Memorandum

City of Lawrence

Legal Services Department

 

TO:

David L. Corliss, Interim City Manager

 

FROM:

Toni Ramirez Wheeler, Staff Attorney

CC:

Chris Stewart, Assistant Utilities Director

Captain Dave Cobb, Lawrence Police Department

Sandra Day, Planner

 

Date:

April 28, 2006

 

RE:

Sprint PCS – Harper Water Tower

 

Sprint PCS is proposing to lease space on and below the City’s water tower located at 2100 Harper Street.  Sprint PCS intends to install and maintain equipment for the transmission and reception of communications signals for its telecommunications business. 

 

Sprint’s plans have been administratively reviewed and approved by the Lawrence-Douglas County Metropolitan Planning Department (attached).  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 City communications equipment on the water tower.   

  

If the City Commission authorizes it, the City Manager 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 during any option periods increasing by 3% of the preceding term.

·        Governmental Use Supersedes Sprint’s Use:  The Site Agreement states that Sprint’s 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 Sprint’s use of the property will be paid by Sprint.

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

·        Removal of Communications Facility At End of Lease:  Sprint 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.  The carrier 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.

 

At the City’s request, Sprint agreed to pay to enlarge the fenced area at the base of the tower that will house supporting equipment to accommodate additional users. 

 

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. 

 

Sprint PCS representative, William Hollick, LCC International, advises that the City water tower site is more desirable for the carrier than Mr. Zaremba’s tower located at 1548 East 23rd Street because of the higher elevation of the City property.