200 S. Anaheim Blvd.
Suite #276
Anaheim, CA 92805
Tel: (714) 765-5176
Fax: (714) 765-5161
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: JULY 18, 2023
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: RELOCATION AND FACILITY IMPROVEMENT DESIGN
COSTS FOR A CERTAIN PROPERTY FOR USE BY THE
ANAHEIM POLICE DEPARTMENT AND PUBLIC WORKS
DEPARTMENT
ATTACHMENT (Y/N): YES ITEM # 05
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, approve the tenant relocation services cost of $1,725,000 and facility improvement design cost of $300,000 for a total cost of $2,025,000 for a certain property for use by the Anaheim Police Department and the Public Works Department to secure police evidence, city vehicle storage, and equipment; and authorize the City Manager, or his designee, to establish an escrow account for relocation services and to manage the facility improvement design contract(s).
DISCUSSION:
On September 14, 2010, the former Anaheim Redevelopment Agency (Agency) acquired a certain property, (Property) as part of a pedestrian linkage project. This project was envisioned to connect two neighboring properties; however, it was never developed. Subsequently, the State of California passed ABx1 which dissolved all Redevelopment Agencies in the state effective February 1, 2012. In accordance with ABx1 and as part of the redevelopment dissolution process, a Long-Range Property Management Plan was created and approved by the Department of Finance on December 31, 2015, which identified the disposition of all real property assets of the former redevelopment agency. This Property was identified for retention as a “government use” property; therefore, the title was transferred from the former redevelopment agency to the City on October 28, 2021.
At the time of acquisition, the Property was occupied by a tenant, which had a lease in place until April 14, 2013. As part of the negotiations for the Property purchase, it was agreed that the tenant would remain as a tenant on a month-to-month basis with modified terms to the tenant’s original lease. The Agency terminated the original lease on September 14, 2010 and set forth mutually acceptable terms under which the Agency and the tenant entered into a new Non-Residential Rental Agreement (see Attachment 1), commencing on September 14, 2010 and continuing on a month-to- month basis until terminated by the parties in accordance with the terms of the Rental Agreement.
Relocation and Facility Improvement Costs at Certain Property for use by the Anaheim Police Department and Public Works Department
July 18, 2023
California Relocation Law requires that the tenant be eligible for relocation benefits, and as a result of the property being purchased with a tenant, the City is responsible for the costs to relocate the tenant to a new location. As the existing tenant is entitled to relocation benefits pursuant to Section 23 of the Rental Agreement as follows:
23. Relocation Benefits
“As long as Tenant remains a Tenant in good standing and Tenant’s Rental Agreement is not terminated for cause, Tenant shall be entitled to receive Relocation Benefits when/if Tenant is legally displaced from the premises. Inasmuch as Landlord has agreed to allow Tenant to continue paying the reduced rent authorized by the former owner of the property, any future relocation benefits will be based on the full rent shown in Paragraph 3a above.”
In order to provide relocation benefits, the City retained Overland Pacific and Cutler as the City’s relocation Agent; and the estimated cost of relocation was determined to be $1,725,000 (see Attachment 2). The reason for such a high relocation cost is due to machinery that needed to be moved and high voltage electrical requiring a new transformer at a new location. The reason for relocating the tenant is for the joint use of the Property by the Anaheim Police Department and Public Works Department to secure police evidence, city vehicles, and equipment storage.
The need to expand the Police Department's Property & Evidence warehouse footprint has grown exponentially, with legislature changing requirements for the length of time the Department is required to maintain evidence. For example, effective January 1, 2020, Law Enforcement Agencies have to retain sexual assault evidence, for unsolved cases, for at least 20 years or until the victim’s 40th birthday; and for solved cases, evidence must be retained for as long as the person connected to the case remains incarcerated; and the mandate to maintain evidence related to homicide cases indefinitely creates a challenge. Currently, the International Association for Property & Evidence (IAPE) and California Association for Property & Evidence (CAPE) are recognized associations that dictate best practices when maintaining storage and security standards such as alarming and video security surveillance. The Department currently utilizes 10,773 square feet of storage within various areas of the Main station facility to store property and evidence. In addition, the Department leases 3,400 square feet of storage at an off-site location, for a total annual cost of $40,000 per year. The department has outgrown the combined storage areas and requires additional storage. The addition of a new larger facility will allow for an improved chain of custody process, is anticipated to meet the Department's Property & Evidence storage needs/requirements for the next 25 years and will free up much needed space within the Main station facility to be utilized as intended.
The Public Works Operations and Maintenance Division has a significant need for approximately 10,000 square feet of indoor storage and 2,000 square feet of outdoor storage space. This space is needed as the Public Works yards on Vermont Avenue and Melrose Street have very limited storage available and other storage areas shared with other departments have been repurposed.
Relocation and Facility Improvement Costs at Certain Property for use by the Anaheim Police Department and Public Works Department
July 18, 2023
Public Works needs to relocate the following assets:
Mobile Incident Response Team trailer
Community outreach materials/supplies and Recycle Anaheim trailer K-Rails and miscellaneous traffic control equipment
Traffic signal cabinets and illuminated street sign blades New vehicle acquisitions awaiting up-fitting and/or other assignments Retired vehicles pending auction/disposal
Oversized parts for inventory stock
Portable AC trailers, various spare motors, pumps, and generators Special event equipment
Miscellaneous warehouse stock currently staged in work bays and vehicle parking spots The relocation of the above assets would relieve traffic congestion and increase safety in existing yards. The additional storage area will ensure that the equipment remains safe from inclement weather and will allow for additional project staging areas.
In order to operate effectively and to secure police evidence, city vehicle storage, and equipment, the property requires tenant improvements. The estimated tenant improvements design costs are approximately $300,000. The tenant improvement construction costs are currently estimated to be $3,309,000 (see Attachment 3) and will be presented for consideration in next year’s budget.
The intended improvements will be procured through the normal bidding process and generally include:
Building shell refurbishments and repairs
Interior space improvements
Mechanical and Electrical system alterations
Site security, CCTV, security system and control access IMPACT ON BUDGET:
Funds for relocation services costs and facility improvements are included in the Public Works and Economic Development Departments’ Fiscal Year 2023/24 budgets.
Respectfully submitted, Concurred by,
Rudy Emami Jorge Cisneros
Director of Public Works Interim Chief of Police
Concurred by,
Sergio Ramirez
Director of Economic Development
Relocation and Facility Improvement Costs at Certain Property for use by the Anaheim Police Department and Public Works Department
July 18, 2023
Attachments:
1. Rental Agreement
2. Tenant relocation services cost estimate
3. Facility improvement cost estimate