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HomeMy WebLinkAboutAGENDA REPORT 2023 1018 CCSA REG ITEM 10GCITY OF MOORPARK, CALIFORNIA City Council Meeting of October 18, 2023 ACTION APPROVED STAFF RECOMMENDATION. BY A. Hurtado. G. 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, Assistant to the City Manager) Item: 10.G. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Brian Chong, Assistant to the City Manager DATE: 10/18/2023 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 Since 2005, the City has leased approximately 4,500 feet of office space inside the City’s Moorpark Police Services Center (MPSC) building to the California Department of General Services (DGS) for use by the California Highway Patrol (CHP). The lease is currently set to expire on October 31, 2023. 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. Staff is currently negotiating a long-term lease with DGS for the CHP space, but terms cannot be completed until pricing for a planned expansion of the CHP lease space is determined. The project is currently in its final design phase, with the City Council authorizing budget for changes to the building’s fire suppression system on October 4, 2023. All parties remain committed to the CHP’s continued presence in the Moorpark Police Services Center, and the new long-term lease will reflect the additional square footage and the City’s expenses in designing and constructing the CHP tenant improvements. DISCUSSION City and DGS staff are 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 have previously met and agreed on changes to the building floor Item: 10.G. 372 Honorable City Council 10/18/2023 Regular Meeting Page 2 plans to accommodate both agencies’ needs, and the parties are currently in the process of finalizing the construction plans and costs that will be incorporated into the final long-term lease. That long-term lease will require future City Council action. While the CHP expansion and the long-term lease are being finalized, an extension of the existing lease is necessary to ensure the CHP remains in the building. Pursuant to the original lease between the City and DGS/CHP, rent is established at $7,917 per month. It is recommended that this rental rate be incorporated into the lease extension. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no environmental review is required. FISCAL IMPACT None. The City’s Fiscal Year 2023/24 Budget already anticipates rental revenues base in continuation of the previously-established lease rates. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. 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 373 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 September 22, 2023 Lease File No.: 5275-001 Project No.: 5929 Amendment No.: Three (3) City of Moorpark Attn: City Manager 799 Moorpark Avenue, Moorpark, CA 93021 Dear Lessor: Under lease dated June 15, 2005, as amended October 9, 2020 and October 3, 2022, the State of California leases from the City of Moorpark certain premises located at 610 Spring Road, in the City of Moorpark, County of Ventura, California, for a term ending October 31, 2023, at a monthly rental of $7,917.00. Effective November 1, 2023 the State desires to continue its occupancy of said premises for an additional period ending October 31, 2024, at the continued rental rate 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. 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 on the next 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 DERON MORILLAS, Assistant Chief Real Estate Leasing and Planning Section Real Estate Leasing and Planning Section DATE: DATE: ATTACHMENT 374 City of Moorpark -2-September 22, 2023 (Rev. 8/19) 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:CB cc: Brandon Baldwin, California Highway Patrol 601 N. 7th Street, Facilities Section, Sacramento, CA 95811 SCO Claim Audits, Lease Unit Statewide Property Inventory 375