REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Eric Parra, Chief of Police
PREPARED BY: Capt. Ryan Reilly and Ingrid Ono, Exec. Asst.
Subject:
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Approve and authorize execution of a Lease Agreement with Ares Investment Group, LCC for a new police substation lease at 7711 Center Avenue, Huntington Beach
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Statement of Issue:
The city currently rents a 1,030 square foot police substation at 17477 Beach Blvd. (the Oakview Substation) for $2,678 per month ($32,126 annually) and includes an annual CPI adjustment. The lease commenced on June 1, 2022, and is “month to month.” The substation is not marked or staffed and does not accommodate interface with the public. The new police substation location at 7711 Center Avenue would accommodate the department’s needs at a reduced cost.
Financial Impact:
The proposed lease at 7711 Center Avenue is set to commence on October 1, 2024, with an initial term of five years, and the transitioning to a month-to-month basis thereafter. The rent for the first five years is $0 per month. Upon approval, the city will terminate the existing Oakview Substation lease, leading to an estimated savings of approximately $175,000 in rent over the next five years.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute lease agreement with Ares Investment Group, LCC for the lease of a new police substation lease at 7711 Center Avenue, Huntington Beach.
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Alternative Action(s):
Do not approve the recommended action, and direct staff accordingly.
Analysis:
The police department requests the City Council to approve the attached lease agreement for a new 1,595 square foot police substation at 7711 Center Avenue, Suite 110. This lease will commence on October 1, 2024, with a term of five years, transitioning to a month-to-month basis thereafter. The rent for the first five years is $0 per month.
Utilities, including electricity, gas, water, trash, and common area maintenance (CAM) fees, will be provided at no cost to the city. Start-up costs such as IT connections, access control, furniture, etc. is estimated to cost approximately $60,000 and will be covered by funds reallocated from a police department Capital Improvement Plan (CIP) project that has decreased in scope.
The property owner will provide four designated parking spaces for police/city vehicles. The city will mark the front door of the substation as a designated unstaffed police facility.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Goal 8 - Public Safety, Strategy B - Bolster City's emergency management preparedness and response plans to ensure seamless public safety response during crisis events.
Attachment(s):
1. Lease Agreement