City Council Regular Meeting - Includes Action Taken


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Meeting Date: 07/18/2016  
Recommended by: Larry Rains Prepared by: Jacob Meshke, Management Analyst
Finance Director Review: Celina Morris  
City Attorney Review: Brett Wallace  
Approved by: Jim Thompson Date Submitted: 06/21/2016
Type of Action Requested: Ordinance

SUBJECT:
Authorizing a Master Lease Agreement between the City of Casa Grande and New Cingular Wireless.
RECOMMENDATION:
Staff recommends that Mayor and Council approve an ordinance authorizing the Master Lease Agreement with New Cingular Wireless 
DISCUSSION:
Staff and the Lessee, New Cingular Wireless, have worked out the primary terms for a master lease agreement to allow Lessee to install, maintain, and operate communication equipment in and/or upon the City of Casa Grande public right-of-way. The master lease agreement allows all provisions to be negotiated at once while still requiring each location to be permitted separately.
 
New Cingular Wireless is going to utilize a small cell program to expand its service to the residents of Casa Grande. Small cell tower sites provide a means for concentrated service within a small radius. Due to the small, concentrated footprint, multiple locations will be needed. New Cingular Wireless seeks out a partnership with the City of Casa Grande for small cell deployment in the public right-of-way.  Currently, small cell deployment will be located on utility poles owned by Arizona Public Service (APS), but the scope may expand in the future to include utility poles owned by the City as well. As of now, New Cingular Wireless has identified two locations for placing equipment. 

Several provisions within the agreement include:
- $350 per site per year when equipment is placed on a utility pole not owned by the City, with a three percent (3%) annual increase  
 
- $700 per site per year when equipment is placed on a utility pole owned by the City, with a three percent (3%) annual increase 
 
- Lessee will pay for the energy consumed by equipment placed on utility poles owned by the City.
 
- Master lease agreement shall be for a term of twenty-five (25) years
 
- All equipment will be installed in accordance with federal, state, and local regulations as well as a satisfactory building or utility pole             structural analysis
 
- Lessee agrees to install equipment which will not cause harmful interference
 
- Lessee will remove equipment from the public right-of-way upon expiration of the Term or within ninety (90) days after any earlier                 termination of a Supplement 
FISCAL IMPACT:
New Cingular Wireless will pay the City of Casa Grande $350 per site per year when equipment is placed on utility poles not owned by the City and $700 per site per year when equipment is placed on utility poles owned by the City, with an annual increase of three percent (3%). 
ALTERNATIVES:
Do no pass the ordinance.
Instruct staff to renegotiate terms of the master lease agreement. 
Attachments
CM O-Master Lease Agreement with New Cingular Wireless
MLA

  

    

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