7C TTM Red Fox Lease - Laserfiche WebLink

Home Browse Search

lease other space on the water tower, or the City’s use and maintenance of the water tower. The Public Works Director has reviewed the proposal and does not see any issues. While this proposal would only connect TTM to T-Mobile, a request to provide service to the other cellular providers at this site could be made in the future subject to additional lease negotiations. Lease Provisions As part of the lease approved with T-Mobile in May 2008, the City Attorney prepared a standard lease that could be used as a template for negotiations with other cellular providers at the City’s water tower sites (Planning Case 08-007). Although the request from TTM is somewhat different than a typical cellular provider, it is similar enough to use the lease template. Except for modifications to the lease rate and length, the proposed lease with TTM is substantially similar to the T-Mobile lease approved in May 2008. The project description has been updated, and the sections pertaining to equipment on the water tower have been removed. The proposed lease rate was preliminarily negotiated to $2,700 per year ($225/month) with a three percent yearly increase. The initial term would expire on December 31, 2012, with options for up to six additional three year terms for a total potential lease length of 21 years and nine months. The lease would need to be initiated within three months of the approval date or when the equipment is being installed, whichever occurs first. In summary, the proposed lease also makes TTM responsible for the following: Any additional costs associated with maintenance to the water tower site due to the TTM equipment; Restoring any damage to the grass or road from their installation, equipment, and/or use; Ensuring that their equipment does not interfere with any of the existing users or City use (this is less of an issue than with cellular providers since TTM will not be using any wireless transmitting or receiving equipment); Submitting a $2,000 financial surety to the City for future removal of the equipment in case the equipment is abandoned by TTM; Reimbursing the City for personnel costs if the City is needed on-site during non- business hours; and, Providing proof of all necessary types of insurance as noted in the lease. City Staff and Attorney have reviewed the proposed lease with TTM and are in agreement on its terms (Attachment B). TTM is aware that all lease provisions are still subject to City Council review and approval. A representative for TTM will be at the City Council meeting to discuss the lease terms and answer any technical questions. If approved, TTM anticipates installing the equipment in approximately XX days. Lease Comparison The service provided by TTM is relatively new in this area and there are few comparable situations with other cities. As part of this process, staff contacted six other cities that have had \\Metro-inet.us\ardenhills\Admin\Council\Agendas & Packet Information\2009\03-30-09 Regular\Packet Information\7C - 033009 - CC Report - TTM Red Fox Lease.doc Page 2 of 3