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HomeMy WebLinkAbout1988/11/28 - ADMIN - Minutes - City Council - Regular 4111 MINUTES CITY COUNCIL MEETING (continuation) ST. LOUIS PARK, MINNESOTA November 28, 1988 1 . Call to order Mayor Hanks called the study session to order at 8:23 p.m. 2. Roll call The following members were present at roll call : Bruce Battaglia, Thomas Duffy, Allen Friedman, Keith Meland, Larry Mitchell , David Strand, Lyle Hanks. . -- -- , Also present were the City Manager, City Attorney, Director of Public Works and Acting Planning Director 3. Approval of agenda It was moved by Councilmember Meland, seconded by Councilmember Strand 4111 to approve the agenda for November 28, 1988. 1 4. Unfinished business a. Minnesota Cellular Telephone The City Manager said the Council had been provided with a copy of a proposed lease agreement for Minnesota Cellular Telephone which provides terms for their lease of the City's water tower at Louisiana and Cedar Lake Rd. on which they propose to install discs and antennae. He said Council was also provided with a summary of what staff has been able to find out re rental rates that other municipalities charge for similar installations. He said there were two areas in which modifications had been received that day: the landlord may terminate at the end of any five-year period of time; secondly, the tenant should be responsible to correct any technical problems caused by the presence of the antennae on the tower, for example, if television reception in the area should be disrupted. Councilmember Friedman asked if the FCC did not govern and that any antennae causing interference, by federal law must either be corrected by insertion of something into the receivers or they must cease operation. The City Attorney felt that was the position Minnesota Cellular would take and the City could involve the FCC in any enforcement. Councilmember Friedman thought it would not be onerous to include that 411/ stipulation in the lease agreement as it is already required. Councilmember Battaglia asked if there was , any provision for the antennaes should the water tower have to be repaired or painted. The City Attorney referred to page 4, para. 6 under landlord's rights in -1- City Council meeting (continuation) November 28, 1988 which that is addressed. 1111 Peter Beck, attorney with Larkin, Hoffman, appeared on behalf of Cellular One. He said he had a letter confirming that if the lease is executed, the application for a conditional use permit to construct a tower would be withdrawn. With respect to the City Manager's comments, he asked if the City was proposing that the lease be revised so that it is terminable after five years. The City Manager responded that the lease now runs for 25 years. He thought it would be in the City's best interest to have some mechanism whereby we can re-examine continuation of the lease at five-year increments. He said he does not anticipate any changes being made, but he would like the City to have the flexibility to evaluate every five years. Mr. Beck advised Council that if the lease were to be revised to state it could be terminated after five years, basically at will , that would represent a drastic change in the terms of the lease and would create a major problem with his client. The City Manager said there were a couple of ways to go on that. One is that first ability to get out without a reason could come up perhaps at ten years as opposed to the initial five. Also, he apologized if this came as a surprise, but he did emphasize the City has been trying to expedite this lease and because of the hurry to get it put together, these sorts11 of things have to be discussed in this setting. Mr. Beck felt if the term were, say, 15 years, his client could live with that. Councilmember Mitchell asked if there was a common denominator re length of contracts. -' - The City Manager said staff' s focus was primarily on price. The Acting _ Planning Director added the City of Burnsville provided a sample lease which left the term of the lease blank in all places where referenced. Councilmember Mitchell was comfortable with a 15-year lease, but not 25 ,years. The City Manager said if it was agreeable with Council , a 15-year term was agreeable to him. Councilmember Strand asked the City Attorney if he felt it was appropriate for the City to obtain from Minnesota Cellular a release of any claims against the City which might arise out of the special permit process. The City Attorney said he would take Mr. Beck's letter to be that, but since the phrase "release from any liaibility" is not contained in the letter, if it was agreeable to Mr. Beck, that would be beneficial . - Councilmember Mitchell had a question about the CPI escalator. In terms of .it not escalating more than 20% in a five-year period, does that allow for 7% one year and 3% the next. His calculations averaged out to 5.6%. -2- City Council meeting (continuation) November 28, 1988 . 1111 The City Attorney said the way he reads it is one takes the CPI number at the commencement of the lease and five years later the figure published prior to the date of adjustment and then compute the percentage increase up to a maximum of 20%. So Councilmember Mitchell was correct that one year could be 7% and the next 3%, but that the total increase could be no more than 20% during that period. Mayor Hanks asked where adjustment for after 15 years term of the lease would be inserted. The City Attorney said in Section 2 on the first page under Term of Lease. A sentence could be added: After a total of 15 years, the City in its sole discretion may terminate this lease without cause, or words to that effect. Mr. Beck felt it should be put in Section 7. Termination. beginning on page seven adding it as a new subsection. Councilmember Friedman said he was somewhat confused as to what Council Vias acting upon when the memo stated "subject to concurrence by other departments" 4 of the City. Was Council appV.oving a lease or not. He didn't want it to come back to Council again. The City Manager said what was agreed with Minnesota Cellular was to continue negotiations and get approval pending review by staff because there is alot in the proposed lease that staff has to do but is not aware of yet. 411/ If Council is not comfortable approving this until and unless staff has signed off on it, then the document is not ready tonight. It was moved by Councilmember Strand, seconded by Councilmember Meland, to authorize the Mayor and City Manager to execute the water tower lease agreement in form and substance similar to the one before Council this evening with modification to the term of lease to 15 years, to allow the City to terminate without cause at the end of that period of time and subject to staff approval by appropriate departments and including the appropriate release from Cellular One. The City Manager asked if Councilmember Strand included in his motion language to the effect the tenant is responsible to correct any technical problems caused by the presence of the antennae. Councilmember Strand said he would like that included. The motion passed 7-0. 5. New Business None. 6. Miscellaneous a. Communications from the Mayor 41/1 Mayor Hanks reminded Council there were no meetings scheduled for December 5. There will be an Economic Development Authority meeting on December 12 at 5:00 p.m. followed by a Council meeting at 7:30. b. Communications from the City Manager - None Of\kj- -'67\ 7. Adjournment - The meeting adjourned at 8:46 p.m.