HomeMy WebLinkAbout13.F.2. Lease for Telecomm Facilities
/3. F. ) ·
CITY OF SHAKOPEE
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Lease for Telecomm facilities
DATE: December 29, 2009
Introduction & Back~round
The city has been approached by a telecommunications company about using an Excel tower for
an antenna mount and would need space on land to locate an equipment cabinet. The tower is
located on park land and thus a lease from the city is needed for the cabinet location. This
particular instance is located in the Northwest part of the Southbridge area next to 6801 Oxford
Road South. The tower is in the highline easement.
Before staff spends any more time on the issue, staff would like direction as to whether the City
Council is interested in leasing city property for telecommunication pole/tower sites, antennas
on existing or future city structures (emergency warning siren poles), or for locating equipment
cabinets on city property for equipment on other structures such as Excel towers?
The revenue to be derived from a lease depends on the location, what is to be located there and
what is already located there. Other cities are seeing revenue in the $6,000 to over $20,000
range annually for locating antennas on water towers. It should be noted that the rates for
leasing only cabinet space is not clear from the limited information from other cities.
Alternatives
1. Deal with requests on a case by case basis.
2. Develop policy on telecommunication facilities on city property or right of way.
3. Deal with this case now, and develop a policy for future use.
Recommendation
Deal with this instance immediately, and refer any policy development to the Development
Review Committee for recommendations. Further, Council should direct staff to enter into
negotiations for a lease for a telecomm cabinet site on city property with an escrow deposit for
staff time and expenses and bring the proposed lease to Council for approval.
Relationship to Visioning
This supports Goal E, "Financially Strong".
Action
If the Council concurs, it should approve a motion to refer telecomm facility leases for city
property to the Development Review Committee for recommendation of a policy.
In addition, it should direct staff to enter into negotiations for a lease for a telecomm cabinet
site on city property at Oxford Road South with an escrow deposit for staff time and expenses
and bring the proposed lease to Council for approval.
Gregg Voxland
Finance Director