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Department Approval l REQUEST FOR COUNCIL ACTION Date.- 10/27/08 Item No..- 7.e City Manager Approval Item Description.- Approve Lease Agreement with TTMI for Leased Space on the Reservoir Woods Communication Tower I BACKGROUND 2 Over the past several months, City Staff has been in discussions with Telecom Transport Management, Inc. 3 TTMI)I,, a backhaul wireless provider which desires to lease space on the Reservoir Woods 4 Communications Tower. The discussions were recently completed and executable lease agreements have 5 been prepared. The Agreements are submitted for Council review and approval. 6 "7 Unlike Verizon,, or Sprint/Nextel, TTMI is not a wireless phone service provider with an established subscriber base. TTMI specializes in serving the major carriers by allowing them to connect back to hub 9 and regional facilities in lieu of more expensive land lines, thereby saving money. I ('_) "I'll City Staff has reviewed and approved the site plan for the equipment that will be located on the tower as 12 well as at the base. The City Attorney has reviewed the lease agreement which contains the same language 13 as the previous lease with TTMI. 14 15 Discussion Items 16 The lease agreements with TTMI are consistent with prior wireless lease agreements. The leases call for I 7 the following.- 11 �,`11 Ll Five year initial term, commencing on approximately March 1, 2009, and ending 5 years hence 20 Ll TTMI has the right to renew the lease for our (4�), additional five-year terms subject to terms of 2 1 the original lease. 22 Ll TTMI shall pay the City annual rent of $,6,400 per year, with automatic increases of 3% per 23 annum. 24 POLICY OBJECTIVE 25 The lease agreements provide non property-tax revenue to support the City's information systems. 26 FINANCIAL IMPACTS 27 The lease agreement calls for the City to receive $,6,400 annually, with an increase of 3% per annum. The 2, monies are used to offset the City's information systems costs. Page I of 2