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Brentwood City Commission Agenda
Meeting Date: 04/08/2019  
Resolution 2019-38 Authorizing an Agreement with Cellco Partnership d/b/a Verizon Wireless for a Communication Site Lease for Granny White Park
Submitted by: Kristen Corn, Legal
Department: Legal  

Information
Subject
Resolution 2019-38 Authorizing an Agreement with Cellco Partnership d/b/a Verizon Wireless for a Communication Site Lease for Granny White Park
Background
In 2010, the City Commission approved a communication site lease with Clear Wireless LLC, a wireless Internet company, for the placement of a wireless Internet antenna on a an athletic field light pole at Granny White Park and installation of an Equipment Building (see attached picture).  Clear Wireless terminated the lease approximately two years ago.

A little over a year ago, the City was contacted by Verizon Wireless requesting a communication site lease for the existing pole vacated by Clear Wireless.

As you know, the City cannot prohibit the installation of cellular/wireless towers and several years ago adopted an ordinance which regulates the location and construction of such facilities. The City’s cell tower ordinance strongly favors such co-location options in lieu of installation of new tower structures. Given the City’s preference for such co-location situations and the potential for additional lease revenue to the City with little or no impact on the park, staff has been negotiating with the Verizon representatives to draft an acceptable lease agreement.

The subject site is shown as Exhibit C in the attached lease agreement. As proposed, above-ground facilities will include equipment being placed on the existing "uni-pole" in the park. No additional poles will be added in the park. The existing equipment shelter will store Verizon's ground equipment, cabinets, fiber, and coax cables. Additionally, the lease provides for an easement which runs from Granny White Pike to the site to allow for access as needed for maintenance purposes.

Pursuant to the lease agreement, Verizon may maintain, replace, repair, add to or otherwise modify its antennas, utilities, fiber, and ground equipment within the Premises, with similar and comparable equipment, provided that said replacement does not extend beyond the Premises, without the need for prior approval from the Planning Commission or other consent from the City. However, for any equipment modification that is not similar and comparable or will extend beyond the Premises, Verizon must submit new plans to City's Planning and Codes Director. 

The initial term of the lease is five years, and the lease will be automatically extended for four additional five-year terms unless Verizon terminates it by giving the City written notice at least six (6) months prior to the end of the then-current term. From that point, either Verizon or the City may terminate this lease by giving the other party written notice, but if it has not been terminated by the end of the fourth five-year extension term, it will continue for additional five-year terms.

During the initial term, the City will receive total annual rental of $30,000.00, to be paid in equal monthly installments. If the Agreement continues at the end of any five-year term, the monthly rental will increase by ten percent.  If this Agreement has not been terminated at the end of the fourth five-year extension term, the monthly rental will again increase by ten percent of the monthly rental for the preceding five-year term and increase again by ten percent every five years for as long as the Agreement remains in effect.

The Park Board reviewed this proposed lease agreement at its February 2019 meeting and voted to recommend approval to the City Commission.

Should you have any questions, please contact the City Manager or City Attorney.
Staff Recommendation
Staff recommends the approval of Resolution 2019-38.

Fiscal Impact
Amount : $30,000
Source of Funds:
Account Number: 110-00000-34860
Fiscal Impact:
This lease agreement will provide revenue to the City's General Fund in the amount of $30,000/yr. for the initial five year term of the lease with 10% increases in the annual lease payment for each subsequent five year renewal term if exercised by the company.
Attachments
Resolution 2019-38
COB Contract No. 2019-022
COB Contract No. 2019-022 - Memorandum for Filing
Existing Pole and Equipment Shed
Signed Resolution
Fully Executed Lease Agreement
Written Acknowledgement of Lease Commencement

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