SR 08-14-2018 3G
City Council
Report
City Council Meeting: August 14, 2018
Agenda Item: 3.G
1 of 2
To: Mayor and City Council
From: Joseph Cevetello, Chief Information Officer, Information Services
Department, Customer Experience and Support
Subject: Lease Agreement Modification for Rooftop Space at 100 Wilshire Boulevard
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a first modification to agreement #9798 in the amount of $298,406 with Douglas
Emmett 1998, LLC, a Delaware-based company, for leasing of rooftop space at 100
Wilshire Boulevard. This will result in a 10-year amended agreement with a new total
amount not to exceed $562.156, with future year funding contingent on Council budget
approval.
Summary
The City leases rooftop space at 100 Wilshire Boulevard to house its public safety radio
communications infrastructure. The current lease agreement allows the City to exercise
a five-year renewal option through June 2023. Staff recommends exercising the five-
year renewal option.
Discussion
The City’s public safety radio communications infrastructure is comprised of equipment
located on the rooftop of 100 Wilshire Boulevard and the Mount Olivette Reservoir.
These two locations were selected during the system’s engineering process due to their
height and resultant coverage they provide.
The equipment located at the 100 Wilshire property was recently upgraded as part of
the public safety radio system project and is expected to be in place at the location
through at least June 2023.
In September 2013, Council authorized a lease agreement with Douglas Emmett 1998,
LLC for a term of five years through June 2018 with an option to extend the agreement
for another five years through June 2023. At that time, budget authority through June
2 of 2
2018 was granted. Staff is now seeking budget authority for the second term to extend
through June 2023.
Past Council Actions
Meeting Date Description
09/10/13 (attachment A) Council authorized the City Manager to negotiate and execute a
lease agreement for rooftop space at 100 Wilshire Boulevard.
Financial Impacts and Budget Actions
Staff seeks authority to increase the amount of the lease agreement with Douglas
Emmett 1998, LLC. Funds in the amount of $56,967 are available in the FY 2018-19
budget in the Police Department.
Agreement Modification Request
Agreement
#
Current
Authorized
Amount
Modified
Request
Amount
FY 2018-19 Budget
Dept/CIP Account #
Total Revised
Contract
Amount
9798 $263,750 $298,406 01180001.524700 $562,156
Future year funding is contingent on Council budget approval.
Prepared By: Eric Uller, Systems Analyst (Lead) - Public Safety
Approved
Forwarded to Council
Attachments:
A. Staff Report - Sep 10 2013 Item 3I
B. Contract 9798 - Oaks 2018
City Council Report
1
City Council Meeting: September 10, 2013
Agenda Item: 3-I
To: Mayor and City Council
From: Jory Wolf, Chief Information Officer
Subject: New License Agreement 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 new License Agreement with Douglas Emmett 1998, LLC, a Delaware
company, for lease of rooftop space at 100 Wilshire Boulevard for a five year term, in an
amount not to exceed $263,750.
Executive Summary
The City currently occupies rooftop space at 100 Wilshire Boulevard for the Police and
Fire Department’s radio communication system infrastructure. The rooftop space has
been occupied 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 new License Agreement would enable the City to continue using the
space through June 2018 and would not exceed $263,750 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 License 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 License Agreement
extending the term through June 2008. Since then, the City continually occupied the
rooftop space and paid rental fees annually via a Purchase Order through FY 2012-13.
The parties were otherwise operating under the terms and conditions of the License
Agreement. On May 28, 2013, Council authorized a Second Modification to the License
2
Agreement. As the parties were going through the process of executing the Second
Modification, and upon further review of the License Agreement, it was determined that
because the original Lease Agreement expired in June 2008, although annual rental
fees were paid, there was no License Agreement in effect to modify. Staff has brought
the item back to the Council to make this clarification and recommends that the City
enter into a new License Agreement. The original License Agreement was with
Douglas Emmett Realty Fund 1998, a California Limited Partnership. That entity is no
longer the owner of the property. The successor in interest is Douglas Emmett 1998,
LLC. The proposed new License Agreement is with Douglas Emmett 1998, LLC.
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 would 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.
The annual license fee established in 1999 was $27,300. Since then, annual increases
have ranged between 3% and 4%, as set forth in prior license agreements by the
property owner. In fiscal year 2012-13, the annual license fee was $46,822. The
proposed license fee for fiscal year 2013-14 would be $48,695. The new proposed
license agreement establishes an annual 4% increase through June 2018.
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At this time, staff recommends entering into a License Agreement in order to secure the
space through June 2018.
Financial Impacts & Budget Actions
The License Agreement to be awarded to Douglas Emmett 1998, LLC is for an amount
not to exceed $263,750. Funds are available in the FY 2013-15 budget in division
01304. The contract will be charged to account 01304.522620. Budget authority for
subsequent budget years will be requested in each budget for Council approval. Future
funding is contingent upon Council approval and budget adoption.
Prepared by: Eric Uller, Lead Public Safety Systems Analyst
Approved: Forwarded to Council:
Jory Wolf
Chief Information Officer
Rod Gould
City Manager
REFERENCE:
Modified Agreement
No. 9798
(CCS)