HomeMy WebLinkAbout8.a. Verizon Antenna Lease AgreementG:\UTILITY COMMISSION\UC Items and Packets\2018\20180416\8.a. Verizon Antenna Lease Agreement.docx
Utility Commission Meeting: April 16, 2018
E X E C U T I V E S U M M A R Y
AGENDA ITEM: Verizon Wireless Antenna Lease on
Bacardi Water Tower
AGENDA SECTION:
New Business
PREPARED BY: Brian Erickson, PE, Director of Public
Works / City Engineer
AGENDA NO. 8.a.
ATTACHMENTS: Final Draft Lease Agreement with
Verizon Wireless APPROVED BY: LJM
RECOMMENDED ACTION: Recommend the City Council Approve the Lease
Agreement with Verizon Wireless
ISSUE
Staff is requesting Utility Commission review the final draft lease agreement with Verizon Wireless
for space on the Bacardi Water Tower and provide a recommendation for City Council approval.
BACKGROUND
Cities routinely work with wireless providers to lease space on water towers for antennas to provide
wireless coverage. This allows cities to realize a revenue stream that is relatively stable at a minimal
cost to the city. These arrangements provide companies a readily available high point to reach their
customers which not increasing the number of unsightly antenna towers throughout the city.
Staff and Verizon Wireless have been working on establishing a lease agreement which would allow
Verizon Wireless to install six antennas on the Bacardi Water Tower. Verizon would also install
some equipment (approximately 215 square feet) inside the base of the water tower. In exchange,
Verizon would enter into a five year lease for this space in the amount of $25,625 which would
increase at a rate of 5% or the consumer price index (whichever is higher) annually. The fees for
antenna installation is set annually by City Council and is detailed in the Schedule of Rates and Fees for
2018. Currently, the lease is $24,000 annually for up to six installed antennas and 150 square feet of
equipment space. Any additional floor space required is subject to a $25/square foot charge. This
lease could be renewed three times for five years each for a total of 20 years. The attached lease
agreement has been reviewed by the city attorney and recommended changes have been
incorporated.
If approved, this will be the first installation on the Bacardi Water Tower. As part of the approval
process, Verizon paid an escrow to cover review expenses incurred by the city. Verizon has also
provided a plan set which shows antenna and equipment locations on the tower. Should this
agreement be approved, staff will coordinate with Verizon and the inspector for construction and
installation of their equipment.
SUMMARY
Staff is requesting that the Utility Commission recommend City Council approval of the Verizon
Wireless Lease Agreement for space on the Bacardi Water Tower.