2020/04/27 New Hub Properties, LLC Amendment No. 7 to Agreement between New Hub Properties, LLC and the City of Menifee for Commercial Lease of Premises at 29714 Haun Road, Menifee CA 92586* Please attached a second page for additional information to support this agreement.
CITY OF MENIFEE Agreement/contract coversheet
DATE: April 21, 2020
TO: Armando G. Villa, City Manager
CC:
Agreement Routed to City Attorney: 4/20/2020 (Via email, attached)
Insurance Requirements: General Liability (N/A)
Automobile Liability (N/A)
Worker’s Compensation (N/A)
FROM: Margarita Cornejo, Financial Services Manager
SUBJECT: Amendment No. 7 to the Rental/Lease Agreement between the City of Menifee and New
Hub Properties, LLC for Final Tenant Improvements (Menifee PD HQ (29714 Haun Road,
Menifee CA))
IS THE AGREEMENT/CONTRACT WITHIN THE CITY MANAGER’S SIGNATURE AUTHORITY?
Yes – Purchase of Commodities under $50,000 Professional Services under $25,000
Change Order under $25,000 or less than 10% of original contract (supplies, equipment, services
or construction contracts)
Public Works Contract for $45,000 or less
No – City Council authorized City Manager to sign (Council action attached) City Manager was pre-authorized by
Council at November 2018 meeting to sign all agreements related to the Police Deparment for purposes of meeting
the formation of the deparment’s tight schedule (SEE ATTACHED STAFF REPORT)
WHY IS THIS AGREEMENT/CONTRACT NEEDED?
Amendment No. 7 to the existing lease agreement between the City of Menifee and New Hub Properties, LLC shall
provide for all necessary final tenant improvements for the Menifee Police Department Headquarters located at 29714
Haun Road, Menifee, CA 92586
WHAT IS THE TOTAL LENGTH OF THE AGREEMENT/CONTRACT?
The term of the agreement cover the period of October 1, 2018 through March 31, 2024 (including actual lease of
property)
WHAT IS THE TOTAL DOLLAR AMOUNT OF THE AGREEMENT/CONTRACT?
$118,501.04 (Not-to-Exceed Amount) Amendment No.7 (Tenant Improvements Only). Including Amendment No. 7, the
total Tenant Improvements cost for the Menifee PD HQ site is $1,056,045.59.
HOW WAS THE VENDOR/CONSULTANT/CONTRACTOR DECIDED ON?
Department Date Initials
Pat Walsh, Police Chief
Wendy Preece, Deputy Finance Director
Rochelle Clayton, Deputy City Manager
Jeffrey T. Melching, City Attorney
Sarah A. Manwaring, City Clerk
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4/21/2020
4/23/2020
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4/27/2020
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N/A. Lease agreement negotiated, tenant improvements are part of the necessary retrofit required to
function as Menifee PD Headquarters Project.
Supplies/Equipment/Maintenance/Construction Prior Contract/Experience with the City
$5,000 - $49,000 – Three Written Quotes Yes
Over $50,000 – Competitive Bidding and Formal Proposals
Public Works Projects Professional Services
Under $45,000 – Purchase Order, Contract (Prudent Judgement) Under $25,000 – City Manager
$45,000 - $174,999 – Informal Bidding Process over $25,000 – City Council Approval
Over $175,000 – Formal Bidding Required
WHERE ARE THE FUNDS COMING FROM?
Funding is coming from the approved FY 2019/20 Menifee Police Department Budget for Fiscal Year 2019/20,
specifically within the designated CIP project funds (CIP 19-18)
WHAT GENERAL LEDGER ACCOUNT NUMBER SHOULD BE USED FOR THE PURCHASE ORDER?
$13,057 from Account #105-4911-58090
$105,444.04 from Account #100-4911-58090
IS THERE SUFFICIENT BUDGET? WHAT IS THE AVAILABLE BUDGET?
Yes, as of 4/21/2020 Account #105-4911-58090 (Menifee Police Headquarters) has a balance of $13,057 and Account
#100-4911-58090 will have a balance of 118,502 pending Budget Adjustment approved 4/21/2021 (see attached Eden
Report).
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AMENDMENT NO. 7 TO
AGREEMENT BETWEEN NEW HUB PROPERTIES, LLC
AND THE CITY OF MENIFEE FOR COMMERCIAL LEASE OF PREMISES
AT 29714 HAUN ROAD, MENIFEE CA 92586
This is Amendment No. 7 to that certain AGREEMENT for Commercial Lease Agreement
(“Agreement”) made on October 1, 2018 by and between the City of Menifee (“City”) and NEW
HUB PROPERTIES, LLC (“Landlord”) for lease of premises at 29714 Haun Road, Menifee CA
92586 which Amendment is made and entered into on _______________, 2020, to include
Menifee Police Department Headquarters Tenant Improvements to the Agreement as indicated
below:
1. Exhibit C, Menifee Police Department Headquarters Tenant Improvements is
incorporated into the lease to include necessary tenant improvements for the Police
Headquarters Facility included within the attachment hereto labeled as “Exhibit C:
Menifee Police Department Headquarters Tenant Improvements (Amendment No.
7)”.
2. All other terms and conditions of the Agreement remain in full force and effect.
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April 27, 2020
Professional Services Amendment No. 7 with New Hub Properties, LLC 2 of 2
CITY OF MENIFEE LANDLORD
_______________________________ _______________________________
Armando G. Villa, City Manager Lynette Gibson
Attest: ________________________________
_______________________________
Sarah A. Manwaring, City Clerk
Approved as to Form:
_______________________________
Jeffrey T. Melching, City Attorney
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Professional Services Amendment No. 7 with New Hub Properties, LLC 2 of 2
Exhibit C: Menifee Police Department Headquarters Tenant Improvements
(Amendment No. 7)
This amendment only includes the Tenant Improvements through 4/30/2020 as specifically
listed below. Any additional improvements not explicitly listed below but required to be
completed would be addressed in separate/subsequent contract amendments.
Tenant Improvements Description Amount ($)
BAL. BLDG A INCL. EXTRAS $2,536.85 $4,342.18
MATERIAL RIEMBURSEMENT 1,674.29
WAGES THRU 12/30 SEE HOURS PAGE 8,364.12
JORDAN COLLOM AND JARED COLLOM 5,811.74
GRANITE TOPS 3,726.00
FINAL PMT 2020-01012020 12,506.25
RIEMB HANKS 11/4/19-12/12/19 788.87
CAPITOL ONE RIEMB 7/17/19-12/16/19 7,016.67
CHAD UBERSETZIG - COFFEE CABINET 920.00
#8871 RETENTIONS 10,210.85
MIRRORED GLASS BLDG B 1,341.87
BALANCE OF BALISTIC GLASS 28,696.36
BUILDING A PATCH AND REPAIR BAL. 19,414.00
WAGES FROM 1/1/20 TO DATE EST. 4,600.00
BUILDING B WAREHOUSE 5,849.00
CAPITOL ONE RIEMB 12/17/19-1/16/20 2,039.42
CAPITOL ONE RIEMB 1/17/20-2/16/20 625.83
CAPITOL ONE RIEMB MISSING MISC. 573.59
TOTAL: $118,501.04
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From:Margarita Cornejo
To:Jeffery T. Melching
Subject:Agreement Review Request: New Hub Properties (Amendment No. 7)
Date:Monday, April 20, 2020 5:16:00 PM
Attachments:image005.png
image006.png
image007.png
1920 CM- LEASE AGREEMENT Amendment No. 7 (New Hub Properties).docx
2018-11-07 CC Regular Agenda Packet (PD Staff Report).pdf
Importance:High
Hi Jeff,
Attached for your review is proposed Amendment No. 7 to the existing lease agreement with New
Hub Properties for the 29714 Haun Road, Menifee CA 92586 (former City Hall, new Police
Headquarters facility). The purpose of the amendment is to accommodate to adding tenant
improvements (design plans) needed to cover retrofit the site to accommodate the police
department.
This request is from the Menifee Police Department (City). This is part of the Menifee PD start-up
efforts, whereby the City Manager was authorized as the 11/7/2018 meeting to execute any related
agreements necessary to move forward with this effort.
Can you please advise if this is ok to route for signatures, or requires any additions/changes?
Thank you again!
Margarita Cornejo | Financial Services Manager
Finance Department
City of Menifee | 29844 Haun Road | Menifee, CA 92586 (*Please note our new location!)
Direct: (951) 723-3716 | City Hall: (951) 672-6777 | Fax: (951) 679-3843
mcornejo@cityofmenifee.us
Connect with us on social media: | | |
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04/21/2020City of Menifee1 9:20AMPage:expstat.rptExpenditure Status Report7/1/2019 through 6/30/2020Periods: 0 through 14General Fund100*** Title Not Found ***4000Prct UsedBalanceYear-to-date EncumbrancesYear-to-date ExpendituresExpendituresAdjustedAppropriationAccount Number100-4911 Menifee Police Department100-4911-50000 *** Title Not Found ***6,500.00 0.00 0.00 99.14100-4911-51350 Software Licensing/Annual Maint.6,444.00 56.0030,000.00 0.00 0.00 77.38100-4911-51500 Small Tools/Field Equipment23,213.34 6,786.66126,500.00 3,954.22 3,954.22 66.66100-4911-51501 Materials and Supplies80,372.20 42,173.5828,000.00 26,900.00 26,900.00 96.07100-4911-51720 Marketing0.00 1,100.004,750.00 2,556.90 2,556.90 53.83100-4911-52039 Mobile Devices0.00 2,193.1055,093.00 0.00 0.00 0.00100-4911-52040 Telephone0.00 55,093.0030,000.00 10,644.40 10,644.40 35.48100-4911-52041 Utilities-Electricity0.00 19,355.60400.00 271.71 271.71 67.93100-4911-52042 Utilities-Gas0.00 128.293,500.00 2,152.84 2,152.84 61.51100-4911-52043 Utilities-Water0.00 1,347.16386,215.00 321,811.60 321,811.60 83.32100-4911-52060 Building Leases0.00 64,403.40436,390.00 40,345.94 40,345.94 50.48100-4911-52100 New Hire Screenings/Testings179,937.69 216,106.3780,000.00 2,544.65 2,544.65 38.62100-4911-52211 Training28,347.40 49,107.95118,783.00 23,862.08 23,862.08 20.09100-4911-52400 Uniforms0.00 94,920.921,080,120.00 0.00 0.00 92.14100-4911-52750 Dispatch Services995,185.82 84,934.18173,180.00 82,798.16 82,798.16 93.93100-4911-52751 Protective Devices & Accessories79,865.97 10,515.8720,000.00 0.00 0.00 88.56100-4911-52752 Property/Evidence/Forensics17,711.47 2,288.53394,000.00 0.00 0.00 0.00100-4911-52800 Professional Services0.00 394,000.00697,380.00 602,064.34 602,064.34 94.24100-4911-53150 Furniture & Equipment55,144.61 40,171.05378,703.00 378,703.00 378,703.00 100.00100-4911-59005 Operating Transfer Out - IT Support0.00 0.008,666.00 8,666.00 8,666.00 100.00100-4911-59010 Operating Transfers Out - Fleet Support0.00 0.0046,239.00 46,239.00 46,239.00 100.00100-4911-59011 Operating Transfers Out - Facility Supp.0.00 0.00Total *** Title Not Found ***4,104,419.00 1,553,514.84 1,553,514.84 1,466,222.50 1,084,681.66 73.57Total Menifee Police Department4,104,419.00 1,553,514.84 1,553,514.84 1,466,222.50 1,084,681.66 73.57Total General Fund4,104,419.00 1,553,514.84 1,553,514.84 1,466,222.50 1,084,681.66 73.571Page:DocuSign Envelope ID: 678512D2-133E-4CCC-B76A-0F940D801D4C
04/21/2020City of Menifee2 9:20AMPage:expstat.rptExpenditure Status Report7/1/2019 through 6/30/2020Periods: 0 through 14Measure DD Transaction Tax Fund105*** Title Not Found ***4000Prct UsedBalanceYear-to-date EncumbrancesYear-to-date ExpendituresExpendituresAdjustedAppropriationAccount Number105-4911 Menifee Police Department105-4911-50000 *** Title Not Found ***1,998,176.00 489,720.30 489,720.30 24.51105-4911-50100 Salaries0.00 1,508,455.703,000.00 3,000.00 3,000.00 100.00105-4911-50152 Relocation Expense Reimb.0.00 0.0011,772.00 6,836.40 6,836.40 58.07105-4911-50154 Other Benefits0.00 4,935.601,000.00 229.22 229.22 22.92105-4911-50200 Overtime0.00 770.780.00 772.21 772.21 0.00105-4911-50220 Part Time0.00 -772.21667.00 0.00 0.00 0.00105-4911-50230 Education Reimbursement0.00 667.00380,695.00 51,551.27 51,551.27 13.54105-4911-50300 PERS Retirement0.00 329,143.730.00 47.88 47.88 0.00105-4911-50310 Social Security0.00 -47.8831,041.00 7,270.54 7,270.54 23.42105-4911-50320 Medicare0.00 23,770.46145,575.00 48,290.98 48,290.98 33.17105-4911-50400 Section 125 Benefit Plan0.00 97,284.028,500.00 2,360.23 2,360.23 27.77105-4911-51010 Office Supplies0.00 6,139.771,000.00 0.00 0.00 0.00105-4911-51200 Postage0.00 1,000.003,000.00 836.04 836.04 27.87105-4911-51300 Printing & Duplication0.00 2,163.964,000.00 0.00 0.00 0.00105-4911-51352 Computer Software0.00 4,000.008,000.00 1,013.38 1,013.38 12.67105-4911-51500 Small Tools/Field Equipment0.00 6,986.622,750.00 2,713.88 2,713.88 98.69105-4911-51600 Special Dept Exp0.00 36.12500.00 0.00 0.00 0.00105-4911-52050 Facilities Maintenance0.00 500.0017,187.00 0.00 0.00 100.00105-4911-52060 Building Leases17,187.00 0.001,500.00 350.00 350.00 23.33105-4911-52200 Membership & Dues0.00 1,150.0015,000.00 3,690.97 3,690.97 24.61105-4911-52210 Travel/Conf/Mtgs/Mileage0.00 11,309.030.00 -1,600.00 -1,600.00 0.00105-4911-52211 Training0.00 1,600.005,000.00 0.00 0.00 42.69105-4911-52502 Leased Equipment2,134.66 2,865.34531,501.00 45,914.86 45,914.86 100.00105-4911-52750 Dispatch Services485,586.14 0.0015,000.00 585.00 585.00 18.27105-4911-52752 Property/Evidence/Forensics2,155.65 12,259.35110,208.75 88,879.99 88,879.99 89.51105-4911-52800 Professional Services9,762.88 11,565.8810,000.00 0.00 0.00 0.00105-4911-52819 Extra Duty0.00 10,000.002,481,323.91 970,740.52 970,740.52 96.79105-4911-53155 Capital Outlays1,431,006.99 79,576.4013,057.00 0.00 0.00 0.00105-4911-58090 Menifee Police Headquarters0.00 13,057.00Total Measure DD Transaction Tax Fund5,799,453.66 1,723,203.67 1,723,203.67 1,947,833.32 2,128,416.67 63.302Page:DocuSign Envelope ID: 678512D2-133E-4CCC-B76A-0F940D801D4C
04/21/2020City of Menifee3 9:20AMPage:expstat.rptExpenditure Status Report7/1/2019 through 6/30/2020Periods: 0 through 14Grand Total9,903,872.66 3,276,718.51 3,276,718.51 67.563,414,055.82 3,213,098.333Page:DocuSign Envelope ID: 678512D2-133E-4CCC-B76A-0F940D801D4C
CITY OF MENIFEE
SUBJECT: Formation of Menifee Police Department
MEETING DATE: November 7, 2018
TO: Mayor and City Council
PREPARED BY: Jeffrey Melching, City Attorney
REVIEWED BY: Jeff Wyman, Assistant City Manager
APPROVED BY: Armando G. Villa, City Manager
RECOMMENDED ACTION
Approve a resolution of the City Council of the City of Menifee directing and authorizing formation
of the Menifee Police Department and directing the City Manager to immediately implement that
direction.
DISCUSSION
At its October 18, 2018 Special Meeting/Workshop the City Council directed staff to add an item
for discussion and consideration on the formation of a municipal police department for the City
of Menifee (“Menifee PD”) to the next City Council agenda. The staff report and attachment
materials from the October 18, 2018 meeting are provided as Attachment 1. A copy of the
PowerPoint presentation from that meeting is provided as Attachment 2.
In response to the City Council’s direction, City staff has prepared a resolution (Attachment 3)
that directs the formation of the Menifee PD, and provides authorizations to engage in multiple
work-efforts necessary to implement that direction. More specifically, the resolution:
1. states the City’s intent to form the Menifee PD;
2. directs the delivery, at the appropriate time, of a notice of intent to terminate the City’s
current law enforcement services agreement with the County of Riverside;
3. provides for the immediate recruitment and hiring of a Police Chief;
4. directs the immediate development of a budget, with identified funding sources for the
formation of the Menifee PD, which will be returned to the Menifee City Council for
approval;
5. directs staff to commence and expeditiously complete necessary:
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City of Menifee Staff Report
Formation of Menifee Police Department
November 7, 2018
Page 2 of 7
a. municipal code amendments,
b. real estate negotiations for space for the Menifee PD,
c. acquisition of operating equipment for the Menifee PD,
d. negotiation of contracts to ensure smooth operation of the Menifee PD (including,
for example, negotiations with the City of Murrieta for a j oint dispatch operation),
e. securing of insurance and other risk management arrangements to insulate the
City from liabilities from the operation of the Menifee PD, and
f. formation of appropriate personnel rules, regulations, policies and procedures for
the Menifee PD.
6. provides general direction to the City Manager to take all steps necessary to facilitate the
expeditious formation of the Menifee PD; and
7. provides a broad authorization to the City Manager to enter into contracts, leases, and
other instruments necessary to implement the City Council’s direction.
A summary of the background leading up to the preparation of the resolution is provided below,
followed by a discussion of each of the implementing steps authorized in the resolution.
BACKGROUND
Since its incorporation in 2008, the City has contracted with the County of Riverside for law
enforcement services. The most recent iteration of that contract was entered into on July 1,
2017, and is set to expire on June 30, 2022 (Attachment 4). The contract provides, however,
that the City may terminate the agreement upon notice in writing of not less than twelve (12)
months.
The Riverside County Sheriffs have provided exemplary services under that contract, but the
City has become increasingly concerned over the cost for those services. By way of example,
the law enforcement patrol cost per hour in fiscal year 2013-14 was $139.29, while law
enforcement patrol costs in the current fiscal year are budgeted at $192.23 per hour. Such
costs are forecasted at $209.53 per hour during the next fiscal year. The overall cost of law
enforcement services has consistently increased too. Overall law enforcement costs to the City
in fiscal year 2013-14 were $9,668,131, while law enforcement costs for the current fiscal year
are budgeted at $17,135,207. Such costs are forecasted at $19,186,508 during the next fiscal
year.
There is no reason to believe that the growth in these costs will abate. To the contrary, law
enforcement costs are forecasted to increase at a rate of six and one half percent (6.5%) per
year for the foreseeable future. In addition to those year-over-year increases, the County of
Riverside intends to transfer additional costs for services (costs that were previously absorbed
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City of Menifee Staff Report
Formation of Menifee Police Department
November 7, 2018
Page 3 of 7
by the County) to contract cities such as Menifee. That shift will result in an additional increase
in costs of two and one half percent per year (2.5%) over the next three years (7.5% total).
These costs are unsustainable for the City with overall law enforcement costs estimated at more
than $25.5 million by fiscal year 2023-24.
ANALYSIS OF ALTERNATIVE SERVICE MODELS FOR LAW ENFORCEMENT
To address this issue, and to remedy the City’s inability to control costs through its existing
contract with the County of Riverside, since early 2017 the City has been examining alternative
law enforcement service delivery models. Through that examination, the City also sought to
improve response times; increase patrol presence in Menifee; and improve local control over
the provision of police services.
The City’s process for evaluating this issue involved two fundamental components: analysis
and outreach. From an analysis standpoint, the City engaged the services of an outside
consultant to conduct research and prepare a feasibility study (“Feasibility Study”) which is
provided as Attachment 5. That consultant solicited data, input, and advice from the Riverside
County Sheriff’s Department management, current and retired police chiefs, police personnel of
all levels, city managers in cities that currently have municipal police departments, and
administrative and finance staff from the City of Menifee. The goal of the Feasibility Study was
to determine whether the City could provide equal or improved police services at a lower cost
than under the law enforcement services contract it currently holds with the County of Riverside.
Put another way, the City sought to determine whether it could provide critical public safety
services in a more financially prudent manner.
From an outreach standpoint, the City has conducted multiple public meetings to discuss the
pros and cons of the formation of a Menifee PD. Those meetings included discussions during
regular City Council meetings in 2017, during a strategic visioning workshop, during the City
Council’s budget workshop, and most recently at the October 18, 2018 City Council special
meeting/workshop. All of these meetings were designed to solicit public input and allow for
open and transparent consideration of the City’s options.
Through the analysis and outreach process, the following conclusions emerged. First, the City
can create a stand-alone police department at a lower estimated cost than would be provided
under the current contract with the County of Riverside. Even with an estimat ed start-up cost of
$5.3 million, the City will be operating in a net fiscal positive position (i.e, its operational savings
will be more than the $5.3 million in start-up costs) within two years. Those operational savings
are forecasted to grow to almost $9M per year by fiscal year 2023-24. The following graphic
illustrates the forecasted savings:
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