SR 10-24-2023 5A
City Council
Report
City Council Meeting: October 24, 2023
Agenda Item: 5.A
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To: Mayor and City Council
From: Anuj Gupta, Interim Director of Transportation, Department of Transportation,
Finance & Administrative Services
Subject: Approval of Second Modification of Big Blue Bus (BBB) Lease Contract with
Bear Communications, Inc. for Hollywood Hills Radio Site
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section
15061(b)(3) (Common Sense Exemption) of the California Environmental Quality
Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute a second modification of
agreement #10857 in the amount of $126,000 with Bear Communications, Inc., a
California corporation, for the extension of an antenna site lease for the Santa
Monica Department of Transportation (SMDOT). This will result in a 23-year
amended agreement with a new total amount not to exceed $633,000, with future
year funding contingent on Council budget approval.
Summary
In 2005, Big Blue Bus (BBB) entered into an agreement with Advanced Electronics, Inc.,
the predecessor-in-interest to Bear Communications, Inc. for the sublease of an
antenna site in the Hollywood Hills to install and maintain radio transponders to allow
BBB to communicate with its vehicles across its service area. The antenna site is the
only location available to adequately provide data signals to BBB. Staff recommends
that the City Council authorize the City Manager to negotiate and execute a second
modification to the Antenna Site Sublease Agreement #10857 with Bear
Communications, Inc., for a one-year extension with two additional one-year options,
and for additional compensation in an amount not to exceed $126,000 over the three-
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year period. The amount for the first year of the extension would be $39,440.92. This
would result in a 23-year amended agreement with a new total contract amount not to
exceed $633,000, with future year funding contingent on Council budget approval. This
lease was entered into as an exception to the competitive process due to Federal
Communications Commission (FCC) regulations regarding BBB’s ability to transmit
radio signals.
Discussion
BBB implemented an Advanced Fleet Management System (AFMS) in 2003 that
provides Computer Aided Dispatch/Automatic Vehicle Location (CAD/AVL) data for its
fleet of transit vehicles. In support of the AFMS, the City entered into a sublease with
Advanced Electronics, Inc., the predecessor-in-interest to Bear Communications, Inc.,
on February 8, 2005, to install and maintain radio transponders at the Hollywood Hills
antenna site.
Currently, the Hollywood Hills antenna site houses BBB’s radio equipment, which
provides support for the AFMS, voice communication (two-way radio between buses
and dispatch), and data regarding the location of each bus in BBB’s fleet. This location
data is used for real-time signage, customer trip-planning applications such as Transit
and Google Transit, vehicle tracking, automatic passenger counters (APCs) onboard
the buses, the city’s network of real-time bus arrival signs at more than 100 of its bus
stops, text-based bus arrival predictions, and bus arrival predictions through Interactive
Voice Response.
BBB utilizes these radio frequencies to communicate with vehicles, locate and monitor
those vehicles, collect data for reporting purposes, and provide real-time scheduling
information to many other transit agencies and systems, as well as to customers
through various applications, providing an enhanced customer service experience to the
community.
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In May 2021, City Council approved the staff recommendation to award a contract to
Clever Devices, Ltd., for new radio and CAD/AVL systems. Clever Devices’ Voice over
Internet Protocol (VoIP) radio system will replace the current analog radio system,
eliminating the need to sublease an antenna site, but will not be fully implemented and
tested until after the current contract with Bear Communications ends on April 30, 2024,
necessitating a contract extension. While the new radio and CAD/AVL implementation
is estimated to be completed by June 30, 2024, two additional one-year options are
being requested out of an abundance of caution to ensure seamless, uninterrupted
radio communications necessary to continue to provide essential transportation services
to customers who depend on BBB each day.
The original sublease was for a five (5) year term with two separate options to extend
for five (5) years each. The City exercised both options, with the second option expiring
on April 30, 2019. In 2019, the City modified the agreement to extend the sublease for
one (1) year, with four separate options to extend for one (1) year each. The City
exercised all four (4) options, with the fourth option scheduled to expire on April 30,
2024, and now seeks to enter into a second modification to continue this sublease to
prevent any interruption of its radio communications, which could negatively impact
services provided by BBB and other regional transit operators.
Past Council Actions
Meeting Date Description
09/28/2004
(Attachment A)
Authorization of the City Manager to Negotiate and Execute an
Amendment to the City’s Agreement with Advanced Electronics for an
Antenna Site Lease over a Period of Five Years for an Amount not to
exceed $112,000.
06/11/2019
(Attachment B)
Reinstatement and First Modification of
Antenna Site Sublease Agreement with Bear Communications, Inc. for
Hollywood Hills Radio Site
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Environmental Review
This agreement modification is categorically exempt from CEQA pursuant to Section
15061(b)(3) of the CEQA Guidelines. The contract modification is covered by the
commonsense exemption which states that CEQA does not apply, “where it can be
seen with certainty that there is no possibility that the activity in question may have a
significant effect on the environment.” The modification will continue the City’s sublease
of an existing antenna site in the Hollywood Hills to install and maintain radio
transponders to allow BBB to communicate with its vehicles across its service area. The
antenna site is the only location available to adequately provide data signals to BBB’s
operational systems and is subject to Federal Communications Commission (FCC)
regulations. Therefore, it can be seen with certainty that the proposed modification
would not result in adverse physical impacts on the environment, and as such, is
categorically exempt from CEQA.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Big Blue Bus Fund to
increase the amount of agreement with Bear Communications, Inc. to lease a radio
antenna site for BBB.
Contract/Agreement/Purchase Order Modification Request
Agreement # Current
Authorized
Amount
FY 2023-24
Modified
Request Amount
CIP Account # Total Revised
Contract Amount
#10857 $507,000 $126,000 C6004770.689000 $633,000
Future year funding is contingent on Council budget approval.
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Prepared By: Carolyn Connolly, Principal Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Authorization of Agreement with Advanced Electronics for an Antenna Site Lease
(Web Link)
B. Approval of Big Blue Bus (BBB) lease extension with Bearcomm for Hollywood
Hills Radio Site (Web Link)
C. OAKS INITIATIVE FORM Bearcom Fy 23-24
D. Original Agreement - Antenna Site Sublease
E. First Modification - Bearcom_Radio_Site_Lease_Agr
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CITY OF SANTA MONICA OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known
as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the
Initiative’s text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection.
It prohibits a public official from receiving, and a person or entity from conferring,
specified personal benefits or campaign advantages from a person or entity after
the official votes, or otherwise takes official action, to award a “public benefit” to that
person or entity. The prohibition applies within and outside of the geographical
boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of
Santa Monica shall provide the names of trustees, directors, partners, and officers,
and names of persons with more than a 10% equity, participation or revenue
interest. An exception exists for persons serving in those capacities as volunteers,
without compensation, for organizations exempt from income taxes under Section
501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not
apply if the organization is a political committee or controls political committees.
Examples of a “public benefit” include public contracts to provide goods or services
worth more than $25,000 or a land use approval worth more than $25,000 over a 12-
month period.
In order to facilitate compliance with the requirements of the Oaks Initiative,
the City compiles and maintains certain information. That information includes the
name of any person or persons who is seeking a “public benefit.” If the “public benefit”
is sought by an entity, rather than an individual person, the information includes the
name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has
(e) more than a ten percent interest in the entity. Therefore, if you are seeking a
“public benefit” covered by the Oaks Initiative, you must supply that information on
the Oaks Initiative Disclosure Form. This information must be updated and supplied
every 12 months.
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Packet Pg. 27 Attachment: OAKS INITIATIVE FORM Bearcom Fy 23-24 (5820 : Approve Second Modification of Contract with Bear Communications Inc for
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the
City compiles and maintains certain information. That information includes the
name of any person or persons who is seeking a “public benefit.” If the “public
benefit” is sought by an entity, rather than an individual person, the information
includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d)
officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a
12- month period;
3. Purchase, sale or lease of real property to or from the City in excess of
$25,000 over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more
in any 12-month period;
5. Land use variance, special use permit, or other exception to an established
land use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any
12- month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any
12- month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: Title:
Signature: Date:
Email: Phone:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
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Packet Pg. 28 Attachment: OAKS INITIATIVE FORM Bearcom Fy 23-24 (5820 : Approve Second Modification of Contract with Bear Communications Inc for
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Packet Pg. 39 Attachment: Original Agreement - Antenna Site Sublease (5820 : Approve Second Modification of Contract with Bear Communications Inc for
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Contract Number 10857 (CCS)
(Former Contract Number 4553)
REINSTATEMENT AND FIRST MODIFICATION OF
ANTENNA SITE SUBLEASE AGREEMENT
This Reinstatement and First Modification of Antenna Site Sublease Agreement No. 10857 (CCS)
(“First Modification”), entered into as of _____________ (“Execution Date”), by and between the
City of Santa Monica, a municipal corporation (“City”), and Bear Communications Inc., a Califor-
nia corporation (“Bearcom”), is made with reference to the following:
RECITALS
A. On or about February 8, 2005, City and Advanced Electronics, Inc., a California corporation
(“AEI”) entered into Antenna Lease Agreement No. 10857 (CCS) (“Original Agreement”) for
the sublease by City from AEI of a portion of the real property and improvements located at
2050 Cyperan Drive in the City of Los Angeles, County of Los Angeles, California (the “Prem-
ises”). The Original Agreement permitted City the use of the antenna site located on the Prem-
ises through April 30, 2009, and granted City the right to extend the agreement twice for peri-
ods equal to five years each in duration.
B. In March 2009, City exercised its option to extend the Original Agreement through April
2014. In March 2014, City exercised its second option to extend the Original Agreement
through April 2019.
C. Bearcom is the successor in interest to AEI and assumed all rights and obligations under the
Original Agreement effective as of AEI’s dissolution in or about August 2018.
D. City and Bearcom desire to reinstate and modify the Original Agreement to extend the term of
the Original Agreement through April 30, 2020, provide City with four (4) options to extend
the Original Agreement for additional one (1) year periods, and modify the rent to be paid by
City during the extended term of the Original Agreement.
TERMS AND CONDITIONS
Now, therefore, the undersigned parties do hereby mutually agree to reinstate and modify the Orig-
inal Agreement as follows:
1. Section 2 of the Original Agreement entitled “Sublease Term: Option to Review” shall be de-
leted in its entirety and replaced with the following:
SECTION 2. SUBLEASE TERM; OPTIONS TO RENEW.
This Sublease shall commence as of May 1, 2004 (“Commencement Date”) and
shall continue in effect until April 30, 2020 (the “Sublease Term”), unless termi-
nated earlier or extended as provided herein.
2.1 Options to Extend Sublease Term. Unless terminated earlier as pro-
vided herein, City, in its sole and complete discretion, shall have four (4)
separate options to extend this Sublease for additional (1) year periods (each
DocuSign Envelope ID: A5A82E32-A7BE-4BC6-8850-1C93BD4EB814
7/16/2019
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an “Extension Term”), on the same terms and conditions set forth in this
Sublease. City may exercise its option by written letter delivered to Bearcom
at least thirty days prior to expiration of the Sublease Term (with respect to
the first option to extend) and at least thirty days prior to expiration of the
Extension Term (with respect to each of the subsequent three options to ex-
tend). Delivery of the written letter exercising the City’s option shall auto-
matically extend the term of this agreement through the end of the next Ex-
tension Term, that is, through April 30 of the next year. All of the terms
and conditions of this Sublease shall apply during each Extension Term.
2. Section 4 of the Original Agreement entitled “Monthly Rent: Annual Increase” shall be deleted
in its entirety and replaced with the following:
SECTION 4. MONTHLY RENT; ANNUAL INCREASE.
For use and occupancy of the Premises, during the period from the Commencement Date
through April 30, 2019, City agrees to pay to AEI the sum of One Thousand Five Hundred
Fifty-Five Dollars per month without set off or deduction. Commencing one (1) year fol-
lowing the Commencement Date, and annually thereafter through April 30, 2019, AEI
shall have the right to increase the monthly rent to be paid by City by an amount not to ex-
ceed four percent (4%) of the preceding year’s monthly rent.
For use and occupancy of the Premises, during the period from May 1, 2019 through the
end of the Sublease Term and any Extension Terms, City agrees to pay Bearcom the sum of
Two Thousand Seven Hundred One and 46/100 Dollars ($2,701.46) per month without
set off or deduction. At the end of the Sublease Term, and at the end of any succeeding
Extension Term, Bearcom shall have the right to increase the monthly rent to be paid by
City by an amount not to exceed five percent (5%) of the preceding year’s monthly rent.
The monthly rent to be paid by City during the Sublease Term and any Extension Terms
shall not exceed $507,000.
3. Section 19 of the Original Agreement entitled “Notices” shall be amended to provide that all
notices, demands, requests or approvals from City to Bearcom shall be addressed to Bearcom
at:
Bear Communications, Inc.
2601 Manhattan Beach Blvd.
Redondo Beach, CA 90278
Attn: Vickie L. Dubois, Customer Service Manager
4. All references in the Original Agreement to AEI shall be deemed to refer equally to Bearcom,
as the successor in interest to AEI.
5. Except as expressly modified by this First Modification, all other terms and conditions of the
Original Agreement shall be and remain in full force and effect.
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IN WITNESS WHEREOF, the parties have executed this First Modification as of the date and
year first written above.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk ANDERSON-WARR
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By:
______________________________
RICK COLE
City Manager
BEARCOM Corporation
Bear Communications Inc.
#VENDOR
By:
_______________________________
DocuSign Envelope ID: A5A82E32-A7BE-4BC6-8850-1C93BD4EB814
George S. Cardona
7/12/2019
Special Council / Chief of Staff
7/12/2019
George S. Cardona
Special Council / Chief of Staff
7/12/2019
Vickie L. Dubois
Vickie L. Dubois
Customer Service Manager
City Manager
Rick Cole
7/16/2019
City Clerk
7/16/2019
Denise Anderson-Warren
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Packet Pg. 42 Attachment: First Modification - Bearcom_Radio_Site_Lease_Agr (5820 : Approve Second Modification of Contract with Bear Communications