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10/9/2019 <br />Administration <br />IX.1 <br />T-Mobile Anntena Lease <br />The city received the attached letter from a consultant working for T-Mobile on what they refer to as a "Lease <br />Optimization Program." We then received a follow-up phone call from the consultant. In summary, they are <br />telling us that their recent merger with Sprint means they will be looking at getting rid of some towers <br />(presumably, those that overlap with each other) and that part of that decision making process would be which <br />leases are under the best terms. We received a similar letter several years ago and negotiated a new deal with <br />them, but for significantly more than their original offer. This offer, would take our rents down from about <br />$28k/yr to $18k/yr. The inflationary escalator stays the same. Lexington recently went through a similar <br />process and utilized a consultant to determine the risk of their mobile carrier cancelling the lease and to evaluate <br />a fair market rate for the lease. The cost of the consultant was around $2,500. <br />+/-$2,500 General Fund; Risk of $28,000/yr <br />Motion to hire Steel in the Air consultants to perform a Lease Assessment of our site at a cost not to exceed <br />$2,500. <br />Motion to staff to negotiate terms of lease agreement based on the recommendations <br />from the consultant's report. <br />Letter from T-Mobile Consultant <br />Sample report (City of Lexington) from Steel in the Air <br />Current Lease Agreement w/T-Mobile <br />87 <br /> <br />