REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department BRYON HORN, Director Information Services Department BY: CLIFFORD TRAUGH, Assistant Director General Services Department SUBJECT ..Title Actions related to the lease of office space at 1555 Van Ness Avenue and a non-professional services agreement between the City of Fresno and Community Media Access Collaborative (CMAC) (District 3): 1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines 2. ***RESOLUTION - Finding good cause and clear and convincing benefit to the public to vary from the request for proposals process pursuant to FMC Section 4-204 relating to the disposition of real property APN 466-145-12T (Property) (Requires 5 Affirmative Votes) (Subject to Mayor's Veto) 3. Approve a Lease Agreement between the City of Fresno and CMAC, a California non-profit public benefit corporation, to lease office space for two years with options to extend for three additional one-year terms, starting at $366,306 in year one and increasing exponentially each year, starting at 3%, totaling $1,954,650 over five years in rent 4. Affirm the City Manager's finding that CMAC is Uniquely Qualified to perform the services outlined in the Agreement 5. Approve a Service Agreement between the City of Fresno and CMAC, a California non-profit public benefit corporation, to provide media services for the public and the City, not-to-exceed $250,000 per year for two years plus three one-year optional extensions ..Body RECOMMENDATION Staff recommends Council 1) adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines; 2) adopt the following resolution attached, finding good cause and clear and convincing benefit to the public to vary from the request for proposals process pursuant to FMC Section 4-204 relating to the disposition of real property APN 466-145-12T (Property); 3) approve a lease agreement between the City of Fresno and CMAC, a California non-profit public benefit corporation, to lease office space for two years with options to extend for three additional one-year terms, starting at $366,306 in year one and increasing exponentially each year, starting at 3%, totaling $1,954,650 over five years in rent; 4) affirm the City Manager's finding that CMAC is Uniquely Qualified to perform the services outlined in the agreement; and 5) approve a Service Agreement between the City of Fresno and CMAC, a California non-profit public benefit corporation, to provide media services for the public and the City, not-to-exceed $250,000 per year for two years plus three one-year optional extensions. EXECUTIVE SUMMARY The City owns the Historic Bee Building (formerly the Metropolitan Museum) located at 1555 Van Ness Avenue. There is approximately 38,000 square feet of leasable space in the five-story building, which includes a basement for storage that is currently being occupied by the City. The Community Media Access Collaborative (CMAC) has been leasing a portion of the building since 2010. Their 15-year Lease Agreement expired on June 30, 2025, and are currently in a holdover period until a new lease is approved. The proposed Lease Agreement allows CMAC to continue to lease both the second and third floor, totaling 8,801 square feet, with an initial term of one year and 364 days and three optional one-year extensions totaling $1,954,649.15 in rent over five years. In 2010, Council approved a 15-year non-professional Services Agreement that provides media access services free to the public such as use of equipment and studios, media training, workshops, internships, apprenticeships, and sponsorships. The Agreement also provided the City with on-call support, training, access to equipment and studios, maintenance, repairs, and replacement of broadcasting equipment, and the production of City-sponsored programming such as Council meetings and other commission and planning meetings. The new Service Agreement continues these services for an initial term of two years with three optional one-year extensions not to exceed $250,000 annually. BACKGROUND CMAC is a 501(c)(3) non-profit corporation with the mission to provide access to television broadcast equipment, training, and airtime for members of the public. CMAC receives Public, Education, Government (PEG) funds that are included as part of the City's cable franchise fee from Comcast. Specifically, the Fresno/Clovis Community Media Authority, a joint powers agency created by the Cities of Fresno and Clovis to act as their jointly designated PEG provider, has designated CMAC as the access management organization to manage and administer the PEG access channels, to operate Community Media Center(s), and to receive PEG funds provided to the Cities of Fresno and Clovis by state video franchisees, such as Comcast. In June 2010, Council approved a Lease Agreement for the second floor of the building at 1555 Van Ness Avenue for a 15-year term. The lease was amended in 2014 to add the third floor to the leased premises and increase rent to compensate for additional space. The proposed Lease Agreement allows CMAC to continue to lease both the second and third floor, totaling 8,801 square feet, with an initial term of one year and 364 days and three options to extend for one-year terms, by mutual agreement. The rental structure of the lease will increase as follows: 3% in year two, 3.25% in year three, 3.5% in year four, and 4% in year five. CMAC will pay $366,305.28 in the first year, $377,204.44 in the second year, $389,366.08 in the third year, $402,888.90 in the fourth year, and $418,884.45 in the fifth year, totaling $1,954,649.15 over five years. This Lease Agreement also includes 15 parking stalls in the City owned parking lot at Calaveras Street and Van Ness Avenue for use by the tenant. The Lease Agreement may be terminated by the City with a 90-day prior written notice. In June 2010, Council also approved a 15-year Non-Professional Services Agreement that provides public media access services free to the public such as use of equipment and studios, media training, workshops, internships, apprenticeships, and sponsorships. The Agreement also provided the City with on-call support, training, access to equipment and studios, maintenance, repairs, and replacement of broadcasting equipment at City Hall, and the production of City-sponsored programming such as Council meetings and other commission and planning meetings. The new Service Agreement continues these services for an initial term of two years with three optional one-year extensions not to exceed $250,000 annually. This includes a base fee of $200,000 per year to provide public media access services free to the public such as use of equipment and studios, media training, workshops, internships, apprenticeships, and sponsorships. It also includes the automated broadcast system, maintenance, repairs, and replacement of broadcasting equipment at City Hall, City support, training, access to equipment and studios, and up to 25 staff hours for City-sponsored programming such as commission and planning meetings. The Service Agreement also includes an amount not-to-exceed $50,000 per year for production needs above 25 staff hours per month which primarily consists of the production and broadcasting of City Council meetings, and any additional media production requests by the Information Services Department and the Clerk's Office billed at a rate of $85.00 per hour. The Service Agreement allows the City to terminate the agreement, with or without cause, with ninety (90) calendar days prior written notice. The Lease and Non-Professional Service Agreement have both been reviewed and approved by the City Attorney's Office as to form. ENVIRONMENTAL FINDING Staff has performed preliminary environmental assessments of this project and has determined this project is exempt under Section 15301/Class 1 (Existing Facilities) of CEQA Guidelines as it involves no alteration of existing facilities, with no expansion of use. The tenant has been leasing the facility for 15 years and will continue to lease for the same purpose with no additional improvements. Furthermore, none of the exceptions to Categorical Exemptions set forth in CEQA Guidelines, Section 15300.2, apply to this project. LOCAL PREFERENCE Local preference was not considered because this item does not include a bid or award of a construction or service contract. FISCAL IMPACT Revenue from rent received will be deposited into the General Fund. Through the Service Agreement, the City will pay CMAC for specific deliverables as defined in the agreement utilizing General Fund dollars. The annual net amount from these transactions will then be used to maintain the building and offset the annual debt service. Attachments: Categorical Exemption Resolution Lease Agreement Uniquely Qualified Memo Service Agreement Levine Act