AgdaPkt 2009-01-26 clsd and reg - Laserfiche WebLink

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. . ..............., .. ........ ..... .' ..,',..::,',:..''''';..,:.'..."......',:..:,..".,..:,''''..,.....";.-"i:"..'.... i :~.:.- ,;':::~: ::~..:.':~:.(: :~~'... _,.r ./.{~: .\ :;:....' ::.\\:i ::.;:. .. . ........ ...... . .. . .' ..,. : :'-".: -: ':. :.::-..'.. :'. ::'. .....'. :. :...:.:.....::.-:........:...:....::......--.-::.;....:::.,-.:..'...'_. 6.18 0;g~g~ Page 1 December 8, 2008 SUBJECT Lease Agreement for Communication Site at 1000 Radio Road RECOMMENDATION Approve a lease agreement with T -Mobile to rent the space underneath the Pacific Gas and Electricity (PG&E) tower on which they currently have their wireless telecommunication devices installed. The tower is located on a parcel owned by the City which is subject to an easement in favor of PG&E. BACKGROUND Staff was contacted by T -Mobile who desired to enter into a lease agreement to rent the space underneath the PG&E tower on which they currently have their wireless telecommunication devices installed. In addition to this equipment on the tower, T- Mobile maintains an equipment cabinet within an existing fenced enclosure at the base of the tower. On October 13, 2008 the City Council approved Minute-order MO 08-190 authorizing staff to call for bids to lease this communication site. Sealed bids were opened at 3:00 PM on November 5, 2008 and T-Mobile 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[c]). Accordingly, sealed bids are required should the City desire to pursue this source of revenue. The term of the lease is five (5) years with an option to renew two (2) consecutive five (5) year lease terms. The minimum rental to be paid will be twelve thousand ($12,000) each year for five years. If T -Mobile chooses to exercise the option to renew the lease agreement after the initial five years, rent will increase 40/0 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 $60,000 potential 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 $60,000 for the first five years.