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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 4, 2018 <br />TITLE: <br />APPROVE A LEASE AGREEMENT WITH <br />RIO WEST LLC FOR WESTEND <br />SUBSTATION OFFICE <br />(STRATEGIC PLAN NO.1, 1F) <br />1 <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1 s Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute a month-to-month lease <br />agreement with Rio West, LLC for the use of the Westend Substation, for the period of November <br />1, 2018 through October 31, 2019, in the annual amount of $31,464 ($2,622 per month), and <br />authorize the City Manager and Clerk of the Council to execute two -one year lease agreements, <br />following expiration of this lease, provided the annual lease increase does not exceed five <br />percent, subject to non -substantive changes approved by the City Manager and City Attorney. <br />The Santa Ana Police Department has operated the Westend Substation located at the comer of <br />Harbor and McFadden for over 17 years. The substation location has been mutually beneficial to <br />both the property owner and the Police Department. The City of Santa Ana entered into a <br />recurring no cost lease with the owner that has equated to a monetary savings to the City of well <br />over $400,000. This location has become a community engagement center and is well known to <br />area residents. In 2015, the property owner notified the Police Department that based on <br />changing economic conditions, a no cost lease was no longer available. In November 2015, the <br />Police Department entered into a one-year paid lease, and has since renewed the lease in 2016 <br />and 2017. <br />As the location has been in use for many years, an expansive infrastructure has already been <br />established, and an examination of relocation costs found it to be cost prohibitive to move the <br />substation. This proposed one-year lease agreement renewal allows the Police Department to <br />continue its "Community Oriented Policing" mission at the existing location with no interruption in <br />services for up to an additional 12 months. The lease agreement will cover the period of <br />November 1, 2018 through October 31, 2019 at an annual cost of $31,464 ($2,622 per month). <br />25E-1 <br />