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Item # D.
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| Town Council Regular Session |
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| Information |
| SUBJECT: |
| Resolution No. (R)18-18, authorizing "The First Amendment to Communications Site Lease Agreement" ("Amendment") to clean up the Lease and reduce the price and lease escalation rate |
| RECOMMENDATION: |
| Staff recommends approval. |
| EXECUTIVE SUMMARY: |
| On May 2, 2012, the Town approved Resolution No. (R)12-21, approving the Communications Site Lease Agreement between the Town of Oro Valley and New Cingular Wireless PCS, LLC. Over time, the rental rate has escalated at a rate beyond what the parties anticipated, opening the door to the possibility that the wireless facility would be removed and relocated to another location. The parties reviewed options and developed acceptable changes to the lease to continue its current location and the revenues that the Town receives. |
| BACKGROUND OR DETAILED INFORMATION: |
| The attached proposed reduction in rate and lease amount is a reasonable compromise that will allow the Town to continue to receive revenues, limit any disruption in other areas of the community, all while keeping the lease amount at a level acceptable to Cingular. Attachment 1 reflects how the new lease structure will work over time. |
| FISCAL IMPACT: |
| Initially, there will be a reduction in lease rents from approximately $2,800 per month to $2,500 per month. However, over time, the new escalation clause will have the rents at $2,750 in year 6 and at $3,025 in year 11. Total revenue received starting next fiscal year is $30,000. |
| SUGGESTED MOTION: |
| I MOVE to (approve/deny) Resolution No. (R)18-18, authorizing the Amendment to the existing Cingulair telecommunications facility and associated Memorandum of Lease. |
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