REPORT TO THE CITY COUNCIL June 13, 2019 FROM: JERRY P. DYER, Chief of Police Police Department THROUGH: PATRICK FARMER, Deputy Chief Police Department BY: JON PAPALEO, Lieutenant Police Department - Special Investigation Bureau SUBJECT ..Title Actions pertaining to a lease agreement, to lease property for Special Investigation Bureau offices located at 5051-5059 E. McKinley. 1. Adopt a finding of Categorical Exemption Class 1/Section 15301 (Existing Facilities) of the California Environmental Quality Act Guidelines 2. Approve a lease agreement between the City of Fresno and HR, LLC, a California limited liability company, to lease property for Special Investigation Bureau offices located at 5051-5059 E. McKinley. ..Body RECOMMENDATIONS Staff recommends City Council authorize the Chief of Police to enter into a lease agreement with HR, LLC, a California limited liability company, to lease property for Special Investigation Bureau offices located at 5051-5059 E. McKinley. EXECUTIVE SUMMARY The police department's Special Investigations bureau currently leases 7,246 square feet of office space at 5051-5059 E. McKinley Avenue at a cost of $0.80 per square foot ($5,796.80 per month). Electricity, natural gas, water, garbage, and sewer services are paid by the City. The existing lease expires June 30, 2019. The term of the proposed lease shall be three (3) years, beginning June 30, 2019, to allow for improvements, and ending June 30, 2022. The lease may be terminated by the City, without cause at any time, with a one hundred-eighty (180) day prior written notice. The lease also contains a non-funding termination clause for the City by providing a ninety (90) day prior written notice. The proposed lease will be at a flat rate of $6,159.00 per month for the three (3) year period. BACKGROUND The Fresno Police Department has leased the property located at 5051-5059 E. McKinley since approximately 1977. Several years ago the space increased in size from 6,506 square feet of office space, to the current, 7,246 square feet of office space. This increase was to accommodate an additional seven (7) detectives inside the main building. The rent at 5051-5059 E. McKinley will remain a flat rate of $6,159.00 per month for a three (3) year period. Electricity, natural gas, water, garbage, and sewer services are paid by the City. ENVIRONMENTAL FINDINGS Preliminary environmental assessment of this project has determined that it falls within the Categorical Exemption pursuant to Article 19, Section 15301/Class 1 (existing facilities ) of the California Environmental Quality Act (CEQA) Guidelines for the continued lease of the office space. LOCAL PREFERENCE N/A FISCAL IMPACT The lease payments have been included in the Department's proposed FY 2020 General Fund budget. Funding for future years will be included in the appropriate years budget. Attachments: Lease Agreement Map of 5051-5059 E. McKinley