AgdaPkt 2006-11-13 - Laserfiche WebLink

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REPORT 6.18 Page 1 To the Honorable Mayor and City C()uncil . FrqflltheCit~ Mana!1.er November 13, 2006 Subject: Lease agreement for communication facilities site on Emerald Lake Hills water tank site. Recommendation That the City Council approve a lease with Nextel of California, Inc. (doing business as Nextel Communications) for a communication facility at City-owned property on California Way. Background On January 16, 1995, the City Council adopted a resolution approving a lease agreement and bidding documents and authorizing a call for bids for a communication site in Emerald Lake Hills. One communication company, Nextel Communications, whose principal business is providing mobile radio and telephone service, responded with a bid proposal. Nextel Communications was awarded the bid and permission was given to them to install an air-conditioned equipment shelter to house its radio transmitting and receiving equipment, back-up power batteries, and other improvements such as utility lines, transmission lines, electronic equipment, radio transmitting and receiving antennas, and antenna towers and poles. The term of that lease was five (5) years with an option to renew for another five (5) year period with the understanding that all terms, conditions, and requirements of the lease were to continue in effect during the option term. The lease agreement was executed and was commenced on August 1, 1995 and expired on July 31, 2005. Upon expiration, this lease converted to a month-to-month agreement. On February 27, 2006, City Councii approved resolution number 14694 authorizing staff to call for bids to re-lease this site. Sealed bids were to be opened on March 22, 2006, but the staff did not receive any bids. Staff called for bids again and sealed bids were opened at 3:00 PM on September 27, 2006. Nextel Communications was the only provider who responded with a bid proposal. As discussed with and approved by the City Council Finance Committee in 2005, the term of the lease is ten (10) years. The minimum rental to be paid will be twenty thousand dollars ($20,000) each year for five (5) years. The sixth year annual rental shall be twenty- four thousand dollars ($24,000). Commencing with lease year seven (7) and continuing every lease year thereafter, the rental will be subject to a CPt adjustment each year with a cap of 4% upon each year's adjustment.