HomeMy WebLinkAbout08- Alltel Communications License Agreement for the Use of City Property~ \~ f
LICENSE AGREEMENT FOR THE USE OF CITY PROPERTY
BY Alltel Communications, LLC
THIS LICENSE AGREEMENT (this "Agreement") is an agreement between the City of
Bozeman, (the "City") and Alltel Communications, LLC, a Delaware limited liability corporation.
("Licensee")
Whereas, the City is the owner of the water tank located on 1630 Kenyon Drive, in the City of
Bozeman; and
Whereas, LICENSEE provides telecommunication services for the community of Bozeman; and
Whereas, the City recognizes the benefits to the City and to the citizens of Bozeman of the
services provided by LICENSEE;
Now therefore, in consideration of LICENSEE's promises herein, and other good and valuable
considerations, the receipt and sufficiency of which is hereby acknowledged, the City hereby gives
permission, revocable and terminable as hereinafter provided, to LICENSEE use the water tank and
appurtenant ground space, more particularly described in Exhibit A attached hereto (the "Site"),located
on 1630 Kenyon Drive in the City of Bozeman, during the period commencing August 1, 2008 until July
31, 2013 on the terms and conditions as set forth below, which LICENSEE promises to comply with and
abide by. Such right shall include the right to use that portion of the water tank, generally depicted on
construction drawings, for purposes involving, relating to or supporting telecommunications, including
the right to install, construct, reconstruct and maintain on the Site, communication facilities or other
supplemental improvements relating to the permitted uses.
1. Rent. This license and permission is given to LICENSEE for an annual fee ("Rent") of Twen
Four Thousand Five Hundred Six Seven Dollars, ($24,567.00), for the first year, and Twenty Five
Thousand Five Hundred Fifty Dollars,,~$25,550.00), beginning the second year. Rent shall be
payable on or before August 1 st of each year during the term of this Agreement. Rent shall increase
on an annual basis by four percent (4%) with first increase effective August 1, 2010.
LICENSEE hereby acknowledges the title of the City to the above described property and agrees
never to deny such title or claim, at anytime, or claim any interest or estate of any kind or extent
whatsoever in the property or Site by virtue of this Agreement or LICENSEE'S occupancy or use
hereunder.
2. Indemnity. LICENSEE shall exercise its privilege at its own risk and agrees to indemnify,
defend, and hold harmless the City from any and all liability, loss, or damage the City may suffer as a
result of claims, demands, cost or judgment (collectively "Claims") against it, arising out of or in
anyway connected with the occupation or use of the property by LICENSEE, or its members, employees,
guests, or invitees, except to the extent that such Claims are due to the negligence or intentional acts of
the City ,its members, employees, guests or invitees.
The City shall agrees to indemnify, defend, and hold harmless Licensee from any and all liability, loss,
or damage except to the extent that such are due to the negligence or intentional acts of the Licensee, its
members, employees, guests or invitees.
3. Assignment. LICENSEE will not assign or transfer this Agreement or sublet all or any portion
of the site without the prior written consent of the City, which consent will not be unreasonably
withheld, conditioned or delayed. Notwithstandingthe foregoing, LICENSEE may, upon written notice
to the City, assign this Agreement to any corporation or entity which controls, is controlled by, or is
under common control with, LICENSEE, or any corporation or entity which results from a merger or
consolidation with LICENSEE or with any entity that controls LICENSEE.
4. Insurance. LICENSEE shall maintain, at its expense, commercial general liability insurance
covering actions by LICENSEE providing for a limit of not less than $1,500,000.00 single limits, bodily
injury and/or property damage combined, for damages arising out of bodily injuries to or death of all
persons and for damages to or destruction of property, including the loss of use of the Site. Such policy
shall name the City as an additional insured and shall contain a provision that no cancellation thereof
shall be effective by the insurer without 45 days prior written notice to the City and LICENSEE. A
current copy of the policeswill be sent to the Citesannually at the same time that the yearly rent is paid.
5. Construction and Restrictions. The placement of all telecommunications facilities on Site
must comply with the following requirements and shall be in accordance with Exhibit B attached hereto:
A. The telecommunications facilities will not adversely interfere with the purpose for
which the property is intended; LICENSEE's access to the facilities will not increase the
risks of contamination to the City's water supply; the presence of the facilities will not
increase the water tank maintenance cost to the City; and the presence of the facilities
will not harm the health of workers maintaining the water tank.
B. The right to the license granted by this Agreement shall be contingent upon the
fulfillment of all general and special conditions imposed by the conditional use
procedure of Bozeman Municipal Code, Title 18.
C. All work at the Site must be properly scheduled with the City. Any work on the tank is
subject to review and approval y the City to make sure that no damage is done to the
tank through drilling b~ oltin~ welding or other methods of attachment. Tank penetration
and reinforcement requirements established by a professional design must be adhered to.
No welding is allowed on the tank without the direct approval and supervision of the
C~ The location and placement of cables shall be designed to reduce interference
with future maintenance and painting requirements, and verified to prevent sanitary,
safety, or personnel hazards. Brackets, if any, shall be mounted in such a manner so as
to prevent failure, and shall not cause damage to the tank. The shroud housing the
equipment cables and wire shall be well maintained and promptly repaired in the event
of wind or other damage identified upon inspection by LICENSEE or by notification by
the Ci
D. In addition to all other requirements, LICENSEE shall ensure that any antenna affixed to
the
water tank shall be color matched with the tank, and shall be profiled at or below the top
of the tank. AnY maintenance work on the tank or other equipment may not changte the
appearance of the grounds, or tank, without prior approval of the City.
E. Following installation of the monopole tower and/or antennas to be mounted on the
City's water tank, entry into the enclosed area surrounding the tank shall be restricted to
City personnel or other individuals authorized by the City only. LICENSEE may, at its
own expense and subject to pre-approval by the City, construct a separate enclosure
within the existing enclosed area with a separate external access to facilitate a preferred
locale for base station equipment, provided that the restricted access to the area
surrounding the tower is not compromised.
F. LICENSEE may, at its own expense and subject to necessary approvals, modify,
supplement, replace, and upgrade the telecommunications facility on the site at
reasonable times during the term of this Agreement, so long as such activity is consistent
with the permitted uses. Access to the water tank must be coordinated with the City of
Bozeman. Any improvements or modifications required for installation or operation of
equipment, as well as utility provisions and service, must conform to applicable
specifications, codes and all standard engineering requirements, in addition to all terms
of this Agreement. Proposed modification or intensification of the permitted uses shall
also be subject to the conditional use procedure of Bozeman Municipal Code, Title 18,
as applicable. The City shall provide LICENSEE with reasonable access to the site at all
reasonable times; provided however, LICENSEE will coordinate such access to the site
with the City, and provided further, that LICENSEE shall reimburse the City for the
City's extraordinary costs and expenses incurred by the provision of such access.
G. Maintenance of the water tank by the City of Bozeman will be coordinated with
LICENSEE. The City's needs and maintenance requirements will supersede all other
considerations. In the event maintenance or other requirements involve removal or
impact of LICENSEE's antenna, LICENSEE may affix such antenna to another pole on
a temporary basis to avoid disruption of telecommunication service. The City will use
its best efforts to provide LICENSEE with notice at least 48 hours in advance of any
maintenance on or to the water tank that may affect or impact LICENSEE's equipment.
H. LICENSEE will not use the site in any way that interferes with the existing use of the
site by the City or other licensees holding rights to the site prior to the date of this
Agreement. LICENSEE will cooperate to assist other licensees in resolving technical
interference problems created by the installation of additional equipment on the site.
After the date of this Agreement, the City agrees not to allow any other licensee to use
the water tank if that licensee's use of the water tank creates an unreasonable
interference with LICENSEE communications facilities or any other existing licensees
facility. Notwithstanding the foregoing, if the City initiates use of the water tank for
telemetry or other purposes, that use will have precedence over all other
telecommunication uses, and any interference problems will be resolved in favor of the
City's uses.
6. Police Power. If LICENSEE'S communications facilities: (a). create a definable risk to the
health, safety or welfare of the public; or (b). is declared by a court of competent jurisdiction to be in
violation of any statutes or regulations of the Government, and LICENSEE cannot minimize the risk in
accordance with the Government's recommendations or ensure that LICENSEE'S communications
facilities are in compliance with the statutes and regulations of the Government, all within a reasonable
period of time, then the City may terminate this Agreement without notice. The City reserves the right
to revoke or terminate the license granted by this agreement, at its discretion, at any time upon 180 days
prior written notice to LICENSEE. Upon revocation, the surrender or termination of the license hereby
given, LICENSEE shall, within a reasonable time, quietly and peacefully surrender the portion of the
Site occupied by LICENSEE in substantially the condition existing as of the commencement date of this
Agreement.
7. Termination. LICENSEE may terminate this Agreement, at LICENSEE'S sole option, upon
sixty (60) days prior written notice. Upon termination LICENSEE shall remove its equipment and
improvements, and will restore the site to substantially the condition existing as of the commencement
date of this Agreement, normal wear and tear excepted. If this Agreement is not terminated on or
before May 31, 2013, then subject to the terms of this Agreement, LICENSEE shall have the right to
renew the term of this Agreement for an additional term of five years (the "Renewal Term"). The
second five year term is subject to negotiation of price, and terms and conditions. With respect to the
Renewal Term, LICENSEE will automatically be deemed to have exercised its option for that Renewal
Term, unless LICENSEE notifies the City in writing 30 days prior to the expiration of the term or the
Renewal Term, as the case maybe, of LICENSEE'S intent not to renew the term of this Agreement. The
basic terms and conditions set forth in this agreement will be the starting_point for ne otiating the
Renewal Term.
8. Due Diligence. LICENSEE shall at all times exercise due diligence in the protection of the
City's property at the Site against damages.
9. Amendment. This Agreement represents the entire understanding between the parties
regarding the subject matter and supercedes any prior agreement, verbal or written. Any amendment or
modification of this Agreement or any provision herein shall be made in writing or executed in the same
manner as the original document and shall after execution become part of this Agreement.
10. Dispute Resolution. Any claim, controversy or dispute (collectively, "Claim") arising out of
this Agreement shall be settled by the legal remedies available in any court having jurisdiction thereof;
provided, however, prior to pursuing any Claim in court, the parties agree to submit to non-binding
mediation pursuant to the American Arbitration Association. This mediation shall be held in the county
in which the site is located and each party shall pay its own cost and expense relating to the mediation.
If either party is unsatisfied with the outcome of the non-binding mediation, then that party may pursue
its remedies in any court having jurisdiction thereof.
In witness, whereof, I have hereunto set my hand this ~ l~ day of ~ pvt~b¢P, 2008.
City of Bozeman Alltel Com nications LL
By: y:
Name: Chris Kukulski Na James E. M onald
Title• City Manager Ti e• V. Pres. - N twork Services
EXHIBIT B
See Attached
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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: James Goehrung, Director of Facility Services
Chris Kukulski, City Manager
SUBJECT: License Agreement with Alltel Communication for a Cellular Phone
Antenna on the Kenyon Drive Water Tank
MEETING DATE: November 3, 2008
RECOMMENDATION: Authorize the City Manager to sign a five year License Agreement
with Alltel for a cellular antenna on the Kenyon Drive Water tank.
BACKGROUND: The City of Bozeman is leasing space on the Kenyon Drive water tank for
cellular phone antennas. The cellular market has been very volatile in the last couple of years,
with the agreements changing hands a number of times as companies have been bought out, or as
companies have merged. We now have two antenna agreements in place with two separate
companies.
Each time the licenses have expired, staff has entered into negotiations on the fees we will
charge the companies for the use of our property. My understanding is that this particular
location provides a wide area of coverage to a fairly large population, which makes it a valuable
site.
The original license was negotiated by former City Manager Clark Johnson. The two licenses
we currently have on the tank expire at different times. The dollar amount in this agreement will
bring it up to par with the second lease we have on the tank.
FISCAL EFFECTS: The license fee for the first year is $24,567.00 and $25,550.00 the
second year. The fee will increase each year by an inflation factor of 4% for the balance of the
license agreement.
ALTERNATIVES:
Respectfully submitted,
As suggested by the City Commission.
Ja es Goehrung
Director of Facility Services
Chris A. Kukulski, City Manager
Attachments: License Agreement
Report compiled on October 29, 2008
ALLTEL Communications, Inc.
Property Management Department
One Allied Drive
Mailstop: 1269-B2F02A
Little Rock, AR 72202
Angela Arrowood, Coordinator
(501) 905-7611 office
(501) 905-6944 fax
Angela.Arrowood(~alltel.com
October 28, 2008
Mr. James Goehrung
Director of Facility Services
City of Bozeman
P. O. Box 1230
Bozeman, MT 59771
Elltet
Gianna Gregory-Lloyd, Sr. Contract Specialist
(501) 905-0542 office
(501) 905-6944 fax
Gianna.GregorV-Lloy~u alltel.com
RE: License Agreement for the Use of City Property
MT08 Bozeman WT
Dear Mr. Goehrung:
Enclosed are two (2) original License Agreements on the above referenced Site. Alltel
has partially executed these documents. Once the appropriate person has signed off,
please return one original to Alltel at the address above.
Should you have any questions, please do not hesitate to contact me.
Sincerely,
'~~na ~ ~
~~
Gianna Gregory-Lloyd
Sr. Contract Specialist
enclosures
cc: file