AgdaPkt 2007-06-25 - Laserfiche WebLink

Browse Search

D.mp.onT rtt: .' R 6.1C Page 1 To the Honorable Mayor and OitYCouncil ff.9ffi th~ Ct.. i M~n~ ~r June 25, 2007 SUBJECT Lease Agreement for Communication Site at 1000 Radio Road RECOMMENDATION Approve a lease agreement with MetroPCS California to install wireless telecommunication devices and antennas on the Pacific Gas and Electric (PG&E) tower at 1000 Radio Road. The tower sits on a parcel owned by the City which is subject to an easement in favor of PG&E. BACKGROUND Staff was contacted by MetroPCS who desired to install wireless telecommunication devices and antennas on the PG&E tower. In addition to this equipment on the tower, MetroPCS proposed to house an equipment cabinet within an existing fenced enclosure at the base of the tower. On May 21, 2007 the City Council approved Minute-order MO 07.079 authorizing staff to call for bids to lease this communication site. Sealed bids were opened at 3:00 PM on June 6, 2007 and MetroPCS California was the only telecommunication provider who responded with a bid proposal. The bid was governed by the provisions of the Notice to Bidders, Instruction to Bidders, and the Provision of the Lease Agreement. The City Charter requires that a sealed bidding process be conducted in connection with the lease of any City property (section 3.5[cJ). Accordingly, sealed bids are required should the City desire to pursue this source of revenue. The lease being bid has a minimum bid of $12,000 per year for the first four (4) years and the fifth year will increase by 4% to $12,480. Rents will then increase 4% annually thereafter. The term of the lease is five (5) years with an option to renew two (2) consecutive five (5) year lease ,terms. After the initial four years, rent will increase 4% on each annual anniversary date over the rent set during the immediately preceding lease year. ALTERNATIVES If the City Council chooses not to approve this leasing agreement, the City will forego $60,480 revenue over the next five years. In addition to this lost revenue there may be adverse impacts to wireless communications users in this area. FISCAL IMPACT Leasing this communication site has a positive financial impact on an on-going basis through a land lease valued approximately $60,480 for the first five years.