CITY OF LOS ANGELES CALIFORNIA

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1 TONY M. ROYSTER GENERAL IMN~ER AND CI'TY PURCHASING ACE NT CITY OF LOS ANGELES CALIFORNIA ERIC GARCETTJ MAYOR DEPARTMENT OF GENERAL SERVICES ROOM 701 CITY HALL SOUTH I 1 I EAST F IRs;T STRE:..-T l..015 ANGELES, CA (213) FAX No. (213) 92B 9SIS March 26, 2015 Honorable Councilmembers City of Los Angeles c/o City Clerk Room 395, City Hall Los Angeles, CA Attention: Eric Villanueva, Legislative Assistant REQUEST TO NEGOTIATE AND EXECUTE A REAL PROPERTY GROUND LEASE AGREEMENT WITH J.L. VIGNES RANCH, INC. FOR A RADIO COMMUNICATIONS SITE LOCATED AT PALO SOLA TRUCK ROAD, SAUGUS. CA The Department of General Services ('GSD') requests authority to negotiate and execute a ground lease agreement for the City of Los Angeles (Tenant) with J.l. Vignes Ranch, Inc. (Landlord) for a rac;fio communications site generally located at Palo Sola Truck Road, Saugus, CA ('subject property') as the address with geographical coordinates of latitude and longitude (a legal description of the location will be inserted into the proposed real property lease contract). BACKGROUND The site is currently being used by the City of los Angeles to support public safety radio systems communication (voice radio systems) for the Los Angeles Fire Department, Los Angeles Police Department and other City of Los Angeles Departments on a 24/7 basis. Please note the Palo Sola Truck Road communication site is not a cellular site, it is a radio site for Land Mobile Radios (LMR or two-way-radios). The site houses the LAPD and LAFD radio systems, as well as the 800 MHz Simulcast Trunked Radio System providing radio coverage to the western portion of the San Fernando Valley area to the City of Los Angeles. AH EQUAL EMPLOYMEN'T OPPORTUNI'TY - AFFIRMATIVE ACTJON EMPLOYER

2 The radio systems support the daily and emergency operations for LAPD, LAFD and 18 other City Departments, as well, as Mayor and City Council Offices. The site is also a major microwave hub supporting the LAPD Valley Communications and Dispatch Center (VCDC). The first attachment is a photograph entitled "Aerial View" of the subject property. The two white buildings and 3 metal skeleton towers ('towers', one tall, 2 short) at the middle of the photo are owned by the City. There are two backup generators and two airconditioning units supporting these buildings. Please see second group of attachments entitled "Floor Plan": Exhibit 'A', 'B' and 'C'. The two buildings provide a total of 66 racks (2 ft. by 2 ft. by 7 ft.). The towers accommodate 12 microwave dish antennas and approximately 30 vertical antennas. In the current fiscal year, the City of Los Angeles has spent $4 77,000 of Federal Grant money to retrofit the tallest metal tower. The City of Los Angeles may be required to refund the grant money if a new location is chosen (further investigation is necessary to determine the exact dollar amount to refund should the existing communications equipment be moved). Our IT A Departmen~ has recommended against moving the radio site for the following reasons: 1. Cost to the City of at least $3,000, to relocate the radios systems from the current site to a new site (wherever it is). 2. The current radio systems were designed based on the current location. Any change will impact the coverage of these radio systems. 3. The Palo Sola Truck Road site is totally controlled by the City. Sharing a radio tower site with other outside users might compromise the security of the City's public safety radio systems. 4. A full description of the communication components are described on the next page under Exhibit 'A-1 '. 5. Sharing a tower site with others may cause radio frequency intermodulation interference to the City's radio channels rendering the City channels unusable. Our current Palo Sola Truck Road site is free of intermodulation interference. 6. Tower sites must meet the Motorola R56 standard that the City is using as a guideline for best practices in a radio site. Our current Palo Sola Truck Road site meets the R56 standard. 7. The Palo s ola Truck Road site affords the City total control on all aspects of maintenance such as radio equipment, air-conditioning, AC power, generator, building, refueling, etc.

3 The subject property has been operating as a radio communications site for the City of Los Angeles since July of The real property contract for the subject property has been on a month-to-month holdover since August of (We are currently paying $6, per year.) TERMS AND CONDITIONS LOCATION: USE: SQUARE FEET: TERM: OPTION: Palo Sola Truck Road, Saugus, CA (a legal description of the location will be inserted into the proposed real property lease contract) Radio communications tower and shelter Approximately 2,167 square feet Ten (10) years One (1), Ten (10) year option to extend RENTAL RATE: Annual payments of $15, ESCALATIONS: HOLDOVER: Annual 3% increase Month to month STARTING DATE: August 20, 2015 MARKET DATA The closest comparable in terms of function for radio communications servicing the City of Los Angeles is located at 100 Wilshire Blvd., Santa Monica, CA ('100 Wilshire'). The lease contract for 100 Wilshire was entered into by the City of Los Angeles in the 4 th quarter of The capacity of operation for 100 Wilshire is 50% of the subject property radio communications equipment and does not include the structural tower. The fee structure for radio communications (and all wireless transmission) is based on number of racks and the number of antennas used. Other important factors that may come into importance for wireless communications are geology, elevation of the site and location of coverage desired. The real property lease rental rate on an annual basis for 100 Wilshire is $142, General discussions with American Tower 1 reflect fa ir market rental rates for the Los Angeles County area for operational racks and antennas between $2,000 and $2,500 each. 1 American Tower sites are home to cellular and wireless, radio and televis1on broadcast, microwave and two-way radio communications equipment.

4 Therefore the subject property has a fair market rental rate on an annual basis between $216,000 and $270,000 (108 racks/antennas x $2,000; 108 racks/antennas x $2,500). FISCAL IMPACT The GSD 6030 Leasing Account budget for FY will increase by $8, beginning August 20, 2015 for this contract. RECOMMENDATION That the Los Angeles City Council authorizes the Department of General Services to negotiate and execute a real property lease agreement with J.L. Vignes Ranch, Inc. for the communications site generally located at Palo Sola Truck Road, Saugus, CA 91350, under the terms and conditions substantially as outlined in this report. Tot~ General Manager Attachments

5 Exhibit 'A-1' 'Description of Radio Site Components' BUILDING: TOWER: GENERATOR: FUEL TANK: AIR-CONDITIONING: RACK SPACE: RADIO SYSTEM: MICROWAVE: ANTENNAS: RADIO ANTENNAS: MW ANTENNAS: TOTAL: BATIERY PLANT: 2 buildings owned by the City 3 towers (180ft., 50 ft., 50 ft.) owned by the City 2 diesel generators (approx. 50 KW and 45 KW) 1 underground storage (approx. 1,000 gallons) 2 NC units 40 in first building 26 in second building LAPD voice radio system LAPD mobile data radio system LAFD voice radio system LAFD mobile data radio system 800 MHz Simulcast Trunked Radio System (STRS) LAPD VHF channels LAFD VHF channels 9 microwave transmission hops LAPD voice radio system LAPD mobile data radio system STRS Microwave transmission systems

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