HomeMy WebLinkAboutC-7094-2 - 2017 Reimbursement Agreement - City Radio Tower Rehabilitation10
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GA 055-485-2200-20-2-1
800 MHz Communications Site
City of Newport Beach — 949 West 161h Street
City Utilities Department Yard
2017 REIMBURSEMENT AGREEMENT
This 2017 Reimbursement Agreement ("Agreement") dated 7Qke, r/ , 2017
("Effective Date"), is entered into by and between the County of Orange, a political subdivision
of the State of California ("COUNTY"), and the City of Newport Beach, a California municipal
corporation ("CITY"), without regard to number of gender. The COUNTY and CITY may be
referred to herein sometimes individually as a "Party" or collectively as the "Parties."
RECITALS
CITY is the owner of that certain real property ("Property") located at 949 West 16th
Street in the City of Newport Beach, County of Orange, State of California. A depiction
of the Property is attached hereto as "Exhibit 1", which is incorporated herein by this
reference;
II. The Property's primary purpose is for use by CITY as its Utilities Department operations
yard;
III. Pursuant to a previous Reimbursement Agreement dated May 22, 2007 ("2007
Reimbursement Agreement"), the CITY and COUNTY upgraded an existing
communications tower owned by the CITY ("Tower") and constructed a new equipment
building ("Equipment Building") on the Property at shared expense with COUNTY, so
that the COUNTY could install the COUNTY's 800 MHz radio mobile/wireless
communications system and appurtenant equipment (1800 MHZ System") on a portion
of the Property (112007 Project");
IV. After the 800 MHz System was installed, the Parties entered into a long term lease dated
September 20, 2008 ("Lease"), which provides the COUNTY to, among other things,
operate the 800 MHz System on the portion of the Property. A copy of the Lease is
attached hereto as "Exhibit 2" and incorporated herein by this reference; and,
V. Due to the age of the Tower, the CITY desired to remove and replace the Tower, and
allow upgrades and additional equipment requested by the COUNTY ("2016 Project").
The total cost of the new Tower is approximately $543,000 and the CITY requests the
COUNTY contribute $180,000 toward the cost of replacing the Tower. A First
Amendment to Lease ("First Amendment to Lease") is being transacted along with
this 2017 Reimbursement Agreement, which First Amendment to Lease is attached
hereto as "Exhibit 2A" and incorporated herein by this reference.
GA 055-485-2200-20-2-1 PAGE 1 OF 7 CITY UTILITIES DEPARTMENT YARD
REIMBURSEMENT AGREEMENT 949 WEST 16TH STREET, NEWPORT BEACH
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AGREEMENT
NOW, THEREFORE, in consideration of the terms and conditions set forth in this Agreement,
which supersedes and replaces the 2007 Reimbursement Agreement, the Parties hereto agree as
follows:
1. 2016 PROJECT DESCRIPTION
The 2016 Project, which is more fully described in clauses 5, 6, 7 and 8 of this Agreement,
comprise the Scope of Work ("Scope of Work"), which generally consists of the following:
A. Preparation of CITY's Plans & Specifications and construction of the Tower by
CITY.
B. Preparation of COUNTY's Plans & Specifications for the installation of COUNTY
adding equipment to the Tower, and if needed, within the Equipment Building.
2. COST SHARING
The CITY and COUNTY hereby agree as follows:
A. Within thirty (30) days of COUNTY's execution of this Agreement, the COUNTY
will reimburse the CITY in the amount of One Hundred Eighty Thousand
Dollars and No Cents ($180,000.00) for its share of the costs and expense of
CITY constructing the 2016 Project. The CITY shall be liable for all other costs
associated with completing the 2016 Project, except for the COUNTY's direct
costs and expenses of upgrading and adding work identified in Section I.B. above.
B. The financial expenditures by COUNTY that relate in any way to the work set
forth in Section I.B. above, shall not count towards the COUNTY's financial
obligations under this Agreement described in the Scope of Work.
3. TERM
This Agreement shall be in full force and effect until the specified obligations of both Parties have
been fulfilled or the Agreement is terminated as set forth herein.
4. TERMINATION
Except as otherwise provided herein, in the event that either party fails or refuses to perform any
of the provisions of this Agreement at the time and in the manner required, that party shall be
deemed in default in the performance of this Agreement. If such default is not cured within a
period of thirty (30) calendar days, or if more than thirty (30) calendar days are reasonably
required to cure the default and the defaulting party fails to give adequate assurance of due
performance within thirty (30) calendar days after receipt of written notice of default, specifying
the nature of such default and the steps necessary to cure such default, and thereafter diligently
take steps to cure the default, the non -defaulting party may terminate the Agreement forthwith by
giving to the defaulting party written notice thereof, and that party shall have no further financial
responsibility under this Agreement.
GA 055-485-2200-20-2-1 PAGE 2 OF 7 CITY UTILITIES DEPARTMENT YARD
REIMBURSEMENT AGREEMENT 949 WEST 16TH STREET, NEWPORT BEACH
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5. PLANS & SPECIFICATIONS
The CITY and COUNTY agree that the CITY has prepared plans & specifications for the 2016
Project and submitted the Plans and Specifications to the COUNTY's Director,
Sheriff/Communications ("Communications Director") for review and approval. The Plans and
Specifications meet the COUNTY's standards and technical requirements. The Communications
Director's approval does not apply to the engineering adequacy of the 2016 Project specifications,
plans and drawings.
6. CITY OBLIGATIONS
A. CITY has entered into and administered contracts for the design services necessary
for those portions of the 2016 Project identified in Section 1, which includes
contracting with the necessary engineering consulting services to accomplish the
design efforts.
B. CITY was responsible for compliance with the California Environmental Quality
Act ("CEQA") (Pub. Resources Code, Section 21000 et seq.) for all activities
associated with the 2016 Project and CITY is the Lead Agency for purposes of the
CEQA and on May 12, 2016 caused a Notice of Exemption to be recorded in the
Orange County Clerk Recorder's Office as required by CEQA. CITY has supplied
COUNTY with a copy of the CITY approved environmental review document.
C. CITY prepared and issued public works bid packages and administered the
construction contracts for the 2016 Project.
E. CITY has, at its sole expense, obtained all necessary permits for construction of
those portions of the 2016 Project from federal, state and local governmental
agencies. CITY has and will continue to, at its sole expense, fully comply with all
laws, standards, statutes, restrictions, ordinances, requirements and regulations
(collectively "laws") of all governmental agencies with jurisdiction over the 2016
Project.
CITY has entered into a contract for construction of the 2016 Project in accordance
with the approved Plans and Specifications ("Construction Contract").
G. CITY shall require a one-year warranty on those portions of the 2016 Project in
its construction contract(s).
H. CITY shall furnish and deliver to COUNTY all record drawings of those portions
of the 2016 Project and any additional project -related documents requested by
COUNTY at no cost to COUNTY.
COUNTY'S OBLIGATIONS
A. COUNTY shall perform any and all work related in any way to those portions c
the 2016 Project identified in Section I.B. of this Agreement.
GA 055-485-2200-20-2-1 PAGE 3 OF 7 CITY UTILITIES DEPARTMENT YARD
REIMBURSEMENT AGREEMENT 949 WEST 16TH STREET, NEWPORT BEACH
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B. COUNTY shall obtain all necessary permits for construction of those portions of
the Project identified in 1(B) from federal, state and local governmental agencies
and fully comply with all laws of all governmental agencies with jurisdiction over
the Project.
C. COUNTY shall furnish and deliver to CITY all record drawings of those portions
of the Project identified in Section I.B. and any additional project related
documents requested by CITY at no cost to CITY.
8. CONSTRUCTION (N)
Within thirty (30) days of COUNTY's execution of this Agreement, the Communications
Director's shall provide CITY with written approval and acceptance of the 2016 Project. Said
acceptance shall be manifested by letter from the Communications Director and may be subject
to completion of "Punch List" items. Said Punch List will be generated by the Communications
Director. In the event the Communications Director does not provide written approval to CITY
within the thirty (30) calendar days, the COUNTY shall be deemed to have accepted the 2016
Project.
9. TIMING AND REIMBURSEMENT (N)
Within thirty (30) days of COUNTY's execution of this Agreement, COUNTY shall pay the
CITY One Hundred and Eighty Thousand Dollars and No Cents ($180,000.00) as
COUNTY's contribution towards the 2016 Project.
The CITY shall provide the COUNTY with any documentation related to the 2016 Project that it
requires including, but not limited to, an invoice in an acceptable form to the COUNTY.
10. LEASE
The Lease dated September 20, 2008, remains in full force and effect, along with this First
Amendment to Lease.
if[�7TK117iZ.9
For a period of three (3) years after final payment hereunder or until all claims related to this
Agreement are finally settled, whichever is later, CITY shall preserve and maintain all documents,
papers and records relevant to the work performed or property or equipment acquired in
accordance with this Agreement. For the same time period, CITY shall make said documents,
papers and records available to COUNTY or their duly authorized representatives for
examination, copying, or mechanical reproduction on or off the premises of CITY upon request
by COUNTY during normal working hours.
12. AMENDMENT
No alteration or variation of the terms and conditions of this Agreement shall be valid unless
made in writing and signed by duly authorized representatives of the parties hereto, and no oral
understandings or agreement not incorporated herein shall be binding on the parties hereto.
GA 055-485-2200-20-2-1 PAGE 4 OF 7 CITY UTILITIES DEPARTMENT YARD
REIMBURSEMENT AGREEMENT 949 WEST 16TH STREET, NEWPORT BEACH
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13. ASSIGNMENT
CITY shall not assign this Agreement in whole or in part without the express written consent of
COUNTY.
14. RECITALS
The Recitals paragraphs above are hereby incorporated in this Agreement by this reference.
15. WAIVER
A waiver by either party of any breach, of any term, covenant or condition contained herein shall
not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant
or condition contained herein, whether of the same or a different character.
16. INTERPRETATION
The terns of this Agreement shall be construed in accordance with the meaning of the language
used and shall not be construed for or against either party by reason of the authorship of the
Agreement or any other rule of construction which might otherwise apply.
17. CONTOLLING LAW AND VENUE
The laws of the State of California shall govern this Agreement and all matters relating to it and
any action brought relating to this Agreement shall be adjudicated in a court of competent
jurisdiction in the County of Orange.
18. SEVERABILITY
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable
by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue
in full force and effect.
19. INTEGRATED AGREEMENT
This Agreement represents the full and complete understanding of every kind or nature
whatsoever between the parties hereto, and all preliminary negotiations and agreements of
whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be
held to vary the provisions herein.
20. ATTACHMENTS
This Agreement includes the following, which are attached hereto and made a part hereof.
Exhibit 1 Depiction of Property
Exhibit 2 Lease
Exhibit 2A First Amendment to Lease
H
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GA 055-485-2200-20-2-1 PAGE 5 OF 7 CITY UTILITIES DEPARTMENT YARD
REIMBURSEMENT AGREEMENT 949 WEST 16TH STREET, NEWPORT BEACH
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IN WITNESS WHEREOF, the Parties have executed this 2017 Reimbursement Agreement on
the date first written above.
COUNTY
APPROVED AS
OFFICE OF CO
M
Deputy
RECOMMENDED FOR APPROVAL:
OC SHERIFF -CORONER
REAL PROPERTY SERVICES
Date: S y— Zt>/7
By: Gt%
onathan W. Bordeaux
Real Estate Manager
SIGNED AND CERTIFIED THAT A
COPY OF THIS AGREEMENT HAS BEEN
DELIVERED TO THE CHAIRWOMAN OF
THE BOARD PER G.C. § 25103, RESO.
79-1535
ATTEST:
Date:
7 Clerk of the Board
County of Orange, California
COUNTY
COUNTY OF ORANGE:
Dat
By:
Chairwoman
Board of Super4 s
LESSOR
CITY OF NEWPORT BEACH, a
California municipal corporation
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: '0 7
By:
Aaron C. Harp
City Attorney
ATTEST: �•
Date:
By: _ e
L lani I. Bro n
City Clerk
GA 055-485-2200-20-2-1 PAGE 6 OF 7
REIMBURSEMENT AGREEMENT
LESSOR
CITY OF NEWPORT BEACH, a
California municipal corporation
Date: 5 II11a
By.
Nave Kiff
City Manager
CITY UTILITIES DEPARTMENT YARD
949 WEST 16T" STREET, NEWPORT BEACH
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LOCATION 1VI4,P
Reimbursement Agreement & First
Amendment with City of Newport
Beach for Toner Replacement
Utility Yard at 949 W 16th Street
Newport Beach. CA 92663
PLOT PLAN
Prepared Bp JRB
APN%: 424-401-12
Date: 3-25-16
COUNTY OF ORANGE
SIIERUT-CORONER
DEPICTION OF PROPERTY
EXMBIT 1
GA 055-485-2200-20-2-1 PAGE 7 OF 7 CITY UTILITIES DEPARTMENT YARD
REIMBURSEMENT AGREEMENT 949 WEST 16T° STREET, NEWPORT BEACH
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GA 055-485-2200-20-2-1
800 MHz Communications Site
City of Newport Beach— 949 West 161' Street
City Utilities Department Yard
EXHIBIT 2A
TO 2017 REIMBURSEMENT AGREEMENT
FIRST AMENDMENT TO LEASE
This First Amendment to Lease Agreement ("Lease") is made ;Uu11-& � 2017
("Effective Date"), by and between the COUNTY OF ORANGE, a political subdivision of the
State of California (hereinafter referred to as "COUNTY"), and the City of Newport Beach, a
California municipal corporation (hereinafter referred to as "LESSOR"), without regard to
number or gender. COUNTY and LESSOR may be referred to individually herein as a "Party"
or collectively as the "Parties."
RECITALS
I. WHEREAS, LESSOR is the owner of certain real property located at 949 West 16th
Street in the City of Newport Beach, County of Orange, State of California (the
"Facility"), and the Facility's primary purpose is that of LESSOR's Utilities
Department Operations Yard, which includes the housing of a communications tower
(the "Existing Tower");
II. WHEREAS, On May 22, 2007, LESSOR and COUNTY entered into a
"Reimbursement Agreement", which included a Lease as "Exhibit 2", and whereby
LESSOR agreed to upgrade the existing LESSOR -owned tower (the "Existing
Tower") and construct a new equipment building ("Equipment Building") on the
Facility at shared expense with COUNTY. The Reimbursement Agreement was
incorporated therein by reference;
III. WHEREAS, On September 20, 2008, LESSOR and COUNTY entered into a twenty
(20) year "Lease" that commenced on October 1, 2008 and is set to expire September
30, 2028, for COUNTY's use of a portion of the Facility for the purpose of
constructing, installing, operating, maintaining, repairing and altering COUNTY's
800 MHz radio mobile/wireless communications system and appurtenant equipment
("800 MHZ System");
IV. WHEREAS, LESSOR and COUNTY desire to extend the term of the Lease by an
additional twenty (20) years to expire September 30, 2048, to allow for the
COUNTY's long-term use of the Facility;
GA 055-485-2200-20-2-1 PAGE 1 OF 4 CITY UTILITIES DEPARTMENT YARD
FIRST AMENDMENT TO LEASE 949 WEST 16TH STREET, NEWPORT BEACH
WITH CITY OF NEWPORT BEACH
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V. WHEREAS, the aging Existing Tower was in need of replacement with a new tower
(the "New Tower" & "2016 Project") at a total maximum cost of $530,000 to ensure
safety and long-term continued operations, and LESSOR requests COUNTY
contribute $180,000 for construction, and COUNTY's use of the New Tower;
VI. WHEREAS, the Lease does not require COUNTY to pay rent throughout the existing
lease term, nor did the construction, or continued use of the New Tower require any
new or additional rent be paid by COUNTY under the Lease; except, COUNTY has
been and will continue to pay for its own separate utilities;
VII. WHEREAS, COUNTY's $180,000 contribution for the New Tower is a reasonable
cost relative to COUNTY maintaining its presence and continuing its operations at the
Facility rent free, and the terms and conditions for the COUNTY to reimburse the
LESSOR for COUNTY's said contribution are provided in the new 112017
Reimbursement Agreement" which is incorporated herein by reference, and which
hereby replaces and supersedes the previous Reimbursement Agreement dated May
22, 2007; and
VIII. WHEREAS, LESSOR and COUNTY now desire to modify the term of the Lease.
NOW THEREFORE, in consideration of the Recitals above, the receipt of which the Parties
acknowledge herein and which are incorporated herein by this reference, and the mutual
covenants and agreements hereinafter contained, COUNTY and LESSOR do hereby agree as
follows:
A. Clause 6 TERM (2.2A S) is deleted from the Lease and the following is substituted:
"Clause 6 TERM (2.2A S)
The term of this Lease shall be forty (40) years, commencing October 1, 2008 and expiring
September 30, 2048 ("Initial Term"), Parties agree that the Commencement Date will be
confirmed in writing by either party upon demand by the other. Following the Initial Term, the
term may be renewed and extended by mutual agreement of LESSOR and COUNTY subject to
Clause 5 of the General Conditions of this Lease."
B. Clause 30 COUNTY'S CONTRIBUTION FOR NEW TOWER (N) is hereby added to
the Lease:
"Clause 30 COUNTY'S CONTRIBUTION FOR NEW TOWER (N)
Within thirty (30) days of COUNTY's execution of this Agreement, COUNTY agrees to pay
LESSOR One Hundred Eighty Thousand Dollars and Zero Cents ($180,000.00) as COUNTY's
portion of the New Tower as installed by the LESSOR at the Facility.
To obtain said payment from COUNTY, LESSOR shall submit to Sheriff, in a form acceptable
to the Sheriff, a written claim.
Payment shall be due and payable within thirty (30) days after Sheriff receives LESSOR's written
claim.
GA 055-485-2200-20-2-1 PAGE 2 OF 4 CITY UTILITIES DEPARTMENT YARD
FIRST AMENDMENT TO LEASE 949 WEST 16TH STREET, NEWPORT BEACH
WITH CITY OF NEWPORT BEACH
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LESSOR has installed the New Tower to the satisfaction of Sheriff Communications, which New
Tower consists of the following:
1. 320 foot high galvanized and painted Solid Steel Truss Structure Guyed Tower placed
in approximately the same location as the existing footing.
2. 9 foot x 9 foot x 3 foot Reinforced Concrete Tower Foundation Pad.
3. 3 Guy Anchors which consist of 25 foot long, 3 foot diameter steel pipe anchored in
5 foot diameter Reinforced Concrete Cylinders, 26 foot high.
4. 5 Guy Wires (pre -tensioned) connected to each Guy Anchor.
5. 17 Antennas mounted at varying heights.
6. County owns 3 Panel antennas (Sinclair SE419-SF3PAKOF-160) and associated
cables.
7. Replaced existing cables.
C. Wherever a conflict in the terms or conditions of this First Amendment and the Lease
exists, the terms or conditions of this First Amendment shall prevail. In all other respects,
the terms and conditions of the Lease not specifically changed by this First Amendment
shall remain in full force and effect.
Except as otherwise expressly set forth herein, all terms and conditions contained in the Lea:
including any amendments/modifications, are hereby incorporated herein by this reference as
fully set forth herein and shall remain in full force and effect.
//
GA 055-485-2200-20-2-1 PAGE 3 OF 4 CITY UTILITIES DEPARTMENT YARD
FIRST AMENDMENT TO LEASE 949 WEST 16TH STREET, NEWPORT BEACH
WITH CITY OF NEWPORT BEACH
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IN WITNESS WHEREOF, the Parties have executed this First Amendment to Lease on the date
first written above.
COUNTY
APPROVED AS T FORM:
OFFICE OF CO TY SEL
COUN Y OF NG RNIA
Date•
By �`�1
Deputy
FOR APPROVAL:
OC SHERIFF -CORONER
REAL PROPERTY SERVICES
Date: 57--*/'Zo/7
By: U%
onathan W. Bordeaux
Real Estate Manager
SIGNED AND CERTIFIED THAT A
COPY OF THIS AGREEMENT HAS BEEN
DELIVERED TO THE CHAIRWOMAN OF
THE BOARD PER G.C. § 25103, RESO.
79-1535
ATTEST:
Date:
LESSOR
CITY OF NEWPORT BEACH, a
California municipal corporation
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: -1 // 77117
7
By:
Aaron C. Harp K"u 4.11.11
City Attorney
ATTEST: Z�I�
Date: /
By:
Leilani I. Brown
County of Orange, California
COUNTY
COUNTY OF ORANGE:
D
By:
Chairwoman
Board of Supervisors
GA 055-485-2200-20-2-1 PAGE 4 OF 4
FIRST AMENDMENT TO LEASE
WITH CITY OF NEWPORT BEACH
City CIC
LESSOR
CITY OF NEWPORT BEACH, a
California municipal corporation
Date: S h j ta-
By: � C.
Dave Kiff
City Manager
CITY UTILITIES DEPARTMENT YARD
949 WEST 16TH STREET, NEWPORT BEACH
ORANGE COUNTY BOARD OF SUPERVISORS
MINUTE ORDER
June 27, 2017
Ciibntilliny genci,/Detiartmeni: Sheriff -Coroner
Approve amendment I to lease with City of Newport Beach for continuation of rent-free use of radio communications
shelter and tower; approve 2017 reimbursement agreement for shared cost of construction of a replacement shared -use
radio tower at Newport Beach City Utilities Yard ($180,000); and authorize Auditor -Controller to reimburse City of
Newport Beach - District 2
The following is action taken by the Board of Supervisors:
APPROVED AS RECOMMENDED ® OTHER 13
Unanimous ® (1) DO: Y (2) STEEL: Y (3) SPITZER: Y (4) NELSON: Y (5) BARTLETT: Y
Vote Key: Y= Yes; N=No; A=Abslain; X=Excused; B.O. =Board Order
Documents accompanying this matter:
0 Resolution(s)
0 Ordinances(s)
^Contract(s)
Iter No. IS
Special Notes:
Copies sent to: Sheriff-Coroner/Elyce Fleppner
-3v /�_
lla4'�'
I certify that the lbregoing is a true and correct copy of the Minute Order adopted
by the Board of Supervisors . Orange County, State of California.
Robin Sticler. Clerk of the Board
By:
Deputy
AGENDA STAFF REPORT
c9<rro¢�Qv tti
ti
MEETING DATE:
LEGAL ENTITY TAKING ACTION:
BOARD OF SUPERVISORS DISTRICT(S):
SUBMITTING AGENCY/DEPARTMENT:
DEPARTMENT CONTACT PERSON(S):
Agenda Item
ASR Control 17-000694
j I
06/27/17
Board of Supervisors
mom
in
2
off?
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t
0
Sheriff -Coroner (Approved)
_:p
-o
Brian Wayt (714) 647-1803
3
Dave Fontneau (714) 704-7919
in
�D
SUBJECT: City of Newport Beach Reimbursement Agreement and First Amendment to Lease
CEO CONCUR COUNTY COUNSEL REWEW CLERK OF THE BOARD
Concur Approved Agreement to Farm Consent Calendar
3 Votes Board Ma grit
Budgeted: Yes Current Year Cost: $180,000 Annual Cost: N/A
Staffing Impact: No # of Positions: Sole Source: N/A
Current Fiscal Year Revenue: N/A
Funding Source: See Financial Impact Section County Audit in last 3 years: No
Prior Board Action: 2/27/2007 #12
RECOMMENDED ACTION(S):
1. Approve and authorize execution of the First Amendment to the Lease with the City of Newport
Beach for the County's continuation of rent-free use of the radio communications shelter and newly
replaced tower as constructed by the City of Newport Beach.
2. Approve and authorize execution of the 2017 Reimbursement Agreement with the City of Newport
Beach for the shared cost of construction of a replacement shared -use radio tower as constructed by
the City of Newport Beach and located at the Newport Beach City Utilities Yard in the amount of
$180,000.
3. Authorize the Auditor -Controller, at the request of the Sheriff -Coroner, to reimburse the City of
Newport Beach in the amount of $180,000.
SUMMARY:
Approval of the 2017 Reimbursement Agreement and First Amendment to the Lease with the City of
Newport Beach will allow the Sheriff -Coroner Department to contribute $180,000 to the City of Newport
Beach's newly constructed radio tower and continuation of shared use of the radio facility located at the
Newport Beach City Utilities Yard, with a 20 year extension of the Lease term.
Page l
BACKGROUND INFORMATION:
When the 800 MHz Countywide Coordinated Communications System (CCCS) implementation was
completed in 2001, several areas within the County were identified as having unacceptable radio
coverage. Various technical enhancements were then made to improve coverage in many of those areas.
After these enhancements were completed, it was further determined that public safety radio coverage
remained inadequate in the Newport Beach central area, and that additional radio coverage would be
needed to resolve the coverage issues in this area.
In 2005, the City of Newport Beach (City) took possession of a 320 -foot radio tower (Tower) located at
its City Utilities Yard facility. This Tower was previously purchased and operated under a City lease by
an FM Broadcast tenant, which was relocating its transmitter to a new site. The City asked Sheriff -
Coroner Department's (Sheriff) Communications Division staff for advice as to potential uses for that
Tower. Because tall radio towers within Orange County are rare and are almost impossible to build as
new construction due to many zoning restrictions, the Communications Division staff advised the City to
retain ownership of the Tower as a potential 800 MHz CCCS radio site. After an engineering review of
this potential new 800 MHz CCCS radio site, it was determined that almost 30% improvement for on -
street and in -building radio coverage in the core area of Newport Beach could be realized from this 320
foot radio Tower. After nearly two years of negotiations and tower studies, the Board of Supervisors
(Board) approved a Reimbursement Agreement in the amount of $240,000 and a rent-free Lease on
February 27, 2007.
Due to the age of the Tower, the City has removed and replaced the Tower and is allowing the County to
remain under the existing terms and conditions of the Lease. Sheriff Communications has reinstalled its
existing equipment on the new Tower and is fully operational. ht addition, the City will allow for
potential upgrades and additional equipment, if requested by the County, during the term of the Lease.
The City estimated that the total cost of the new Tower would be approximately $530,000, and the City
requests the County contribute $180,000 toward the replacement cost of the Tower. The proposed 2017
Reimbursement Agreement will accept the City's construct of the new 320 foot Tower replacing the
outdated one, and accommodate 800 MHz CCCS antennas continued use. The County will retain
ownership of the equipment to be reinstalled at the site. Consistent with the prior Reimbursement
Agreement, the City acted as the Project Manager for the construction of the facility and worked with the
Sheriffs Communications staff to define the requirements and specifications.
The current Lease allows Sheriffs Communications to use the facility rent-free for a period of 20 years
from October 1, 2008 through September 30, 2028. The First Amendment to the Lease includes reference
to the new 2017 Reimbursement Agreement for the County's contribution of $180,000 for the City's new
replacement Tower. Additionally, the First Amendment extends the term by 20 years and shall expire on
September 20, 2048.
The terms and conditions of the .existing Lease contain insurance provisions that differed from the
County's standard and include mutual indemnification; the First Amendment to Lease does not modify the
existing, Board -approved insurance provisions. See Attachment D for First Amendment to Lease
Summary. This First Amendment to Lease and 2017 Reimbursement Agreement are submitted for Board
approval subsequent to the City's construction of its new Tower due to the City's need to proceed quickly
and replace their Tower. The City agreed to finalize these agreements during or after the Tower was
constructed.
Page 2
Compliance with CEQA: The subject project was previously determined to be Categorically Exempt
from the California Environmental Quality Act pursuant to Section 15302 (Class 2) of the CEQA
Guidelines by the City of Newport Beach, which provides for the exemption of replacement or
reconstruction of existing facilities on May t 1, 2016 when the project was originally approved involving
negligible or no expansion of use beyond the existing.
FINANCIAL INIPACT:
Appropriations and revenue for this agreement in the amount of $180,000 are included in the Sheriff -
Coroner's FY 2016-17 Modified Budget for Fund 15L, 800 MHz CCCS Partnership. Expenditures
associated with the 800 MHz Backbone upgrade project are funded by the 800 MHz CCCS Partnership
consisting of the 34 cities, Orange County Fire Authority, Orange County Transportation Authority,
Orange County Lifeguard, Irvine Valley College Police Department, Santa Ana Unified School Police
Department, Saddleback College Police Department, Coast Community College District Police
Department, Metro Net, West -Comm and multiple County agencies whose funding sources may include
the State, federal government, fees, General Fund and other funding sources.
Within 30 days of County's execution of the 2017 Reimbursement Agreement, the County will pay the
City in the amount of $180,000 for its share of the costs and expense of the City constructing the 2016
Project.
County may terminate the Lease at any time upon 60 days' prior written notice to the City. The City may
terminate the Lease with 60 days' prior written notice if, 1) County fails to operate the system for 12
consecutive months, or 2) federal, state or local law prohibits County's operations.
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - First Amendment to Lease
Attachment B - 2017 Reimbursement Agreement
Attachment C - Redline Version of Previous Lease
Attachment D - First Amendment to Lease Summary
Attachment E - Acquisition Questionnaire for First Amendment to Lease
Attachment F - Location Map and Plot Plan
Page 3
July 26, 2016
Agenda Item No. 5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Ben Davis, Associate Civil Engineer, bdavis@newportbeachca.gov
PHONE: 949-644-3317
TITLE: City Radio Tower Rehabilitation — Award of Contract No. 7094-1
ABSTRACT:
Staff has now received construction bids for the City Radio Tower Rehabilitation project
and requests City Council's approval to award the construction contract to Petroleum
Telcom, Inc. dba Telcom, Inc.
RECOMMENDATION:
a) Staff recommends the City finds this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15302(c) (reconstruction of
existing facility involving negligible or no expansion of capacity) of the CEQA
Guidelines, because it has no potential to have a significant effect on the
environment;
b) Approve the project drawings and specifications;
c) Award Contract No. 7094-1 to Telcom, Inc. for the total bid price of $425,458.00, and
authorize the Mayor and City Clerk to execute the contract;
d) Establish a contingency of $42,500 (approximately 10 percent) to cover the cost of
unforeseen work not included in the original contract;
e) Authorize City Manager to execute a Reimbursement Agreement with the County of
Orange for its contribution to the project on a form approved by the City Attorney;
and
f) Approve Budget Amendment No. 17BA-004 appropriating $184,000.00 from
800MhZ Equipment unappropriated balance to Account No. 75401-980000-16M13;
$34,500 from Water Enterprise unappropriated balance to Account No. 70101-
980000-16M13; $11,500 from Wastewater Enterprise unappropriated balance to
Account No. 71101-980000-16M13; and $25,000 from IT Equipment unappropriated
balance to Account No. 76501-980000-16M13 for City Radio Tower Rehabilitation
Project.
5-1
City Radio Tower Rehabilitation — Award of Contract No. 7094-1
July 26, 2016
Page 2
FUNDING REQUIREMENTS:
Upon adoption of the budget amendment, sufficient funding for this project is in the
budget to complete the work. The following funds will be expensed:
Account Description
IT Replacement (temp. cable)
Water Enterprise (15%)
Wastewater Enterprise (5%)
800 MhZ Equipment (80%)
Proposed uses are as follows:
Vanrinr
Telcom, Inc.
Telcom, Inc.
Alltech Communications, LLC
On-call geotechnical
Various
Time Warner Cable, Inc.
Account Number
Amount
76501-980000-16M13
$
425,458.00
$
25,000.00
70101-980000-16M13
Temporary Utility Tower
$
$
75,180.00
71101-980000-16M13
16,210.00
Printing & Incidentals
$
25,060.00
75401-980000-16M13
$
25,000.00
$
400,960.00
526,200.00
Total:
$
526,200.00
Purpose
Amount
Construction Contract
$
425,458.00
Construction Contingency
$
42,500.00
Temporary Utility Tower
$
15,000.00
Special Inspections
$
16,210.00
Printing & Incidentals
$
2,032.00
Temporary IT Connection
$
25,000.00
Total:
$
526,200.00
City Council authorized a preliminary budget of $400,000 for the City Radio Tower
Rehabilitation project for the design and fabrication of tower parts at its September 8,
2015 meeting. Design as well as the manufacturing of new tower segments, galvanizing
and painting has been completed. Funding sources included the City's 800 MhZ
Equipment Fund, Water Enterprise Fund and Sewer Enterprise Fund with an 80-15-5
percent split ratio based on uses and connections to/from the tower. Savings from the
design portion are being applied to the construction budget. Funding for the construction
portion of the tower maintains the same 80-15-5 percent ratio. Additional expenses for
temporary cabling will be paid from the IT Equipment Fund.
DISCUSSION:
The City owns and operates a 320 -foot radio communications tower located at the City
Utilities Yard in West Newport. The tower is a critical communications link used by the
City for routine and emergency communication as well as by surrounding public safety
agencies, for emergency communications. The tower also provides a crucial
communication link between many of the City's facilities. This tower is approximately 50
years old and has undergone recent inspections that revealed a need of rehabilitation.
At 10 a.m. on July 7, 2016, the City Clerk opened and read the following bid for this
project:
BIDDER TOTAL BID AMOUNT
Low Petroleum Telcom, Inc. $425,458.00
5-2
City Radio Tower Rehabilitation — Award of Contract No. 7094-1
July 26, 2016
Page 3
The City received only one bid on this project and the low bid amount is 22 percent
above the engineer's estimate of $350,000.00. There are many factors for the
increased cost and lack of bidders. Our research prior to the bid and after the receipt of
the bid, confirmed that the radio tower industry is extremely busy and the work is highly
specialized. There are only a few California contractors that are licensed and qualified
to work towers above 300 -feet. Also, the City's requirement for minimal downtime on
the Public Safety communications during the City's Radio Tower rehabilitation is very
stringent. These factors appear to have added to the increased cost. Staff spoke with
other potential bidders and they all indicated that due to a heavy industry work load,
they could not complete the City project in a timely manner. There is urgency to this
project as last year's inspection has raised concerns about the tower integrity and some
needed antenna maintenance can't be performed with the tower in its current condition.
Staff met with the low bidder to review costs and potential savings that could be realized
by re -bidding the project, installing a temporary tower and extending the construction
period. After those discussions, it was determined that little, if any, savings could be
realized, and re -bidding the project may result in higher costs and delay of several other
critical maintenance items related to the City's safety communications (Fire, PD and
Lifeguards). Staff recommends moving forward with the award of this contract.
Petroleum Telcom, Inc. possesses a California State Contractors License Classification
"B" as required by project specifications. A check of contractor's references indicates
satisfactory completion of similar projects for other local cities and municipalities.
Pursuant to contract specifications, Contractor will have 50 working days to complete
the work. Construction will begin in mid-August with dismantling of the existing tower
starting in September. Coordination and detailed scheduling efforts are underway to
minimize communication downtime for Public Safety, IT and Utilities. A small temporary
tower for Utilities' communication will be erected and a temporary hard -wire cable TV
connection for the City's IT connection between the two City maintenance yards will be
implemented during construction. Required funding is included in the budget requested.
The County of Orange and its Sheriffs Communication Division is a partnering agency
with the City for the 800MhZ radio communication equipment located on the City's
tower. Although radio tower rehabilitation work was originally envisioned to be funded
solely by the City, staff pursued further discussions with the County and they have
indicated support of the project and are willing to partially fund this work as they have
done in the past. A County Reimbursement Agreement (Agreement) is in progress to
recognize a contribution of approximately one-third of project expenses. The
Agreement is currently being drafted by the County. Since time is of the essence for
project delivery and coordination efforts, staff is requesting authorization for the City
Manager to approve the Agreement upon a final form approved by the City Attorney.
The Agreement with the County will reimburse the City's 800 MhZ Equipment Fund.
5-3
City Radio Tower Rehabilitation — Award of Contract No. 7094-1
July 26, 2016
Page 4
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15302(c) (reconstruction of
existing facility involving negligible or no expansion of capacity) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential to have a significant effect on the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Location Map
Attachment B — Budget Amendment
5-4
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CITY RADIO TOWER REHABILITATION CIN OF NEWPORT BEACH
LOCATION MAP PUBLIC WORKS DEPARTMENT
C-7094-1 1 7/26/2016
5-5
ATTACHMENT B
City of Newport Beach
BUDGET AMENDMENT
2016-17
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
X Increase Expenditure Appropriations AND
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
X from unappropriated fund balance
EXPLANATION:
NO. BA- 17BA-004
AIVIOUNT:J $255,000.00
Increase in Budgetary Fund Balance
X Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To increase expenditure appropriations for the rehabilitation of the City Radio Tower. 80% will be funded by the
800 MHZ equipment fund, 15% will be funded by the Water fund, and 5% will be funded by the Sewer fund.
Savings from the design portion approved by Council in FY16 will be carried forward. Temporary cabling will be added
from the IT Equipment Fund.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Amount
Fund
Account
Description
Debit Credit
765
300000
IT Equipment Fund - Fund Balance
$25,000.00
754
300000
800 MHZ Radio Fund - Fund Balance
$184,000.00
701
300000
Water Enterprise Fund - Fund Balance
$34,500.00
711
300000
Sewer Enterprise Fund - Fund Balance
$11,500.00
EXPENDITURE APPROPRIATIONS (3603)
Signed:
City Council Approval: City Clerk
Date
W
Description
Org Number
76501
IT Equipment CIP
Account Number
980000
CIP Expenditures for GL
Project Number
161VI13
City Radio Tower Rehabilitation
$25,000.00
Project String
E-1 6M1 3 -CONSTRUCT -765 -UNASSIGNED
Org Number
75401
800 MHZ CIP
Account Number
980000
CIP Expenditures for GL
Project Number
161VI13
City Radio Tower Rehabilitation
$184,000.00
Project String
E-1 6M 13 -CONSTRUCT -754 -UNASSIGNED
Org Number
70101
Water Enterprise Fund CIP
Account Number
980000
CIP Expenditures for GL
Project Number
16M13
City Radio Tower Rehabilitation
$34,500.00
Project String
E -16M13 -CONSTRUCT -701 -UNASSIGNED
Org Number
71101
Sewer Enterprise Fund CIP
Account Number
980000
CIP Expenditures for GL
Project Number
161VI13
City Radio Tower Rehabilitation
$11,500.00
Project String
E-1 M13 -CONSTRUCT -711 -UNASSIGNED
Automatic System Entry.
Signed:"
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Approva . Finance
Director
Date
Signed:
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Adminibtr,dve Approval:
City Manager
Date
Signed:
City Council Approval: City Clerk
Date
W