Police Department
www.santa-ana.org/police
Item # 17
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 2, 2024
TOPIC: Police Evidence Storage Warehouse Lease Agreements
AGENDA TITLE
Lease Agreements with Rick Kagasoff for Two Warehouse Locations for the Santa Ana Police Department Evidence Section in the Amount of $877,200
RECOMMENDED ACTION
Authorize the City Manager to execute three-year lease agreements with Rick Kagasoff for two separate warehouse locations for the period of May 1, 2024 through April 30, 2027, with an option for one 1-year extension, in an aggregate amount not to exceed $877,200 (Core Agreement No. A-2024-XXX):
•Warehouse 1 – 6,500 sq. ft. industrial building in an amount not to exceed $438,600
•Warehouse 2 – 6,500 sq. ft. industrial building in an amount not to exceed $438,600
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The Santa Ana Police Department’s Evidence Section utilizes two warehouse locations to store large evidence items related to the mandatory evidentiary storage of illegal cannabis locations and gambling locations. Due to the size of the gambling machines and cannabis equipment, the Police Department’s Evidence Section is unable to store these items.
The City Council approved separate three-year lease agreements with Rick Kagasoff for each location on April 21, 2020 and April 6, 2021. The Police Department exercised the first option for a one-year extension for one warehouse and both agreements are set to terminate at the end of April 2024.
Based on the number of seizures over the past years, these warehouses are close to capacity. Under our current lease, the property owner reinforced the fenced yard space
Police Evidence Storage Warehouse Lease Agreements
April 2, 2024
4 1
5 2
between the warehouses at no cost to the City. The warehouse locations have been mutually beneficial to both the property owner and the Police Department, as the property owner appreciates the law enforcement presence in the area. The property owner also added additional lighting, interior reinforced security bars, and permitted infrastructure for cameras and storage.
In March 2024, a search for properties was conducted for current City-owned property that would meet the proper evidentiary requirements per the Department of Justice and none were located and/or available. The current two warehouses met the needed requirements and the property owner negotiated a lower warehouse lease cost of $16.80 per square foot per year. Current price per square foot for industrial warehouses within the City of Santa Ana range from $17.40 to $24. The property owner has partnered with the Police Department on this project and understands the needs of the warehouses for the Department and the benefits to the community. Therefore, staff recommends renewing the lease agreements for both locations.
The proposed three-year lease agreement allows the Police Department to continue its storage of evidence without disruption. The lease agreements will cover the period of May 1, 2024 through April 30, 2027 and each warehouse lease will be $9,100 per month. These agreements also include a one-year extension option, following expiration of this lease, at $9,250 per month.
FISCAL IMPACT
Funding is available in the FY 2023-24 budget and funding for subsequent fiscal years will be included in the proposed budgets for City Council consideration as follows:
Fiscal Year Accounting Unit -
Account#
Fund
Description
Accounting Unit,
Account Description Amount
FY 23-24 01214010-62500
Cannabis
Public Benefit
Fund
Police Enforcement
Services, Rent
Payments
$ 36,400
FY 24-25 01214010-62500
Cannabis
Public Benefit
Fund
Police Enforcement
Services, Rent
Payments
$218,400
FY 25-26 01214010-62500
Cannabis
Public Benefit
Fund
Police Enforcement
Services, Rent
Payments
$218,400
FY 26-27 01214010-62500
Cannabis
Public Benefit
Fund
Police Enforcement
Services, Rent
Payments
$219,000
FY 27-28 01214010-62500
Cannabis
Public Benefit
Fund
Police Enforcement
Services, Rent
Payments
$185,000
Total $877,200
Police Evidence Storage Warehouse Lease Agreements
April 2, 2024
4 1
5 2
Note: FY 26-27 and FY 27-28 totals include one-year extension option.
EXHIBIT(S)
1. Lease Agreement with Rick Kagasoff (Warehouse 1)
2. Lease Agreement with Rick Kagasoff (Warehouse 2)
Submitted By: Robert Rodriguez, Acting Police Chief
Approved By: Tom Hatch, Interim City Manager