Title
Approval of a Resolution Authorizing a Ground Lease with New Cingular Wireless PCS, LLC
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the resolution authorizing a Ground Lease Agreement with New Cingular Wireless PCS, LLC.
Report
Issue:
Whether to approve the resolution authorizing a Ground Lease Agreement with New Cingular Wireless PCS, LLC.
Staff Contact:
Meliss Maxfield, Director of General Services, Public Works Department, 360.753.8202
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
New Cingular Wireless PCS, LLC is requesting to enter into a new five-year lease with the City of Olympia at the Elliott Avenue water storage tank site.
The City of Olympia would enter into a ground lease agreement with New Cingular Wireless PCS, LLC as Lessor. They will compensate the City of Olympia for the ground and utilities easement portion of the lease. The Water Utility will receive a total of $64,427 over the next five years. The annual lease rates are consistent with other agencies in our area and other western Washington public agencies.
Neighborhood/Community Interests (if known):
N/A.
Options:
1. Approve the resolution authorizing a Ground Lease Agreement with New Cingular Wireless PCS, LLC. The annual rent provides revenue to the Water Utility’s annual operating budget.
2. Do not approve the resolution authorizing a Ground Lease Agreement with New Cingular Wireless PCS, LLC. The Water Utility would lose $64,427 in revenue over the next five years. It would also be inconsistent with the City of Olympia’s Wireless Telecommunication Master Plan.
Financial Impact:
The revenue to the Water Utility from this lease is $11,895 for the first year. Annual rent will increase four percent per year for the remaining five years of the lease, with revenue totaling $64,427.
Attachments:
Resolution
Agreement