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March 13, 1989 Council Minutes, Page Three SIGN REGULATIONS Planner Bergly advised the Council that he felt there is no need to change the sign Ordinance at this time, since there were only three businesses that would be affected by this, outside of the Gateway Business District. He felt it would be unfair to those businesses that were grandfathered in, or were granted variances due to unusual characteristics. He recommended leaving the sign ordinance as is. . Councilmember Malone noted that Naegele has a moving sign on 694 and asked Mr. Bergly to check the ordinance to see if this type of sign is allowed. CELLULAR ONE LEASE AGMT. Acting City Attorney Filla questioned if Cellular One's plan would need to be approved by a Special Use Permit. He stated the Council could consider this as an electronic tower which would require a SOP. In his report dated March 10, Mr. Fil1a noted that the SUP process would provide the City with comments from adjoining property owners who could be affected by the telephone company radio transmissions. Mr. Filla also pointed out that the way the lease agreement is currently written, the applicant could sublet to other users. He felt the applicant should address this issue and structure the lease to reflect this. . Mr. Rogers stated Cellular Olle does not intend to allow use of the water tower for other uses. He stated the subleasing is based on six cel1ular antennas, plus two satellite microwave dishes. He suggested the rent be $500 per month and when the lIeed for the additional dishes arises, the rent could be $50 per satellite dish, bringing the total rent to $600 per month. He also stated the only other possible sublessee would be an associated company of McCaw Corporation. Mayor Sather felt that the lease agreement should be prepared by Attorney Filla in conjunction with Cellular One. This should be accomplished by the March 27 Council meeting. Attorney Filla noted that specific questions need to be answered, especially concerning definition of easements, maintenance of building and land, tax implications imposed by the State, which should be passed on to the tenant, or possible repairs to the tower (City should incur no expense if they have to move the tenant's equipment or for their down time). Councilmember MaIone asked what would happen if Cellular One files for bankruptcy. Filla responded that perhaps the agreement should not make the lease assignable without prior Council consent. Filla also noted that the rental rate increase can't be more than 20% of the 1989 base rate, which may be something the Council should consider. Councilmember Mahowald concurred with Attorney Filla's comments and concerns. . Council concensus was that the lease agreement with Cellular One should be handled by Acting City Attorney Jerry Filla. . Council was referred to a letter from Attorney Filla dated March 13, wherein Mr. Filla noted several concerns with the proposed purchase agreement for the Kern Milling property. He advised the Council that Bob Johnson, attorney for Kern Milling, had not seen Resolution' No. 89-14, which the City Council adopted on February 27, and that his client had objections to portions of the Resolution. Mr. Johnson had submitted a proposed purchase agreement and the offer was good until March 20, 1989. Mr. Filla advised Mr. Johnson that the City would need a reasonable amount of time to work things out in the purchase agreement. Filla expressed concern with the ern.ironmental audit and who would pay the cost 01 it, as well as the cost of conforming to the requirements found in the audit, and with the development district. Filla noted that if the audit indicates soil problems, the City could get out of the purchase, but who would pay for the audit, which could run to $5000 or $10,000. Filla said if the City purchases the site, they would be required to clean it up before they could sell it to a developer, which could be very expensive. Mr. Filla suggested that it would be appropriate for him to go back to Kern Milling and go through the agreement with Mr. Johnson to express legitimate City concerns that should be addressed in the purchase agreffinent. Mayor Sather noted that there is a Council work session scheduled for March 20. and this could be discussed at that time. Mayor Sather also felt the City should pay for the audit. Councilmember Mahowald suggested the cost be split with Kem Milling. KEM MILLING PURCHASE AGMT.