUBJECT: Jay Imperial Park Lease Agreement with SCE SUMMARY After several years of negotiations with Southern California Edison (SCE), a lease agreement has been executed to enable the development of Jay Imperial Park. The planned public park will be constructed on approximately five acres of land under the electrical transmission lines running south of Garvey Avenue bordered by San Gabriel Blvd. on the east and Pine Street and Falling Leaf Avenue on the west. Construction of the park is included in the City's Capital Improvement Program (CIP) budget and the majority of funding will be provided by a $550,000 grant from the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy, which must be expended by June 20, 2017. Staff Recommendation It is recommended that the City Council ratify approval of the lease agreement with SCE for Jay Imperial Park signed by the City Manager and City Attorney on December 23, 2015. BACKGROUND /DISCUSSION Since 2009, the City of Rosemead has been in discussions and negotiations in reference to the Southern California Edison (SCE) property located on the West and East side of Pine Street in the City of Rosemead referred to as Jay Imperial Park. The site totals 5 acres, which will constitute the area from San Gabriel Blvd. west to Falling Leaf Avenue, bisected by Pine Street and is located directly under SCE transmission lines. The intended use of the site is for park space and recreational purposes, which shall consist of greenbelts, pedestrian hiking, picnic benches, fencing and irrigation improvements. Once developed the park will add to the open space for passive recreation activity in Rosemead. The attached lease agreement for Jay Imperial Park will be for 25 years upon the approval of the California Public Utilities Commission (CPUC). The agreement calls for the lease amounts (approx. $500 /acre with a 10% increase every five (5) years) to be ITEM NO. 4.F City Council Meeting January 13, 2015 Paoe 2 of 2 paid by the City as follows Years 1 — 5 $2,800 per year 6-10 $3,080 per year 11-15 $3,388 per year 16- 20 $3,727 per year 21- 25 $4,100 per year Full term of the Lease Total: $85,475 In order to expedite the approval of the lease agreement for the CPUC agenda, the City Manager and City Attorney have executed the agreement as the annual lease costs are within the City Manager signature authority and time is of the essence to enable SCE to process the agreement through the CPUC for approvals. As a result, the signed agreement has been submitted to SCE for their signatures and for SCE to prepare the necessary application for submission to the CPUC for the final approval. FINANCIAL IMPACTS Jay Imperial Park construction is a "carryover" project contained in the City's CIP with available funding of $700,000. The breakdown of the funding sources listed in the CIP is as follows: Rivers & Mountains Conservancy (RMC) grant of $550,000, Transportation Development Act (TDA) funds of $100,000, and General Funds of $50,000. Public Notice Process This item has been noticed through the regular agenda notification process. P pared b Ap it L. Soash Interim Director of Parks & Recreation