DATE: November 8, 2016
SUBJECT:
Title
SAN DIEGO GAS & ELECTRIC COMPANY
A) RESOLUTION ESTABLISHING RENT FOR AN UNDERGROUND UTILITY EASEMENT LOCATED AT GLORIETTA BOULEVARD BETWEEN SECOND AND THIRD STREETS IN THE CITY OF CORONADO FOR THE PERIOD OF OCTOBER 1, 2016 THROUGH SEPTEMBER 30, 2021
B) RESOLUTION ESTABLISHING RENT FOR AN UNDERGROUND UTILITY EASEMENT LOCATED AT FIRST STREET AND E AVENUE IN THE CITY OF CORONADO FOR THE PERIOD OF OCTOBER 1, 2016 THROUGH JUNE 30, 2020
C) RESOLUTION ESTABLISHING RENT FOR AN UNDERGROUND UTILITY EASEMENT LOCATED AT FIRST STREET AND B AVENUE IN THE CITY OF CORONADO FOR THE PERIOD OF OCTOBER 1, 2016 THROUGH JUNE 30, 2020
Body
EXECUTIVE SUMMARY:
The District has three underground utility easements1 with San Diego Gas & Electric Company (SDG&E) located in the City of Coronado (Attachment A) which require rent reviews. The easement located at Glorietta Boulevard between Second and Third Streets (Glorietta Boulevard Easement) is 2,500 square feet and commenced on April 1, 1991 and will end on September 30, 2036. The easement located at First Street and E Avenue (E Avenue Easement) is 19,308 square feet and commenced on November 1, 1977 and will end on June 30, 2020. The easement located at First Street and B Avenue (B Avenue Easement) is 18,693 square feet and commenced on October 1, 1976 and will end on June 30, 2020. Pursuant to all three of the easements, rent reviews are required for the next five-year period commencing October 1, 2016. Since the E Avenue Easement and B Avenue Easement are expiring soon, the rent reviews for these easements will cover the period through the termination date of June 30, 2020.
SDG&E has agreed to increase the rent to $3,800 per year for the Glorietta Boulevard Easement; $7,337 per year for the E Avenue Easement; and $20,368 per year for the B Avenue Easement, effective retroactively to October 1, 2016. The agreed-upon adjustments of annual rent for all three easements represent a 22% increase over previous annual rents paid to the District.
RECOMMENDATION:
Recommendation
A) Adopt a Resolution establishing rent for an underground utility easement located at Glorietta Boulevard between Second and Third Streets in the City of Coronado for the period of October 1, 2016 through September 30, 2021
B) Adopt a Resolution establishing rent for an underground utility easement located at First Street and E Avenue in the City of Coronado for the period of October 1, 2016 through June 30, 2020
C) Adopt a Resolution establishing rent for an underground utility easement located at First Street and B Avenue in the City of Coronado for the period of October 1, 2016 through June 30, 2020
Body
FISCAL IMPACT:
The proposed Board actions will result in a positive fiscal impact to the District since the agreed-upon adjustments of annual rent will increase the District’s total rent received from the easements by 22%, or $5,633 collectively per year.
This agenda item is not subject to Board of Port Commissioners Policy 106 - Cost Recovery User Fee Policy.
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A Port with a comprehensive vision for Port land and water uses integrated to regional plans.
• A financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
SDG&E has three existing utility easements with the District covering a combined total of 40,501 square feet of tideland area to construct, modify, improve, relocate, repair, and maintain underground facilities for the transmission and distribution of electricity and gas in the City of Coronado. The Glorietta Boulevard Easement, E Avenue Easement, and B Avenue Easement require rent reviews for the next five-year period commencing October 1, 2016. Since the E Avenue Easement and B Avenue Easement are expiring soon, the rent reviews for these easements will cover the period through the termination date of June 30, 2020.
An independent appraisal was conducted to determine fair market rent for the three easements. Consistent with the recommendations of the appraisal, SDG&E has agreed to increase the annual rent for the easements as follows:
The Glorietta Boulevard Easement covers 2,500 square feet of subsurface land. SDG&E has agreed to increase annual rent for the easement from $3,120 to $3,800, effective retroactively to October 1, 2016. The easement is summarized on the attached Existing and Proposed Easement 1 Information Summary (Attachment B).
The E Avenue Easement covers 19,308 square feet of subaqueous land. SDG&E has agreed to increase the annual rent for the easement from $6,024 to $7,337. The increase in annual rent for the easement is effective retroactively to October 1, 2016. The easement is summarized on the attached Existing and Proposed Easement 2 Information Summary (Attachment C).
The B Avenue Easement covers 11,636 square feet of subsurface land and 7,057 square feet of subaqueous land. SDG&E has agreed to increase the annual rent for the easement from $16,728 to $20,368, effective retroactively to October 1, 2016. This easement is within a utility corridor which includes the City of Coronado transbay sewer pump station. The easement is summarized on the attached Existing and Proposed Easement 3 Information Summary (Attachment D).
Staff recommends the Board adopt a Resolution establishing rent for the Glorietta Boulevard Easement through September 30, 2021 and adopt Resolutions establishing rent for the E Avenue Easement and B Avenue Easement through June 30, 2020.
General Counsel’s Comments:
The Office of the General Counsel has reviewed the issues presented in this rent review and approves as to form and legality.
Environmental Review:
The proposed Board actions do not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because the actions will not have a potential to result in a direct or indirect physical change in the environment and are, therefore, not subject to CEQA. No further action under CEQA is required.
In addition, the proposed Board actions allow for the District to implement its obligations under the Port Act and/or other laws. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board actions are consistent with the Public Trust Doctrine.
Finally, the proposed Board actions do not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit Regulations. Therefore, issuance of a Coastal Development Permit or exclusion is not required.
Equal Opportunity Program:
Not applicable.
PREPARED BY:
Alexa Paulus
Assistant Asset Manager, Real Estate Development
James Hammel
Asset Manager, Real Estate Development
Attachment(s):
Attachment A: Location Map
Attachment B: Existing and Proposed Easement 1 Information Summary
Attachment C: Existing and Proposed Easement 2 Information Summary
Attachment D: Existing and Proposed Easement 3 Information Summary
1. Easement between San Diego Unified Port District, a public corporation and San Diego Gas & Electric
Company, a California corporation, filed in the Office of the District Clerk on May 1, 1991 as
Document No. 26865, as amended;
Easement between San Diego Unified Port District, a public corporation and San Diego Gas & Electric
Company, a California corporation, filed in the Office of the District Clerk on November 8, 1977 as
Document No. 10538, as amended;
Easement between San Diego Unified Port District, a public corporation and San Diego Gas & Electric
Company, a California corporation, filed in the Office of the District Clerk on November 2, 1976 as
Document No. 9840.