Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
OCTOBER 18, 2023
Subject
SUBJECT: LEASE AMENDMENTS WITH PINNACLE TOWERS, LLC FOR THREE MICROWAVE RADIO STATION LOCATIONS
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATIONS
Title
AUTHORIZE the Chief Executive Officer (CEO), or designee, to execute ten (10)-year lease amendments commencing retroactive to January 1, 2023 with Pinnacle Towers, LLC, ("Lessor") for microwave radio stations located at:
* 7625 Black Star Canyon Road in Riverside at a rate of approximately $10,865.88 per month with 3.5% escalations annually for a total of $1,482,344.53 over the term.
* Building 12, Mt. Lukens Road in Tujunga at a rate of approximately $11,431.59 per month with 3.5% escalations annually for a total of $1,559,519.80 over the term.
* 34 Sunset Ridge in Los Angeles at a rate of approximately $11,431.59 per month with 3.5% escalations annually for a total of $1,654,955.13 over the term.
Issue
ISSUE
Metro leases radio towers on three properties located at 7625 Black Star Canyon Road in Riverside, Building 12, Mt. Lukens Road in Tujunga, and 34 Sunset Ridge in Los Angeles (the "Towers") for continuity of bus communications and system security throughout Metro's transportation systems. The leases expired on December 31, 2022, and have been in a month-to-month holdover since January 1, 2023. Metro continues to need the Towers through December 31, 2032. The leases require Board approval as both the 10-year term and the value of each lease exceed the delegated authority of the Chief Executive Officer which is no more than five years or $500,000.
Background
BACKGROUND
The Towers house radio communications equipment for the Metro Bus Advanced Transportation Management System (ATMS). The Metro Bus ATMS is the system used to transport voice and data communications traffic between Metro's fleet of buses and the Bus Operations Center which is required for the delivery of safe and efficient bus tra...
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