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Item No. 7.L. Meeting Date: June 22, 2009 Type of Business: Council Business City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 7474 Authorizing a Ground Space Lease with TTM Operating Corporation Background: TTM Operating Corporation approached the City in October 2008, about leasing ground space in the water tower. (32 sq.ft.) They were offering $150 per month for a series of three year leases with a 3% inflator. Staff had countered with $250 per month for one connection and $125 per month for additional connections to other cell phone carriers on the tower. We also requested $2,000 upfront for legal and staff costs and a 4% inflator. Discussion: TTM has been adamant about not paying for additional monthly connection charges and our negotiations have been stalled as a result. Staff met with a representative of TTM on June 10th to try and work out a resolution. Staff proposed the following changes: 1) that TTM use the old Metrocom cabinet that is unused but is wired and does not pose the security issue of locating in the water tower; 2) that TTM pay $2,000 for each additional connection as a one-time review fee, currently there are two additional carriers available. (Sprint, Verizon) TTM will also assist the City in leasing tower space to AT&T, the only major carrier not on our tower. (Annual rental $17,000 - $19,000) Staff has contacted a number of cities (Arden Hills, Spring Lake Park, Roseville, North St. Paul, White Bear Lake, White Bear Township, and Champlin) where TTM has leased ground space and the rental amounts range from $225 to $250 per month so we are at the top end of that range. No other cities have negotiated additional monthly charges for additional connections. Recommendation: Staff is recommending approval of resolution 7474 pending legal review of the lease document. Respectfully Submitted, Mark Beer