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HomeMy WebLinkAbout6A Antenna Lease PresentationCELLULAR ANTENNAS AND SMALL CELL ANTENNAS NICK ZURBEY, PUBLIC WORKS TECHNICIAN SARAH SCHWARZHOFF, CITY ATTORNEY INTRODUCTION •Traditional antenna installations vs small cell installations •Mobilitie •City property (lease) vs City right-of-way (permit and registration) •Limits on City authority TRADITIONAL ANTENNAS •Generally located on water towers or similar tall structures •City and company enter into extensive lease including: rental, location of equipment, maintenance of equipment, engineering review, easements, removal, insurance and indemnification, interference and interruptions, etc. •Usually long term –15 to 25 years •Fairly significant revenue for City TOWER LOCATIONS CEDARWOOD STREET WATER TOWER TOWER STREET WATER TOWER WILDS PARKWAY CIVIL DEFENSE SIREN WILLOWS PARK MONOPOLE EXISTING LEASES •Leases beginning in 1991 •Many have expired recently or will expire soon •Staff and attorney drafted new lease form for renewals •Nick took over in November 2013 and updated review system •Review plans and specs each time equipment is replaced or new is installed –engineering review, increased rent •Update easements for access and utilities running to antennas REVENUE $- $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 $300,000.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Antenna Lease Known Revenue REVENUE $- $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 $300,000.00 $350,000.00 $400,000.00 $450,000.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Goal Rent amounts vs Revenue Without Managment FINANCIAL IMPACT •Revenue projected to continue with regular annual increases •Subject to new technology which could make traditional antenna installations obsolete •Subject to mergers of companies resulting in fewer installations or the communications companies needs SMALL CELL •Generally located on small structures such as light poles •City currently has none it is aware of •If located on City structures/poles would enter into lease similar to traditional antennas (master lease prepared for Scale) •If located in City right-of-way subject to right-of-way permit and registration FINANCIAL IMPACT •Right-of-way –expect revenue to offset costs incurred by City •Lease -revenue expected to be much more limited based on experience of Scott County and nearby cities •Lease –expect limited small cell lease revenues due to limited number of City structures/poles •Small cell not expected to be as dense in Scott County as in Ramsey or Hennepin •City has a limited number of structures it owns, more are owned by Scott County or private entities such as Xcel LEGISLATION •New legislation proposed by cell companies that severely limits city authority •League, Metro Cities and other local and state-wide organizations have proposed alternative legislation •If new legislation is adopted City may need to re -consider its regulations RIGHT-OF-WAY ORDINANCE •Staff and attorney have drafted new right-of-way ordinance to update the City’s right-of-way regulation and to address small cell issues •Generally applicability and definitions •Right-of-way permit •Telecommunications registration •Siting of new structures