Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
SEPTEMBER 20, 2023
Subject
SUBJECT: LICENSE AGREEMENT WITH SOUTHERN CALIFORNIA EDISON FOR THE BLUE LINE STORAGE YARD LOCATED NEXT TO DIVISION 11 IN LONG BEACH
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer (CEO), or their designee, to execute a five (5)-year license agreement commencing November 1, 2023, with Southern California Edison, ("Licensor") for the 7.7 acre storage yard located next to Division 11 in Long Beach ("Edison Yard") at an annual rate of $139,271.30 with escalations of five percent (5%) annually for a total license value of $769,561.82 over the term.
Issue
ISSUE
Metro Operations, Rail Fleet Services, and Wayside Systems, have a license to occupy a Southern California Edison ("SCE) property ("Edison Yard") located next to Division 11. The existing license agreement is for a five-year duration. The Board approved the current license on January 24, 2019 which was retroactive to November 1, 2018. The current five-year license will expire on October 31, 2023. Metro Operations has a continued need for the Edison Yard for ongoing Blue Line and other Rail Fleet Services and Wayside Systems needs. Approving this license ("License") will secure the Edison Yard for an additional five-year term from November 1, 2023 through October 31, 2028. Southern California Edison will only issue licenses for five-year periods as the land also contains their transmission towers which prohibit them from surrendering ownership. The License requires Board approval as the total license expense exceeds the CEO delegated authority to enter contracts with a cost not to exceed $500,000.
Background
BACKGROUND
The current five-year license term commenced on November 1, 2018, and will expire on October 31, 2023, for a total amount of $625,672.78. Prior to the current license, Metro maintained storage at this location dating back to the 1990s, so Real Esta...
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