To

Mayor and Council

Subject

Schatulga Road Tower Lease

Initiator

Department of Engineering

Recommendation

Approve the attached resolution authorizing the City Manager to negotiate & \n \n execute a Radio Tower Lease agreement with ForeSite, LLC for the purpose of \n \n installing/operating antennae and communications facility at the City's \n \n Property located at 3950 Schatulga Road.

Approval

Approved

Background

The City owns property at 3950 Schatulga Road which is to the rear of the Heavy

Equipment Yard and is approximately 10,000 square feet as described in Exhibit

1.

Analysis

Traffic Engineering Division & Community Reinvestment have evaluated the

property and determined the value of the lease to be $12,000.00 annually, and

has been coordinated with the Public Services Department so as not to interfere

with their operation.The initial term of the lease will be $12,000.00 annually

for a term of five (5) years and the option to extend the term of this

Agreement for three (3) additional consecutive five (5) year periods.

Financial Considerations

The City will receive $12,000.00 per year for the first five year term with a

15% increase for any additional five year terms which might be approved by

Council. Hence, the rent income for the second term will be $13,800.00, the

third term $15,870.00 and the forth term $18,250.50 per year.

Projected Annual Fiscal Impact Statement

Legal Considerations

Any Lease agreement involving the City requires Council approval

Recommendations/ Actions

Approve a resolution authorizing the City Manager to negotiate and enter into a

lease agreement with ForeSite LLC.

No attachments for this document.