25C - CELLULAR ANTENNA AT ROSITA PARK

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Lease Agreement with Omnipoint Communication Inc. July 6, 2009 Page 2 project. After months of negotiation and review of bids obtained by T- Mobile for the construction of the block wall ($100,000), they indicated that the cost of the block wall would make the project economically unfeasible. Given the City's fiscal situation, the City is not in the position to provide additional funding to share in the cost of the project. On May 20, 2009, the proposal was presented to the Board of Recreation and Parks with a staff recommendation to approve the lease with Omnipoint Communications (T-Mobile). The Board of Recreation and Parks heard public comments requesting the block wall be part of the improvements and discussed the issues. The Board recommended denial of the lease with Omnipoint Communications and requested staff communicate with the neighborhood association on the actions taken. Since the next meeting of the neighborhood association is in the month of July, staff communicated with the neighborhood association board on July 16, 2009 regarding the Board recommendation. The Neighborhood Association Board believes there should be some type of compromise to have the wall installed. However, Omnipoint Communications has indicated that the proposed site improvements are too costly and they are not interested in furthering negotiations at this time. In addition, given the City's current fiscal condition, staff believes that the proposed agreement would provide a reliable long term revenue source to fund park maintenance activities. The revenue from this lease is $2,400 per month ($28,800 per year). The lease term is for 10 years, with three 5 year extension options. The City's consultant (ATS Communications) will receive 20 percent ($5,760) of the revenue annually for assisting in the negotiations and construction administration of the lease agreement. The agreement also includes a 4 percent per year increase for the term of the lease. T-Mobile will provide all the proper insurances and obtain the necessary City permits prior to construction. The terms of this agreement is similar to other City cell tower agreements. The lease agreement with Omnipoint Communications, Inc. (T-Mobile) is for a 300 square feet lease area (15' X 20' equipment room). T-Mobile indicated they will design a 15 by 40 feet equipment building to provide space for a future carrier, but only construct half the building. The cell tower revenue was originally intended to address deferred maintenance in the park affected by the cell tower. Due to the City's current economic situation, future cell tower revenues will now be used to fund park landscape maintenance City-wide. 25C-2