REPORT TO THE CITY COUNCIL July 17, 2014 FROM: JERRY P. DYER, Chief of Police Police Department BY: MIKE W. BROGDON, Lieutenant Police Department - Special Investigations Bureau SUBJECT ..Title Actions pertaining to a lease agreement for the office space located at 5051-5059 E. McKinley (Council District 4) - Police Department 1. Adopt a finding of 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 office spaces located at 5051-5059 E. McKinley 2. Authorize the Chief of Police to execute a five-year lease agreement with 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 that City Council adopt a finding of Categorical Exemption pursuant to Article 19, Section 15301/Class 1 of the CEQA Guidelines and authorize the Chief of Police to enter into a five- year lease agreement with HR, LLC to lease office space located at 5051-5059 E. McKinley Avenue for $5,796.80 per month. EXECUTIVE SUMMARY The department's Special Investigations Bureau now leases 6,506 square feet of space at 5051-5059 E. McKinley Avenue at $0.75 per square foot ($4,879.50 per month). Electricity, natural gas, water, garbage, and sewer services are paid by the City. The current lease expires June 30, 2014. The term of the proposed lease will be four (4) years and nine (9) months, beginning October 1, 2014, to allow for improvements, and ending June 30, 2019. The lease may be terminated by the City, without cause at any time, with a one hundred-eighty (180) day prior written notice. It 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 rate of $0.80 per square foot for 7,246 square feet, totaling a monthly rental payment of $5,796.80 per month. BACKGROUND The space was increased by 740 square feet to accommodate the addition of seven (7) special investigators inside the main building. There will be no additional cost to the City to modify the building for this accommodation. The rent will be fixed at $0.80 per square foot and electricity, natural gas, water, garbage, and sewer services shall be paid by the City. ENVIRONMENTAL FINDINGS The Fresno Police Department has leased the property located at 5051-5059 E. McKinley since approximately 1977 and will adopt a finding of 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 Lease payments will be made out of the Police Department's FY 2015 Budget. JPD:MWB:lc 07/17/14 Attachments: Lease Agreement Exhibits A & B Report to Council FPD Lease - 5051/5059 E. McKinley July 17, 2014 Page 2 2