Council to take action on the Second Amendment to Lease between the City of Buckeye, an Arizona municipal corporation, and MDH F2 PHX BUCKEYE 10, LLC, a Delaware limited liability company, for the Cap
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4.N CITY OF BUCKEYE Regular Council Meeting COUNCIL ACTION REPORT MEETING DATE: 04/07/26 AGENDA ITEM: 4.N. PMO - CIP No. 108690 - Resource Support Facility DATE PREPARED: 04/08/26 DISTRICT NO.: STAFF LIAISON: Anwar Albandak, Project Manager, aalbandak@buckeyeaz.gov, (480) 458-7007 DEPARTMENT: Program Management Office AGENDA ITEM TYPE: Consent Agenda Items / New Business ACTION/MOTION: (This language identifies the formal motion to be made by the Council) Council to take action on the Second Amendment to Lease between the City of Buckeye, an Arizona municipal corporation, and MDH F2 PHX BUCKEYE 10, LLC, a Delaware limited liability company, for the Capital Improvement Program (CIP) Project No. 108690 – Resource Support Facility (RSF); authorize the City Manager to execute and deliver said Amendment on behalf of the City of Buckeye; authorize a budget transfer in the amount of $373,200 from contingency to CIP Project No. 108690; authorize the City Manager to exercise the remaining construction budget as necessary to support project implementation, including future racking, equipment, office retrofits, information technology, and other tenant improvements associated with the RSF; and authorize and direct the Mayor, City Manager, City Clerk, and City Attorney to take all steps necessary to carry out the purpose and intent of the Second Amendment to Lease and exercise of the remaining construction budget to support project implementation. GOALS AND OBJECTIVES FOR THE STRATEGIC PLAN FOCUS AREAS: Infrastructure SUMMARY PROJECT DESCRIPTION: The Rainbow Road facility has been outgrown and no longer serves as a centralized location for resource needs or reserve apparatus storage. The current site consists of a modular trailer and a two- bay metal storage building, which are inadequate for operations of the City Departments. The RSF will serve as a centralized resource hub utilized by Fire, Public Works, IT, and Community Services, providing space for reserve apparatus, shared equipment, and departmental supplies. Centralizing these functions improves operational efficiency, coordination, and asset management across departments. To ensure all options are thoroughly considered, the City evaluated new construction as well as the use of a third-party logistics (3PL) provider that would store, ship, receive, and manage the inventory of departmental equipment and supplies. Following a comprehensive review of all alternatives, the proposed RSF location best meets the City’s operational demands while also serving as the most cost- effective solution for addressing stakeholder needs. BENEFITS: The RSF will also supply critical testing and repair for Personal Protective Equipment (PPE) and Self- Contained Breathing Apparatus (SCBA), ladders, and other equipment that serve as resources. In addition, this facility will serve as a storage space for Public Works, Community Services, and IT Departments. As the City continues to expand, further warehousing space is needed as well. The RSF will improve operational efficiency by consolidating equipment storage and support services, while also providing flexibility for shared space among other city departments. FUTURE ACTION: No future Council action is anticipated. Quotes for Racking, Equipment, Office Cubicle, IT, and Tenant Improvements within the designated space are being finalized. FINANCIAL IMPACT STATEMENT: The Project is programmed in the CIP program in Fiscal Years (FY) 26 and 27. This contract and budget transfer will not increase the total cost of the project ($1.0 million). To improve implementation efficiency and ensure the facility is fully operational upon occupancy, $373,200 in tenant improvement (TI) costs previously planned for FY27 will be advanced to FY26. The FY27 project budget will be reduced by the corresponding $373,200. CURRENT FISCAL YEAR TOTAL COST: The Project is programmed in the CIP in Fiscal Years (FY) 26 and 27. This contract and budget transfer will not increase the total cost of the project ($1.0 million). To improve implementation efficiency and ensure the facility is fully operational upon occupancy, $373,200 in tenant improvement (TI) costs previously planned for FY27 will be advanced to FY26. The FY27 project budget will be reduced by the corresponding $373,200. BUDGETED: Yes FISCAL YEAR: FY 26 FUND/DEPARTMENT: 50212140 – 543257 Items related to a project or facility location must include an attached vicinity map for Council Review. ATTACHMENTS: Vicinity Map CIP108690.pdf MDH_F2_PHX_Buckeye___City_of_Buckeye_-_Second_Amendment_-_MDH_Signed.pdf