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SR-05-28-2013-3ACity of City Council Report Santa Moniea' City Council Meeting: May 28, 2013 Agenda Item: 3-A To: Mayor and City Council From: Jory Wolf, Chief Information Officer Subject: Lease Agreement Amendment for Rooftop Space at 100 Wilshire Boulevard for Public Safety Radio Communication System Infrastructure. Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a second modification to the Lease Agreement 7467 (CCS) with Douglas Emmett 1998, LLC, a California company, for lease of rooftop space at 100 Wilshire Boulevard for a five year term, in an amount not to exceed $244,000. This will result in a new total Lease Agreement of $545,079, with future funding contingent on Council budget approval. Executive Summary The City currently leases rooftop space at 100 Wilshire Boulevard for the Police and Fire Department's radio communication system infrastructure. The rooftop space has been leased by the City since 1987 for the purpose of operating the Police and Fire radio systems. The site is a strategic location for the communications equipment due to the building's height, central location in the downtown area, and emergency power equipment. The second amendment to the lease agreement would enable the City to continue leasing the space through June 2017 and will not exceed $244,000 for a five year period. Background In 1987, the City was granted permission to use rooftop space at 100 Wilshire Boulevard for operation of the Police Department's radio system. Between 1987 and 1999 the City paid an annual rental fee for the space. On March 23, 1999, Council authorized a Lease Agreement for the rooftop space at 100 Wilshire Boulevard to be used for continued operation of the Police and Fire Department's radio communication systems. In May 2003, the City executed a first amendment to the Lease Agreement extending the term through June 2008. Since then, the City has been paying for the space on a year -to -year basis. 1 Discussion The rooftop space located at 100 Wilshire Boulevard is critical to the continued operation of the Police Department and Fire Department radio systems. The building is the ideal height for proper operation of the infrastructure equipment, is centrally located in the downtown area and has the appropriate emergency power equipment for operation during an electrical outage. The Police Department and Fire Department have installed equipment at 100 Wilshire Boulevard as part of their respective radio system infrastructures that is critical to proper operation of their systems. There are no practical alternatives for relocating the equipment presently installed at 100 Wilshire Boulevard. Relocating the equipment to a different building that does not have the same profile and geographic location as 100 Wilshire Boulevard will degrade communications for Police and Fire. In the event a suitable location existed, the process to relocate the equipment to a new location would require a complete system design, potentially costing several million dollars. At this time, staff recommends entering into a second amendment of the Lease Agreement in order to secure the space through June 2017. 7 Financial Impacts & Budget Actions The Lease Agreement amendment to be awarded to Douglas Emmett 1998, LLC is $244,000, for a new lease agreement total of $545,079. Funds for FY 2012 -13 are available in division 01304. Contract costs for FY 2012 -13 will be charged to account 01304.522620., Funds for FY 2013 -15 have been included in the FY 2013 -15 Proposed Budget, pending Council approval. Budget authority for subsequent years will be requested in each budget cycle for Council approval. Future funding is contingent upon Council approval and budget adoption. Prepared by: Eric Uller, Lead Public Safety Systems Analyst roved: Jo o hi Information Officer 191 Forwarded to Council: _r4 Rod Gould City Manager Reference Lease Modification Agreement No. 7467 (CCS)