AgdaPkt 2007-05-21 - Laserfiche WebLink

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6.1 D . _. _._ _ . __ . _ Page 1 ��PO�.�r �o f�r� Ho�orable Mayor and City Councii� : Fr;vm #�� C� ; lVlana �r May 21, 2007 SUBJECT Cal! far Bids for Lease of Communication Site a# 1000 Radia Road RECOMMENDATIDN Approve lease agreement and bidding dvcuments and authorizing a cail for bids for the lease of a communications site on Pacific Gas and Electric {PG&E) tower at 1000 Radio Road. The tower sits on a parce( owned by the City which is subject to an easement in favor of PG&E. SACKGROUND Staff has been contacted by MetraPCS who desires to instali wireless telecammunication devices and antennas vn the PG&E #ower. In addition to this equipment on the tow�r, MetroPCS proposes to house an equipment cabinet within an existing fenced enclosure at the base of the tower. The City Charter requires that a sealed bidding process be conciucted in connection with the lease of any City property {section 3.5[c]). Accordingly, seafed bids are required should the City ciesire to pursue this source of revenue. MetroPCS has applied for and been granted a use permit and architectural permif from the zoning administrator for the equipment that they want to instal) under this lease agreement. Should another pa�ty submit a bid that offers superior�nancial terms to #he Ci#y, they would also be required to obtain a use permit and architectural permit. The lease being bid will have a minimum bid of $12,Q00 per year for the first four (4} years and the fifth year shafl increase 4% to $12,480. Rents will then increase 4% annually thereafter. The successful bidder will be obligated to execute a lease agreement with the City of Redwood City. The term of the lease will be five (5) years with an op#ion to renew two (2) consecutive five {5) year lease terms. After the initial four years, rent will increase 4% on each anniversary date over the rent set during the immediately preceding lease year. Ali bids shall be governed by the provisions of the Notice to Bidders, Instruction to Bidders, and the Provision of the Lease Agreement. Bids will be opened publicly in the office of the City Clerk at 3:00 p.m. on June 6, 2007 and the bid will be awarded by the City Council for and on behalf of City of Redwood City within thirty (30) calendar days from June 6, 2007. AL7ERNATIVES If the City Councif chooses not to approve this leasing agreement, the City will farego $60,480 potentiaf revenue aver the next five years. In addition to this (ost revenue there may be adverse impacts to wireless communications users in this area.