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File #: 2026-5652   
Type: Regular Agenda Item
Body: City Council
On agenda: 1/20/2026
Title: Introduction of Ordinance Authorizing the Interim City Manager to Execute a Five-Year Lease Agreement, in an Amount Not-to-Exceed $783,636, with G&I IX Marina Village Office Park LP for Approximately 6,944 Square Feet of Office Space Located at 1001 Marina Village Parkway to Serve as the Alameda Fire Department Administration Facility. In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15061(b)(3) (Common Sense). (Fire 10032200)
Attachments: 1. Exhibit 1: Agreement, 2. Ordinance

Title

 

Introduction of Ordinance Authorizing the Interim City Manager to Execute a Five-Year Lease Agreement, in an Amount Not-to-Exceed $783,636, with G&I IX Marina Village Office Park LP for Approximately 6,944 Square Feet of Office Space Located at 1001 Marina Village Parkway to Serve as the Alameda Fire Department Administration Facility.

In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15061(b)(3) (Common Sense). (Fire 10032200)

Body

 

To: Honorable Mayor and Members of the City Council

 

From: Adam W. Politzer, Interim City Manager

 

EXECUTIVE SUMMARY

 

The Alameda Fire Department (AFD) seeks authorization for the Interim City Manager to execute a five-year lease agreement with The Research Park for approximately 6,944 square feet of office space located at 1001 Marina Village Parkway. This relocation will consolidate Fire Administration, Fire Prevention, Emergency Medical Services (EMS), and possibly Emergency Management divisions into a single facility-improving internal coordination, operational efficiency, customer service, employee safety, and emergency response service delivery. The lease will also create space for the required facility updates to Fire Station 1. The total lease cost is $783,636. Funding for ongoing costs will be provided through existing Fire Department budget allocations and Internal Service Fund (ISF) savings, with a potential request for additional funding to cover a portion of one-time move-in and setup costs.

 

BACKGROUND

 

In alignment with the City of Alameda’s City Council Strategic Priorities-particularly the goals of enhancing public safety, modernizing infrastructure, and improving operational efficiency-the City of Alameda (City) engaged RRM Design Group to conduct a comprehensive Facility Assessment. This study evaluated the condition, functionality, and long-term viability of key civic facilities. Part of the study focused on the AFD’s facilities, including Fire Station 1 and the adjacent Fire Administration building.

 

The assessment identified both facilities as high-priority candidates for significant upgrades. Fire Station 1 and the Fire Administration building were found to be outdated, undersized, and operationally inefficient. The fire station lacks the capacity to support modern fire service operations, does not meet current seismic safety standards, and falls short of health and safety requirements for personnel. These deficiencies pose risks to both staff and the continuity of emergency services, particularly in the event of a major incident or natural disaster.

 

A key recommendation from the assessment was to relocate Fire Administration to either a new facility or a leased property to enable the remodel and expansion of Fire Station 1 at its current site. This relocation is essential to free up critical space for reconfiguring Station 1’s operational footprint-including apparatus bays, crew quarters, and living areas-and to support the long-term modernization of the City’s emergency response infrastructure. Additionally, the move would allow for the consolidation of currently dispersed administrative functions, which have long hindered coordination, communication, and efficiency across AFD divisions.

 

The proposed lease of approximately 6,944 square feet of office space at The Research Park, located at 1001 Marina Village Parkway, directly supports this recommendation. The facility offers a cost-effective, professional, and immediately available solution for housing Fire Administration, Fire Prevention, EMS, and possibly Emergency Management divisions under one roof. Co-locating these critical functions will significantly enhance internal collaboration, streamline workflows, and improve service delivery to the community. It also provides a stable and functional environment for staff while planning and design work for the Fire Station 1 remodel proceeds.

 

This relocation represents a strategic investment in public safety and operational readiness, while also addressing long-standing facility challenges that have constrained the department’s ability to grow and adapt alongside the City’s evolving needs.

 

DISCUSSION

AFD is currently operating out of facilities that no longer meet the operational, safety, and spatial needs of a modern fire service. Both the Fire Administration building and Fire Station 1-located adjacent to each other-were identified in the RRM Design Group’s Facility Assessment as in need of upgrades to address aging and outdated design, health and wellness of firefighters, seismic vulnerabilities, space constraints, and operational inefficiencies.

As presented at the City Council workshop on October 7, 2025, the assessment recommends relocating Fire Administration as a necessary first step to enable the remodel and expansion of Fire Station 1 at its current site. This relocation would free up essential space for reconfiguring Station 1’s operational footprint, including apparatus bays, crew quarters, and living areas, while also consolidating administrative functions to improve coordination and service delivery to the community.

To support this recommendation, staff have identified a cost-effective and strategically located facility at 1001 Marina Village Parkway, Suite 100, within The Research Park. The proposed lease includes approximately 6,944 square feet of space on the first floor of the building, with direct access to the building, along with adequate parking for visitors, and would be governed by a five-year lease agreement with the following terms:

                     Initial Monthly Rent: $12,000 (64% below the market rate)

                     Total Lease Cost Over Five Years: $783,636

                     Lease Start Date: July 1, 2026 (with early access available as soon as mid-March to April, depending on tenant vacancy)

                     Free Rent Period: April, May, and June 2026

                     Annual Rent Increases: Beginning in Year two (2), the base rent will increase by 3% annually for the remainder of the lease term, and the operational expense portion will increase by 3% in Year two (2) only, ensuring the tenant’s costs remain predictable throughout the lease.

                     Tenant Improvements: Ownership will install a wall at the front entrance to create a lobby and complete associated painting before move-in.

                     Dedicated parking for fire department vehicles.

The current market value is $4.72 per square foot for commercial leasing in the East Bay. The property was initially offered to the Fire Department at $3.60 per square foot. The final negotiated rate of $12,000/month is $1.71/sq ft, which is 64% below current market rates for similar properties.

The new facility will house the AFD Executive Team, Fire Administration, Fire Prevention Division, EMS, and possibly the Emergency Management Division. Bringing these critical functions together under one roof is a strategic and operational imperative for the department. Currently, administrative staff are dispersed across five office locations, which creates communication delays, workflow inefficiencies, additional driving requirements, and logistical challenges that can hinder timely decision-making-especially during emergencies. The new facility would also have the ability and space to serve as a Department Operations Center (DOC) in times of crisis.

Co-locating these divisions will significantly enhance internal coordination, unify leadership, expand cross-training opportunities, create depth, and streamline operations, allowing for more effective planning and improved service delivery to the community. It will also foster a stronger team environment, improve situational awareness across divisions, and support integrated training and preparedness efforts. It would also enhance employee security by preventing office staff from working alone at times, as is currently the case in City Hall West.

From a public safety perspective, this consolidation is essential. Emergency management, fire prevention, and EMS services are deeply interconnected, and housing them in a single, purpose-fit space will enable real-time collaboration and more agile responses to evolving situations and community needs. Additionally, the new facility will provide a more professional, functional, and supportive work environment-critical for staff morale, retention, and recruitment in a highly competitive public safety labor market.

The Research Park currently offers access to ten level 3 electric vehicle charging stations from a third-party vendor, with additional units anticipated to be installed in the future. This infrastructure will enable AFD to explore transitioning portions of its current fleet to electric vehicles. In contrast, the existing Fire Administration facility has only the electrical capacity to support a single level 2 charging station.

Funding Strategy

The lease will be funded through a combination of cost savings and existing budgeted resources. Specifically:

                     $51,706 in Fiscal Year (FY) 2025-26 and $55,045 in FY 2026-27 will be covered using cost savings from Internal Service Fund (ISF) charges previously allocated to Fire’s 8% occupancy at City Hall West.

                     The remaining lease costs will be funded through reallocations already included in the department’s operating budget.

                     There will also be one-time expenses associated with the move-in and setup of the new space, including moving services, IT infrastructure, and workspace configuration. Staff may request additional funding to cover a portion of these one-time costs. Some of these costs will be covered by reallocating existing fire department funding, with the possibility of a mid-year request not to exceed $250,000.

This funding approach allows the relocation to move forward primarily using existing resources, with a request expected for some additional funding limited to a portion of the one-time move-in and setup costs.

Relocating the Fire Administration is a critical cost-saving step in advancing the phased improvements outlined in the facility assessment. The facility analysis estimated that building a new fire administration, with construction starting in 2029, would cost approximately $20M. Per the facilities analysis, the recommended total fire department facility updates would exceed $150M, which would most likely exceed the General Fund, Capital Improvement Project (CIP), or an infrastructure bond's ability to fund entirely. The leasing approach would enable the City to plan for the long-overdue modernization of Fire Station One in a viable and fiscally responsible manner.

This action aligns with City Council’s Strategic Priorities, particularly the goals of enhancing community safety, modernizing public infrastructure, and improving operational efficiency. The location at The Research Park also provides a west-end presence for AFD, improving accessibility for interdepartmental coordination and public engagement.

 

ALTERNATIVES

 

                     Approve the ordinance authorizing the Interim City Manager to execute a five-year lease agreement with G&I IX Marina Village Office Park LP for approximately 6,944 square feet of office space at 1001 Marina Village Parkway, for a total lease cost not-to-exceed $783,636, to relocate the Alameda Fire Department’s administrative functions and support the modernization of Fire Station 1.

                     Do not approve the ordinance and provide an alternative direction to staff, which may include identifying other temporary facilities or delaying the relocation of Fire Administration. This alternative may delay the planned remodel and expansion of Fire Station 1, prolong operational inefficiencies, increase fiscal impacts to the city, and impact coordination across critical Fire Department divisions.

 

FINANCIAL IMPACT

 

The total cost of the five-year lease agreement for approximately 6,944 square feet of office space at 1001 Marina Village Parkway is $783,636. The lease begins July 1, 2026, and includes a three-month rent-free period (April-June 2026), with early access available as soon as April. The initial monthly base rent is $12,000, and starting in Year two (2), the base rent will increase by 3% annually for the remainder of the term. The operational expense portion will be adjusted by 3% in Year two (2) only. These scheduled changes provide cost certainty for the tenant throughout the term.  Annual lease costs are as follows:

 

                     FY 2026-27: $144,000

                     FY 2027-28: $152,892

                     FY 2028-29: $157,476

                     FY 2029-30: $162,204

                     FY 2030-31: $167,064

Total five-year lease cost: $783,636

 

Funding will be provided primarily through existing allocations in the department’s operating budget and cost savings from Internal Service Fund (ISF) charges previously allocated to Fire’s 8% occupancy at City Hall West-$51,706 in FY 2025-26 and $55,045 in FY 2026-27. Additional funding may be requested to cover a portion of one-time move-in and setup expenses, not to exceed $250,000. The fire department is committed to offsetting these expenses by reallocating existing funding in its current FY 2025-26 budget. 

 

MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE

 

This action is consistent with Section 3-10 of the City Charter, which requires that acts of the Council providing for the lease of real property for a period longer than one year shall be by ordinance. 

 

This action is subject to the Levine Act.

 

This proposal supports the City’s strategic plan initiatives on “Enhancing Community Safety and Services” by increasing accessibility to AFD services and resources.

 

ENVIRONMENTAL REVIEW

 

This action is categorically exempt from further environmental review pursuant to  California Environmental Quality Act (CEQA) Guidelines Section 15301, Existing Facilities, which includes the operation, maintenance, leasing, or minor alteration of existing public or private structures and facilities involving negligible or no expansion of existing or former use.  None of the exceptions to the exemption apply.  As a separate and independent basis, the project is also exempt pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense). 

 

CLIMATE IMPACT

 

There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.

 

RECOMMENDATION

 

Introduce an ordinance authorizing the Interim City Manager to execute a five-year lease agreement, in an amount not-to-exceed $783,636,  with G&I IX Marina Village Office Park LP for approximately 6,944 square feet of office space located at 1001 Marina Village Parkway to serve as the Alameda Fire Department’s administrative facility.

 

Respectfully submitted,

Nicholas Luby, Fire Chief

 

By,

Anne Iturraran, Fire Administrative Services Manager

 

Financial Impact section reviewed,

Ross McCarthy, Finance Director

 

Exhibits:

1.                     Proposed Lease Agreement