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As directed by Council, over the last year and a half City staff and our attorney has been negotiating a solution that is acceptable to both the City's interests and Clearwire. Current Status Staff met with Clearwire for mediation in July of 2011. At that time, Clearwire revealed that they had another, smaller diameter tower they'd like use at Freedom Park in place of the existing tower. Additionally, they proposed sharing the cost with the City for the new tower's installation. City staff asked for additional details of this new tower, which Clearwire was unable to provide at that time. Staff also did not commit financially to anything. The mediation concluded by Clearwire agreeing to complete an engineering analysis to determine if 1) the alternative tower could fit on the existing base plate and 2) it's structural capacity to support the ball field lights and/or additional carriers). Today, that engineering analysis has been complete (see attached). This analysis involves swapping out the existing 45" diameter — 100' tower with a 27.5" diameter — 80' tower. The new tower would be attached to the existing tower's foundation (or base plate). The proposed tower could support Clearwire's antennas, the ball field lights, and an additional carrier. For comparative purposes, the existing tower could support two additional carriers so at least one co-locator opportunity would be lost. Next Steps Clearwire is seeking affirmation from the City that the proposed 27.5" diameter— 80' tower is acceptable. If it is, Clearwire would determine the total costs to complete the tower swap. Additionally, Clearwire would demand the City share in the costs to complete this work. City staff is seeking direction with regard to these matters. In the event an agreement cannot be made, the City still has the option to conduct a quasi-judicial hearing to revoke the special use permit currently in force for the existing tower. At the Council's February 14, 2012 agenda, a Resolution was approved authorizing the City Manager to appoint the State of Minnesota Office of Administrative Hearings to conduct the hearing. This hearing would be scheduled if a settlement cannot be made between Clearwire and the City. As an aside, Clearwire has agreed to bring their rent payments current (City was not accepting rent due to the lease violation) without any prejudice to its position in this dispute. This amount is approximately $40,000. Attachments 1) Chronology of Events 2) Existing Tower Photos 3) Approved Special Use Permit Plans