A2. Staff Workload Impact: Minimal staff time will be spent to execute the agreement and coordinate lease payments.
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1 City Council Agenda: 06/23/14 7B. Consideration of adopting Resolution # approving a lease agreement with Verizon Wireless for co-location on a Wireless Telecommunications Monopole, City Project No. ZTOWER (JO/SB) A. REFERENCE AND BACKGROUND Verizon Wireless and City staff have finalized the lease agreement for the proposed telecommunications tower located at the Public Works site. The key terms of the lease agreement are as follows: Verizon to make rental payments to the City in the amount of $24,000 per year for 10 years. Annual rental will be increased by 3% each year. Rental shall be reduced by $1,800 per year ($150 per month) in the event that Sprint, T-Mobile, or AT&T lease space on the tower from the City. The agreement automatically extends for four additional five-year terms unless Verizon or the City terminates the agreement in writing. City agrees to diligently complete construction of the tower by September 30, City to provide access to the site at all times for installation and maintenance of equipment. The tower was re-bid (see Agenda Item #7C) and re-designed to a 170-foot height to accommodate loading for three future wireless carriers and other antenna uses. The tower was designed to accommodate co-location by Verizon Wireless at a 150-foot height in conjunction with a previously approved CUP to locate their antenna and shelter on the proposed tower and site. The tower was also designed to accommodate loading for two other potential future carriers at a 135-foot and 165-foot height. In addition, the tower was designed for minimal loading at a lower height for sector antennas to provide locally improved coverage and loading for potential public safety/emergency services use (i.e. sirens, whip antennas, camera, repeater transmitters for Xcel). A1. Budget Impact: The initial cost approved by the city Council for the project was up to $300,000 using reserves to fund the project up front. It is anticipated that the actual total project cost (construction and indirect costs) will be approximately $230,000. Revenue will be generated per the lease agreement with Verizon and potentially other carriers in the future that locate on the tower. A2. Staff Workload Impact: Minimal staff time will be spent to execute the agreement and coordinate lease payments. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution # approving a lease agreement with Verizon Wireless for co-location on a Wireless Telecommunications Monopole, City Project No. ZTOWER. 1
2 City Council Agenda: 06/23/14 2. Motion denying approval of the lease agreement with Verizon Wireless at this time. C. STAFF RECOMMENDATION: Staff recommends Alternate #1. The City attorney has reviewed the agreements and has recommended approval. D. SUPPORTING DATA: A. Resolution # B. Letter from Verizon & Tower Lease Agreement C. Memorandum of Tower Lease Agreement 2
3 CITY OF MONTICELLO WRIGHT COUNTY MINNESOTA RESOLUTION NO APPROVING A LEASE AGREEMENT AND MEMORANDUM OF LEASE AGREEMENT WITH VERIZON WIRELESS (VAW) LLC, D/B/A VERIZON WIRELESS FOR CO-LOCATION OF SPACE ON A WIRELESS TELECOMMUNICATIONS MONOPOLE TOWER CITY PROJECT NO. 10C001 WHEREAS, the City of Monticello authorized advertisement for bids for construction and erection of a Wireless Telecommunications Monopole Tower, City Project No. 10C001 on March 10 th, 2014; and WHEREAS, the City of Monticello proposes to accept bids and enter into a contract for construction and erection of said Wireless Telecommunications Tower on June 23 rd, 2014; and WHEREAS, the City of Monticello desires to enter into a lease agreement with Verizon Wireless for co-location space on said Wireless Telecommunications Tower in exchange for payments to the City for a minimum of ten years with an automatic extension clause. NOW THEREFORE BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF MONTICELLO: 1. The City shall enter into an agreement with Verizon Wireless (VAW) LLC, d/b/a Verizon Wireless, to lease a portion of space on the Wireless Telecommunications Monopole, City Project No. ZTOWER in accordance with the terms and conditions set out in the Tower Lease Agreement and Memorandum of Tower Lease Agreement. 2. The Mayor and City Administrator are hereby authorized and directed to enter into a lease agreement for co-location space for and on behalf of the City of Monticello. ADOPTED BY the Monticello City Council this 23rd day of June, CITY OF MONTICELLO ATTEST: Clint Herbst, Mayor Jeff O Neill, City Administrator
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