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APPROVE MOTION TO ACCEPT REQUEST TO TERMINATE MEMORANDUM OF UNDERSTANDING (MOU) WITH THE FEDERAL BUREAU OF INVESTIGATION (FBI) FOR USE OF A CLOSED-STORAGE SPACE, AND REFUND UNSPENT FUNDS IN THE AMOUNT OF $93,767
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize the City Manager to accept request to terminate the MOU between the City of Stockton Police Department (SPD) and the Federal Bureau of Investigation (FBI) for use of a closed-storage space, and issue a refund in the amount of $93,767.
2. Authorize the City Manager to take all necessary and appropriate actions to carry out the purpose and intent of the motion.
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Summary
The City entered into an agreement with the FBI on June 21, 2017, to provide office space for the FBI Safe Streets Task Force as outlined in the MOU. The FBI remitted funds in the amount of $93,767 for the anticipated costs of tenant improvements, to be held by the City until the project began. The FBI no longer needs the space and has requested termination of the MOU. Since no tenant improvements were started and no expenses have been incurred, staff recommends Council authorize the City Manager to accept the request to terminate the MOU and process a refund to the FBI in the amount of $93,767.
DISCUSSION
Background
The SPD has a long-standing partnership with the FBI Safe Streets Task Force, assigning two of its detectives to work on the Task Force and help with major investigations related to Stockton’s top offenders. In an effort to strengthen our partnership and provide coordination for future joint investigations, in June 2017, the City entered into an MOU (Attachment A) to provide office space for the Task Force as part of the SPD’s long-range space planning effort.
The FBI allocated funds for this project and would be responsible for covering the cost of tenant improvements needed to meet FBI security standards for office space. In August 2017, the City received $93,767 from the FBI to alter and outfit the office space. In exchange, the FBI would get allocated space within the Stewart/Eberhardt Building (SEB) 3rd floor with no obligation to pay rent or utility costs, as outlined in the MOU.
Present Situation
In a letter dated June 26, 2018, the FBI gave formal notification of its intent to withdraw from the agreement, effectively terminating the MOU. Section X of the MOU allows either Party to terminate the MOU by giving the other Party at least a 30-day written notice of its intent to terminate. To date, no work has begun on the project to alter and outfit the space, and the City has not incurred any expenses associated with this MOU. As a result, the FBI is entitled to receive a full refund of the monies paid to the City for this project. Per Stockton Municipal Code 3.60.020, any refund greater than $20,000 requires City Council approval.
FINANCIAL SUMMARY
The refund will have no fiscal impact on the General Fund, as funds were deposited and no expenses were incurred for the intended purpose of the MOU. Authorization for the refund to the FBI is requested, in the amount of $93,767, from the General Fund Police Other Revenues Refunds and Reimbursements Account No. 010-2400-371.
Attachment A - Federal Bureau of Investigation Notice and Memorandum of Understanding for Use of a Closed-Storage Space