HomeMy WebLinkAboutDale Aukee's Input - November 2, 2006 - Comments Regarding T-Mobile proposed communication pole and antenna at Groveland ParkHello Commissioners and Council members,
Below are some facts and points of negotiation that can and should be
addressed if the City is to move forward on the tower. I would like to
re-iterate my position that due to our limited park space I don't
believe this is a reasonable project for the city to undertake.
However,
* The City should require a monopole, which by itself, won't take
up much space. Although the equipment shelter for T-Mobile may only
take an area 10' x 12', if other carriers want to co-locate on the pole
in the future, additional ground space would be required for them to
either place their own shelter or, add on to the T-Mobile shelter so it
looks like one building. Many of the carriers use a pre-fab shelter
approximately 12' x 24' but, they are used to altering them or
constructing buildings that match existing architecture. While it is
cheaper and more convenient to have the shelter placed adjacent to the
monopole, it can be located farther away if the ground is clear to bury
the cables between the tower and the shelter.
* Carriers generally pay around $450 - $800/month for what they
call raw-land sites (built by them from the ground up) for the first
year of the contract. The rent then increases by a certain percentage
each year thereafter. 3% - 4% is usually accepted without question.
The city can also require the carrier to share any rent from additional
carriers that want to co-locate on the tower. Or, the city can require
the carrier to convey ownership of the tower to the City, in which case,
the City often abates the rent for a number of years (As an example the
City of Lakeville abated the rent for 7 years. The carrier will then
begin paying rent taking into account the 3% escalation over the course
of those 7 years).
* Regarding the term of the lease, T-Mobile essentially wants a 30
year lease (5 year initial period + 5 more 5-year periods). This is
longer than most standard leases they are usually 20 - 25 years. The
City should shorten this to 15 or 20 years, which will force T-Mobile to
re-negotiate - and allow the City to re-evaluate the rent & terms to see
if they are still reasonable in 15 or 20 years. Another option might be
to offer T-mobile an initial term of 10 years and then one or two
additional 5-year periods.
* Pole height may also vary. T-mobile may be asking for there
preferred height or as much height they believe they can get. The 100
foot pole may not be required for their purposes and a shorter pole may
be feasible for T-mobile's purposes however this may limit co-location.
* A requirement of the lease should state that if T-Mobile
abandons the site, ownership of both the building and pole is
transferred to the City. If not previously addressed in the agreement.
* With respect to additional carriers or co-locating, there are
three ways the City may want to consider leasing:
1) Lease to T-Mobile only that space they need for their 10' x 12'
shelter and then lease additional ground space to other carriers if, and
when, they go on the tower. Other, co-locating carriers will have to
pay T-Mobile approximately $1,000/month just for use of the monopole so,
they will balk at paying more than around $500/month for ground space.
You can still require T-Mobile to pay a portion of the rent in addition
to whatever ground rent you get from co-locators;
2) Lease more space to T-Mobile than they currently require and
allow them to sublease some of that space to other carriers. Then, take
a percentage (50% seems to be common) of the rent from T-Mobile.
Currently, rents for co-location are around $1,200 - $2,100/month.
NOTE: Carriers usually don't agree to split co-location rent but, they
will often do it with local governments. Additionally, they build
monopoles on city property knowing that they may never be able to recoup
any of their costs through co-location fees; or,
3) Allow T-Mobile to build the tower, convey it to the City and
abate their rent for an agreed upon number of years. Then, charge any
additional carriers rent for tower and ground space.
Any combinations of the above may be an option.
Some things carriers won't negotiate on are:
A) Access to the site - they usually need 24 hr/7 days a week access in
the event the site goes down. This will be a large burden if future
park uses change.
B) Sharing a percentage of their revenue - other than co-location rent.
This becomes difficult calculation.
Again if the City is to move forward these are possibilities to get the
City the best deal.
Dale Aukee
Field Representative
Great River Energy
Office 763-241-2229
Cell 612-840-4019
Fax 763-241-6003
-----Original Message-----
From: Greg Lee [mailto:greg.lee@ci.mounds-view.mn.us]
Sent: Wednesday, November 01, 2006 8:18 AM
To: Cindy Palm; Aukee, Dale GRE/ER; Dan Weldon; Dave Long (E-mail);
Gerald Arel (E-mail); Jerome Kunz (E-mail); John Kroeger (E-mail); John
Kroeger -work; Marta McIntyre; Shari Kunza; Steve Dazenski
Cc: Kari Brown
Subject: T-Mobile proposed communication pole and antenna at Groveland
Park - draft report
Hi Commissioners and Kari,
Attached is the draft report pertaining to the proposed communication
pole and antenna at Groveland Park. This item has been placed on the
November 6th Work Session Agenda.
At this meeting a representative of T-Mobile will be available to
present the proposal and answer any questions the City Council may have.
Is there any additional information or points that you wish to be
included in this report?
Please let me know as soon as possible.
Greg
<<T-Mobile Pole and Antenna Installation Proposal at Groveland Park
11-6-2006.doc>>
$500/month for ground space. You can still require T-Mobile to pay a portion of the rent in addition to
whatever ground rent you get from co-locators;
2) Lease more space to T-Mobile than they currently require and allow them to sublease some of that space to
other carriers. Then, take a percentage (50% seems to be common) of the rent from T-Mobile. Currently,
rents for co-location are around $1,200 - $2,100/month. NOTE: Carriers usually don’t agree to split co-
location rent but, they will often do it with local governments. Additionally, they build monopoles on city
property knowing that they may never be able to recoup any of their costs through co-location fees; or,
3) Allow T-Mobile to build the tower, convey it to the City and abate their rent for an agreed upon number of
years. Then, charge any additional carriers rent for tower and ground space.
Any combinations of the above may be an option.
Some things carriers won’t negotiate on are:
A) Access to the site – they usually need 24 hr/7 days a week access in the event the site goes down. This will be a large
burden if future park uses change.
B) Sharing a percentage of their revenue – other than co-location rent. This becomes difficult calculation.
Again if the City is to move forward these are possibilities to get the City the best deal.
Dale Aukee
Field Representative
Great River Energy
Office 763-241-2229
Cell 612-840-4019
Fax 763-241-6003
-----Original Message-----
From: Greg Lee \[mailto:greg.lee@ci.mounds-view.mn.us\]
Sent: Wednesday, November 01, 2006 8:18 AM
To: Cindy Palm; Aukee, Dale GRE/ER; Dan Weldon; Dave Long (E-mail); Gerald Arel (E-mail); Jerome Kunz (E-
mail); John Kroeger (E-mail); John Kroeger -work; Marta McIntyre; Shari Kunza; Steve Dazenski
Cc: Kari Brown
Subject: T-Mobile proposed communication pole and antenna at Groveland Park - draft report
Hi Commissioners and Kari,
Attached is the draft report pertaining to the proposed communication pole and antenna at Groveland Park. This
item has been placed on the November 6th Work Session Agenda.
At this meeting a representative of T-Mobile will be available to present the proposal and answer any questions
the City Council may have.
Is there any additional information or points that you wish to be included in this report?
Please let me know as soon as possible.
Greg
<<T-Mobile Pole and Antenna Installation Proposal at Groveland Park 11-6-2006.doc>>
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