Subject: PROPERTY USE AGREEMENT
COUNCIL
DISTRICT: 3
Approval of a five year property use
agreement, with one five year option, with Mobilestar allowing for the
construction, installation, maintenance and operation of a telecommunications
facility at 1661 and 2077 Airport Boulevard at an annual rent of $60,000 per
annum plus $55 per square foot per annum floor space or shelf space (with
yearly increases in both at the greater of 4% or the rise in the Consumer Price
Index).
In December of 2000, Mobilestar
approached the City of San José with a request to place and install a
telecommunications facility within Airport Terminals A and C of San José
International Airport. This
telecommunications facility will enable airport personnel, emergency service
providers and the public at large to more reliably access Mobilestar’s wireless
communications network in the vicinity of the Airport.
Staff has negotiated a five year lease
with Mobilestar for the right to use certain portions of Terminal A and C and
allowing them access over City-owned Airport property to perform maintenance on
their equipment. The first year’s rent
for this property use agreement is $60,000 plus $55 per square foot of floor
space per annum for the installation of this telecommunications facility with
annual increases of the greater of 4% or increases in the Consumer Price Index
All Urban Consumers, all items, for the San Francisco-Oakland Metropolitan
Area.
Not
applicable.
The Office of the City Attorney has
reviewed the agreement and approved it as to form.
Terminal
C $129,992 (40%)
Fund: 521
RC: 308123-7009
Terminal
A $194,987 (60%)
Fund: 521
RC: 308121-7010
RAJEEV BATRA RALPH G.
TONSETH
Acting Director, Public Works Department Director of Aviation