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HomeMy WebLinkAbout5J Verizon Cedarwood Lease Amend 7 Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 12, 2016 AGENDA #: 5J PREPARED BY: NICK ZURBEY, PUBLIC WORKS TECHNICIAN KATY GEHLER, PUBLIC WORKS & NATURAL RESOURCES DIRECTOR PRESENTED BY: KATY GEHLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE AN AMENDMENT TO THE WATER TOWER AGREEMENT WITH VERIZON FOR THE CEDARWOOD STREET WATER TOWER PROPERTY DISCUSSION: Introduction The purpose of this agenda item is to consider executing an amendment to the Water Tower Antenna Agreement with Verizon to grant them a utility easement for fiber upgrades at the Cedarwood Street water tower. History The City and Verizon are parties to a Water Tower Antenna Agreement relating to installation of communications antennas on the Cedarwood Street water tower. The original agreement was entered into on March 27, 1997. Current Circumstances Verizon, along with other communications companies, are in the process of upgrading technology for cellular service around the nation. As part of this process they would like to upgrade their underground utilities that include adding fiber connectivity to their shelters at the City’s Cedarwood Street water tower. The original agreement and subsequent amendments did not include utility easements; therefore, an amendment was determined to be appropriate. Conclusion The City Attorney reviewed the information and prepared the amendment to the existing agreement with Verizon. ISSUES: The City holds several lease agreements with Communication Companies to allow use of the City’s water towers to mount antenna with ground equipment shelters. Over the last few years, several companies have been upgrading their antenna and shelter equipment. Most of the antenna leases have similar provisions that address the use of the site for mounting of antenna and storage of equipment in ground shelters. However, based on the review of the agreement by the City Attorney, it was determined that an amendment to the original agreement is needed to grant a nonexclusive utility easement for the installation of a new underground fiber optic line. A copy of the partially executed amendment is included with this agenda report. FINANCIAL IMPACT: A onetime fee was collected for the utility easement. ALTERNATIVES: 1. Approval of a resolution as part of the consent agenda authorizing the Mayor and City Manager to execute an amendment to the Verizon Water Tower Antenna Agreement. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-xxx A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE AN AMENDMENT TO THE WATER TOWER ANTENNA AGREEMENT WITH VERIZON FOR THE CEDARWOOD STREET WATER TOWER PROPERTY Motion By: Second By: WHEREAS, Various cellular companies have located their antennae equipment on City property and water towers; and WHEREAS, The public safety, health and welfare is served when cell phone coverage is uniform and unbroken; and WHEREAS, The City and Verizon are parties to a Water Tower Antenna Agreement relating to City property and the Cedarwood Street water tower located at 5560 Cedarwood Street, Prior Lake Minnesota, 55372 (Verizon site ID MINC MYSTIC LAKE); and WHEREAS, Verizon desires to obtain a utility easement to install fiber optic cable at the Cedarwood Street water tower property for the sole benefit of it’s customers and subscribers; and WHEREAS, Verizon is installing and maintaining the fiber optic cable and additional equipment will be located on the water tower property, within the proposed utility easement and in Verizon’s Equipment Shelter; and WHEREAS, The City Attorney and City Staff have developed an ”Amendment” to the existing antenna agreement; and WHEREAS, Verizon has executed said Agreement. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council hereby approves the “Amendment to Water Tower Agreement” prepared by the City Attorney and City Staff. 3. The Mayor and City Manager are hereby authorized to execute the “Amendment to Water Tower Agreement” on behalf of the City. C:\Users\aschroeder\Desktop\16-XXX Verizon Cedarwood Lease Amend 7.docx 2 PASSED AND ADOPTED THIS 12th DAY OF DECEMBER 2016. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager