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HomeMy WebLinkAbout5I Amend ATT Tower St Lease 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 4, 2017 AGENDA #: 5I PREPARED BY: NICK ZURBEY, PUBLIC WORKS TECHNICIAN PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE AN AMENDMENT TO THE NEW CINGULAR WIRELESS PCS, LLC (“AT&T”) WATER TOWER ANTENNA AGREEMENT AT THE TOWER STREET WATER TOWER DISCUSSION: Introduction The purpose of this agenda item is to consider executing an amendment to the Water Tower Antenna Agreement with AT&T to grant them utility easements and access easements at the Tower Street water tower. History The City and AT&T are parties to a Water Tower Antenna Agreement relating to installation of communications antennas on the Tower Street water tower. The original agreement was entered into on October 30, 2006 as amended by Amendment 1 to Water Tower Antennae Agreement dated February 8, 2016 “Antennae Agreement”. Current Circumstances AT&T submitted plans for installing fiber through existing conduit this summer but a review of the plans revealed that their claimed easements did not match the easements granted in the original lease and the existing underground utilities, including the existing conduit, were not actually installed in the easements. To remedy the situation and clarify AT&T’s easement rights to the property, the best course of action was determined to be to amend the lease to replace the lease area for the equipment shelter and the easements granted in the Antennae Agreement with the lease area and easement described on Exhibit B and depicted in Exhibit C of the proposed Amendment. Conclusion The City Attorney reviewed the information and prepared the amendment to the existing agreement with AT&T. 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. The increase in data services and newer technologies have required cellular networks to utilize fiber optic cable or microwave to facilitate the increased transmission of data. 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 clarify AT&T’s easement rights for the Tower Street Water Tower property prior to the installation of a new underground fiber optic line. A copy of the partially executed amendment is included with this agenda report. FINANCIAL IMPACT: Onetime fee of $1,125.12 for utility easements ALTERNATIVES: 1. Motion and second to approve a resolution as part of the consent agenda authorizing the Mayor and City Manager to execute an amendment to the AT&T Water Tower Antenna Agreement. 2. Motion and second to remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 17-___ A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE AN AMENDMENT TO THE WATER TOWER ANTENNA AGREEMENT WITH AT&T FOR THE TOWER 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 New Cingular Wireless PCS, LLC (“AT&T”) are parties to a Water Tower Antenna Agreement relating to City property and the Tower Street water tower located at 4741 Tower Street, Prior Lake Minnesota, 55372 (AT&T site ID 10111975); and WHEREAS, AT&T desires to obtain a utility easement to install fiber optic able at the Tower Street Water Tower property for the sole benefit of it’s customers and subscribers; and WHEREAS, AT&T is installing and maintaining the fiber optic cable and additional equipment will be located on the water tower property, within the proposed utility easements and in AT&T’s Equipment Shelter; and WHEREAS, The City Attorney and City Staff have developed an ”Amendment” to the existing antenna agreement; and WHEREAS, AT&T 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 2 to Water Tower Antennae Agreement” prepared by the City Attorney and City Staff. 3. The Mayor and City Manager are hereby authorized to execute the “Amendment 2 to Water Tower Antennae Agreement” on behalf of the City. 2 PASSED AND ADOPTED THIS 4th DAY OF DECEMBER 2017 ______________________________ Frank Boyles, City Manager VOTE Briggs Braid McGuire Burkart Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐☐ ☐ ☐ ☐ Absent ☐☐ ☐ ☐ ☐