Item 217/2024
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Chief El-Farra
Dept:
City Manager Dept: Police
Date: 5/14/2024
Subject: Approval of a Lease Extension Agreement with Glen A. Wilson for property located at 11554 Salinaz Avenue, Garden Grove to store property and evidence acquired by the Police Department. (Action Item)
OBJECTIVE
To obtain City Council approval to extend a lease agreement with Glen A. Wilson for a building used to store property and evidence acquired by the Police Department.
DISCUSSION
The current lease agreement expires June 30, 2024, and the Police Department wishes to extend the agreement for an additional three (3) years, through June 30, 2027. The agreement includes a one-year option to renew, which would allow the Department to extend the lease through June 30, 2028.
The new Police Department building is estimated to be complete in 2026 ; however, the Department anticipates that it will take some time to review, dispose of, process, move, etc. all of the items currently stored at the Salinaz location. The goal is to have everything moved prior to June 30, 2027, but the additional one -year option is available should there be any delays.
FINANCIAL IMPACT
For fiscal year 2024 -25, the cost of the agreement will be $4,860 per month ($58,320/year). Beginning in FY 2025 -26, the lease cost will increase by the greater of three (3%) percent or the Cost of Living as measured by the Consumer Price Index- All Items (1982-84=100) March, 2024 versus March, 2025 and will increase each year thereafter for the term of the agreement.
The Police Department’s FY 2024 -25 operating budget includes funding for this contract. However, continued funding from the General Fund will need to be appropriated for succeeding years through the regular budgeting process.
RECOMMENDATION
Item 217/2024
It is recommended that the City Council:
• Approve the attached Lease Extension Agreement with Glen A. Wilson for the property located at 11554 Salinaz Avenue, Garden Grove to store property and evidence acquired by the Police Department; and
• Appropriate additional funds from the General Fund to accommodate future years’ cost through budget adoption; and
• Authorize the City Manager to execute the lease agreement on behalf of the City, and make minor modifications thereto as needed; and
• Authorize the City Manager to execute future amendments to the contract, including the authorization to enter into the options years, providing sufficient funds are available
ATTACHMENT:
1. Salinaz Lease Extension-Proposed_2024-2027