5F, SEH Agreement for Review of Proposed Sprint Telecommunications Upgrade on Red Fox Water Tower

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lt WIZEN HILLS MEMORANDUM DATE: August 27, 2012 TO: Honorable Mayor and Councilmembers Patrick Klaers, City Administrator FROM: Jill Hutmacher, Community Development Director SUBJECT: SEH Agreement for Review of Proposed Sprint Telecommunications Upgrade on Red Fox Water Tower Requested Action Approve agreement with SEH for review of Sprint's proposed upgrade project at the Red Fox water tower. Background Prior to 2010, the City had lease agreements with both Sprint and Nextel for wireless equipment located on the Red Fox water tower. After Sprint merged with Nextel, Sprint withdrew from its lease in 2010 and kept the Nextel lease. The Nextel (now known as Sprint) lease was approved in 1995 and expires in 2020. The 2012 lease rate is $13,680. The rent increases by 15% every five years. The next rent increase will occur in 2016. Because Sprint took over the Nextel contract, and Nextel as a company has been absorbed into Sprint, the remainder of this memo will refer to the Sprint lease and the Sprint equipment although, technically speaking, the City's lease is with Nextel. Sprint currently has nine antenna on the Red Fox water tower and is planning a two-phase upgrade. In the first phase, Sprint will add three new antenna and related equipment. During the second phase, Sprint will remove three of the existing antenna. After phase two, Sprint will still have nine antenna on the water tower, but three of the antenna will be in different locations than where they are currently. The changes proposed by Sprint require a lease amendment or renewal. Staff, the City Attorney, and Sprint are evaluating whether a lease amendment or renewal would be most appropriate. In the meantime, Sprint would like to proceed with the technical review. A proposal for a lease amendment or renewal will be brought forward at a later date. City of Arden Hills City Council Meeting August 27, 2012 Page 1 of 2