Attachment 1Attachment 1leasing program for
Attachment 1
Attachment 1
wireless communication facilities on city-owned property Purpose
This Leasing Program establishes clear guidelines for leasing City-owned property for wireless communication facilities. Leases that comply with these guidelines do not require City Council approval, streamlining the process.
Key Objectives
The Leasing Program aims to optimize revenue, enhance efficiency, and ensure consistency. To maximize revenue, market-based lease rates will be set with fixed annual increases. Efficiency will be improved by streamlining leasing and compliance processes, creating a smoother operation. Consistency will be maintained by implementing a Standard Lease Agreement across all sites, ensuring uniform leasing terms.
Lease Terms
The lease terms include a five-year initial term, with the option for up to two additional five-year renewals. Base rent ranges from $2,000 to $3,500 per month, depending on location, with a fixed annual increase of 5%. All subleases must be approved by the City, which will retain 50% of the sublease revenue. A surety bond of $100,000 is required, and the Lessee must indemnify the City, holding it harmless from any liability.
Process and Oversight
The Planning division is responsible for reviewing wireless communication facilities designs, zoning compliance, and permit approvals. The Economic Development division is responsible for lease negotiations and lease management to ensure alignment with program objectives. City Council approval is only required if lease terms fall outside the established parameters of the Leasing Program.
Compliance and Maintenance
Lessees are required to maintain their sites and complete any necessary repairs within five business days. Failure to comply may result in penalties or lease suspension. Additionally, lessees must carry specific insurance coverage, including $2 million in general liability insurance with a $4 million aggregate, $1 million in automobile liability insurance, and $1 million in workers' compensation coverage.
Access
The City reserves the right to inspect leased facilities for emergency or maintenance purposes. Non-emergency maintenance inspections require at least 24 hours’ prior notice.