AI-3676       8.            
City Council Agenda
Meeting Date: 05/21/2013  
Subject: New Cingular Wireless Lease Agreement
Presenter: Kevin Yamamoto
Department: City Attorney's Office

Information
Recommended Action
Authorize the City Manager to enter into a renewed lease agreement, in a form approved the City Attorney, with New Cingular Wireless for the upgrade and operation of wireless communication facilities and equipment at the City's Recreation Center.
Background

GTE Wireless entered into a lease agreement with the City of Puyallup in 1997. The lease agreement entitled GTE Wireless to install and operate what is commonly known as cellular or wireless communications facilities and equipment at the City's Recreation Center. The leased premises constitute a portion of a Recreation Center ballfield light pole and an area on the ground near the light pole. The GTE lease agreement provided for initial rent in the amount of $800 per month, with increases for extension periods. The GTE lease agreement, with extensions, expired in 2012. (A copy of the GTE Wireless lease agreement has been placed in the Council's shared office; additional copies can be provided upon request to the City Manager's Office.)

According to business reports, GTE Wireless and Bell Atlantic Mobile merged to form Verizon Communications. As a part of the merger process, Verizon is reported to have divested itself of a number of overlapping coverage areas. It appears that some derivation of AT&T or New Cingular eventually acquired rights to the GTE Wireless lease agreement with the City of Puyallup.

The proposed lease agreement with New Cingular allows New Cingular to upgrade and operate equipment and facilities. The lease term, with renewals, can be up to 20 years. The rent will be $1,500 per month, with provisions for a 3% annual increase. Generally, the proposed lease agreement has been drafted to more comprehensively address issues related to wireless communications. A copy of the proposed New Cingular lease agreement has been placed in the Council's shared office; additional copies can be provided upon request to the City Manager's Office.

Previous Actions (Discussions/Presentations)

No previous actions, dicussions or presentations concerning the proposed New Cingular lease have occurred.

Summary of Proposal
The proposed lease agreement with New Cingular allows New Cingular to upgrade and operate wireless communication facilities and equipment at the City's Recreation Center. The lease term, with renewals, can be up to 20 years. The rent will be $1,500 per month, with provisions for a 3% annual increase.
Alternatives/Options

Pursuant to RCW 35A.11.010 and RCW 35A.11.020, the City Council is authorized to purchase, lease, receive, or otherwise acquire real and personal property of every kind, and use, enjoy, hold, lease, control, convey or otherwise dispose of real property. Accordingly, the City Council may approve the proposed lease with New Cingular or reject the lease.


Fiscal Impact
Amount Budgeted: None
Bid Amount: N/A
City Funding Needed for Project: N/A
Funds from Other Sources: N/A
Ongoing Staff Costs:
Fiscal Impacts:
The proposed lease with New Cingular, if approved, will generate $1,500 per month, or $18,000 in revenue per year.  The rent will be increased by 3% each year.