Item Coversheet

Staff Report 148-19

TO:

Mayor and City Council




FROM:

Eric Holmes, City Manager




DATE:

10/28/2019








SUBJECT


Lease purchase agreement for a replacement headquarters for the Vancouver Police Department
Key Points
  • The Vancouver Police Department (VPD) has experienced growth in recent years through increased staffing in patrol, investigations units, crime analysis and establishing a new 24/7 police records unit. Despite mitigating strategies, this growth has taxed the capacity of the current facilities to accommodate additional personnel.
  • Additional growth is planned through 2021-22, and to continue in the future as the population of Vancouver continues to grow through new development and annexation.
  • VPD does not have dedicated training facilities, and the availability of donated space for training purposes from private businesses has declined in recent years.
  • Increasing community expectations of VPD to continue to invest in 21st century policing programs and technology necessitates dedicated training facilities.
  • City leadership has identified a 44,512 square foot vacant office building on 2.3 acres in a location that is generally centralized to the current and future VPD service area, and would accommodate VPD Headquarters functions as well as specialty functions currently located in precincts and provide opportunity to accommodate future growth in the department.
  • Following consultation with City Council in executive session on June 17 and September 9, 2019, staff has negotiated a lease purchase agreement to secure the building in the near term and assure permanent control for the facility over the long term.
  • There are sufficient resources identified in the budgets for VPD, jail and undesignated General Fund balance to cover costs of the building.

Strategic Plan Alignment

 

Goal 2: Provide effective, innovative and well-resourced police, fire and emergency medical services.


Present Situation

In the mid to late 2000s, the City invested in two new patrol precincts and a new evidence facility to replace the previous police facilities which had been built in the 1960s. The new precincts planned to accommodate some future growth, but did not include space for police headquarters or administration.

 

The current VPD Headquarters, located at 605 East Evergreen Blvd. was assumed from Washington State Patrol (WSP) in 2002. WSP used the building as a vehicle emissions testing facility. It is approximately 17,000 square feet, and hosts the Office of the Chief and associated administration.

 

In 2016, the City assumed responsibility for police records from the Clark County Sherriff’s office, which had provided records services under contract for multiple decades. The City established a 24/7 records unit in West Precinct, providing improved service to VPD officers while reducing annual operating costs.

 

The addition of 26 new records positions in West Precinct consumed a substantial portion of the space that would have otherwise accommodated future growth in patrol functions.

 

VPD has no dedicated space for training of its officers and staff. Over the years, the department has relied on donated space from a range of individual businesses, as well as the occasional use of other public facilities to accommodate training needs of the department. While this has been a very cost effective way of accessing facilities for training purposes, the reliability has been declining in recent years. As the local economy has grown, the availability of vacant business space has diminished. Further, as the community has grown, the ability to reliably access space in other public facilities has also declined. Concurrently, the training needs of the department, and expectations of the community for a well-trained police force have grown, and are expected to continue to grow in the future.

 

In light of these circumstances, the need for additional space was identified by the Chief in the context of the multi-year staffing plan approved by Council in 2017, as well as the analysis and context of a Stronger Vancouver. It was not included as a recommended element of a Stronger Vancouver because, at that time, the needs of the department were not sufficiently defined.

 

City leadership maintains a consistent awareness of the real estate environment across the community, to both understand the dynamics of this aspect for our economy as well as to identify opportunities when they arise to satisfy the city’s long term strategic real estate needs.

 

Earlier this year, the City identified the property located at 521 Chkalov as a potential strategic real estate acquisition to meet the current and long term future needs of VPD. The property consists of a 2 story, 44,500 square foot building located on 2.3 acres. The building’s parking lot accommodates 285 vehicles. The adjacent vacant 1.4 acres is under the same ownership.

 

The size, configuration, building type and location all align with the current and forecasted needs of VPD. The building will readily accommodate VPD headquarters functions, appropriate specialty units and functions currently located in precincts, dedicated training space and room for growth. The adjacent property, if secured, could provide additional space to accommodate future growth of the department well into the future.

 

To secure the advantages of this real estate to the benefit of VPD, the City has negotiated a lease purchase agreement with the property owner. The agreement provides for the City to take possession of the building upon approval by City Council for a lease term of five years and three months, and gives the City the option to purchase the property at the beginning of the third year of the lease. The beginning lease rate is $14.50 per foot per year, with a 3% annual rate escalation. In addition, the agreement provides the City the first right of refusal to acquire the adjacent 1.4 acres at the appraised value, which could provide additional room for growth well into the future.

 

The City has identified current funding capacity to fund the lease purchase through a combination of police budget savings (from vacancies due to primarily retirement-based attrition), recently audited jail costs that were below budget (2015-17), estimated misdemeanor jail cost savings for 2018 and 2019 and undesignated general fund balance. 


Advantage(s)
  1. Executing a lease-purchase agreement for the property at 521 Chkalov to serve as the new VPD headquarters secures a facility, the size, configuration, building type and location of which all align with the current and forecasted needs of VPD.
  2. The building will readily accommodate VPD headquarters functions, appropriate specialty units and functions currently located in precincts, dedicated training space and provide room for growth. 

Disadvantage(s)
None.
Budget Impact
  1. Sufficient budget capacity exists in the 2019-2020 Adopted budget to cover the cost of leases, interior maintenance and tenant improvements. The capacity consists personnel cost savings in VPD resulting from normal attrition process.
  2. Additional budget to exercise the City’s purchase option will be requested through the supplemental budget process. The purchase option could only be exercised following the initial 36-month period.

Prior Council Review

The prospect of this real estate transaction was reviewed with the City Council in executive session on June 17 and September 9, 2019.


Action Requested

Authorize the City Manager or designee to approve the lease purchase agreement for 521 Chkalov and to execute the same as well as other pertinent documents to secure the ownership of 521 Chkalov, providing a notice to exercise the purchase option at or after the time of lease signing.

 

Troy Price, Assistant Police Chief, 487-7643; Jonathan Young, Acting City Attorney, 487-8500.


ATTACHMENTS:
Description
lease agreement
presentation