21 Antenna
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
(408) 777-3354
Fax: (408) 777-3333
CITY OF
CUPEIQINO
DEPARTMENT OF PUBLIC WORKS
Summary
AGENDA ITEM
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AGENDA DATE November 6. 2006
SUBJECT AND ISSUE
Adoption of Resolution No. 06- /88 , Authorizing the City Manager to Negotiate and
Execute a Five-Year Extension of the Antenna Site Lease Agreement between the City of
Cupertino and TMO CA/NV, LLC (Formerly Pacific Bell Wireless, LLC), dba T-Mobile USA,
Inc.
BACKGROUND
In January 1997, Council approved a five-year Antenna Site Lease Agreement with Pacific Bell
Wireless for installation of a pad and monopole antenna at the Cupertino Service Center. The
area at the Service Center leased to Pacific Bell Wireless by the City is approximately 56 square
feet between the covered storage facility and the State Route 85 soundwall.
After being fully executed, the agreement had a five-year term expiring on December 23, 2001.
Contained in the agreement is a provision for two successive five-year extensions, each to be
exercised at the prerogative of Pacific Bell Wireless for a maximum total term of 15 years. After
the 15 year maximum term, the agreement would have to be renegotiated.
In December of 2001, Pacific Bell Wireless, now known as TMO CA/NV, LLC, exercised its
right to a first five-year extension, which will expire on December 23, 2006. TMO CAINV,
LLC, wishes to exercise the second five-year extension allowed by the agreement for the period
beginning December 23, 2006, and ending on December 23, 2011. All covenants, terms and
conditions, including but not limited to payment of rent, maintenance of insurance,
indemnification, repairs, utility costs, waste and destruction, as contained in the existing Antenna
Site Lease Agreement would remain in effect with the extension.
In addition, a cost of living increase of 5% per year will continue to be applied annually to the
rent for use of the site, per the terms of the agreement. Based on the initial lease amount of
$1,200.00 per month, the fee upon renewal will begin at approximately $2,000.00 per month, and
increase to almost $2,400.00 per month in the fifth year of the second extension.
Approval of the attached resolution will authorize the City Manager to execute the second five-
year extension allowed by the agreement, after which extension, as mentioned above, the
agreement would have to be negotiated.
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Printed on Recycled Paper
FISCAL IMP ACT
By extending TMO CA/NV, LLC,' s Antenna Site Lease Agreement for antenna facilities space
at the Cupertino Service Center, the City will receive revenue of approximately $24,000.00 in
the first year of the agreement extension, and increasing amounts each year, up to approximately
$29,000.00 in the fifth year of the extension. This will amount to a total of approximately
$130,000.00 over the five-year extension of the Site Lease Agreement.
STAFF RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 06- , Authorizing the
City Manager to Negotiate and Execute a Five-Year Extension of the Antenna Site Lease
Agreement between the City of Cupertino and TMO CAJNV, LLC (Formerly Pacific Bell
Wireless, LLC), dba T -Mobile USA, Inc.
Submitted by:
Approved for submission:
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'tI... Ralph A. Qualls, Jr.
Director of Public Works
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City Manager
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DRAFT
RESOLUTION NO. 06-188
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE
A FIVE-YEAR EXTENSION OF THE ANTENNA SITE LEASE AGREEMENT
BETWEEN THE CITY OF CUPERTINO AND TMO CA/NV, LLC
(FORMERLY PACIFIC BELL WIRELESS), dba T-MOBILE USA, INC.
WHEREAS, there has been presented to the City Council a request for an extension of
the Antenna Site Lease Agreement between the City of Cupertino and TMO CA/NV, LLC
(formerly Pacific Bell Wireless), dba T-Mobile USA, Inc., for the lease of facilities located at the
Cupertino Service Center, 10555 South Mary Avenue, as allowed by said agreement; and
WHEREAS, the provisions, terms, and conditions of the aforementioned agreement have
been reviewed and approved by the City Attorney and the Director of Public Works.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino
hereby authorizes the City Manager to negotiate and execute an extension to said agreement
extension on behalf of the City of Cupertino
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 6th day of November 2006, by the following vote:
V ote Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
APPROVED:
City Clerk
Mayor, City of Cupertino
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