15 - Tower Lease Agreement with T-MobileItem No. 15
memorandum
TO: Mayor & City Council
FROM: John Godwin, City Manager
SUBJECT: TOWER LEASE AGREEMENT WITH T-MOBILE
DATE: October 2, 2017
BACKGROUND: The City has been approached by T-Mobile West LLC (“T-Mobile”)
regarding leasing space on the city’s east water tower and grounds for the installation and
operation of telecommunications equipment. After several months of negotiation, we have
reached the agreement contained in the attached Ground and Tower Lease Agreement.
STATUS OF ISSUE: The Lease provides for an initial 5-year term with the possibility of an
additional three renewal terms of five years each. The rental fees for the first year will be $1,850
per month, and the fees will escalate by 3% each successive year of the initial term and any
renewal terms. Other terms of the lease govern access to the leased site; provide for an
escalation of rent of 150% should T-Mobile improperly hold over after expiration of the final
renewal term; and provide for indemnification and insurance coverage, among other typical lease
provisions. Besides providing for a new source of revenue for the city, the arrangement will
allow T-Mobile to better serve the residents of Paris who are there customers.
BUDGET: Unbudgeted revenues of $22,200 in the first year.
RECOMMENDATION: Authorize the city manager to execute the attached Ground and Tower
Lease Agreement on behalf of the City.