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Police Department <br />www.santa-ana.org/pol ice <br />Item # 17 <br />o`'r City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />April 2, 2024 <br />TOPIC: Police Evidence Storage Warehouse Lease Agreements <br />AGENDA TITLE <br />Lease Agreements with Rick Kagasoff for Two Warehouse Locations for the Santa Ana <br />Police Department Evidence Section in the Amount of $877,200 <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute three-year lease agreements with Rick Kagasoff <br />for two separate warehouse locations for the period of May 1, 2024 through April 30, <br />2027, with an option for one 1-year extension, in an aggregate amount not to exceed <br />$877,200 (Core Agreement No. A-2024-XXX): <br />• Warehouse 1 — 6,500 sq. ft. industrial building in an amount not to exceed <br />$438,600 <br />• Warehouse 2 — 6,500 sq. ft. industrial building in an amount not to exceed <br />$438,600 <br />GOVERNMENT CODE 484308 APPLIES: Yes <br />DISCUSSION <br />The Santa Ana Police Department's Evidence Section utilizes two warehouse locations <br />to store large evidence items related to the mandatory evidentiary storage of illegal <br />cannabis locations and gambling locations. Due to the size of the gambling machines <br />and cannabis equipment, the Police Department's Evidence Section is unable to store <br />these items. <br />The City Council approved separate three-year lease agreements with Rick Kagasoff for <br />each location on April 21, 2020 and April 6, 2021. The Police Department exercised the <br />first option for a one-year extension for one warehouse and both agreements are set to <br />terminate at the end of April 2024. <br />Based on the number of seizures over the past years, these warehouses are close to <br />capacity. Under our current lease, the property owner reinforced the fenced yard space <br />