ITEM 3.13 Water Tower #3 lease0 fid
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MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Legal
City Attorney
November 13, 2018
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
City Administrator/Finance Director Flaherty
3.13
STRATEGIC VISION
MEETS: `I
THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
Has proactively expanded infrastructure to responsibly provide core services.
Yes
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
BACKGROUND/JUSTIFICATION:
Is a social community with diverse housing, service options, and employment opportunities.
wireless transmission off of Water Tower #3. The original lease required amendment in the event that
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
That the Council approve the attached Amendment To Water Tower Lease Between City of Otsego and
Nextera Wireless Dated May 8, 2017 for placement of additional antennas and equipment on Water Tower
#3.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKGROUND/JUSTIFICATION:
The City previously approved a Water Tower Lease Agreement with Nextera Wireless for operation of
wireless transmission off of Water Tower #3. The original lease required amendment in the event that
Nextera proposed installation of additional equipment on the tower. Nextera has requested amendment to
the lease in order to allow them to place two additional antenna structures on Water Tower #3. There are
currently no other antennas except for Nextera's and the City SCADA located on Water Tower #3. City staff
has reviewed the request and has no problem with installation of the additional equipment.
Nextera (then StoneBridge) was the first internet provider to locate on City facilities. The new Water Tower
Lease with Nextera which was approved by the Council on May 8, 2017 is consistent with other
telecommunication leases on City facilities in the amount of rent, yearly escalator clauses, and
requirements that equipment be kept in a separate building at the base of the tower. The proposed
amendment adjusts the rental rate to conform to the lease escalator clause. The lease amendment would
terminate at the same time as the underlying lease (five years) and incorporates all the terms and
conditions of the lease.
Nextera has reviewed the proposed amendment and is in agreement with the document.
SUPPORTING DOCUMENTS ATTACHED:
• Nextera Lease Amendment & Exhibit A (Drawing)
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to Approve Amendment to Water Tower Lease Between the City of Otsego and Nextera Wireless
dated May 8, 2017.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A N/A
AMENDMENT TO WATER TOWER LEASE BETWEEN CITY OF OTSEGO AND NEXTERA WIRELESS DATED
MAY 8, 2017
THIS AGREEMENT made this _ day of November, 2018 by and between the City of Otsego (CITY), a
Minnesota municipal corporation and Nextera Wireless (NEXTERA), a Minnesota Limited Liability
Company.
WHEREAS, CITY and NEXTERA entered into an Agreement dated May 8, 2017 regarding NEXTERA use of
the CITY's Water Tower No. 3 and the Leased Premises; and
WHEREAS, NEXTERA has proposed the construction of Additional Equipment as defined in Paragraph 5
of the original Lease; and
WHEREAS, CITY requires an addendum to the original lease in order to memorialize the terms and
conditions for the placement of the Additional Equipment.
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties Agree as follows:
1. NEXTERA is hereby granted non-exclusive access onto the Leased Premises and WATER TOWER
#3 for purposes of construction, maintenance, operation and removal of the Additional
Equipment, subject to the same terms and conditions as in the original lease.
2. The additional equipment consists of two (2) antennas or equivalent structures as described in
the attached Exhibit A.
3. NEXTERA will pay CITY a monthly additional fee of $104.00 for each new antenna or an
additional total payment of $208.00 per month above and beyond those fees required by the
original Lease. The total amount for the Leased Premises and eight antennas or equivalent
structures upon the date of this Amendment is $1,352.00 per month. Said fees shall be adjusted
yearly as set forth in the original lease.
4. The lease term for the Additional Equipment shall terminate at the end of the Initial Term of the
original Agreement, subject to potential renewal.
5. All other terms and conditions contained in the original Lease shall apply to the Additional
Equipment.
IN WITNESS WHEREOF, the parties hereto have set their hands and affixed their respective seals (if any)
the day and year first above written.
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
NEXTERA
By:
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