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ATTACHMEN,Q 1 B Page 40 REPORT To the Honorable Mayor and City Council From the City Manager February 27, 2006 Subject: Call for bids for lease of communication facilities site on Emerald Lake Hills water tank site. Recommendation That the City Council adopt a resolution approving lease agreement and bidding documents and authorizing a call for bids for the lease of a communications site on the City of Redwood City water tank property on California Way, Emerald Lake Hills. This 700 sq. ft. area houses a small building with radio equipment, power supply equipment, and antennas. Background Staff has been contacted by Nextel Communications, the current lessee who is interested in continuing the lease. Nextel Communication's lease expired on July 31,2005, and they are now on a month-to-month leasing agreement with the City. 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, SMART SMR of California, Inc. dba Nextel Communications, whose principal business was to provide mobile radio/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 shall continue in effect during the option term. The lease agreement was executed and was commenced on August 1, 1995. As per the lease agreement, Nextel Communications paid the City as rent during the term and the option term the sum of thirteen thousand and five hundred dollars ($13,500) annually. Since August 1,2005, Nextel Communications is operating on a month-to-month leasing agreement for a monthly rental fee of one thousand six hundred eighty-seven dollars and fifty cents ($1,687.50), or $20,250 annually. As discussed with and approved by the City Council Finance Committee, the lease being bid will have a minimum bid of twenty thousand dollars ($20,000) per year for the first five ...