Title
AMENDMENT NO ONE TO CONTRACT K-1011-157: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND NEW CINGULAR WIRELESS PCS, L.L.C., TO INSTALL NEW AND EXPANDED TELECOMMUNICATIONS EQUIPMENT ON THE MONOPOLE EAST OF THE WATER TREATMENT FACILITY LOCATED AT 3000 EAST ROBINSON STREET.
Body
BACKGROUND: On April 12, 2011 the Norman Utilities Authority approved Contract K-1011-157 with New Cingular Wireless PCS, LLC for the construction of an underground grounding system and the lease of a monopole east of the Water Treatment Facility located at 3000 East Robinson Street was approved. The term of the lease was five years with the contract automatically renewing for three (3) additional terms of five (5) years each. The amount paid per month by Cingular was $2,000 per month. The rent due for each year was increased on the anniversary date by three (3) percent of the monthly payment. The present payment is $2,251.02 per month.
DISCUSSION: New Cingular Wireless, PCS, LLC notified staff of its intention to install new and expanded telecommunications equipment on the monopole in April 2014. Staff negotiated the terms of Amendment No. 1 to Contract K-1011-157. Due to the nature of the proposed changes and the fact that there will be a testing period of the replacement equipment, staff negotiated a temporary $600 increase of monthly rent until the Tenant’s removal of the additional equipment. The amendment includes: (1) Exhibit B-1 which details the modification of equipment on the monopole and (2) an increase of the monthly rental amount by $600 until Tenant’s removal of the original antennas set forth in this amendment. The new funds would be allocated into Miscellaneous Revenues, Rental, Water Towers (031-0000-363.15-82).
RECOMMENDATION: Staff recommends the City of Norman approve Amendment No. 1 to Contract K-1011-157 between New Cingular Wireless PCS, LLC and Norman Utilities Authority.