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CONTRACT NO. K-1213-73: A CONTRACT BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND T-MOBILE CENTRAL, L.L.C., FOR THE LEASE OF A MONOPOLE EAST OF THE WATER TREATMENT FACILITY LOCATED AT 3000 EAST ROBINSON STREET. (KNOWN AS THE HALL PARK TOWER)
ACTION NEEDED: Acting as the Norman Utilities Authority, motion to approve or reject Contract No. K-1213-73 with T-Mobile Central, L.L.C.; and, if approved, authorize the execution thereof.
ACTION TAKEN: ____________________________________
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BACKGROUND: In December of 1996, Council approved Contract Number K-9697-67 with Western PCS I Corporation (now T Mobile Central LLC) to construct a monopole communications tower to replace the City's 911 Tower located east of the Water Treatment Plant on East Robinson, transfer the City's 911 wireless communications equipment from the old guy-wired tower to the new monopole tower, and lease space on the new tower for their cellular communications equipment. The new tower is referred to as the Hall Park tower.
Contract No. K-9697-67 provided for automatic renewal every five years. Western PCS I Corporation paid $1.00 per month rent for the first four years of the Agreement. The fifth year of the contract Western PCS I Corporation paid $625.00 per month. During the first renewal term, the rent price increased to $718.75 per month. During the second renewal term, Western PCS I Corp. paid $826.56 per month. In addition to paying rent, Western PCS I Corporation was required to maintain a Commercial General Liability Insurance in the amount of $1,000,000 that named the City of Norman as an additional insured party.
T Mobile Central LLC has enlisted the services of Black Dot Wireless to negotiate a new contract with the City for the space they are leasing at the Hall Park tower site. Contract No. K-1213-73 is comparable to other lease contracts the City of Norman has entered into with other cellular service providers.
DISCUSSION: Contract No. K-1213-73 is similar to K-9697-67 with three notable exceptions. The term of the Agreement will begin on January 1, 2013 and is automatically renewable for five additional terms of five years each. Either party may terminate the Agreement by providing one hundred eighty (180) days written notice of intent to not renew before the expiration of the current term. T Mobile will pay the Norman Utilities Authority monthly rent in the amount of $1,000.00. Each year, the rent will increase by 3% starting the first day of the year. Finally, T Mobile will be required to maintain commercial general liability insurance, naming the City of Norman as an additional insured party, with limits of not less than $5,000,000.
CONCLUSION: Staff recommends approval of Contract No. K-1213-73 with T Mobile Central, LLC.