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BACKGROUND The City of Livermore is the owner of real property located at 3801 Doolan Road. In 1994, the cities of Livermore and Pleasanton entered into a joint Intergovernmental Agreement for the purpose of owning and operating a radio tower at the Doolan Road site used principally for transmitting the 800 MHz radio system, which up until recently, served both communities. In 2012, both cities converted their radio services from the 800 MHz system (with the exception of LPFD which is currently converting) to the East Bay Regional Radio Communications Authority (EBRCSA) and the old 800 MHz system is set to be abandoned. However, the EBRCSA is now using and will continue to use this tower as one of its main transmission points. In accordance with the 1994 Intergovernmental Agreement, upon written approval from both cities, the tower may be made available for third-party usage subject to a written agreement. Since the late 1990's, the two cities have approved lease agreements with Zone 7, New Cingular and Wheels. The New Cingular lease, which currently pays a total of $1,629 monthly, was last amended in 2009. In addition to sharing the lease revenue from use of the Doolan Tower, the Intergovernmental Agreement generally provides that both cities share in the overall cost of tower maintenance subject to proper notification and written approval. DISCUSSION The recommended lease includes a number of key provisions to reflect the overall management of the lease and the Doolan Tower. Of primary importance is that the lease payments owed Pleasanton will be sent directly from New Cingular to Pleasanton as a way of avoiding any potential confusion regarding the distribution of lease payments and to relieve Livermore of this responsibility. Previously, all lease payments were sent from the lessee to the City of Livermore which took on the administrative responsibility for forwarding payment to Pleasanton. Next, as a reflection of regular inspections and filings related to Doolan Tower maintenance, Pleasanton has agreed to alter the lease payment share from the 50%150% split in place under the current lease agreement to 43% Pleasanton and 57% Livermore. The lease agreement contains a more accurate lease payment escalator that is tied to the CPI. Finally, considering the age of the 1993 Intergovernmental Agreement, both cities have agreed to review that document and to make any appropriate changes reflecting current Doolan Tower use and maintenance. If these changes are minor, they will be memorialized in a letter agreement executed by the City Managers. However, if the changes are more fundamental, staff will forward them to the City Council for its review and approval. Submitted by: Fiscal Review: ✓ Approve y: Cy)Itir6Lite" Steven Bocian Emily E. Wagner Nelson Fialho Assistant City Manager Director of Finance City Manager Page 2 of 3