HomeMy WebLinkAbout#23 - Verizon LeasesSTAFF REPORT
DATE: July 17, 2018
REGULAR #23
AGENDA ITEM: Verizon Cell Leases
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND:
In 2015, Verizon approached the city about placing cell phone equipment at the water tower site
at public works and a location in the Old Village area. Initially, VFW or Lions field were
considered as sites but given the uncertainty at the time about the future
development/improvements to those areas, staff began exploring the infiltration basin site just
south of the tracks.
Verizon has submitted for an administrative permit for the water tower location and a variance and
conditional use permit (CUP) for the infiltration basin site (previous agenda item). If the Council
approves the CUP and variance, one of the conditions is a lease agreement.
Staff had further conversations with Verizon representatives about the water tower site over the
last couple years as well. After further review, it was determined that the cell equipment could go
inside the water tower rather than outside next to the tower. This was important in order to ensure
enough space for future maintenance of the water tower (painting, cleaning, etc) and
maneuverability around the public works yard.
ISSUE BEFORE COUNCIL:
Should the Council approve the Verizon lease for the Water Tower site? Should Council approve
the Verizon lease for the monopole at the infiltration basin?
PROPOSAL:
Staff has been working with Bob Vose from Kennedy and Graven to negotiate the terms of the
two leases. The lease is a five year lease with four automatic five year renewals unless the City
gives Verizon written notice to terminate at least six months prior to expiration of the term. The
annual rent begins at $34,800 and increases by 2% annually.
The land lease agreement for the monopole at the infiltration basin is also for five years with four
automatic five year renewals. The annual rent is $19,800 with a 2% annual increase.
FISCAL IMPACT:
Over the terms of the lease the city would receive $1,748,854.36 in revenue. Cell tower revenue
is currently used to fund operations in the general fund.
OPTIONS:
1) Approve the Water Tower and Land Lease agreements with Verizon Wireless
2) Amend and then Approve the Water Tower and Land Lease agreements with Verizon
Wireless
3) Do not approve the Water Tower and Land Lease agreements with Verizon Wireless
RECOMMENDATION:
Motion to approve the Water Tower Lease Agreement with Verizon Wireless.
AND
Motion to approve the Land Lease Agreement with Verizon Wireless.
ATTACHMENTS:
• Water Tower Lease Agreement
• Land Lease Agreement