The URL can be used to link to this page

Home My WebLink AboutAGENDA REPORT 2020 1021 CCSA REG ITEM 10CCITY OF MOORPARK,  CALIFORNIA City Council Meeting of October 21, 2020 ACTION Approved Staff Recommendation. BY B.Garza. C. Consider Authorizing the City Manager to Execute a One-Year Extension of the Lease for the California Highway Patrol at the Moorpark Police Services Center. Staff Recommendation: Authorize the City Manager to execute a one-year extension of the lease, with current terms and previously-established rental rates, subject to final language approval by the City Manager. (Staff: Brian Chong) Item: 10.C. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Brian Chong, Assistant to the City Manager DATE: 10/21/2020 Regular Meeting SUBJECT: Consider Authorizing the City Manager to Execute a One-Year Extension of the Lease for the California Highway Patrol at the Moorpark Police Services Center BACKGROUND On June 5, 2005, the City entered into a 15-year lease with the California Department of General Services (DGS) that provided approximately 4,500 square feet of office space in the City’s Moorpark Police Services Center (MPSC) building for use by the California Highway Patrol (CHP). The lease is set to expire on October 31, 2020. At this time, staff recommends that the City Council authorize the City Manager to execute a one- year extension of the lease, with current terms and previously-established rental rates. DISCUSSION Prior to the outbreak of the COVID-19 pandemic, City and DGS staff were working on an eight-year lease that would include the CHP staying as a tenant in the MPSC and also taking over a portion of the MPSC currently allocated to the Ventura County Sheriff’s Office (VCSO) portion of the building. CHP, VCSO, and City staff met and conceptually agreed on changes to the building floor plans to accommodate both agencies’ needs, and DGS staff was working to develop construction plans that could be used to estimate the costs. Based on that cost estimate, the City and DGS would need to negotiate financing arrangements to construct the improvements. Those arrangements and subsequent lease will require future City Council action. The project has been on hold due to the COVID-19 pandemic, and it is not possible for DGS to complete the design development, financing, and lease phases before the lease expires on October 31, 2020. As such, DGS is proposing a one-year extension of the current lease while work on the ultimate design and longer-term lease is continued. Item: 10.C. 370 Honorable City Council 10/21/2020 Regular Meeting Page 2 The original lease contained a 15-year term that established annual rental rates, in the amount of $102,900 ($8,575 per month) for Fiscal Year (FY) 2019/20, with provisions for the lease to go month-to-month after that. Per the terms of the agreement, beginning in FY 2020/21 the lease amount decreases to $95,004 ($7,917 per month). The first fifteen years of the lease contained an extra monthly payment from DGS to the City to reimburse it for $68,839 in construction costs borne by the City when the building was constructed. The final extra payment was included in the October 2020 payment, and the $68,839 has now been paid off. As a result, the FY 2020/21 lease payments are smaller than FY 2019/20 lease payments, as anticipated in the original lease. FISCAL IMPACT None. The City’s FY 2020/21 Budget already anticipates rental revenues based on continuation of the previously-established lease rates. COUNCIL GOAL COMPLIANCE This action is consistent with City Council Strategy 1, Goal 5 (1.5): “Enhance municipal service delivery through proper maintenance and improvement of City facilities and programs.” STAFF RECOMMENDATION Authorize the City Manager to execute a one-year extension of the lease, with current terms and previously-established rental rates, subject to final language approval by the City Manager. Attachment: Lease Extension 371 State of California | Government Operations Agency Real Estate Services Division | Asset Management Branch | Real Estate Leasing and Planning Section 707 3rd Street, 5th Floor | West Sacramento, CA 95605 | t 916.375.4099 October 9, 2020 Lease File No.: 5275-001 Project No.: 5929 City of Moorpark Amendment No.: One (1) Attn: City Manager 799 Moorpark Avenue, Moorpark, CA 93021 Dear Lessor: Under lease dated June 15, 2005, the State of California hires from the City of Moorparkcertain premises located at 610 Spring Road, in the City of Moorpark, County of Ventura, California, for a term ending October 31, 2020, at a monthly rental of $8,575.00. Effective November 1, 2020 the State desires to continue its occupancy of said premises for an additional period ending October 31, 2022, at the continued rental of $7,917.00 per month, which shall be paid from legally available funds by the State in arrears on the last day of each month, and shall be subject to the California Constitution during said term and upon all of the same terms and conditions set forth in said lease, including the State’s continued right to terminate this lease at any time during the term hereof by providing written notice to the Lessor at least ninety (90) days prior to the effective date of termination. Pursuant to California Civil Code §1938, the Lessor states that the leased premises: ☐ have not undergone an inspection by a Certified Access Specialist (CASp). A CASp can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the premises, the Lessor may not prohibit the tenant from obtaining a CASp inspection of the premises for occupancy by the tenant, if requested by the tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises. ☐ have undergone an inspection by a Certified Access Specialist (CASp) and it was determined that the leased premises met all applicable construction-related accessibility standards pursuant to California Civil Code §55.53 et seq. Lessor shall provide a copy of the current disability access inspection certificate and any inspection report to the State within seven days of the date of execution of the lease pursuant to subdivision (b). ☐ have undergone an inspection by a Certified Access Specialist (CASp) and it was determined that the leased premises did not meet all applicable construction-related accessibility standards pursuant to California Civil Code §55.53 et seq.” Lessor shall provide a copy of any inspection report to the State prior to the execution of the Lease. If the report is not provided to the State at least 48 hours prior to execution of the lease, the State shall have the right to rescind the lease, based upon the information contained in the report, for 72 hours after execution of the lease. ATTACHMENT 372 City of Moorpark -2- October 9, 2020 (Rev. 8/19) If the State’s continued tenancy of said premises as set forth above is satisfactory to you, please indicate your agreement by signing this document and each of the five copies at the bottom of the page. Keep one copy for your records and return the original and four copies to this office for further processing. This agreement is subject to a final review and approval by the State. STATE OF CALIFORNIA APPROVED: DEPARTMENT OF GENERAL SERVICES DIRECTOR OF THE DEPARTMENT REAL ESTATE SERVICES DIVISION OF GENERAL SERVICES ASSET MANAGEMENT BRANCH BY: BY: KERRY ZADEL, Real Estate Officer BRIAN HENSLEY, Leasing Manager Real Estate Leasing and Planning Section Real Estate Leasing and Planning Section DATE: DATE: Receipt of the foregoing letter is acknowledged and the undersigned hereby agrees to the State’s continued occupancy as set forth above. DATE: ________________ BY: _______________________________ TITLE: KZ:JA cc: Dan Kirkpatrick, California Highway Patrol 601 N. 7th Street, Facilities Section, Sacramento, CA 95811 SCO Claim Audits, Lease Unit Statewide Property Inventory 373