Item Coversheet

Agenda Item - 2.i.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:Tom DaRé
Dept.:City Manager 

Dept.: Police 
Subject:

Approval of a Lease Extension Agreement with Glen A. Wilson for property located at 11554 Salinaz Avenue, Garden Grove, to store property and evidence acquired by the Police Department. (Cost: $181,787) (Action Item)

Date:5/26/2020
OBJECTIVE

To secure City Council approval to extend the current lease of the building located at 11554 Salinaz Avenue, to use for the storage of property and evidence acquired by the Police Department.
BACKGROUND

The Property and Evidence storage area at the Police Department is filled to capacity and has been for several years. The Department has reduced the number of items stored by reviewing all of our cases that involve stored or seized property. The Department has incorporated new procedures to release or destroy all unneeded property/evidence as soon as legally possible. Although the Department has been successful in reducing the amount of property stored, the Property and Evidence building is filled to capacity. In July of 2007, the City of Garden Grove entered an agreement to lease the property at 11554 Salinaz Avenue for a period of five years. The intent was to provide a large, secure area for the storage of evidence and other property. The property at 11554 Salinaz has fulfilled the needs of the department admirably, freeing up much needed space at the old property and evidence building.
DISCUSSION

The modification of the police facility is part of the “Civic Center, Public Safety Master Plan.” This plan may include a redesign of the existing property and evidence building. Leasing the property at 11554 Salinaz Avenue provides a safe and secure area to store property while the department evaluates all options relating to this building redesign. The Police Department is requesting the lease of the property at 11554 Salinaz Avenue be extended through June 30th, 2023, while this building redesign plan is considered. The property at 11554 Salinaz Avenue is currently available, and extending the contract now will ensure its availability during this period. If the Police Department were to lose this lease in the near future, thousands of items of evidence along with hundreds of square feet of shelving would have to be moved and stored elsewhere. The current lease contract expires June 30th, 2020. The attached lease extension agreement would extend the current contract for three additional years, through June 30th, 2023. The contract includes a one-year option to renew, which would allow us to extend the contract through June 30th, 2024.
FINANCIAL IMPACT

The vendor has agreed not to increase the cost of the lease for FY 2020-21 ($43,452). Beginning July 1, 2021, the cost will increase a maximum of three (3%) percent year over year for the three remaining option years. Assuming a three (3%) increase, the approximate annual costs break down as follows:

  • FY 2020-21:  $43,452
  • FY 2021-22:  $44,756
  • FY 2022-23:  $46,098
  • FY 2023-24: $47,481
  • Total:  $181,787

 

The Police Department’s FY 2020-21 General Fund budget includes funding for this contract. However, additional General Fund monies will need to be appropriated for option years two through four to accommodate annual cost increases.

RECOMMENDATION

It is recommended that the City Council:

 

  • Approve the attached Lease Extension Agreement with Glen A. Wilson for the property located at 11554 Salinaz Avenue, Garden Grove to store property and evidence acquired by the Police Department; and
  •  Appropriate additional General Fund monies to accommodate cost increases for option years two through four; and
  • Authorize the City manager to execute the lease agreement on behalf of the City, and make minor modifications thereto as needed.

 

By:  Courtney Cibosky, Fiscal Analyst




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
Contract extension5/6/2020Backup MaterialSALINAZ_Lease_Extention_Agreement.pdf