HomeMy WebLinkAboutC7. Amend Cingular Agmnt
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brian Heaston, Project Engineer Craig Woolard, Director of Public Works
SUBJECT: Authorize the City Manager to sign a First Amendment to License Agreement for the Use of City of Property with New Cingular Wireless PCS, LLC.
MEETING DATE: December 28, 2015
AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager to sign a First Amendment to License Agreement
for the Use of City of Property with New Cingular Wireless PCS, LLC.
BACKGROUND: The City of Bozeman licenses use of the hilltop tank property on Kenyon Drive for
multiple private entities to operate cellular phone network equipment. This equipment provides for, in part, cellular phone service to residents of Bozeman. An existing license agreement (attached) originally
executed by Alltel Communications, LLC allows for tank-mounted antennas and ground-based network
equipment (cellular assets) at the hilltop tank site. As a result of mergers and acquisitions, these cellular assets have been acquired by New Cingular Wireless PCS, LLC, an AT&T subsidiary (herearfter
licensee). The License Agreement has been assigned to the licensee.
The attached First Amendment to License Agreement for the Use of City Property (First Amendment)
was negotiated between city staff and the licensee representatives. The First Amendment extends the expiration date of the effective agreement by granting additional renewal terms. The First Amendment also reduces the effective annual rent payment escalation factor applied during the additional renewal
terms. The effective agreement is set to expire on July 31, 2018. The First Amendment provides for three
separate five-year renewal terms and thus effectively extends the expiration of the license agreement by a period of 15-years to July 31, 2031.
The effective agreement provides for an annual rent payment escalation factor of 4% per year until its July 31, 2018 expiration. The First Amendment reduces this escalation factor to 3% for the extended
period commencing August 1, 2018 and expiring July 31, 2031.
UNRESOLVED ISSUES: None.
ALTERNATIVES: As suggested by the City Commission.
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FISCAL EFFECTS: By executing the First Amendment, the licensee’s rent commencing on August 1,
2018 will be begin at a rate of $36,015.95. Subsequent rent payments will by 3% annually thereafter.
Rent payments are credited to the Water Enterprise Fund.
Attachments: First Amendment to License Agreement
Original License Agreement
Report compiled on: December 14, 2015
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