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HomeMy WebLinkAbout16. 16-129MARCH 22, 2016 16-129 RESOLUTION (CARRIED___7-0_____LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVE RENEWAL LEASE AGREEMENT WITH ALAMOSA (WISCONSIN) PROPERTIES, LLC / SPRINT PROPERTIES SERVICES FOR CELLULAR ANTENNA INSTALLATION ON THE MARION ROAD WATER TOWER INITIATED BY: DEPARTMENT OF PUBLIC WORKS BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper City officials are hereby authorized to enter into and take those steps necessary to implement an appropriate renewal lease agreement with Alamosa (Wisconsin) Properties, LLC / Sprint Properties for cellular Antenna installation on the Marion Road Water Tower to include an initial five year term with two possible five year extensions; annual lease payments of $26,400 for the initial term, $31,200 for the first renewal term and $36,000 for the second renewal term and such other terms as may be appropriate to protect the City’s facilities, such terms being approved by the signature of the appropriate city officials to the agreement. � OlI--IKOIH o� r�E wa Fa MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: Stephan M. Brand, Public Works Utility Bureau Manager�IJI� DATE: March 17, 2016 RE: Approve Renewal Lease Agreement for Cellular Antenna Installation on the Marion Road Water Tower Alamosa (Wisconsin) Properties, LLC / Sprint Properties Services BACKGROUND Alamosa (Wisconsin) Properties, LLC entered into a lease agreement with the City in 1997 to locate a cellular antenna installation on the Marion Road Water Tower. The original agreement was for five years and has had two five-year lease extensions. Alamosa (Wisconsin) Properties LLC / Sprint Property Services has requested to renew the lease for the Marion Road Water Tower installation with the same five-year lease with two possible five-year extensions. The original agreement has been reviewed and updated to reflect the terms and fee schedule from the current lease agreement. This installation will be moved to the new Marion Road Water Tower, once the new water tower has been constructed. ANALYSIS The fee schedule for this installation is for a monthly payment of $2,200 per month ($26,400 annually) for the next five years. The price would increase to $2,600 per month ($31,200.00 annually) for the first five- year lease extension and to $3,000 per month ($36,000 annually) for the second five-year lease extension. FISCAL IMPACT This installation will provide the Water Utility with a revenue source of $26,400 per year for the first lease term, with increases as noted should the lease agreement be extended. RECOMMENDATIONS I recommend approval of the lease agreement with Alamosa (Wisconsin) Properties LLC / Sprint Property Services for the cellular antenna installation on the Marion Road Water Tower. Approved: ,���• 1 ���� Mark A. Rohloff City Manager SMB/tlt I:\Engineering\Tracy Taylor�Memos to Mayor & Common Counci112016Wlamosa-Cell Antenna Inst-Marion Rd Wtr Twr 3-17-16.docx