Consent 1.B.
Regular City Council Meeting
- Meeting Date:
- 01/27/2014
- TITLE
- Cell Tower Lease Agreement with Verizon Wireless - Fire Station #6, Wicks Lane at St. Andrews
- PRESENTED BY:
- Brent Brooks
- Department:
- Legal
Presentation:
PROBLEM/ISSUE STATEMENT
In 2011, Verizon Wireless contacted the City staff about the potential lease of a portion of the land currently used for the City’s Fire Station # 6 in Billings Heights, 1601 St Andrews. Previous meetings between staff and a Verizon representative indicated that this site was identified by Verizon as an important location for a cell tower in order to provide more reception capacity and to meet increasing residential cellular use demands. Verizon now desires to proceed with a formal lease agreement and construction of a cell tower at this location subject to Council approval. Verizon has indicated that approximately 40% of homes now use cell phones exclusively and the majority of wireless data is residential and not commercial.
The height of the tower is proposed to be approximately Eighty (80) feet. Because of the height, a Special Review would usually be required under the City’s zoning code; however, Montana Code Annotated Section 76-2-402 allows any public agency to use public land contrary to zoning if a public hearing is held before the Board of Adjustment (BOA). The Board does not have power or authority to deny the proposed use but does provide a required public forum for comment on the proposed use of the publicly-owned property. Such a public hearing was advertised and then held before the BOA on May 4, 2011. During the hearing the Verizon representative advised that the tower was intended to be approximately eighty (80) feet tall, monopole type, located on the east side of Fire Station # 6 property, with a 12 feet x 26 feet ground area required for equipment and a perimeter block wall with a six foot height. During ther BOA hearing on this item there was no public comment opposing the City’s use of this location for a cell tower lease. It was also noted at the hearing that a neighborhood meeting had been held and a small group of approximately 6-8 residents attended with no significant opposition to the tower. It was also discussed that the land immediately east of where the tower would be located is used for commercial activity.
Terms of the proposed lease are detailed in the lease document (Attachment A). Two small easements through the front section of Fire Station # 6 property will be needed to service the tower and related equipment. Those easements are described in Exhibit A, pages 13-15, in the lease document. The proposed lease also reserves for the City, co-location space on the tower for the installation of up to three microwave dishes or similar antennas to enhance emergency and non-emergency service communications as mentioned in Section 31, pages 10-11.The reserved space is at no cost to the City, however, the City would be required to pay for the equipment it would attach to the tower. Annual lease payments of $8400 shall be paid to the City with a 2% annual increase thereafter. (Sections 3 and 5). The lease shall be for an initial five (5) year term and then automatically renewed for four additional five year terms (Sections 3 and 4, pages 1- 2) at Verizon's sole discretion.
The City currently has two other cell tower leases in effect at Stewart Park and the landfill. These leases have similar although not identical terms and the Stewart Park lease was recently renewed in late 2012.
The height of the tower is proposed to be approximately Eighty (80) feet. Because of the height, a Special Review would usually be required under the City’s zoning code; however, Montana Code Annotated Section 76-2-402 allows any public agency to use public land contrary to zoning if a public hearing is held before the Board of Adjustment (BOA). The Board does not have power or authority to deny the proposed use but does provide a required public forum for comment on the proposed use of the publicly-owned property. Such a public hearing was advertised and then held before the BOA on May 4, 2011. During the hearing the Verizon representative advised that the tower was intended to be approximately eighty (80) feet tall, monopole type, located on the east side of Fire Station # 6 property, with a 12 feet x 26 feet ground area required for equipment and a perimeter block wall with a six foot height. During ther BOA hearing on this item there was no public comment opposing the City’s use of this location for a cell tower lease. It was also noted at the hearing that a neighborhood meeting had been held and a small group of approximately 6-8 residents attended with no significant opposition to the tower. It was also discussed that the land immediately east of where the tower would be located is used for commercial activity.
Terms of the proposed lease are detailed in the lease document (Attachment A). Two small easements through the front section of Fire Station # 6 property will be needed to service the tower and related equipment. Those easements are described in Exhibit A, pages 13-15, in the lease document. The proposed lease also reserves for the City, co-location space on the tower for the installation of up to three microwave dishes or similar antennas to enhance emergency and non-emergency service communications as mentioned in Section 31, pages 10-11.The reserved space is at no cost to the City, however, the City would be required to pay for the equipment it would attach to the tower. Annual lease payments of $8400 shall be paid to the City with a 2% annual increase thereafter. (Sections 3 and 5). The lease shall be for an initial five (5) year term and then automatically renewed for four additional five year terms (Sections 3 and 4, pages 1- 2) at Verizon's sole discretion.
The City currently has two other cell tower leases in effect at Stewart Park and the landfill. These leases have similar although not identical terms and the Stewart Park lease was recently renewed in late 2012.
ALTERNATIVES ANALYZED
Council may:
1. Approve the proposed lease and easements.
2. Disapprove the proposed lease and easements
3. Modify the terms of the proposed lease and submit those to Verizon for review.
1. Approve the proposed lease and easements.
2. Disapprove the proposed lease and easements
3. Modify the terms of the proposed lease and submit those to Verizon for review.
FINANCIAL IMPACT
The City will receive annual income beginning at $8400 with an annual 2% rent increase. The City will also receive free tower co-location privileges for up to three antennas or dishes.
RECOMMENDATION
Staff recommends that the City Council approve the attached Lease Agreement and easements for Verizon Wireless and authorize the Mayor to sign any necessary related documents.