HomeMy WebLinkAbout11 03 08_Authorize City Manager to sign a Five Year License Agreement for the Use of City Property with Alltel
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: James Goehrung, Director of Facility Services
Chris Kukulski, City Manager
SUBJECT: License Agreement with Alltel Communication for a Cellular Phone
Antenna on the Kenyon Drive Water Tank
MEETING DATE: November 3, 2008
RECOMMENDATION: Authorize the City Manager to sign a five year License Agreement
with Alltel for a cellular antenna on the Kenyon Drive Water tank.
BACKGROUND: The City of Bozeman is leasing space on the Kenyon Drive water tank for
cellular phone antennas. The cellular market has been very volatile in the last couple of years,
with the agreements changing hands a number of times as companies have been bought out, or as
companies have merged. We now have two antenna agreements in place with two separate
companies.
Each time the licenses have expired, staff has entered into negotiations on the fees we will
charge the companies for the use of our property. My understanding is that this particular
location provides a wide area of coverage to a fairly large population, which makes it a valuable
site.
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The original license was negotiated by former City Manager Clark Johnson. The two licenses
we currently have on the tank expire at different times. The dollar amount in this agreement will
bring it up to par with the second lease we have on the tank.
FISCAL EFFECTS: The license fee for the first year is $24,567.00 and $25,550.00 the
second year. The fee will increase each year by an inflation factor of 4% for the balance of the
license agreement.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
_________________________________ ____________________________
James Goehrung Chris A. Kukulski, City Manager
Director of Facility Services
Attachments: License Agreement
Report compiled on October 29, 2008
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