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AMENDMENT NO. ONE TO CONTRACT K-0506-151: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND NEW CINGULAR WIRELESS PCS, L.L.C., FORMERLY SOUTHWESTERN BELL WIRELESS, INC., TO INCREASE THE LEASE RATE FROM $1,266.77 TO $2,131.16 PER MONTH FOR TELECOMMUNICATIONS EQUIPMENT LOCATED ON THE BROOKHAVEN WATER TOWER LOCATED AT 4151 WEST ROBINSON STREET AND TO MODIFY EXISTING EQUIPMENT.
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BACKGROUND: The Norman Utilities Authority (NUA) approved Contract K-0506-151 with New Cingular Wireless PCS, LLC (Cingular) on June 13, 2006 to lease space for telecommunication equipment on the Brookhaven Water Tower located at 4151 West Robinson. The initial term of the contract was five years with the option to renew four additional terms of five years each.
The lease rate was $1,000 per month with a 3% increase annually on the anniversary date of the contract; the current rate is $1,266.77. Article I of the contract allows the NUA to terminate the agreement upon one hundred eighty days (180) days' notice prior to the end of the current five-year term. Article VI requires telecommunication equipment to be installed in accordance with the contract and requires approval of the Director of Utilities prior to construction of the improvements.
DISCUSSION: The initial five-year term expired in June 2011 and automatically renewed. Cingular notified staff of its intention to install new and expanded telecommunication equipment on the tower in February 2014. Staff requested clarification regarding the request and, after numerous submittals and re-submittals, received acceptable construction documents in October 2014.
Due to the nature of the proposed changes and the fact that the current monthly lease rate is well below the market rate for this type of installation, staff requested that the lease rate be increased. Staff has negotiated the terms of Amendment No. 1 to Contract K-0506-151 with Cingular. The amendment includes: (1) Exhibit 1-A which describes the existin...
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