AGENDA ITEM REPORT
TITLE:
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AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A LEASE AGREEMENT WITH NEW CINGULAR WIRELESS PCS, LLC, A WHOLLY-OWNED SUBSIDIARY OF AT&T MOBILITY CORPORATION, TO LEASE CERTAIN SPACE WITHIN THE CITY’S GOVERNMENT CENTER FOR AN INITIAL TERM OF TEN (10) YEARS WITH THE TENANT’S RIGHT TO EXTEND FOR THREE (3) SUCCESSIVE FIVE (5) YEAR PERIODS UNDER SPECIFIC TERMS AND CONDITIONS. (SECOND READING)(PUBLIC HEARING)
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BACKGROUND:
This item was approved on First Reading at the November 12, 2020, City Commission Meeting.
The City owns a large telecommunications tower (macro tower) located at the City’s Government Complex. Over the years, AT&T has expressed interest in leasing space on the tower to the City’s Tower Manager; however, structural improvements have been necessary as a prerequisite to its placement on the tower. AT&T is now prepared to make those improvements and is the last of the major telecommunications providers to join the other tenants on the tower.
DISCUSSION:
The City has become aware of a service gap for AT&T customers in the area, and believes that AT&T’s occupancy on the City’s tower may alleviate some of those residents’ concerns. The City’s Tower Manager, CityScape Consultants, Inc., City staff have spent several months negotiating and site planning with AT&T, and propose the attached lease agreement. It provides for an initial term of ten (10) years, with automatic extensions of three (3) successive five (5) year periods. In addition, the City, through its Tower Manager, is entitled to $39,500 per year payable in equal monthly installments, with an automatic annual increase of three percent (3%), beginning at the appointed Commencement date.
RECOMMENDATION:
Staff recommends approval of this ordinance.
FISCAL IMPACT:
REVENUES: $ 39,500
EXPENDITURES: $ 0
BUDGETED? No
NOTES: Account No. 01-V36220, Tower Leases.