TITLE
Recommendation to authorize City Manager to execute all documents necessary for a Sale Agreement in the amount of $298,462 between the City of Long Beach and Modular Space Corporation, a Delaware corporation, for the purchase of modular facilities located at the Long Beach Police Department Training Division at 7290 East Carson Boulevard. (District 5)
DISCUSSION
The Training Division of the Long Beach Police Department is located south of the Long Beach Towne Center and adjacent to El Dorado Regional Park (see Attachment). The Training Division is responsible for facilitiating Police activities such as firearms training, a fitness and wellness program, officer recruitment and hiring, in-service training, advanced officer training and the intensive basic academy. Training activities are coordinated at the site for the entire Long Beach Police Department as well as other City departments and local law enforcement agencies. The site includes a firing range and K-9 training facilities.
In 1998, modular units (Modulars) were leased from Modular Space Corporation (ModSpace), successor in interest to GE Capitol Modular Corporation, to augment the two existing on site buildings for administrative, training and office needs. The Modulars also provide for locker/shower facilities, classroom space and a computer training room. In total, 18 Modulars provide for approximately 13,000 square feet of space for the operations of the Training Divison.
The leases for the Modulars have expired and the City is continuing to lease them on a month-to-month basis. While preliminary discussions have occurred regarding the viability of having more permanent facilities constructed at the site, no firm decisions have been made. Staff have received and reviewed contract proposals from ModSpace to either purchase the Modulars or to continue leasing them. The cost to purchase the Modulars is marginally greater than the cost to lease them for a two-year period. Purchasing the Modulars offers the greatest flexibility in future decision making regarding more permanent structures for the site. In an effort to minimize the cost to purchase the Modulars, the Police Department has applied for and anticipates receiving a $270,000 Urban Area Security Initiative (UASI) Grant towards the purchase.
The Sale Agreement with ModSpace for the purchase of the Modulars contains the following major terms and provisions:
· Seller: Modular Space Corporation, a Delaware corporation.
· Buyer: City of Long Beach.
· Equipment: 18 modular units providing approximately 13,000 square feet of space.
· Purchase Price: $298,462.
· Modular Improvements: As part of the purchase of the Modulars, the exterior of the units will be repainted along with a few minor cosmetic interior repairs.
This matter was reviewed by Deputy City Attorney Gary J. Anderson on February 25, 2013 and Budget Management Officer Victoria Bell on February 26, 2013.
TIMING CONSIDERATIONS
City Council action is requested on March 12, 2013, in order to execute the Sale Agreement to complete both the purchase and the modular improvements by May 1, 2013, in preparation for the 2013 Long Beach Police Academy Class.
FISCAL IMPACT
The majority of this contract will be funded by the anticipated receipt of surrendered Urban Area Security Initiative (UASI) FY 2010 Grant funds of $270,000. These are UASI 2010 Grant funds that have not been expended by other agencies and are returned to grantor for redistribution. This funding is antcipated to be received in early March and will be presented to City Council for appropriation at that time. However, in order to proceed with this contract in an expedient manner, the Police Department will temporarily use currently appropriated UASI 2011 Grant funds to execute this contract.
There is sufficient funding for the remaining $28,462 in the General Fund (GP) in the Police Department (PD). On-going maintenance costs will be absorbed within the Police Department's GP appropriation. Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
JIM MCDONNELL
CHIEF OF POLICE
APPROVED:
PATRICK H. WEST
CITY MANAGER