HomeMy WebLinkAbout25F - MADISON LEASE AGMTREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FESRIIARY 20, 2007
TITLE:
LEASE AGREENENT WITH ROYAL STREET
CONIDI[7NICATIONS FOR CELLULAR
ANTENNA AT NADISON PARK
~~ /~
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on 1~` Reading
^ Ordinance on 2n0 Reading
^ Implementing Resolution
^ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Direct the City Attorney to prepare and authorize the City Manager and
Clerk of the Council to execute a lease agreement with Royal Street
Communications to collocate on cellular facility at Madison Park.
2. Approve an appropriation adjustment recognizing $23,040 in the Capital
Outlay Miscellaneous Recoveries revenue account (account no. 51-01-
5799) and appropriate same to the Capital Outlay Park Improvements
expenditure account (account no. 51-250-6631).
BOARD OF RECREATION AND PARKS
Recommended approval of lease agreement with Royal Street Communications
to collocate on cellular facility at Madison Park, provided all revenue
from the lease is used for deferred maintenance improvements at Madison
Park, at their meeting of January 24, 2007, by unanimous vote of 6:0:1.
DISCUSSION
On December 5, 2005 the City Council approved a lease agreement with
Omnipoint Communications Inc. (T-Mobile) to install two 65-foot high
monopalm cellular antennas and two equipment facilities at Madison Park.
T-Mobile was required to build the facility to receive a second carrier
under the condition that the second carrier reimburses T-Mobile for a pro
rata share of the hard construction costs. All improvements except for
antennas and equipment required by the second carrier will be constructed
by T-Mobile. The revenue from the T-Mobile lease is deposited in a
special account for improvements at Madison Park.
Royal Street Communications (Metro PCS) has agreed to collocate and will
reimburse T-Mobile for the expense of the second facility. The lease
agreement with Metro PCS is for a 266 square foot area of approximately
17'-6" X 15'-3". The agreement requires Metro PCS to pay $2,400 per month
($28,800 per year) for the lease of park property. The City's consultant
25F-1
Cell Antenna at Madison Park
February 20, 2007
Page 2
(ATS Communications) will receive 20 percent ($5,760) of the annual
revenue for their assistance in negotiating the agreement and performing
contract administration. The term of the lease agreement is for 10 years,
with three 5-year extension options. The agreement also calls for a four
percent increase per year for the term of the lease.
The Board of Recreation and Parks is recommending approval of the
collocation at Madison Park provided all the revenue from the lease is
used for deferred maintenance improvements at Madison Park.
FISCAL IMPACT
The appropriation adjustment
Miscellaneous Recoveries revenue
Capital Outlay Park Improvements
6631) by $23,040.
will enhance the Capital Outlay
account (account no. 51-01-5799) and the
expenditure account (account no. 51-250-
!I-.p Ltit
Gerardo Mouet
Executive Dir ctor
Parks, Recreation and
Community Services Agency
Approved as to Funds and Account:
~l~mA~~ ~.~~1 ~~^
Francisco Gutierrez, A~/
Executive Director /~
Finance and Management Services
Agency
25F-2