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THE CITY OF - -- ' -'-' "" CITY COUNCIL AGENDA REPORT j~L£~1S~4NTONe August 19, 2008 Assistant City Manager TITLE: APPROVAL OF LEASE BETWEEN ZONE 7 AND THE CITIES OF LIVERMORE AND PLEASANTON FOR THE CONTINUED PLACEMENT OF TELECOMMUNICATIONS EQUIPMENT AT 3801 DOOLAN ROAD SUMMARY In 2003, the City cooperated with Zone 7 in the installation of a Global Positioning System and Supervisory Control and Data Acquisition radio and telecommunications network ("SCADA Communications Network") on a telecommunications tower jointly owned by the Cities of Livermore and Pleasanton which is located on property owned by the City of Livermore, located at 3801 Doolan Road. Zone 7 has requested a continuation of this use and the parties have agreed to a Lease Agreement for the continued use of this property. The recommended Lease Agreement would commence October 1, 2008 and has a term of five-years with an option for two five-year extensions. Zone 7 will pay an initial base rent of $16,800 annually to the City and Pleasanton for its lease of space on the tower and property. In addition, because Zone 7 has used the tower since 2003 while it was testing the long term viability of this site, it will pay $76,200 as a "catch-up' for the previous use of the site. Each city will receive 50% of the rental value of space on the tower. RECOMMENDATION Authorize the City Manager to execute the Lease Agreement (Attachment 1) between Zone 7 and the cities of Pleasanton and Livermore. FINANCIAL STATEMENT The City will receive lease payments estimated at $80,100 during the first five years of the lease and then $8,400 annually thereafter. The money will be placed in the City General Fund. No costs are anticipated with administrating the Lease Agreement.