SUBJECT: First Amendment to Lease Agreement between 1301 Fannin Owner, L.P., as successor - in - interest to UCM/GP-1301 FANNIN, L.P., (Landlord) an the City of Houston (Tenant) at 1301 Fannin Street, Houston, Texas, for the Houston Information Technology Services Department.
RECOMMENDATION: Approve and authorize a First Amendment to Lease Agreement between 1301 Fannin Owner, L.P., as successo : -in-interest to UCM/GP-1301 FANNIN, L.P., (Landlord) and the City of Houston (Tenant) at 1301 Fannin Street, Houston, Texas, for the Houston Information Technology Services Department.
The Houston Information Technology Services Department (HITS) utilizes approximately 5,003 square feet of lease space, designated as Suites 1255 and 1255A, at 1301 Fannin Street for general office space and to operate its data center.
It is critical that HITS's data is available at all times and that uninterruptible power supply (UPS) systems are in place to ensure IT reliability. In 2016, two separate power distribution incidents occurred in the HITS Data Center. The incidents prompted assessment including field investigation, load analysis, and review of existing and proposed redundant UPS and emergency distribution systems. The assessment led to recommendations reviewed and agreed to by the Landlord and the City-HITS.
Accordingly, this First Amendment will add certain service level assurances for UPS services along with generator capacity for redundant power supplies. If the Landlord fails, in any given month, to meet the service level requirements and an outage occurs, the City will be granted a credit against the next month's monthly base rent payment as set forth in the table below:
| Availability |
Service Level Credit
(expressed as a percentage of City's Monthly Base Rent)
|
| 100% |
None |
| Less than 100% but > 99.5% |
3% |
| Less than 99.5% but > 99% |
5% |
| Less than 99% but > 98.5% |
10% |
| Less than 98.5% but > 98% |
15% |
| Less than 98% but > 97.5% |
20% |
| Less than 97.5% |
25% |
The amended lease will commence on the date of countersignature by the City Controller.
All other terms and conditions of the original lease remain the same.
Therefore, the General Services Department recommends approval of a First Amendment to the Lease Agreement with 1301 Fannin Owner, L.P., for HITS.