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File #: 22-410    Version: 2
Type: Consent Calendar Status: Passed
File created: 5/5/2022 In control: City Council/Public Financing Authority
On agenda: 5/17/2022 Final action: 5/17/2022
Title: Approve and authorize a month-to-month rental agreement with Phan Property Management to continue leasing the Oak View Police Substation on 17477 Beach Boulevard
Attachments: 1. Att#1 Agreement-Oakview Substation, 2. Att#2 Phan Property Mgmt.

REQUEST FOR CITY COUNCIL ACTION

 

SUBMITTED TO:                     Honorable Mayor and City Council Members                     

 

SUBMITTED BY:                     Sean Joyce, Interim City Manager                     

 

VIA:                     Eric Parra, Chief of Police

 

PREPARED BY:                     Ingrid C. Ono

 

Subject:

title

Approve and authorize a month-to-month rental agreement with Phan Property Management to continue leasing the Oak View Police Substation on 17477 Beach Boulevard

body

 

Statement of Issue:

The City Council is requested to approve a month-to-month rental agreement with Phan Property Management (PPM) for the continued lease of real property located at 17477 Beach Blvd, also known as the Oak View Police Substation.  The new month-to-month agreement will allow the Huntington Beach Police Department (HBPD) sufficient time to conduct a real estate search for alternate substation locations before deciding whether to pursue a longer term lease with PPM.

 

Financial Impact:

There is a potential impact of $15,000 for the monthly rental of $2,600/mo. over a four to six month period and a $2,600 security deposit as the Police Department evaluates other locations for the substation. The department has identified funds and the fiscal impact will be absorbed within the department’s existing budget.

 

Recommended Action:

recommendation

Approve and authorize the Mayor and City Clerk to execute the month-to-month “Vista Beach & Slater Centre” lease agreement with Phan Property Management for the continued lease of 17477 Beach Blvd.

end

 

Alternative Action(s):

Do not approve the agreement and direct staff accordingly.

 

Analysis:

The HBPD has operated a police substation at 17477 Beach Blvd since 1996. The substation is vital to daily police operations for report writing, citizen interviews, and investigation follow-up. It is also regularly utilized by residents and businesses throughout the surrounding community.

 

Since 1996, the City leased the location for $1 annually. However, a new property manager has recently notified HBPD that a rental fee of $2,600 per month will be imposed on June 1, 2022, or the HBPD must vacate. It is not feasible to acquire a new location and vacate the property in such a short amount of time.  As such, a month-to-month agreement would provide the department time to evaluate its options. It is expected to use this proposed lease agreement for a four to six month period for an estimated amount of $15,000. 

Environmental Status:

Not applicable.

 

Strategic Plan Goal:

 Financial Sustainability, Public Safety or Other

 

Attachment(s):

1.                     Lease Agreement with Phan Property Management for 17477 Beach Blvd.

2.                     Notice from Phan Property Management