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Home My WebLink About5D, Agreement with SEH for Review of Proposed Telecommunications Upgrade� �SR�EN HILLS � Request for Council Action Prepared By: Jill Hutmacher, Community Council Meeting Date: June 11, 2012 Development Director Agreement with SEH for Review of Proposed Telecommunications Upgrade Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Recommendation: Approve the agreement with SEH for $8,000.00 for development of a master lease agreement and review of AT&T's proposed LTE upgrade project at the Cummings Park water tower. Supporting Documents: 1. Memorandum dated June 11, 2012, from Jill Hutmacher, Community Development Director. 2. Attachment A— SEH Agreement for 1Vlaster Lease Development and Review of AT&T LTE Upgrade. ,__ �� iI�EN��HILLS MEMORANDUM DATE: June 11, 2012 TO: Honorable Mayor and Councilmembers FROM: Jill Hutmacher, Community Development Director �� SUBJECT: Agreement with SEH for Review of Proposed Telecommunications Upgrade Requested Action Approve agreement with SEH for development of a master lease agreement and review of AT&T's proposed long-term evolution (LTE) upgrade project at the Cummings Park water tawer. Back�round AT&T currently leases space at the Cutninings Park water tower and has installed three antennas at 130 feet (the top of the tower), three antennas at 80 feet, and an equipment shelter on the ground. As part of AT&T's LTE upgrade project (related to 4G wireless communications technology), AT&T proposes to replace all six antennas and add three additional antennas at the 80-foot level. Upgraded and new cables, mounts, and other equipment will also be required. The existing lease with AT&T was approved in 1989 and terminates in 2014. A lease amendment was approved in 2002 allowing AT&T to install an additional three antennas (included in the total number of antennas described above) for an annual lease increase of $4,860. AT&T's current total annual lease payment is $18,576 with an increase equal to the increase in the Consumer Price Index (CPI) every five years. Because the existing lease terminates in less than two years, the City has notified AT&T that it prefers to negotiate a renewed lease agreement, as opposed to an additional lease amendment, at this time. The City has requested and has received an escrow payment of $10,000 for legal and engineering costs related to the lease renewal and review of the LTE upgrade project. City of Arden Hills City Council Meeting June 11, 2012 Page 1 of 2 SEH Contract Staff has met with SEH to discuss AT&T's proposed project and the City's needs regarding a third-party engineering review and master lease development. SEH has proposed a Scope of Work that includes the following elements. Development of Master Lease A�reement SEH will develop a lease model that is competitive with the current market, protects the City's interests, and is structured to align with variations in installed tenant equipment. The master lease development process will include: • Review of existing tenant lease agreements; • Evaluation of telecommunications leases from similar communities; Review of lease models recommended by the National League of Cities, American Planning Association, and the State Wireless Association; and Review of the City's current fee structure. Review of LTE Up r�de SEH's review of AT&T's LTE upgrade project will include the following elements. • Review site drawings, antenna information, and specifications; • Review related structured and associated construction documents and calculations; • Consult with the City to ensure that the planned installation meets the City's requirements; • Review shop drawings based on the final approved construction drawings; • Conduct a preconstruction meeting with the contractor, subcontractors and the City; and • Perform site visits including on-tower inspections and final punchlist. SEH has proposed an agreement that estimates the following fees: Master Lease Agreement (lump sum) $3,350.00 AT&T LTE U�ade (hourl�asis) $4,650.00 Total $8,000.00 The $10,000.00 AT&T escrow will be used to pay for costs related to the SEH agreement and any costs related to contract review by the City Attorney. Staff Recommendation Approve the agreement with SEH for $8,000.00 for development of a master lease agreement and review of AT&T's proposed LTE upgrade project at the Cummings Park water tower. Attachment A. SEH Scope of Work and Contract City of Arden Hills City Council Meeting June 11, 2012 Page 2 of 2 Attachment SEH Agreement for Master Lease Develo ment and p Review of AT&T LTE U rade pg June 11, 2012 City Council �...► �� May 2, 2012 Ms. Jill Hutmacher Community Development Director City of flrclen Hills, Minnesota 1245 West Highway 96 Arden Hills, MN 55112 Dear Jill: RE: City of Arden I3itls, MinnesoCa AT&T Telecom Upgrades & Lease SEH No. ARDEN 119891 14A0 Thank you for providin� us the opportunity to meet with you and discuss the telecommunications needs present in Arden Hills. Based on those discussions we are revising our previous proposals specific to development of a Master J,ease and Fee Schedule, and services related to the antenna/equipinent upgrades referencing the AT&T I; TE installation at the City's water tower. Per your request, we are sending this Lefiter Agreement for Professional Enginecring Services for your review and authorization. Scope Based on our understanding oi this project, SEH will provide tha following services: Master Lease Agreenzent As discussed in our most �•ecent meeting, the City is looking toward a more balanced approach with respect to its tenant lease format. Balanced in that, the lease language is more representative of City requirements. , and less driven by the tenant. However in striving for a more balanced lease it is the City's intent to develop a lease model. that is competitive with the current market, and structured to align with variations in installed tenant equipment. With regaxd to development of a revised Master Lease agreement SEH will complete the foltowing: ■ Review existing tenant lease agreements ■ Gather and evaluate pertinent lease information from communities within the TVletro of sirnilar size and proxiinity to high volume traffic corridors ■ Review agreement models currently recommended by o National League of Cities o Ainerican Planners Association, and o State Wireless association ■ Provide a matrix inclusive of revisions between e�sting Ciiy ]eases and Master lease recommendations, and review with the City In developing a"Draft" fee schedule SEH will: ■ Review the City's current fee structure, aud in association with bullet No.2 and 3 above, develop a fee matrix inclusive of both, tenant equipment options and facility variations AT&TLTE Un r�a�le l. Review site drawings, antenna information, and specifications. (3 iterations) 2. Review related structural and associated construction documents, calculatians. {2 iterations) 3. Consult with the City to ensure that the planned installation raeets the City's requixennents. 4. Review shop drawings based on the final approved construction drawings. (I�icluded in item 1). 5. Conduct a preconstruction meeting with the contractor, subcontractors and the City prior to the commencement of construction to ensure that all parties understand the City's requirements and coordinate the construction schedule. Short Eiliott Hendrickson Inc. � 3535 Vadnais Center Drive � Saint Paul, MN 5511 0-5 7 96 SEH is an equal opportunity employer � www.sehinc.com � 651.490.2000 � 800.325.2055 � 888.909,8166 fax ATBcT Telecom Upgrades May 2, 2012 . �age 2 6. �'erform site visits to ensure that the installation is in accordance with the City's requirements: • Provide inspection of the applicable coating surface pre�aration and applicatioa to ensure compliance with the existing system and manufacturers recommendations (Includes up to 2 trips to shop painting facility or field, specitic to inspection of painted components/penetrations) • Provide inspection of installed welded/attached components in accordance with the approved plans, to be scheduled in cooperation with the contractor, and prepare a fmal punchlist (2 site visits) 7. Rcview record drawings of the insta.11ation prepared by the contractor and prepare closeout documentation for distribution to the City Schedule Upon your authorization we can begin this project immediately. Specific to the AT&T Upgrade, plan reviews, calculations reviews and shop drawing reviews will be completed within seven (7) business days after receipt. Construction observation of major work items will be performed based onthe agreed upon schedule (determined at the preconstruction meeting, with the contractor providing 48 hours notice). Compensation SEH proposes to provide services related to the Master Lease Agreement as aLump Sum. Services related to the AT&T Upgrade as referenced above are on an hourly basis plus reimbursable expenses including (reproductions, mileage, and daily vehicle allowance). SEH estimates the following fee: Master Lease AgKeement $3,350.00� AT&T LTL Upgrade $4,650.00 Total $8,000.00 Should circumstan.ces arise that require additional effort on the part of SEH staff, we will request authorization from the City to perform these services, and provide and a.n estimate of any additional fees. SBH will prepare monthly invoices that itemize costs (fees and expenses) for work performed during the billing period. Interest in the amount of 1%0 of the unpaid balance per month may be added to the unpaid balance of invoices that are not paid within 3S days:of receipt. This Letter A�reement shall be the basis of work by SEH on the project described in this letter. If you are in agreement with the terms, please execute both copies of this Letter Agreement with proper signatures and return one copy to our office in the enclosed envelope. Respectfully, SHORT ELLIOTT HENDRICKSON INC. . � . . . M . � - . � � � . Daniel J. Zienty AssociateJ Senior Project Design Leader amc � � o:leelp�erdenlcommonV 198911at&t taiccom upgrados propoael toj.hutmechar 3112.Jocx � � � � . � � Accepted this day of 2012 City of Arden Hills, Minnesota By: Title: