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HomeMy WebLinkAbout5E Amend Verizon 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: SEPTEMBER 4, 2018 AGENDA #: 5E PREPARED BY: NICK ZURBEY, PUBLIC WORKS TECHNICIAN PRESENTED BY: JASON WEDEL AGENDA ITEM: GOAL AREA AND OBJECTIVE: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE AN AMENDMENT TO THE VERIZON COMMUNICATION FACILITIES LEASE AGREEMENT AT THE TOWER ST WATER TOWER High-Value Community Services 5. Seek Community Engagement Through a Variety of Communication Methods to Reach all Residents. DISCUSSION: Introduction The purpose of this agenda item is to consider executing an amendment to the Communication Facilities Lease Agreement with Verizon Wireless (VAW ) LLC d/b/a Verizon W ireless, a Delaware limited liability company (“Verizon”) to allow them to install additional equipment on the Tower St water tower. History The City and Verizon are parties to a Communication Facilities Lease Agreement relating to installation of communications antennas on the Tower Street water tower and leased space for a ground shelter. The original agreement was entered into January 7, 1991 which expired on December 31, 2016 and was replaced by the current agreement dated January 1, 2017. Current Circumstances Verizon, along with several other communications companies, require upgrades to their antenna and equipment as technology for cellular services around the nation improve. They would like to upgrade their equipment at the Tower St water tower which includes adding additional equipment on the City’s water tower. The agreement requires an amendment for any additions or non like kind changes to the equipment mounted on the water tower. 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. Newer technologies require the mounting of additional equipment near the antenna on the water tower with cabled connections. Most of the leases have provisions to address the use of the site for mounting of antenna and storage of equipment in ground shelters but not the newer equipment. However, the new leases developed by the City Attorney and City Staff, like this one, do have provisions and require an amendment. Based on the terms of the Agreement, it was determined that an amendment to the original agreement would be appropriate. A copy of the partially executed amendment is included with this agenda report. FINANCIAL IMPACT: The current annual rent amount will be raised $2,450. 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 Communication Facilities Lease 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 18-___ A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE AN AMENDMENT TO THE COMMUNICATION FACILITIES LEASE AGREEMENT WITH VERIZON 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 Verizon Wireless (VAW) LLC d/b/a Verizon Wireless, a Delaware limited liability company (“Verizon”) are parties to a Communication Facilities Lease Agreement relating to City property and the Tower St water tower located at 4741 Tower Street, Prior Lake, Minnesota 55372 (Verizon site ID MIN Prior Lake); and WHEREAS, Verizon desires to install additional equipment at the Tower Street Water Tower property for the sole benefit of its customers and subscribers; and WHEREAS, Verizon is installing additional equipment which will be located on the water tower and in the Verizon Equipment Shelter; and WHEREAS, The City Attorney and City Staff have developed an “Amendment” to the existing lease 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 1 to Communication Facilities Lease Agreement” prepared by the City Attorney and City Staff. 3. The Mayor and City Manager are hereby authorized to execute the “Amendment 1 to Communication Facilities Lease Agreement” on behalf of the City. 2 Passed and adopted by the Prior Lake City Council this 4th day of September 2018 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐☐ ☐ ☐ ☐ Absent ☐☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager