City of Oak Creek
Common Council Report
Meeting Date: 3/6/07
Item No.:
Recommendation: That the Common Council authorize the Mayor and City Clerk to enter into a lease agreement with T-Mobile Central LLC. for the construction of a 9x13 communications equipment shelter at 200 E. Puetz Rd. (Fire Station 1) on a 20x40 foot easement with vehicular/utility access and the placement of communication antennas on the existing 125 cell tower (by Committee of the Whole).
Background: T-Mobile Central LLC is a cellular telephone company that has approached the City about placing cellular antennas on the existing City cell tower behind Fire Station 1. They have identified the tower as a good location for their equipment and have requested a leased space agreement. The City currently owns and uses this tower on this site to provide for network links between City buildings and radio antennas. Also the City leases space on the tower to Verizon. This contract with T-Mobile Central LLC will provide additional income for the City. The location of the communications equipment shelter will be west of and adjacent to the existing tower. It will require the removal of the existing fence on the west side and the reconstruction of the fence 20 west of where it is now to accommodate their equipment shelter. The lease will be in 5-year increments and can be renewed/terminated by either party at the end of each lease period.
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Lease Period |
Annual Lease Payment |
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First term (Years 1-5) |
$23,900.00 |
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Second term (Years 5-10) |
$28,680.00 |
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Third term (Years 11-15) |
$34,416.00 |
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Fourth term (Years 15-20) |
$41,299.20 |
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Fifth term (Years 20-25) |
$49,559.04 |
Fiscal Impact: The yearly lease fee paid to the City will start at $23,900.00, and after 5 years the lease rate will increase per the schedule above. If the lease is extended to its full 25-year term, it will provide the City with approximately $890,000 in revenue.
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Prepared by:
Caesar Geiger Information Technology Manager |
Respectfully submitted,
Patrick DeGrave City Administrator |
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Fiscal Review by:
Beverly A. Buretta, CMC City Clerk |
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