10-19-2010 - Lease Agreement with T-Mobile West Corporation to - T Mobile agreement report (2).doc
To: Andrew G. Pasmant, City Manager and
City Council
From: Thomas Bachman, Assistant City Manager
Subject: LEASE AGREEMENT WITH T-MOBILE WEST CORPORATION TO
CO-LOCATE A RADIO TOWER AT FIRE STATION 5
RECOMMENDATION:
It is recommended that the City Council approve the proposed Lease Agreement (Attachment 1) authorizing T-Mobile West Corporation to lease 284 square feet of space to house ground equipment
and install wireless antenna on the City owned Radio Tower at Fire Station 5 for a wireless site.
DISCUSSION:
T-Mobile West Corporation had previously proposed various cell tower locations on City-owned property. These towers had been placed on hold pending T-Mobile obtaining a City business
license. The business license issue has been resolved and staff has finalized negotiations of an agreement with T-Mobile West Corporation to lease space and use the existing radio
tower at Fire Station 5, located at 2650 East Shadow Oak Drive, West Covina, to build a wireless facility.
The agreement calls for T-Mobile to lease 284 square feet of space in the area adjacent to the existing building in the enclosed parking area at Fire Station 5 for ground equipment and
to install six antennas on the existing City owned Radio Tower (See Attachment II Drawings). As part of this project, T-Mobile will also make some repair and improvements to the existing
wall that encloses the parking lot.
LEASE AGREEMENT WITH T-MOBILE WEST CORPOPRATION
The term of proposed lease with T-Mobile shall be for five years commencing with the issuance of a building permit or one hundred eighty days from the full execution of this Lease, whichever
is earlier (“Commencement Date”). In addition, T-Mobile has proposed that the terms of the lease may be extended for five additional terms (“Renewal Term”) of five years each at their
sole option.
T-Mobile has agreed to pay as rent to the City the sum of $2, 300 per month beginning on the Commencement Date, with annual increases of three percent beginning with year two and each
succeeding year of the Lease Agreement. In addition, T-Mobile will pay a one-time installation fee (up-front fee) of $30,000 within 60 days of the execution of this Lease Agreement.
FISCAL IMPACT:
Approval of this Lease Agreement as proposed will provide revenue to the City of approximately $176,532.15 the first five years, including the $30,000 up front fee. The City is projected
to receive a total of $1.3 million over the life of this Lease Agreement with the City. Revenue will be deposited in the General Fund Rental Income Account.
________________________ _______________________________
Prepared by: Clay Durbin Approved by: Thomas Bachman
Project Manager Assistant City Manager
Attachment No. 1: Proposed Lease Agreement
Attachment No. 2: Site Drawings