DEPARTMENT: Information Technology Services
DEPARTMENT HEAD: Hugh Miller
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Sprint Spectrum L.P., Tower Lease Amendments
SUMMARY:
An Ordinance approving two (2) Sprint Spectrum L.P., Tower Lease Amendments for City's Towers located at the Bitters Road site and at the Zarzamora site.
BACKGROUND INFORMATION:
In accordance with Ch. 37 of the City Code, Sprint Spectrum L.P., ("Grantee") submitted an application to replace telecommunications facilities on two existing City towers and in their nearby shelters, which are owned by the City. City Staff received the application fees and reviewed the applications including drawings and specifications of the equipment to be installed on the towers. Based on these drawings and specifications there is currently no issue with the Grantee's proposed installations.
Current City Code provides the basis for the fees that these tower leases will generate. The Grantee will make annual payments to the City at a rate of $38,439 per tower, which will increase by 3% per year. City staff recommends the City Council approve this Agreement in order to allow the City to license space on the Frio tower to Sprint Spectrum L.P., and generate revenue on the terms provided for in the Agreements.
ISSUE:
Staff is requesting approval of the Amended Lease Agreements with Sprint Spectrum L.P., for space on the City's Towers located at Bitters Road and Zarzamora.
ALTERNATIVES:
City could refuse to approve the Addendums leading to a loss of the revenue that would be generated from the Agreement and the space on the towers requested by the Grantee. Grantee would be forced to look for other property on which to install their telecommunications facilities.
FISCAL IMPACT:
The City will receive $38,439 in rent per site for the first year and after which the rent will increase by 3% annually for each site. A payment schedule is provided in the Addendums. The revenue generated by these annual payments will be deposited in the Information Services Fund.
RECOMMENDATION:
Staff recommends approval of this item.