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APPROVE AGREEMENT WITH THE UNIVERSITY OF THE PACIFIC FOR THE OPERATION OF RADIO COMMUNICATIONS SYSTEMS
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Award a Lease Agreement to the University of the Pacific for a term of Twenty (20) years with the option of an additional five-year renewal for radio communications systems. The total contract amount is $806,111.23 for the first twenty years, with optional renewals estimated at a 3% increase each year for a total of $287,666.70. The total amount of the contract shall not exceed $1,093,777.93;
2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process; and
3. Authorize the City Manager to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The City of Stockton's radio communications system upgrade has faced significant delays due to an ongoing land dispute between third parties over one of the current tower sites. This dispute has threatened the timely deployment of essential radio equipment and posed risks to the continuity of public safety, public works, and MUD communication services.
To address these challenges, the City has identified the University of the Pacific’s Burns Tower as a viable alternative location. Burns Tower offers strategic positioning, technical suitability, and a stable operational environment for the required radio infrastructure. The University is willing to enter into a long-term lease agreement, ensuring uninterrupted service and operational certainty.
Staff requests the Council authorize the execution of this agreement, spanning 20 years with an optional 5-year extension, totaling $806,111.23 for the initial term and an estimated $287,666.70 for the extension, bringing the contract's maximum value to $1,093,777.93.
DISCUSSION
Background
A critical component of the City of Stockton's Public Safety and General Government radio communications systems is the strategic placement of radio equipment for optimum performance. Radio equipment has been installed at radio tower sites based on recommendations and engineering studies prepared by Motorola Solutions, Inc., to provide the best possible radio communications coverage from the available radio tower sites.
In June 1995, Pac West Telecomm, Inc. sold its radio tower site at Hammer Lane, one mile west of Highway 99, and acquired another at Coronado Avenue. The City's radio equipment was relocated to this site. Effective June 1, 1998, Pilot Communications, Inc. took over the Coronado Avenue radio tower site and agreed to honor the monthly rental agreement that the City of Stockton had with Pac West Telecomm, Inc.
The City has radio equipment at radio tower sites throughout its limits and in the County. These sites are owned by either the City of Stockton or San Joaquin County, with the exception of the Coronado radio tower site, which Pavilion Communications, LLC currently owns.
On July 1, 2013, the City of Stockton entered into a contract with SBA Tower for one term of one (1) year. It is renewed annually by the Stockton City Council adoption of the budget and appropriation of funds.
Present Situation
The City’s efforts to install new radio infrastructure equipment at the Coronado Avenue site have been delayed due to an ongoing dispute between SBA Towers, the tower lessor, and the landowners, Pavilion Communications, LLC. This dispute has created significant uncertainty and risks to the timely deployment of essential radio equipment. Delays in addressing this matter could negatively impact the City’s ability to provide uninterrupted public safety and general government radio communications.
To resolve this issue and ensure continuity of service, the City has identified the University of the Pacific’s Burns Tower as a viable alternative location for the required radio infrastructure. Burns Tower is strategically located to provide adequate coverage and meets the technical requirements of previous engineering studies.
The University of the Pacific has expressed willingness to enter into a long-term license agreement with the City, allowing the installation and operation of the City’s radio equipment at Burns Tower. This solution would provide the City with a stable and dependable location for its critical radio communications infrastructure, free from the legal and operational uncertainties associated with the Coronado Avenue site.
Staff recommends that the Council authorize the execution of this agreement, spanning 20 years with an optional 5-year extension, in the amount of $806,111.23 for the initial term and an estimated $287,666.70 for the extension, bringing the contract's maximum value to $1,093,777.93.
FINDINGS
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support and justify exceptions to the competitive bidding process. These findings include:
• A Structure Analysis Report was prepared and concluded that the proposed site is adequate to support the proposed equipment.
• Relocating the City's radio equipment would provide strategic positioning, technical suitability, and a stable operational environment for the required radio infrastructure.
• An investigation was conducted to evaluate three potential replacement tower sites, with UOP ultimately being selected as the most suitable location.
FINANCIAL SUMMARY
The Lease Agreement with the University of the Pacific is for a term of twenty (20) years with the option of an additional five-year renewal for radio communications systems. The total contract amount is $806,111.23 for the first twenty years, with optional renewals estimated at a 3% increase each year for a total of $287,666.70. The total amount of the contract shall not exceed $1,093,777.93 (Table 1).
Table 1: Purchase Authority Request
|
Fiscal Year |
Lease Amount |
|
24/25 |
30,000.00 |
|
25/26 |
30,900.00 |
|
26/27 |
31,827.00 |
|
27/28 |
32,781.81 |
|
28/29 |
33,765.26 |
|
29/30 |
34,778.22 |
|
30/31 |
35,821.57 |
|
31/32 |
36,896.22 |
|
32/33 |
38,003.10 |
|
33/34 |
39,143.20 |
|
34/35 |
40,317.49 |
|
35/36 |
41,527.02 |
|
36/37 |
42,772.83 |
|
37/38 |
44,056.01 |
|
38/39 |
45,377.69 |
|
39/40 |
46,739.02 |
|
40/41 |
48,141.19 |
|
41/42 |
49,585.43 |
|
42/43 |
51,072.99 |
|
43/44 |
52,605.18 |
|
Subtotal Amount |
806,111.23 |
Five Year extension:
|
Year |
Lease Amount |
|
44/45 |
54,183.34 |
|
45/46 |
55,808.84 |
|
46/47 |
57,483.10 |
|
47/48 |
59,207.60 |
|
48/49 |
60,983.82 |
|
Subtotal Amount |
287,666.70 |
|
Grand Total |
1,093,777.93 |
Budget is available for this expenditure in the FY 2024-25 Technology Internal Service Fund, Communications SubFund, Account #3020-000-800004-510-515-00-30-000-000-, Project IR21017. Future year budget is renewed annually by City Council adoption of the budget and appropriation of funds. Future year ongoing annual costs will be included during the annual budget development process, under Account #3020-000-630013-510-515-00-30-000-000-.
Attachment A - Lease - UOP - Burns Tower Radio Antenna Placement