Memorandum

Memorandum

To:    David L. Corliss, Assistant City Manager

From: Toni Ramirez Wheeler, Staff Attorney

Cc:     Mike Wildgen, City Manager, Debbie Van Saun, Assistant City Manager

Re:     Site Agreement with Southwestern Bell Wireless, LLC, as General Partner of the Kansas City SMSA Limitied Partnership d/b/a Cingular Wireless on the Stratford Water Tower

Date: November 18, 2004

Southwestern Bell Wireless, LLC, as General Partner of the Kansas City SMSA Limited Partnership, d/b/a Cingular Wireless is proposing to lease space on and below the City’s Stratford Water Tower located near the intersection of Stratford Road and Sunset Drive. Cingular Wireless intends to install and maintain equipment for the transmission and reception of communications signals for its telecommunications business. 

Cingular Wireless’ plans have been administratively reviewed and approved by the Lawrence-Douglas County Metropolitan Planning Department.  Black & Veatch has reviewed the plans for the City to ensure the tower can support the proposed equipment and that the proposed equipment will not interfere with the equipment of existing users on the water tower.  Black & Veatch has recommended approval of the plans as submitted.   

If the City Commission authorizes it, the City would enter into a lease agreement in substantially the form of the attached Site Agreement.  Key provisions of the attached lease agreement include:

· Term:  A five-year term, with the opportunity to extend the Agreement for two additional successive five (5) year option periods.

· Rent:  $1,700.00 per month during the first five-year term, with the monthly rent increasing by 3% on each annual anniversary of the Commencement Date.

· Governmental Use Supersedes Cingular Wireless’ Use:  A number of public safety agencies have communications equipment on the Stratford Water Tower.  The Site Agreement states that Cingular Wireless’ use of the property is in all matters subordinate to the City’s, and/or any governmental entity’s use of the property for any public purposes. 

· Property Taxes:  Property taxes assessed against the Property as a result of Cingular Wireless’ use of the property will be paid by Cingular Wireless.

· Access to the Water Tower:  Access by Cingular Wireless and its contractors for installation and maintenance will be coordinated through the Utility Department. 

· Removal of Communications Facility At End of Lease:  Cingular Wireless will provide a $5,000.00 payment to the City that will be held in escrow until the facility is removed to the City’s satisfaction upon the termination of the lease.  If Cingular Wireless does not remove the equipment, the City will have it removed using the funds in the escrow account.

· Standard Lease Provisions:  The agreement also contains provisions concerning mutual indemnification, insurance, and default, among other standard provisions.

The City’s Zoning Ordinance encourages the placement of communications equipment on existing towers, structures, and building roofs.  The City has leased property to other companies to accommodate the public’s need for the communications services.