Item Coversheet

Agenda Item - 4.a.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:Todd D. Elgin
Dept.:City Manager 

Dept.: Police 
Subject:

Approval of a Lease Agreement for property located at 11554 Salinaz Avenue, Garden Grove.  (Cost:  $40,764) (Action Item)

Date:4/26/2016

OBJECTIVE

To obtain 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. Over the last several years, we have reduced the number of items stored by reviewing all of our cases that involve stored or seized property. We have incorporated new procedures to release or destroy all unneeded property/evidence as soon as legally possible. Although we have been successful in reducing the amount of property stored, the Property and Evidence building is still filled to capacity.

 

In July of 2007, the City of Garden Grove entered an agreement to lease the property at 11554 Salinaz Avenue. 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 , freeing up much needed space at the Property and Evidence Building.

 

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, 2019, 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.

 

The current lease contract expires June 30th, 2016. The attached lease extension agreement would extend the current contract for three more years, through June 30th, 2019. The contract includes a one-year option to renew, which would allow us to extend the contract through June 30th, 2020.

 

The property at 11554 Salinaz Avenue is owned by Newhope Business Park.  It is approximately 3,600 square feet and would be leased to the City for $3,397.00 per month, which would be $40,764.00 per year. The Department would continue to use the location to store property and evidence.

FINANCIAL IMPACT

The rent for the building is tied to the “Consumer Price Index” and will be reevaluated each year. The monthly rent will increase as follows:

 

  • July 1, 2017-June 30, 2018: CPI Increase
  • July 1, 2018-June 30, 2019: CPI Increase

Over the last Nine (9) years we have been renting this building, the “Consumer Price Index” increases have been very minor. For example, the rent from July 1, 2015, to June 30, 2016 is $3,347 per month. For the period starting July 1, 2016 through June 30, 2017, the rent will be $3,397 per month, an increase of only $50 per month. If the Consumer Price Index does not increase, the total cost of this contract over three years would be $122,292. This cost would be absorbed in the Police Department’s budget.

RECOMMENDATION

Staff recommends that the City Council:

 

  • Approve the extension of the lease of the property located at 11554 Salinaz Avenue;

  • Authorize the City Manager and City Clerk or their designee(s) to execute the lease agreement.

By: Ted Peaslee, Lieutenant Support Services Bureau




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
Lease Extension Agreement4/7/2016Cover MemoLease_extension_agreement.pdf