Title
Construction of a Replacement Communications Tower and Lease Amendment Agreement at the Ft. Clarke Substation Tower and Site (B)
Explanation
In 1995, the Commission issued a "Policy Regarding the Evaluation of Proposals to Locate Antennas and/or Other Communications Equipment on or Within City Facilities, Property, and/or Rights of Way". This policy was developed primarily as a result of the increasing requests from cellular telephone and personal communication services companies (carriers) to utilize excess space on GRU's water and communication towers for the placement of antennas. The joint use of strategically located towers will improve the overall communication services available in our community, reduce the need to build additional communication towers in the City and County, and provide an additional source of revenue for GRU. To date, the City has entered into more than 30 lease agreements with carriers for the location of their antennas and equipment on 9 communication towers and two water towers.
Currently, Verizon Wireless, GPD and GFR have antennas and communications equipment on the Ft. Clarke Substation Tower. VoiceStream is the second carrier to request the use of this site, and entered into a lease agreement on June 21, 2000 to lease space on the existing tower. However, the existing tower is a 190-foot lattice tower, of relatively light construction, with little remaining loading capacity. Engineering analysis has concluded that the tower is not structurally adequate to support the additional load and can not be cost effectively modified. Consequently, VoiceStream has been unable to locate their antennas and equipment on this tower. VoiceStream has offered to replace the existing tower with a stronger tower of the same height to provide for their own needs and to facilitate the needs of the City and other communication service providers seeking access.
GRU and VoiceStream have reached a tentative agreement on a Tower and Ground Space Lease Amendment under which VoiceStream will purchase and construct a 190 foot Monopole Communication Tower at the Ft. Clarke Substation site, which will immediately become the property of the City. In return the City will allow VoiceStream to mount antennas on the tower and to use the property for the operation of a cell site. Upon completion, VoiceStream will transfer GPD's, GFR's and Verizon's communications equipment from the existing communications tower at the site to the new tower, dismantle the existing 190 foot communication tower and prepare it for storage at a location determined by GRU. This agreement will be substantially similar to the one executed with Verizon Wireless and approved by the City Commission on February 26, 2001, for the construction and use of a new replacement communication tower at GRU's McMichen Substation Tower site. Additional carriers have also expressed an interest in leasing space at this site, as the use of wireless services continues to expand.
Time is of the essence in executing these lease agreements to facilitate construction and operating plans. To expedite the leasing process, it is our recommendation that the General Manager or his designee be given the authority to Amend the Tower and Ground Space Lease Agreement previously entered into with VoiceStream and to enter into future Tower and Ground Space Lease Agreements at the GRU Ft. Clarke Substation site, in accordance with the intent of the City's Policy and consistent with the authority already granted by the Commission for the other 11 leased communications tower sites. A standard Tower and Ground Space Lease Agreement, which has been approved by the Utilities Attorney, will be used for any new carriers desiring to lease space at this location.
Recommendations
The City Commission: 1) authorize the General Manager or his designee to execute an Amended Tower and Ground Space Lease Agreement with Powertel / Jacksonville, MTA, Inc.(VoiceStream), for the construction of a Monopole Tower replacing the existing communications tower at the Ft. Clarke Substation Tower site, subject to obtaining site plan approval from the County Planning Staff and the approval of the City Attorney as to form and legality; and 2) authorize the General Manager or his designee to negotiate and execute Tower and Ground Space Lease Agreements for the right to place antennas and equipment on the new GRU Ft. Clarke Substation communications tower and site, subject to the approval of the City Attorney as to form and legality.
Fiscal Note
Verizon, the existing carrier, generates in excess of $30,000 per year in revenue for GRU at this site. VoiceStream is expected to produce additional revenues for GRU in excess of $24,000 annually. In addition, the new tower will be capable of supporting at least one more carrier at a lower height, generating approximately another $10,000 in annual revenues. Tower and Ground Space Lease Agreements for all City towers currently produce annual revenues of over $1,000,000.
Drafter
Prepared by Ed Hoffman, GRUCom Director
Submitted by Michael L. Kurtz, General Manager