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FIRST AMENDMENT GRAND CANAL
TOWNHOMES ASSOCIATION
City Council
December 12, 2023
Riverside Public Utilities
RiversideCA.gov
2 1. The City, through its Public Utilities Department, owns the Gage Canal (“Canal”), operated by the Gage Canal Company.
2. A Developer formerly known as Dulce Vida was granted a License Agreement to use approximately 16,500 square feet of the Canal for the construction of utilities and as in gress and egress onto the otherwise landlocked development.
3. In June 2022, City staff performed an audit of all License Agreements.
4. It was discovered that Grand Canal Townhomes had not been invoiced the annual 5% increase per the Non-Exclusive License Agreement since 2009.
BACKGROUND
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3 5. On June 27, 2022, City staff contacted Grand Canal Townhomes Association ("Grand Canal") and requested Grand Canal to pay the correct monthly payment amount beginning in August 2022, for a total underpaid amount of $10,093.47.
6. In February 2023, City Attorney st aff began negotiations with Grand Canal to address the total underpaid amount.
7. A First Amendment to the Non-Exclusive License Agreement was proposed to memorialize the settlement terms.
BACKGROUND
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4 The basic deal points of the First Amendment are summarized below:
1. Section 4 : Consideration will be amended in its entirety as follows:
a. As consideration for use of the licensed Premises Licensee will pay to City a license fee in the amount of Five Hundred Sixty-Seven Dollars and Thirteen Cents ($567.13) per month.
Licensee will have a one-time credit of Nine Thousand Two Hundred Ninety-Five Dollars and Seventy-One Cents ($9,295.71) which will be applied to its monthly license fee payments until expended.
b .S e c t i o n4 ( a ) ,a b o v et h em o n t h l yr e n tw i l lb ei n c r e a s e do ne a c hy e a rw i t ht h ep a y m e n t due on November 1 by an amount equal to five percent (5%) of such monthly rent. c . T h em o n t h l yl i c e n s ef e ew i l lb ep a i db yc h e c km a d ep a y a b l et ot h eC i t yo fR i v e r s i d e and sent to the City of Riverside, Central Cashiering City Hall, 3900 Main Street, Riverside California 92522.
d. If Licensee fails to pay the monthly license fee by the tenth 10th day of the month in which it is due Licensee agrees that the actual damage to the City would be impracticable or extremely difficult to determine. Therefore, Licensee agrees to pay a late fee equal to ten percent (10%) of the monthly license fee which amount shall be a d d e dt ot h el i c e n s ef e ed u ea n dc o n s i d e r e dp a r to ft h el i c e n s ef e ed u eC i t y hereunder.
FIRST AMENDMENT TERMS
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5 2. It is agreed that this First Amendment embodies the entire agreement between the parties hereto on the subject matter hereof and that their agreement or understanding, verbal or otherwise, relative to this subject matter exists between the parties hereto at the time of execution.
3. All other terms and conditions of the Agreement between the parties, which are not inconsistent with the terms of this First Amendment, shall remain in full force and effect as if fully set forth herein.
FIRST AMENDMENT TERMS
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6 Priority 5: High Performing Government
Goal 5.4. Achieve and maintain financial health by addressing gaps between revenues and expenditures and aligning resources with strategic priorities to yield the greatest impact.
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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7 That the City Council:
1. Approve a First Amendment to Non-Exclusive License Agreement with Grand Canal Townhomes Association, as Successor in Interest to Dulce Vida, a California limited liability Company for use of City owned Property located East of Canal Street, North of Terrace Pines Drive, Grand Terrace, California; and
2. Authorize the City Manager, or de signee, to execute the agreement, including making minor non-substantive changes, and to sign all documents necessary to complete the transaction.
RECOMMENDATIONS
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