City to accept $318,989 and new lease from T‑Mobile for antenna at Fire Station 43

The Budget and Finance Subcommittee approved a resolution resolving an overdue lease situation for a cellular communications facility at Fire Station 43, 720 Moscow Street, and authorized a prospective lease to T‑Mobile West.

John Updike (Acting Director, Real Estate Division) told the committee that a permit originally issued to Cingular in 2003 allowed installation of equipment on the station without an executed proprietary lease; the site later transferred to T‑Mobile and negotiations to secure back rent began in 2009. Real estate staff negotiated a settlement that maximizes recoverable amounts for the city, including estimated utility charges and arrearage from September 2003 to the present. The negotiated one‑time payment to bring the account current is $318,989.

Going forward the agreement is a five‑year lease at $3,500 per month with three additional five‑year renewal options. The lease contains a consumer price index inflator for annual adjustments (floored at 3% and capped at 6%). The Real Estate Director noted industry market dynamics make competitive solicitation for such sites impractical and recommended an administrative finding that bidding procedures are impracticable for cellular facilities.

Supervisor Avalos recused himself from consideration of the item because of proximity to his residence. Paul Albritton, outside counsel for T‑Mobile, said T‑Mobile supports the agreement and is willing to cover back rent owed by predecessor operators.

The committee endorsed a technical amendment recommended by the budget analyst (finding that competitive bidding is impractical) and moved the resolution forward without objection.

The committee also asked staff to consider stronger interdepartmental coordination between regulatory and proprietary units to avoid future cases where permits are issued without concurrent lease arrangements.