Resolution 15-049 Awarding a New Twenty-Year Lease on a Portion of Lot 11, Homer Spit Subdivision, No. 5 to SPITwSPOTS (SWS), Inc.

CITY OF HOMER

HOMER, ALASKA

                                                                                                                                 City Manager

RESOLUTION 15-049

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, AWARDING A NEW TWENTY-YEAR LEASE, WITH TWO FIVE-YEAR OPTIONS ON A PORTION OF LOT 11, HOMER SPIT SUBDIVISION, NO. 5 TO SPITWSPOTS (SWS), INC. OF HOMER, ALASKA, AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE THE APPROPRIATE DOCUMENTS.

            WHEREAS, A Request for Proposals for Homer Spit Property Lease for an Owner-Operated/Subleased Wireless Communication Tower was issued April 15, 2015; and

WHEREAS, The advertisement for sealed proposals to lease City property on the Homer Spit was advertised in the Homer Tribune April 22 and 29, 2015, and the Anchorage Daily News on April 26, 2015, posted on Alaska Bid Network and on the City Clerk's Bids and RFPs website; and

               WHEREAS, Sealed proposals were due at the Office of the City Clerk by 4:00 p.m. on May 14, 2015 with an extension until May 21, 2015 as outlined in Addendum #2; and

WHEREAS, Two proposals were submitted and the Lease Committee reviewed the pro/cons of each proposal and determined the three most significant differences between GCI and SWS proposals is:

1)  the available number of co-locations and potential revenue source from subleasing,

2)  the proposed square foot amount, and

3) the proposed monthly base rent and how requested reimbursements affect the final revenue to the City from this lease.

WHEREAS, The Lease Committee favors SWS proposal as it offers more co-locations on their tower, creating a higher use of the tower and higher revenues for the City’s Port and Harbor Enterprise; and

WHEREAS, It is appropriate that the City Council review and approve the new lease proposal given the scope of the project; and

WHEREAS, The City administration has reviewed the proposal using the criteria contained in the adopted Lease Policy, determined that the new proposal is in the City’s interest, and recommends approval of a new lease; and

               NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves a new twenty-year lease, with two five-year options, for SPITwSPOTS, Inc. on a portion of Lot 11, Homer Spit Subdivision, No. 5, and authorizes the City Manager to negotiate and execute the appropriate documents.

               PASSED AND ADOPTED by the Homer City Council this 29th day of June, 2015.

CITY OF HOMER

                                                                                                         MARY E. WYTHE, MAYOR

ATTEST:

JO JOHNSON, MMC, CITY CLERK

Fiscal Note: Lease revenue $3,100 per month and 25% of sublease fees.