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SR-101-003-05 Council Meeting: August 10, 2004 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Authorization of the City Manager to Negotiate and Execute an Amendment to the City’s Agreement with American Tower Corporation (ATC) for an Antenna Site Lease over a Period of Five Years for an Amount not to Exceed $140,200 Introduction This report recommends that the City Council authorize the City Manager to negotiate and execute an amendment to the agreement with American Tower Corporation (ATC) for an antenna site lease over a period of five years for an amount not to exceed $140,200, including tax. Background On July 9, 2003, the Big Blue Bus executed a contract with Siemens VDO Corporation for the implementation of an Advanced Fleet Management System (AFMS). One component of the AFMS project involves the upgrade of the equipment that the Big Blue Bus operates at the Saddle Peak antenna site, operated by the American Tower Corporation. Discussion The Saddle Peak antenna site currently houses a single transponder that the Big Blue Bus owns and operates. To support the new features and functions of the AFMS project, three additional transponders at the Saddle Peak site are required. This new equipment will occupy additional floor space and has higher power usage than the equipment currently in place. As a result, the current site lease agreement with ATC must be ordered. Budget/Financial The cost for the five year antenna site lease will not exceed $140,200. Funds of $26,046 are available in the Big Blue Bus Radio Systems account C410100.589000 for FY 2004/05. Annual funding will be requested in each fiscal year’s proposed budget and will be subject to Council review and approval. If the necessary funds for a subsequent fiscal year are not appropriated by City Council, the agreement will allow for termination of further services without penalty at the sole discretion of the City. Recommendation It is recommended that Council Authorize the City Manager to negotiate and execute an amendment to the City’s agreement with American Tower Corporation (ATC) for an antenna site lease over a period of five years for an amount not to exceed $140,200, including tax, with contract language reflecting annual funding authorizations as set forth above; and Authorize four additional one year renewal options at an estimated annual expenditure of $26,046, plus Consumer Price Index increases each subsequent year. Prepared by: Stephanie Negriff, Director of Transit Services Janeene De Martinez, Assistant Director Transit Programs and Business Services Jory Wolf, Chief Information Officer Al Dave, Software Systems Officer Colin Probert, Transit Systems Analyst