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HomeMy WebLinkAbout8.b. T-Mobile Antenna Lease AmendmentG:\UTILITY COMMISSION\UC Items and Packets\2018\20180416\8.b. T-Mobile Antenna Lease Amendment.docx Utility Commission Meeting: April 16, 2018 E X E C U T I V E S U M M A R Y AGENDA ITEM: T-Mobile Lease Amendment on Connemara Water Tower AGENDA SECTION: New Business PREPARED BY: Brian Erickson, PE, Director of Public Works / City Engineer AGENDA NO. 8.b. ATTACHMENTS: Final Draft Lease Amendment with T- Mobile APPROVED BY: LJM RECOMMENDED ACTION: Recommend the City Council Approve the Lease Amendment with T-Mobile ISSUE Staff is requesting Utility Commission review the final draft lease amendment with T-Mobile for space on the Connemara Water Tower and provide a recommendation for City Council approval. BACKGROUND Staff and T-Mobile have been working on updating the current lease agreement with T-Mobile which would allow for the updating the currently installed antennas on the Connemara Water Tower. T-Mobile previously installed additional antennas, but did not have their rent increased as per the Schedule of Rates and Fees in effect at that time. As a result, this amendment includes the cost for the additional antennas that we installed as part of the Second Amendment. Since the original agreement allowed 9 antennas, the increase is only for the additional three. In exchange, T-Mobile’s lease cost would increase $7,500 annually for a total 2018 lease of $32,566.43; however, the additional $7,500 would be prorated to the effective date of the Third Amendment. Beginning 2019 T-Mobile’s annual lease would be $33,869.09. The city attorney has reviewed this agreement. As part of the approval process, T-Mobile paid an escrow to cover review expenses incurred by the city. T-Mobile has also provided a plan set which shows antenna and equipment locations on the tower. Should this agreement be approved, staff will coordinate with T-Mobile and the inspector for construction and installation of their equipment. SUMMARY Staff is requesting that the Utility Commission recommend City Council approval of the T-Mobile Lease Amendment for the Connemara Water Tower.