August 4, 1998

 

SUBJECT: Nextel Communications Lease Agreement 98281

REPORT IN BRIEF

Nextel Communications is proposing to install communications antennas on the existing monopole tower located at the Public Safety Headquarters site, construct an equipment room, extend the roofing structure of the Public Safety building, provide motorcycle parking for Public Safety Traffic Officers, and enclose the freezer unit located on the site. Compensation to the City for the initial 9-year term of the lease will be $1,200 per month with an annual Consumer Price Index (CPI) adjustment after the first year. At completion of construction, title to the equipment building and modifications to the Public Safety building will pass to the City.

 

BACKGROUND

In November 1997, Nextel contacted the City for possible location of an additional cell site to improve transmissions in the area. Nextel originally proposed constructing a new cell site at a privately owned business located at Mary Avenue and El Camino Real. Staff recommended that the Public Safety Headquarters site might be more appropriate since it is consistent with City policy and ordinance to co-locate antennas on existing sites whenever possible.

The City entered into a similar lease agreement with CellularOne in April, 1997, to construct the new tower which was designed to accommodate antennas for the City’s future needs as well as other vendors’ needs.

 

DISCUSSION

Nextel Communications will design, construct, and lease back from the City of Sunnyvale a communications equipment room and space on the new 160’ monopole tower located at 700 All America Way. The construction will also include extension of the roof to the Public Safety Headquarters building to provide coverage for motorcycle parking and for the freezer unit to protect it from direct sunlight. Nextel will also extend the brick wall surrounding the freezer unit and install a gate to it for improved security purposes.

The actual antenna installation proposed by Nextel is subject to engineering studies to assure that the monopole tower has sufficient load capacity to accommodate Nextel’s antennas and the antennas used by the City that will be relocated from the old tower as part of the Public Safety replacement radio system project. Nextel is also responsible for conducting any interference and compatibility testing to determine interference issues prior to actual construction and installation.

 

Fiscal Impact

All costs for the project will be provided for by Nextel Communications. The City will receive monthly rents in the amount of $1,200 beginning either the first day of the month following the obtaining of all construction permits and approvals, or November 1, 1998.

 

Public Contact

Publication and posting of the City Council Agenda. Copies of the report are available in the Library and on the City’s Internet home page.

 

Alternatives

  1. Council approve the proposed lease agreement between the City and Nextel Communications, subject to Nextel applying for and obtaining a Minor Use Permit and all required building safety permits as well as providing the necessary engineering and interference studies.
  2. Council not approve the proposed lease agreement.

 

Recommendation

Staff recommends Alternative No. 1.

 

 

 

Prepared by:

 

Marilyn Crane
ITD Administrative Services Manager

 

 

Approved by:

 

Shawn Hernandez
Director of Information Technology

 

 

Approved by:

 

Mary Bradley
Director of Finance

 

Robert S. LaSala
City Manager

 

Attachments

    1. Cell Site Lease Agreement
    2. Exhibit A (the "Site")
    3. Exhibit B (the "Premises")
    4. Memorandum of Lease