ITEM 3.7 Lease agreement Water Tower #1CITY dF
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DFRARTMFNT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTUR;
MEETING DATE:
Public Works
City Engineer Wagner
February 10, 2014
PRESENTER(s):
REVIEWED BY:
ITEM #.-
:City
CityEngineer Wagner
City Administrator Johnson
3.7
AGENDA ITEM DETAILS
RECOMMENDATION:
City Staff and the Public works Subcommittee recommend directing the City Attorney to prepare a
Lease Agreement with Nextera for use of water Tower #1.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
Yes No
BACKGROUND/JUSTIFICATION:
Nextera is a wireless communication company who has been leasing space on water tower #1 for many
years. During a review of the water tower during the fall of 2013 Kurt Neidermeier and I discovered
Nextera was using City paid electricity to power their cabinet and small air conditioning unit. They also
had increased the size of their original cabinet beyond what was allowed in the lease agreement. when
this was brought to the attention of the Public Works Subcommittee and the City Council it was decided
to put Nextera on notice that they were in violation of the lease agreement and the lease may be
terminated if a new lease agreement reflecting Nextera's current use of the water tower was not
executed in quick order.
Kurt and I met with Paul Brandt, a Nextera representative, and went over the Issues. We asked that
they propose what changes Nextera would complete on site and any changes they would agree to as it
pertains to the lease agreement. Nextera was informed these changes were needed so the City would
be more comfortable with the arrangement and that the new lease agreement would be more similar to
other communication companies also using the tower.
We have received an email from Nextera with their proposed changes (see attached). They propose to
pay for the electricity bill for the entire tower rather than meter their own usage. They also propose to
move the location and size of their cabinet within their tower and move their cables off of the access
ladder to their own cable ladder.
These changes along with a lease escalator clause and access requirements need to be added to the new
lease agreement to bring Nextera-s back into conformity with the other communication companies.
The Public Works Subcommittee recommended the new Nextera lease agreement include:
■ payment to the City for all of the water tower's electric usage @ $85/month w/ end of year true
up
0 leasing of 50 cubic feet of indoor space at $10/cubic foot equaling $5o4/month,
• an escalator clause set at 4.5/0,
* access requirements and associated fees.
• $125.00 per month per antenna
SUPPORTING DOCUMENTS: X ATTACHED X NONE
• Nextera email stating proposed changes
MOTION: (Please word motion as you would like it to appear in the minutes.)
Motion to direct the City Attorney to prepare a Lease Agreement with Nextera for communication
equipment at water Tower #1
BUDGET INFORMATION
FUNDING: BUDGETED: YES
Paid by Developer
X NO
ACTION TAKEN
o APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
Tami Luff
From: Ron Wagner <RonW@HAA-inc.corn>
Sent: Wednesday, January 15, 2014 9:57 AM
To: Tami Loff
Subject: FW: Nextera Lease
Attachments: Cabinet OD-78DDC. pdf; Otsego WT. pdf
]Anderson
Hakanson
Ronald J. Wagner, Otsego City Engineer
3601 Thurston Avenue
Anoka. MN 55303
Phone: 76.3-427-5860
Direct: 763-852-0478
Cell: 612-919-9657
From: Gina Hoveland fmailto:qhovelandnextera.net Thursday, January 02, 2014 2:35 PM
To: Ron Wagner
Cc: KNeidermeier(-a�ci.otseqo.mn.us; Andy MacArthur (aimacarthur(@a.com)
Subject: RE: Nextera Lease
Ron,
I was thinking that I'd forwarded this to Andy, but I must have gotten distracted by the holidays. Sorry
for the delay.
The attachments show the cabinet that we can bring in to hold our equipment and also a drawing of
the equipment's new placement. The scope of work that I understand you, Kurt and Paul discussed is
listed below.
Scope of work:
1. Install a new cabinet at a new location within the tower. The new location is closer to the
electrical box and on dry soil. In recent years, since one of the carriers installed underground
conduit tubes from the tower to their outside building, there has been a growing area of water
penetration within the tower. Our current cabinet location is within this area.
A. The cabinet will be 78"H x 25"W x 35"L. This amounts to a 6 square foot footprint. Oy�p
B. Our equipment will have battery backup with a minimum runtime of 18 hours in order to
avoid the need for generator access.
2. Install new cabling to our radio equipment that will follow the same path up the tower as the
other carriers.
3. Utilize the existing electrical service. Nextera would take over paying for the entire tower
bill. Unlike other carriers, we can operate all of our equipment off of one 20 amp outlet. For
redundancy purposes, Nextera would have two 20 amp circuits installed in our cabinet.
Does this look acceptable to you? Please let us know if we need to make any changes.
ERA
coal 41M -M10115
ERA
Gina Hovelland . General Manager
(direct) 952.564.6908 (fax) 952.564.6909
(email) ghovela ncl(�)nextera net (web)
Like us on Face�Jook. Follow us on Twitter & Linked1n.
From: Ron Wagner
Sent: Monday December 30, 2013 2:42 PM
To: Gina Hoveland; Andy MacArthur
Cc:
Subject: RE: Nextera Lease
Gina
We have not received anything regarding what Nextena's plans are. Pau[ Kurt and | met back in early December. Paul
stated he would put together ideas for a new agreement between Otsego and NexLena. Can you checkon this? Council
would |(ketoupdate the agreement inthe near future.
iAlHakan5on
Anderson
Ronald J. Wagmer, Otsego City En&oer
38OlThurston Avenue
Anoka, MN 55303
Phone: 763-427-5860
Direct: 763-852-0478
Cell: 612-919-9657
From: Gina
Sent: Monday December UZ~2U13 12:05 pn
To: Andy MacArthur
Cc: Ron Wagner
Subject: RE: Nextera. Lease
Thanks Andy. I'll summarize what our wireless engineer, Paul Brandt, put together after his meeting with Ron
and send it to you and Ron for review and feedback.
O D-78 D DC Click Here For More
78yw H x 34" D (84 RU) Ou-i'door Enclosure Information Online
Weight
205 Lbs. assembled
260 Lbs. shipping weight
Doors
2, secured by three point locking system
Locks via customer supplied padlocks
Sealed with .875" aluminum filled gaskets
Material
.125" Alum ifiexTM
Finish: Fainted cream
RF properties: Non-ferrous
Vents
30 bottom louvers per door
12 top louvers -- In top cover,
under AlumishieldTM
One removable filter panel per door
12 fixed filter pads in top cover
Handles
Stainless steel, padlocking
lacking Specifications
Rails
Two sets 19" Rail standard
(for additional rails see accessories)
Alodine coated
Holes tapped for 10-32 threads
Each rail supported by three R-STRUTSTM
.125" material (AlumifiexTM}
Spacing
1911 or 23" Racking available
Useable Height
Usable racking height has been revised
to only fit in the opening of the door jam
which is cabinet height minus 4.25"
Maximum: 74.25"
Number of rack units per rail set: 42
Total number RU's: 84
Useable Depth
Maximum: 30.5" Minimum: 28.75"
Inside Clearance - Less Rails
Height
77.98"
Width
23.625"
Depth
See racking specifications
— Useable depth
Ratings
NEMA Class Types available
NEMA 311 (Vented), NEMA 4
(closed loop -a/c), NEMA 4X
Paint Tested
1000 Hour salt spray (textured)
1000 Hour immersion
IDOL Open Vic- ._
Height
74"
Width
19.5"
Main Body
Height: 78.23"
Width: 25.5"
Depth: 34"
AlumishieldTM
Hang down height: 1.75"
Width: 28.46"
Depth: 36.67"
Handles
Protrude 1.875"
Total space Occupied,
Height: 78.855" 0- I •T�„ I
Width: 28.46" Ar
e 3
Depth: 37.75"
Top 74.75" -•- 78.23"
3.2511
30.50'
74.57" -- 74.75"
.18"
29.50"
45.09" — 74.57"
29.57"
30.50"
Center 33.00" - 45.00"
12.00"
28.7 511
3.43" — 33.00"
29.57"'
30.5011
3.25" — 3.43{1
.1811
29.50„
Bottom 0.0011— 3.25"
3.251"
30.5011
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