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AMENDMENT NO. TWO TO CONTRACT K-0506-151: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND NEW CINGULAR WIRELESS PCS, L.L.C., A DELAWARE LIMITED LIABILITY COMPANY, INCREASING THE MONTHLY RENTAL FEE BY $685 PER MONTH FOR A REVISED RENTAL AMOUNT OF $3,082.27 PER MONTH FOR ADDITIONAL TELECOMMUNICATION EQUIPMENT TO BE INSTALLED ON THE BROOKHAVEN WATER TOWER.
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BACKGROUND: The Norman Utilities Authority (NUA) approved Contract K-0506-151 with AT&T 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 initial five-year term expired in May 2011 and automatically renewed.
The contract allows the NUA to terminate the agreement upon one hundred eighty days (180) days notice after the initial five-year term. It also requires telecommunication equipment to be installed in accordance with the contract and requires approval of the Director of Utilities prior to construction of any improvements.
On December 9, 2014, the NUA approved Amendment No. 1 to the contract increasing the monthly rate to $2,131.60 and increasing the annual increase to 4%. As a part of this amendment, the lease was transferred to Cingular Wireless (Cingular). At this time, the monthly rate is $2,397.27.
DISCUSSION: Cingular has requested that new and expanded telecommunication equipment be installed on the tower. Staff has negotiated the terms of Amendment No. 2 to Contract K-0506-151 with Cingular. The amendment includes: (1) Exhibit 2-A which identifies the location and lists of the equipment to be installed on the tower; and (2) increases the lease rate by $685 per month after beginning with the first payment after approval on this amendment. Assuming NUA approval in February 2018, the rev...
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