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THE CITY OF "' CITY COUNCIL AGENDA REPORT pL£ASANTON. December 3, 2013 Assistant City Manager TITLE: APPROVAL OF A LEASE FOR INSTALLATION OF TELECOMMUNICATIONS EQUIPMENT WITH NEW CINGULAR WIRELESS PCS, LLC, A DELAWARE LIMITED LIABILITY COMPANY FOR UTILIZATION OF THE DOOLAN TOWER LOCATED AT 3801 DOOLAN ROAD IN THE CITY OF LIVERMORE SUMMARY The cities of Livermore and Pleasanton jointly own a radio tower located at 3801 Doolan Road in Livermore. The term of a current lease agreement with New Cingular approved initially in 1995 has expired and it has requested a new lease to retain cellular phone equipment on the tower. The staffs at Livermore and Pleasanton have negotiated a new lease and it is being presented to the City Council for review and approval. Livermore's City Manager is authorized to sign the lease and therefore, no Livermore City Council action is anticipated. The new lease has a five year term with one additional five year extension. The City will receive $2,500 representing 50% of a one-time $5,000 Lease Execution Charge and $1,634 monthly which represents 43% of the monthly base rent which is set initially at $3,800 per month. The lease also includes an annual adjuster equal to the greatest of 3% or the percentage increase in the CPI for the San Francisco- Oakland-San Jose area. RECOMMENDATION Approve the Lease for Installation of Telecommunications Equipment (Attachment A) between the cities of Pleasanton and Livermore and New Cingular Wireless PCS, LLC, a Delaware limited liability corporation. FINANCIAL STATEMENT The City will receive an initial payment of $2,500 then monthly lease payments of $1,634 escalating by at least 3% annually for the life of the lease anticipated to be ten years. Lease revenue will be allocated to the City's General Fund. As part owner of the Doolan Tower, the City is responsible for 50% of maintenance and improvement costs.