HomeMy WebLinkAbout04-89 T r
Resolution No. 04-89
RESOLUTION
AUTHORIZING EXECUTION OF A NON-EXCLUSIVE WATER TOWER
ATTACHMENT LEASE AGREEMENT
(College Green Water Tower)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS, that
David M. Dorgan, City Manager, and Dolonna Mecum, City Clerk, be and are hereby respectively
authorized and directed to execute a Non-exclusive Water Tower Attachment Lease Agreement with
Fox Valley Internet, Inc. for the premises commonly known as the College Green Water Tower,
Elgin, Illinois, a copy of which is attached hereto and made a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: April 14, 2004
Adopted: April 14, 2004
Omnibus Vote: Yeas: 5 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
NON-EXCLUSIVE WATER TOWER ATTACHMENT LEASE AGREEMENT
COLLEGE GREEN WATER TOWER
THIS NON-EXCLUSIVE TOWER ATTACHMENT LEASE AGREEMENT
("Lease") is executed this 14th day of April 2004, by and between the City of Elgin, an
Illinois Municipal Corporation ("City") and Fox Valley Internet, Inc. ("Company").
WHEREAS, City owns an elevated water tank located on College Green Drive,
Elgin, Illinois commonly referred to as the College Green Water Tower; upon which
Company desires to mount certain of Company's antennae, other equiment and re-
p,
fated devices; and
WHEREAS, Company desires to lease from City a certain designated space on
City's elevated water tank; and
WHEREAS, City retains the right to contract with other parties toy attach equip-
ment on the City's elevated water tank so long as said equipment does not cause inter-
ference with reception of Company's equipment; and
WHEREAS, City desires to allow a designated space for Company's equipment
on its elevated water tank and to insure Company's equipment does not!interfere with
City's daily operations and maintenance; and
WHEREAS, City desires to consolidate all existing communications antennas and
equipment with Company's proposed installation to improve the aesthetics of the ele-
vated tank; and
WHEREAS, City desires to be indemnified and held harmless from and against
any and all damages caused by the operation, maintenance or installation�l of any and all
equipment.
NOW THEREFORE, for and in consideration of the terms and mutual promises
herein contained, and for other good and valuable consideration, the receipt and suffi-
ciency of which are hereby acknowledged, City and Company agree as follows:
1. Property. City hereby grants Company the right to install, maintain, operate and
remove communication equipment and appurtenances as design I ated on City's
elevated water tank on City's property which is more particularly described in
Exhibit A (the "Property"), attached to and incorporated into this agreement by
reference.
2. Use. Company shall be permitted to install antennae, cabling emergency power
generators and related equipment on the Property and to install or improve
utilities on the Property. A description of the equipment, mounting height of the
antennae, and other personal property owned by Company which Company
shall be permitted to locate on a designated space on the City's elevated tank lo-
cated on the Property and a diagram on installation on the elevated water tank
located on the Property are attached hereto as Exhibit B (the "Equipment"), at-
tacked to and incorporated into this agreement by reference. The permission
granted to the Company for installation of Equipment is contingent upon the ap-
proval of the Company's plans that demonstrate relocation of existing communi-
cation equipment (to include coax cable, antennae, brackets, hardware, etc.) that
may be owned by other communication carriers. All costs and labor associated
with these modifications shall be the responsibility of the Company and shall be
considered to be an integral part of this agreement. Any agreements among van-
ous communication carriers associated with these modifications shall be the re-
sponsibility of the Company. Prior to installation, all installation plans, including
plans for the attachment of Company's Equipment for relocation of existing
equipment owned by other carriers to City's elevated tank, and ',any personal
property owned by the Company that is to be located on the Property or at-
tached to the elevated water tank must be approved by the City, which approval
shall not be unreasonably conditioned, withheld or delayed by City. In the event
that Company has not received notice of any objection or modifications from
City to the plans within sixty (60) days of the date of the receipt of the plans by
the City, plans shall be deemed effectively approved by the City and Company
may commence installment of the Equipment. Any personal property owned by
Company, whether fixed or attached to the Property or the elevated water tank
shall remain the exclusive property of Company without regard to whether the
personal property is described on Exhibit B. The Company's Equipment shall not
be permanently attached or welded to City's elevated water tank; unless prior
consent has been granted to Company by the City. If welded attaclunents are ap-
proved, Company shall be responsible for replacing interior or ',exterior tank
coatings that are damaged by welding. All replacement of coatings shall meet the
exact specifications of the existing tank coating and must be completed within
sixty (60) days of the time that welding on the tank occurs. All costs associated
with the new coatings, including City's operational costs, including, but not lim-
ited to draining, cleaning, disinfecting and draining the elevated tank, shall be
borne by Company.
3. City hereby grants Company designated access to the elevated water tank and
the Property for the purpose of installing and maintaining the Equipment and
appurtenances. Company shall have a non-exclusive right of ingress and egress
to and from the Property at all times provided City provides prior consent to
such access. The City will not issue keys or pass codes to Company for any such
pre-approved access to the Property. If Company requires access to Property
outside City's normal business hours, Company shall pay City a'service fee of
Fifty Dollars ($50.00) plus an hourly fee of Thirty-five Dollars ($35.00) for each
hour or portion of an hour City is required to provide Company with access to
the Property outside City's normal business hours.
4. liiitial Term. The initial terns of this lease shall be for a period of three (3) years
commencing on the day of execution of this agreement ("Initial Term").
5. Renewal Terms. Company shall have the right to extend this lease for an addi-
tional five (5), two (2)-year Renewal Terms ("Renewal Terms"); a ten (10)-year
total renewal term. The Renewal Terms shall be on the same terms and condi-
tions as set forth in this lease except that rent shall increase as proyided in para-
2
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graph 5(b). This lease shall automatically be renewed for the Renewal Terms un-
less (1) Company notifies City of Company's intention not to renew the lease at
least forty-five (45) days prior to the expiration of the Initial Term or the Renewal
Term which is then in effect, or (2) City notifies Company of City's intention not
to renew the lease at least forty-five (45) days prior to the expiration of the Initial
Term or the Renewal Term which is then if effect.
6. Consideration.
a. Initial Terin. Company shall pay to City as rental the sum of FOUR
THOUSAND EIGHT HUNDRED DOLLARS ($4800.00)', per annum
("Lease Payment") for a designated space on City's elevated water tank
located on the Property which shall include Company's right to use and
occupy a designated ground space surrounding City's elevated water tank
as approved by City. The Lease Payment may be invoiced monthly should
Company desire. The Lease Payment shall be increased annually com-
mencing one (1) year from the date of this lease at the rate of five percent
(5%) of the previous year's rental, i.e., during year two the annual rental is
$5040.00 and during year three the annual rental is $5292.60. The Lease
Payment shall be paid annually in advance with the first',,such annual
payment due on the commencement date and thereafter on each anniver-
sary of the commencement date unless Company has requested monthly
payments pursuant to this section.
b. Renezoal Tenn. In the event that Company elects to renew this lease as pro-
vided in paragraph 4, rent shall be increased annually during the Renewal
Terms during each year of each Renewal Term at the rate of five percent
(5%) of the previous years Lease Payment.
7. Utilities. Company shall annually provide City with the annual estimated costs
for all required electrical or other utility connections to support their Equipment
and such annual costs shall be paid by Company to City in addition to the an-
nual rent in effect at such time.
S. Water Tank Pi.o-pose. Company recognizes that the primary function of the ele-
vated water tank is to provide water storage for City and its customers. Com-
pany understands that City may find it necessary from time to time to interrupt
Company's use of the Premises for maintenance of the water tank. City shall
provide Company with at least thirty (30) days' prior written notice for non-
emergency maintenance ("Maintenance Period"), and, if necessary, Company
agrees to remove its antennae or coaxial cable from the water tank provided that
such removal shall not exceed a period of thirty (30) days. If required to remove
its antennae or coaxial cable, Company shall have the right to relocate its anten-
nas or coax in any manner as set out in this Paragraph and/or Company may
terminate this Lease upon thirty (30) days' written notice to the City at any time
during the thirty (30)-day relocation period and neither party shall have any
further rights or obligations arising hereunder, except Company shall have the
duty to remove its Equipment as set forth herein, and the parties shall have those
rights and obligations that are to survive the termination of this lease.
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a. Company, at its sole cost and expense, may relocate temporarily its anten-
nae to a different location on the water tank, provided, however, that such
relocation shall not exceed the Maintenance Period and that relocation
space is available on the water tank at a location sufficient to meet Com-
pany's coverage or engineering needs and sufficient to allowj maintenance
performed by the City. Company shall be allowed to relocate to any loca-
tion on the water thank that is not being used or intended to be used by
City and will not cause interference with any other equipment located on
the water tank. Such temporary location shall not interfere with the City's
maintenance or any other users on the water tank; or
b. Company, at its sole cost and expense, may use a temporary;transmission
site or "cell on wheels" on City's Property at a location sufficient to meet
Company's coverage or engineering needs.
9. City's Representations and Warranties. City represents and warrants that all opera-
tions conducted by City in connection with the elevated water tank and the
Property including the lighting systems meet with all applicable roles and regu-
lations of the Federal Aviation Administration and all applicable city, county and
state codes and regulations. City shall maintain its lighting system in a proper
operating and safe condition and shall comply with all notice requirements of the
Federal Aviation Administration regarding the failure, malfunction or repair of
the elevated water tank lighting systems. The cost of painting and repairing
City's elevated water tank shall be borne by City unless the damage to the ele-
vated water tank is caused by Company, in which case Company shall repair
such damage, or, at its option, Company may reimburse City for its costs and ex-
penses incurred in such repair. The cost of painting Company's Equipment shall
be borne by Company, and shall be performed routinely to maintain the appear-
ance of the equipment and shall be in a color approved by the City': City will not
be responsible for damage to the Company's equipment while performing
maintenance on the Property or the elevated water tank. In the event City fails to
maintain the elevated water tank lighting systems as provided herein, Company
shall have the right to withhold rental payments to City if City fails to make said
lighting repairs after Company has given City thirty (30) days' written notice of
the need to provide maintenance and repairs. Company shall have the right to
apply such rents withheld hereunder to make the necessary repairs and provide
the necessary maintenance, and Company shall not thereafter be responsible for
the rents withheld to City.
10. Conditions Precedent. Company's obligation to perform under this Lease shall be
subject to and conditioned upon:
a. Company securing appropriate and necessary approvals for Company's
intended use of the Property, as well as any future regulations or re-
quirements, from the Federal Communications Commissioiz, the Federal
Aviation Administration and any other federal, state or local regulatory
authority having jurisdiction over Company's proposed use of the Prop-
erty;
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b. Company may conduct radio frequency propagation studies ("RF Stud-
ies") on the Property. If the RF Studies do not provide result's which meet
with the personal satisfaction of Company, or if the RF Studies provide re-
sults which demonstrate that operation of the Company's Equipment will
disrupt or interfere with any program of the City, Company 'shall have no
obligation to perform under this Lease; Company's inability to success-
fully satisfy these conditions or the occurrence of any other; event which
effectively prohibits Company's intended use of the Property shall relieve
Company from any obligation to perform under this Lease and shall enti-
tle Company to restitution of any unearned rental payment's which have
been paid to City.
11. Terminatiof2. Except as otherwise provided herein, this Lease may he terminated
without any penalty or further liability upon written notice as follows:
a. By either party upon a default of any covenant or term hereof by the other
party which default is not cured within sixty (60) days of receipt of written
notice of default (without, however, limiting any other rights available to
the parties pursuant to other provisions hereof); provided, that if the de-
faulting party commences efforts to cure the default within such period,
the non-defaulting party shall no longer be entitled to declare a default;
b. Upon thirty (30) days' written notice by Company if Company is unable
to obtain or maintain through no fault of Company any license, permit or
other governmental approval necessary to the construction and operation
of the Company's Equipment or business; or
c. By City upon providing Company with six (6) months notice that the ele-
vated water tank is going to be abandoned or relocated.
d. In any of the events of default or termination of this lease, the Company
must leave the Property in its original condition, normal wear and tear ex-
cepted.
e. By Company upon providing City with six (6) months' written notice the
use of the property is unacceptable for technical reasons including prop-
erty being unacceptable as part of Company's network design, the tech-
nology employed by the Company on the Property becoming obsolete or
no longer economically viable for continued operation by Company.
12. Liability hisTtra72ce. During the Initial Term and the Renewal Terills, Company
shall maintain, at its own respective expense, insurance covering claims for pub-
lic liability, personal injury, death and property damage under a policy of gen-
eral liability insurance, with limits of not less than Five Hundred Thousand Dol-
lars ($500,000.00) per person and One Million Dollars ($1,000,000.00) per occur-
rence, and property damage insurance of not less than Fifty Thousand Dollars
($50,000.00). Such insurance shall insure against liabilities arising out of or in
connection with Company's use or occupancy of the Property, subject to the
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standard exceptions found in the Commercial General Liability Insurance Policy,
and shall name the City of Elgin as an additional insured.
13. Environmental Compliance. City warrants and represents to the best of City's ac-
tual knowledge and belief that the Property and the improvements thereon are
free of contaminants, oils, asbestos, radon, PCBs, hazardous substances or wastes
as defined by federal, state or local environmental laws, regulations or adminis-
trative orders or other materials the removal of which is required or the mainte-
nance of which is prohibited, regulated or penalized by any federal, state or local
government authority ("Hazardous Materials"). This lease shall at the option of
Company be void and of no further force or effect if Hazardous Materials are
discovered to exist on the Property after Company takes possession of the Prop-
erty, and Hazardous Materials are not the result of Company's operation, and
Company shall be entitled to a refund of all consideration given City under this
Lease.
14. Intea fe7-mce. Company covenants that the Equipment will not cause interference
with the operation of any other wireless communications equipment located on
the elevated tank as of the date of this lease and that any new or replacement
Equipment installed after the date of this lease will not cause interference with
the operation of any other wireless communications equipment located on the
elevated tank. In the event the Equipment is determined to be causing interfer-
ence with the operation of any other wireless communications equipment located
on the elevated tank as of the date of this lease, Company shall eliminate or rec-
tify such interference within seventy-two (72) hours of the receipt of notice of
such interference from City. If such interference cannot be eliminated or rectified
to City's personal satisfaction within seventy-two (72) hours of the receipt of no-
tice by Company from City of the existence of interference ("Notice Date"),
Company shall discormect utility service to the Equipment until such time as the
interference can be eliminated or rectified to the City's satisfaction, said inter-
ference cannot be eliminated or rectified to City's satisfaction within thirty (30)
days of the Notice Date, Company shall immediately remove the Equipment
from the elevated water tank and the Property or City may at the sole discretion
and option of terminate this lease upon notice to Company. City shall prohibit
the operation of any telecommunications equipment on the Property during the
Term which will cause interference with Company's radio reception and broad-
cast activities or limit Company's intended use of the Property. Upon any notice
from Company to City of the existence of interference with Company's radio re-
ception and broadcast activities on the Property which the Company believes is
attributable to other telecommunications equipment in use on the Property not in
existence at the beginning of the Term or used in a manner in which it was not
used at the beginning of the Term, City will use its best efforts to cause such in-
terference to cease not more than seventy-two hours after notice from Company.
15. Indemnification. To the fullest extent permitted by law, Company agrees to and
shall indemnify, defend and hold harmless City, its officials, officers, employees,
attorneys, agents, boards and commissions from and against any and all claims,
suits, judgments, costs, attorney's fees, damages or other relief, including but not
limited to workers' compensation claims, in any way resulting from or arising
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out of or alleged to be resulting from or arising out of negligent actions or omis-
sions of Company in connection with the performance of this agreement, in-
cluding negligence or omissions of Company's employees, agents or subcon-
tractors arising out of the performance of this agreement, or in any way resulting
from or arising out of or alleged to be resulting from or arising out;of any viola-
tion and/or breach of the terms or provisions of this agreement by Company, in-
cluding any violation and/or breach by employees, agents or subcontractors of
Company. In the event of any action against City, its officials, officers, employ-
ees, attorneys, agents, boards and commissions covered by the foregoing duty to
indemnify, defend and hold harmless, such action shall be defended by legal
counsel of City's choosing. The provisions of this paragraph shah survive any
expiration and/or termination of this agreement.
16. Liniitation of Liability. Notwithstanding anything to the contrary in this agree-
ment, in no event shall City, its officials, officers, employees, attorneys, agents,
boards and commissions be liable to Company under any contract, negligence,
strict liability or other legal or equitable theory for any indirect, special, conse-
quential or incidental damages whatsoever, including but not limited to damages
for loss of business profits, business interruption and loss of business informa-
tion, arising from this agreement and/or Company's use of the Property. City's
liability arising from Company's use of Property shall be limited to direct dam-
ages of not more than the consideration paid to City by Company in accordance
with paragraph 6 of this agreement, if any. Company acknowledges and agrees
that the foregoing amount is not an estimate of damages and that'such amount
shall not be admissible for any purpose in any action against City. The provisions
of this paragraph shall survive any expiration and/or termination,'of this agree-
ment.
17. Stibrogation.
a. Iii General. All insurance policies required under this Lease shall, if possi-
ble, contain a waiver of subrogation provision under the terms of which
the insurance carrier waives all of its rights to proceed against City or
Company, as the case may be. If waivers of subrogation are;obtained, the
party procuring such insurance shall use its best efforts to obtain a certifi-
cate of insurance that notes the waiver of subrogation and la copy of the
insurance policy endorsement that evidenced the insurance carrier's as-
sent to the waiver of subrogation.
b. Mi.itual Release. City and Company each release the other and their respec-
tive representative from any claims by them or any one claiming through
or under them by way of subrogation or otherwise for damage to any per-
son or to the Property and to the fixtures, personal property, improve-
ments and alterations in or on the Property that are caused by or result
from risks insured against under any insurance policy carried by them
and required by this Lease; provided that such releases shall be effective
only if and to the extent that the same do not diminish or adversely affect
the coverage Linder such insurance policies. City shall be named as addi-
tional insured on any insurance policy procured by Company.
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18. Notices. All notices or demands by or from City to Company, or!Company to
City, shall be in writing. Such notices or demands shall be mailed to the other
party at the following address:
City:
City of Elgin
Attn: Water Director
150 Dexter Court
Elgin, IL 60120-5555
Company:
Fox Valley Internet, Inc.
164 E. Chicago Street, Suite 1
Elgin, IL 60120
19. Destruction of Prelnises: If the Property or the elevated water tank are destroyed or
damaged so as to hinder the effective use of the elevated water tank in Com-
pany's judgment, Company may elect to terminate this lease as of the date of the
damage or destruction by so notifying the City. In such event, all rights and obli-
gations of Company to City shall cease as of the date of the damage or destruc-
tion, and Company shall be entitled to the reimbursement of any rent prepaid by
Company.
20. Title and Quiet Enjoyment. City warrants that (i) it has the full right, power and
authority to execute this lease; (ii) it has good and marketable title to the Prop-
erty free and clear of any liens, encumbrances or mortgages. City further war-
rants that Company shall have the quiet enjoyment of the Property during the
term of this lease.
21. Assignment. Any sublease or assignment of this lease that is entered into by City
or Company shall be subject to the provisions of this lease. Company may assign
this lease with the consent of City to an affiliate of Company or to an entity that
acquires Company's assets or stock and continues in the business of offering
wireless telecommunication services. Company may not otherwise sublet or as-
sign this lease without the City's consent.
22. Successors and Assigns. This lease shall run with the Property and shall be binding
upon and inure to the benefit of the parties, their respective heirs, successors,
personal representatives and assigns.
23. 1Vliscellaneoi.is.
a. This lease constitutes the entire agreement and understanding of City and
Company with respect to the subject matter hereof and supersedes all of-
fers, negotiations and other agreements. There are no representations or
8
understandings of any kind not set forth herein. Any amendments to this
Lease must be in writing and executed by City and Company.
b. If either City or Company is represented by a real estate broker in this
transaction, that party shall be fully responsible for any fees due such bro-
ker and shall hold the other party harmless from any claims for commis-
sion by such broker.
c. This lease shall be construed in accordance with the laws of the State of Il-
linois and venue for any legal action involving this lease shall be in the
Circuit Court for the Sixteenth Judicial Circuit, Kane County,:Illinois.
d. If any terns of this lease is found to be void or invalid, such.validity shall
not affect the remaining terms of this Lease, which shall continue in full
force and effect.
e. City shall cooperate with Company's efforts to evaluate the elevated wa-
ter tank and to comply with governmental regulations affecting Com-
pany's use of the Property by providing information about the elevated
water tank, the elevated water tank's location and prior filings made by
City with governmental agencies.
f. This lease may be executed in two or more counterparts, all of which shall
be considered one and the same agreement and shall become effective
when one or more counterparts have been signed by each of the parties, it
being understood that all parties need not sign the same counterpart.
IN WITNESS WHEREOF, City and Company have executed this Non-Exclusive
Tower Attachment Lease Agreement as of that date and year first above written.
CITY OF ELGIN FOX VALLEY INTERNET, INC.
City Manager President
Attest:
City Clerk
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EXHIBIT A
COLLEGE GREEN
WATER_ TOWER
Those parts of the Northeast 1/4 of the
Northwest 1/4 of Section 28 and the Southeast 1/4 of
the Southwest 1/4 of Section 21, both in Township 41
North, Range 8, East of the Third Principal
Meridian, described as follows : Commencing at the
Northwest corner of College Green Drive as dedicated
in College Green Unit 5, being a subdivision in that
part of the Northeast quarter of Section 28,
aforesaid, recorded as Document 1982842; thence (S
10 40 ' 29" E (S 0° 27 ' 22" W record) along the East
line of the Northwest 1/4 of Section 28, aforesaid,
a distance of 70 . 00 feet to the Southwest corner of
said College Green Drive; thence S 880 19 ' 31" W at
right angles to last described line, a distance of
194 . 90 feet to a point of curvature; thence
northwesterly along an arc of a circle, convex to
the Southwest, having a radius of 385 . 00 feet, the
chord thereof having a bearing of N 630 40 ' 07" W
and a length of 361 . 57 feet, an arc-distance of
376 . 38 feet to a point of tangency; thence N 350 39 '
45" W, a distance of 181 . 47 feet to a point of
curvature; thence northwesterly along an arc of a
circle, convex to the Northeast, having a radius of
665 . 00 feet, the chord thereof having a bearing of N
4.1° 57 ' 24" W and a length of 145 . 81 feet, an
arc-distance of 146 . 10 feet to the place of
beginning; thence continuing northwesterly along an
arc of same circle, convex to the Northeast, having
a radius of 665 . 00 feet, the chord thereof having a
bearing of N 531 41 ' 42 W and a length of 126 . 19
feet, an arc-distance of 126 . 38 feet to a point of
compound curvature; thence northwesterly along an
arc of a circle, convex to the Northeast, having a
radius of 602 . 00 feet, the chord thereof having a
bearinq of N 650 34 ' 45" W and a length of 135 . 04
feet, an arc-distance of 135. 33 feet; thence S 440
15 ' 32" W, a distance of 143 . 07 feet; thence S 10
51 ' 53" E, a distance of 103 . 00 feet; thence S 460
51 ' 53" E, a distance of 105 . 00 feet; thence N 880
08 ' 07" E, a distance of 105 . 00 feet; thence N 441
15 ' 32" E, a distance of 200 . 00 feet to the place of
beginning, in Kane County, Illinois .
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- City of Elgin �Idrf,% Agenda Item No. l-
1
March 26, 2004
TO: Mayor and Members of the City Council
ECONOMIC GROWTH
FROM: David M. Dorgan, City Manager
Sean R. Stegall, Assistant City Manag
SUBJECT: A Lease Agreement for Certain City Water Towers with Fox Valley Internet, Inc.
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of City Council with
information regarding a proposed lease agreement concerning certain City water towers with Fox
Valley Internet, Inc.
RECOMMENDATION
It is recommended that the City enter into an agreement with Fox Valley Internet, Inc.
BACKGROUND
Over the past several months, the City has been in negotiations with Fox Valley Internet(FVI) in
order to provide FVI with the ability to mount antennas on three (3) of the City's water towers—
Airlite, College Green, and Shales Parkway. By placing antennas on the City's water towers,
FVI will be in a position to provide wireless internet services to Elgin residents. This type of
service has been in demand by residents as witnessed by numerous telephone calls being placed
to the City Manager's office. While the majority of the community is now provided with high-
speed access by the City's two (2) cable providers, for a variety of reasons there is a strong
market for wireless services.
Fox Valley Internet currently-has agreements with the following communities: Huntley, West
Dundee, Hampshire, Carpentersville, St. Charles, Batavia and South Elgin. While the primary
purpose of the agreement is to provide wireless internet services to our residents, the lease
amount being provided exceeds that of which is provided to the aforementioned communities.
This type of an arrangement is common, as witnessed by the other communities having entered
into similar agreements. However, proper safeguards have been put into place in order to insure
that these systems will not interfere with the provision of water to the community. As an
example, there is an acknowledgement by FVI in the agreement that, "the primary function of
the elevated water tank is to provide water storage for the City and its customers." In addition,
"Company covenants that the equipment will not cause interference with the operation of any
Water Tower Lease Agreements with Fox Valley Internet
March 26, 2004
Page 2
other wireless communications equipment located on the elevated tank". In summary, the
agreements will provide additional revenue to the City and enhanced services to the community.
COMMUNITY GROUPSANTERESTED PERSONS CONTACTED
None
t` FINANCIAL IMPACT
M' The combined revenue generated from the three (3) lease agreements will be $11,800 per annum
with said amount being increased by an additional 5 percent every year of the agreement. The
resulting proceeds from these agreements will be credited to Account Number 401-0000-546.02-
14 "Rental-Land & Buildings—Fox Valley Internet"
+GAL IMPACT
The agreements are as attached with the terms being an initial period of three (3) years with an
option for additional ten(10)year renewal period.
ALTERNATIVES
1. The City Council could direct staff to amend the agreements.
2. The City Council could choose not to enter into the agreements.
Respectfully submitted for Council consideration.
SRS
Attachments