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lit• <br /> Of Report Number 12-249 <br /> EWN Agenda Section VI-5 <br /> the city that works for you <br /> Council Meeting Date October 23,2012 <br /> REQUEST FOR COUNCIL CONSIDERATION <br /> r ITEM DESCRIPTION: CONSIDERATION OF TOWER LEASE TERMINATION <br /> AGREEMENT AND RELEASE OF WITH NEXTEL AT 660 5TH ST NW. <br /> DEPARTMENT HEAD'S APPROVAL: &,) <br /> CITY MANAGER'S APPROVAL: A/ <br /> No comments to supplement this report /1 Comments attached <br /> r <br /> Recommendation: To enter into a Termination Agreement and Release between the City of <br /> New Brighton and Nextel to terminate the lease dated March 11, 1998 for property located at the <br /> South Water Tower—660 5th Street NW, effective September 30, 2012. <br /> Legislative History: On March 11, 1998 the City entered into a Tower Lease Agreement with <br /> Nextel West Corp. Under the terms of the lease, the Lessee would lease a portion water tower <br /> site for an antenna system and ground space of an equipment pad, as well as rights of way for <br /> ingress and egress and utilities. By letter dated June 29, 2012, the City was informed by Sprint <br /> that they intend to remove its Nextel telecommunications equipment and will be preparing a <br /> termination agreement related to the site. <br /> Financial Impact: The anniversary date for this lease is March 1, 2012 which is the final year <br /> of the previous five year renewal period. Under the terms of the lease agreement they are not <br /> entitled to a refund to any monies paid to the City nor is the City eligible for early termination <br /> fees. <br /> Explanation: Sprint purchased Nextel in 2005. Unfortunately, Sprint was never able to fully <br /> integrate the Nextel system into their network. As such, Sprint announced in late 2011 that <br /> would decommission its Nextel iDEN service on its 800 MHz spectrum beginning in 2013. <br /> The City Attorney has reviewed the Termination Agreement and Release and finds their terms to <br /> be acceptable and consistent with the Tower Lease Agreement. <br /> Costs and Funding: In 2012, Nextel paid an annual rent payment of$19,048.44. This amount <br /> was to be increased annually 4 percent. This rent was included as revenue to the General Fund. <br /> /A <br /> Grant . Wy e (P.E. <br /> Director of Public Works <br /> Attachments <br /> Letter dated June 29, 2012 from Sprint <br /> Termination Agreement and Release <br />