25D - AGMT FOR WAREHOUSE SPACE - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: APRIL 21, 2020 TITLE APPROVE A THREE-YEAR LEASE AGREEMENT WITH RICK KAGASOFF FOR WAREHOUSE SPACE IN THE AMOUNT OF $187,200 /s/Kristine CITY MANAGER CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1sl Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO RECOMMENDED ACTION Authorize the City Manager to execute a three-year lease agreement with Rick Kagasoff for warehouse space, for the period of May 1, 2020 through April 30, 2023 in an amount not to exceed $187,200. This agreement includes the option for two -one year renewals following expiration of this lease, provided the annual lease increase does not exceed five percent, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION In October 2019, a search for properties was conducted for current City -owned property that would meet the proper evidentiary requirements per the U.S. Department of Justice. This warehouse met the needed requirements, and the property owner negotiated lower warehouse lease costs. The property owner has partnered well with the Police Department on this project and understands the needs of the warehouse for the Department and the benefits to the community. The warehouse location has been mutually beneficial to both the property owner and the Police Department, as the property owner appreciates the law enforcement presence this agreement brings. This lease is for an approximate 6,500-square-foot warehouse used to store large evidence items related to the increase in illegal cannabis locations and gambling locations. Due to the size of these machines, the Police Department's Evidence Section is unable to store these items. The Santa Ana Police Department entered into a 6-month lease for a warehouse located in the northwest quadrant of the City in October of 2019 at a rate of $5,000 a month. This proposed three- year lease agreement allows the Police Department to continue its storage of evidence at the existing location with no interruption in services for up to an additional 36 months (Exhibit 1). The lease agreement will cover the period of May 1, 2020 to March 31, 2022. The agreement includes annual amounts of $61,200 ($5,100 per month) for the first year, $62,400 ($5,200 per month) for the second year, and $63,600 ($5,300 per month) for the third year. This agreement will also allow the City Manager to execute two -one year lease agreements, following expiration of this lease, provided the annual lease amount does not increase by more than five percent. 25D-1