REPORT TO THE CITY COUNCIL October 20, 2016 FROM: JERRY P. DYER, Chief of Police Police Department BY: RICHARD TUCKER, Lieutenant Traffic Safety / Special Response Section SUBJECT: ..Title Actions pertaining to a lease agreement for a new property/evidence warehouse: 1. ***RESOLUTION 25th amendment to the Annual Authorizing Resolution (AAR) No. 2016-118 appropriating $250,000 for the purpose of purchasing shelving and racking for evidence storage; a large walk-in cold box; relocating a back-up generator; necessary technology equipment and services for computer connectivity; and moving expenses for relocating all of our property/evidence to the new warehouse. (Requires 5 affirmative votes) 2. Approve a lease agreement with CARLULU, LLC., for office and warehouse space to be used for the storage of property/evidence and Police Department specialty vehicles. ..Body RECOMMENDATION Approve 25th Amendment to the AAR No. 2016-118 appropriating $250,000 for the purpose of purchasing shelving and racking for evidence storage; a large walk-in cold box; relocating a back-up generator; necessary technology equipment and services for computer connectivity; and moving expenses for relocating all of our property/evidence to the new warehouse. Authorize the Chief of Police to enter into a lease agreement with CARLULU, LLC., for office and warehouse space to be used for the storage of property/evidence and Police Department specialty vehicles. EXECUTIVE SUMMARY The Police Department's main facility located at 940 N. Broadway has had serious maintenance issues associated with the roof. These issues have resulted in several water leaks which has caused the building's ceiling to crumble and fall-in. It was determined through professional testing that the ceiling material contained asbestos and thus contaminated the warehouse. Due to the growing need for a larger, more efficient warehouse, staff recommends that Council approve the AAR and allow the Chief of Police to enter into a lease agreement for a 25,000 square foot warehouse with CARLULU, LLC. The lease agreement consists of two five year terms with the first five year term at .50 cents per square foot per month and .55 cents a square foot per month for the second term. At the commencement of the 10th year, the City of Fresno will have the option to purchase the warehouse. The new warehouse will allow the Department to house and store all property/evidence and specialty vehicles under one roof. This will also allow for the Department to stop paying rental and lease payments for several other storage spaces throughout the City. BACKGROUND The Police Department currently stores over 300,000 evidence items at several locations throughout the City. For the past 30 years, the Police Department has used an old fire station at 940 N. Broadway that was built in the 1940's for the purpose of a Central Policing Station and to store evidence. During the recession, the Central Policing Station was closed and the entire facility was utilized for evidence storage. We quickly outgrew this location and have been using other locations throughout the City. Many of these locations are leased or rented. There are currently 11 storage garages and two rented cold boxes at off-site locations. In February 2016, the Department's primary storage facility located at 940 N. Broadway experienced a partial ceiling collapse due to a water leak in the roof. The ceiling material was discovered to contain asbestos. Professional testing determined that the building was contaminated with asbestos. It was also discovered that the asbestos material had fragmented and was present on most of our evidence packages. The facility was immediately closed to normal access until professional asbestos training and equipment could be provided to our Property Evidence Technicians. The facility was reopened to allow access to stored evidence on a very limited basis as required for court and investigations. This process requires a professional asbestos specialist to enter the facility along with a Property Evidence Technician to retrieve items of evidence. The items have to be professionally cleaned and passed through a decontamination chamber before any items leave the facility. Once these items have been removed we store them at another location so as to not place evidence back into the contaminated facility. Roof repair estimates, asbestos removal and cleaning was found to be cost prohibitive. It was determined that the building would have to be razed when the Police Department vacates the facility. The City Manager has directed Facilities to oversee this portion of the project. Police Department staff met with Supervising Real Estate Agent Craig Hansen and preformed an exhaustive search of available warehouses throughout the City. The only facility that met all of the needs of the Fresno Police Department was located at 5499 E. Hedges. City staff entered into negotiations for an agreement with the landlord. We received a signed agreement from the landlord, CARLULU, LLC. ENVIRONMENTAL FINDINGS Not a project for the purposes of the California Environmental Quality Act. LOCAL PREFERENCE Local preference was not implemented because local preference is not required for non-professional service contracts. FISCAL IMPACT The $250,000 for this project will be paid by UGM Police Facility Fees and have no impact on the General Fund. However, the on-going lease payments will be paid by the General Fund, but will be partially off-set by savings from the cancellation of other current storage leases. An Annual Appropriations Resolution is attached to appropriate funds for this project. Attachments: Lease Agreement AAR# 2016-118