Agenda - Council - 07/28/1998 - Laserfiche WebLink

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DISCUSS COMMUNICATION ANTENNA PROPOSAL I By: Steve Jankowski, City Engineer I I I Background: Like many of our municipal neighbors, the City of Ramsey has been approached by a wireless communication company to utilize the City's water tower as an antennae site. Attached to this case is a proposal from PageMart Wireless for a five-year lease of the water tower site. Although there is no amount of rent in the proposed agreement, a verbal proposal from PageMart to City Administrator James Norman suggested $400 per month. In checking with our neighboring cities, the following monthly lease rates were reported: I I I I I I Blaine: Site 1 $ 870/mo. Site 2 1,000/mo. Coon Rapids: 1,025/mo. Anoka 1,400/mo. When the City Administrator inquired about the disparate rate proposed with that of surrounding communities, the PageMart response was that those leases involved different types of equipment. Observation: In talking to the City of Blaine, the low rate agreed to for one communication company became a negotiating point of subsequent leases. Renting at a low rate could set a precedent for future leases in the City. Another consideration is the fact that the City is leasing space on its facility, and the type of antennae and equipment is relatively inconsequential. The presence of the antennae and ancillary equipment will have little effect on the structure. However, once we allow another entity to have access and rights to our facility, the City takes on a degree of liability, some operational inconvenience, and some loss of control over the facility. Recommendation: Staff recommends rejection of the $400/month offer and looks to committee direction on an appropriate minimum lease rate. Committee Action: Based on discussion. Reviewed by: City Administrator Fire Chief/Director of Public Works Finance Officer R&B: 07/21/98