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Department Approval <br />�� ,�: �� <br />Item Description: <br />l�'�, <br />Jy <br />REQUEST FOR COUNCIL ACTION <br />Date: 12/21/2009 <br />Item No.: 7.m <br />City Manager Approval <br />� / <br />Approve Lease Agreements with Clear Wireless, LLC ("Clearwire") for Leased <br />Space on the Alta Vista Communication Tower <br />BACKGROUND <br />Over the past several months, City Staff has been in discussions with Clearwire, a wireless data service <br />provider which desires to lease space on city-owned communication towers. The City currently owns and <br />operates 3 towers located on Fairview Avenue (Fire Station #2), Alta Vista (Reservoir Woods Park), and <br />Civic Center (City Hall campus). The City also leases space on the Fairview water tank. Each site is <br />currently under consideration by Clearwire however at this time an agreement has been reached for the Alta <br />Vista site. The Agreement is being submitted for Council review and approval. <br />Clear Wireless, LLC operates as Clearwire, a wireless broadband Internet service provider for fixed and <br />mobile Internet access in nine states (23 markets nationwide). Clearwire is expanding to the Twin Cities <br />area and is actively seeking communication tower sites throughout the metropolitan area for their radio <br />equipment. Clearwire is not a wireless telephone service provider like Sprint, Nextel, Verizon, AT&T or T- <br />Mobile. The amount of ground space required for the radio equipment and the space required for the <br />antennas on the tower is considerably less than that of a cellular telephone company. <br />City Staff has reviewed and approved the site plan for the equipment that will be located on the tower as <br />well as at the base. The City Attorney will make a final review of the lease agreement before it is released. <br />Discussion Items <br />The lease agreements with Clearwire are consistent with prior wireless lease agreements. The leases call <br />for the following: <br />❑ Five year initial term, commencing upon the date Clearwire begins construction in early 2010. <br />❑ Clearwire has the right to renew the lease for five (5) additional five-year terms subject to terms of <br />the original lease. <br />❑ Clearwire shall pay the City annual rent of $19,008 per year, with automatic increases of 3% per <br />annum for the Alta Vista tower. The lease amounts reflect the differences in the amount of <br />antennae and ground equipment as well as overall leased space for each site. <br />POLICY OBJECTIVE <br />The lease agreements provide non property-t� revenue to support the City's information systems. <br />Page 1 of 2 <br />