Agenda Packets - 2008/10/13 - Laserfiche WebLink

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Item No: 7H Meeting Date: Oct 13, 2008 Type of Business: Council Business Administrator Review: ___ City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, Clerk - Administrator Item Title/Subject: Approval of Lease Agreement Amendment #3 with Verizon Wireless for the Installation of a Generator at the Water Tower Site Introduction: On September 24, 2007, the City Council approved a Lease Agreement Amendment#2 with Verizon Wireless to allow them to install a diesel powered generator to supply emergency power to their facilities located on the water tower site. Subsequent to this approval, Verizon opted instead to install a natural gas generator which will necessitate installation of a natural gas line through the City property to serve the generator. Discussion: Because of the nature of the change from what had been proposed in Amendment #2, another amendment to the lease agreement was required. Amendment #3 provides for the allowance of a non-exclusive right of way over City property for a gas service line to be installed to the emergency power generator. Because of the costs associated with the preparation and review of this amendment, Verizon has agreed to provide the City with additional compensation in the amount of $2,000. All other terms of the original lease agreement and amendments thereto remain in effect. The City Attorney has reviewed the Amendment and Memorandum on the City’s behalf and finds them acceptable. At the Council’s September 22, 2008 meeting, action on this item was tabled after questions were asked whether additional compensation would be received to allow the gas line to be installed ion City property. The attorney representing Verizon responded that compensation for a service line to a subject facility would be highly out of the ordinary and unreasonable and Verizon would not consent to such additional compensation above what they have already offered (the $2,000.) The attorney further states that the reason they installed the generator in the first place was to comply with federal regulations relating to emergency management to ensure communication lines remain operable in the event of a natural disaster that would otherwise disrupt the power supply. The Verizon Attorney’s letter is attached for the Council’s review. The City Attorney’s office reviewed the attorney’s letter and agreed that requiring compensation to install the gas line would seem unreasonable.