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MEQUEST FOR, COUNCIL ACTION <br />Date: 05/12/08 <br />Item No.: 7.d <br />Department Approval Acting City Manager Approval <br />o <br />Item Description: Approve Lease Agreements with TTMI for Leased Space on the City Hall and <br />Fairview Avenue Communication Towers <br />1� BACKGROUND <br />2 Over the past several months, City Staff has been in discussions with Telecom Transport Management, Inc. <br />1 3 <br />(TT 41) , a backhaul wireless provider which desires to lease space on the City Hall and Fairview Avenue <br />41 Communications Towers. The discussions were recently completed and executable lease agreements have <br />5 been prepared. The Agreements are submitted for Council review and approval. <br />6 <br />7 Unlike Verizon, or Sprint/Nextel, TT 41 is not a wireless phone service provider with an established <br />8 subscriber base. TT 41 specializes in serving the major carriers by allowing them to connect back to hub <br />and regional facilities in lieu of more expensive land lines, thereby saving money. <br />1 ity Staff has reviewed and approved the site plan for the equipment that will be located on the tower as <br />1� 2 well as at the base. The City Attorney has reviewed the lease agreement. <br />1 Al Discussion Items <br />1� 5 The lease agreements with TT 41 are consistent with prior wireless lease agreements. The leases call for <br />1� 6 the following: <br />1� 7 <br />1� Ll Five year initial term, commencing June 1, 2008, and ending June 1, 2013 <br />1� Ll TTMI has the right to renew the lease for four (4) additional five -year terms subject to terms of <br />2 the original lease. <br />2 1� Ll TT 41 shall pay the City annual rent of $8,400 per year, with automatic increases of 3% per <br />22 annum for the City Hall tower; and annual rent of $4,800 per year, with automatic increases of 3% <br />23 per annum for the Fairview Avenue tower. The lease amounts reflect the differences in the <br />21 amount of antennae and ground equipment as well as overall leased space for each site. <br />25 POLICY OBJECTIVE <br />26 The lease agreements provide non property-tax revenue to support the City's information systems. <br />27 FINANCIAL IMPACTS <br />28 The lease agreements call for the City to receive $13,200 annually (adjusted for inflation). <br />2�) STAFF RECOMMENDATION <br />1 Y"), Staff recommends approval of the leases. <br />MMOMIN <br />