Utilizing Tall Municipal Structures to Generate Revenue. Darin Freese Water Program Coordinator

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Gavin McDowell
5 years ago
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1 Utilizing Tall Municipal Structures to Generate Revenue Darin Freese Water Program Coordinator

2 Utilizing Tall Municipal Structures to Generate Revenue

elevation depending on topography and location.

3 The water tower tops can give better coverage over distance and in line of sight because of their elevation depending on topography and location. They can help increase signal range, quality, and throughput.

4 These tall structures often work in conjunction with existing communications infrastructure.

5 Consumers are driving the need for more and more communication coverage and capacity. Network proliferation will most likely continue even with Municipal towers being used.

6 Often times, Water Towers are located in zoning areas that make it challenging to place traditional towers in residential or certain commercial areas.

7 Our Program Managed by Committee Contracted out Brought back in house at the beginning of 2014 HOWEVER, the financial aspect was NOT the primary reason for taking back the program.

Radio and Cellular professionals think of water towers as antenna towers used

8 Municipalities think of water towers as towers used for drinking water storage and regulating pressure that can also be used to hang antennas on. Radio and Cellular professionals think of water towers as antenna towers used to hang antennas and transmit from that can also be used to hold water and regulate pressure.

10 Communication equipment shall not interfere with any Landlord communication signals. If interference between the Tenant s and Landlord s communication equipment be discovered, it shall be corrected at Tenant s expense. Tenant shall submit a list of radio frequencies, operating block, and power output (watts) to Landlord. Landlord has priority regarding equipment placement for Landlord s use. Tenant s equipment may be required to be moved at the Tenant s expense.

11 Melanie Tower Frequencies and Outputs Tenant 1 They will be at 750, 850, and 1900 MHZ ranges with GSM, LTE, and UMTS technology. Tenant 2 FCC Licensed in the 2.5 to 2.7 GHz range. Tenant 3 Transmit MHZ Receive MHZ PL MHZ Receive MHZ MHZ PL Tenant 4 A Block Transmit Receive Description/Vendor Direction Frequency (centered)/channel Width Connection to Brandon Water Tower (Cambium) Connection to Water Reclamation (WaveIP) Connection to Water Reclamation (WaveIP) Connection to Frank Olson Pool (Proxim) Connection to 57th Street Water Tower (Exalt) Connection Type SouthEast Ghz / 15 Mhz Point-to- Point North Ghz / 20 Mhz Point-to- Point North Ghz / 20 Mhz Point-to- MultiPoint North 5.52 Ghz / 20 Mhz Point-to- MultiPoint SouthWest Ghz / 30 Mhz Point-to- Point Water Division SCADA = 900MHz spread spectrum Utility Billing DCU = and th St Tower -> Melanie Ghz / 30 Mhz

12 Security is critical for water towers. General site security (fences and padlocks) along with card readers and security cameras help keep tenants accountable for their actions.

13 Twenty-four (24)-hours-a-day, seven (7)-days-a-week access to the Property and the Leased Space during the term of this Agreement, subject to prior coordination with Landlord. Loss or destruction of Tenant s access badge must be reported to Landlord immediately upon discovery. A replacement badge can be issued to Tenant at the cost of $50.00 each. In the event it is necessary for Landlord to give Tenant access to the structure at some time other than normal working hours of Landlord, Landlord may charge Tenant a trip charge at the rate set forth in Sioux Falls City Ordinance (4). Property or activities of the Tenant, including the operation and maintenance of its equipment and shall not, in any way, impinge upon the ability of Landlord to provide security for its facility or its ability to deliver safe potable water at sufficient pressure to customers.

14 Federal Communications Act of 1996 (c) AVAILABILITY OF PROPERTY- Within 180 days of the enactment of this Act, the President or his designee shall prescribe procedures by which Federal departments and agencies may make available on a fair, reasonable, and nondiscriminatory basis, property, rights-of-way, and easements under their control for the placement of new telecommunications services that are dependent, in whole or in part, upon the utilization of Federal spectrum rights for the transmission or reception of such services. These procedures may establish a presumption that requests for the use of property, rights-of-way, and easements by duly authorized providers should be granted absent unavoidable direct conflict with the department or agency's mission, or the current or planned use of the property, rights-of-way, and easements in question. Reasonable fees may be charged to providers of such telecommunications services for use of property, rights-of-way, and easements. The Commission shall provide technical support to States to encourage them to make property, rights-of-way, and easements under their jurisdiction available for such purposes.

15 During operation, Tenant shall operate its Facilities so that the presence and/or operation of Tenant s equipment will have minimal impact on the Leased Space including the Tank s periodic maintenance work (i.e., Tank inspections, painting, etc.). Landlord reserves the right to perform structural or cosmetic maintenance on the Tank. As such, Tenant s understands that it may need to take its antennas out of service, at its own expense, for a period of time during such events. Further, in the event the Landlord overcoats, repaints, undertakes structural repair, or replaces the Tank, the Landlord may require Tenant to re-arrange or secure Tenant s equipment or Landlord may require the Tenant to remove some or all of Tenant s equipment from the Tank for the duration of the project. Any securing, rearrangement, or removal of equipment will be undertaken by Tenant at Tenant s expense. Tenant will be responsible for and agrees to provide adequate measures to cover and otherwise protect its personal property and equipment from paint and debris fallout or damage which may occur during any painting, restoration, repair, maintenance, or reconstruction. Rent will not be suspended during this time period so long as Tenant is able to operate its facility from a temporary structure at a suitable location on Landlord s premises as agreed upon by the Landlord or from another Landlord owned location.

16 Revenue Sioux Falls collects $135,000 annually in tower rent from 7 paying tenants on 4 water towers and one monopole.

WOW!! That s a lot of money right? $135,000 is approximately 0.4% of the annual budget. Factor in the Water Division has 5 elevated storage tanks needing reconditioning periodically.

17 WOW!! That s a lot of money right? $135,000 is approximately 0.4% of the annual budget. Factor in the Water Division has 5 elevated storage tanks needing reconditioning periodically. The cost of reconditioning our last water tank was $764,000. (1.5MG Spheroid in photo) Rental stream pays for one tower reconditioning every 6 years. That puts us on a 30 year cycle with tower coatings averaging closer to 20 years.

18 Who are your tenants? Federal State County* City* 911* Police, Ambulance and Fire* Emergency Management* TV Radio* Wireless Internet* Two way services* Cellular* HAM* What do you charge, or do you even charge each entity? Charge your City IT Department to be on your tower today, then ask them to fix your computer tomorrow?? * = our Tenants

What drives tower rental rates? Location, Location, Location!!! Major highway intersections, Large venues, shopping malls Competition What will the next guy pay?

Technology Two way, MDS / Telemetry, Cellular, FM, Wireless Internet Equipment Loading How tall, how heavy, and how much?

19 What drives tower rental rates? Location, Location, Location!!! Major highway intersections, Large venues, shopping malls Competition What will the next guy pay? Is there a next guy? Customer Base Can you charge a Mom & Pop Radio Shop what you charge billion dollar Corporations? Technology Two way, MDS / Telemetry, Cellular, FM, Wireless Internet Equipment Loading How tall, how heavy, and how much? Proposed installation path(s) RF Loading What if the first tenant eats all capacity for RF? (example FM radio) Available Tower Space and Structural Capacity Who gets the last slice of the structural pie? (THE LANDLORD!!!) = reserved loading

However the cost paid for this service may be greater than it is worth.

20 Many municipalities have someone else manage their leases. This reduces the responsibility of the municipality and may increase the (overall) revenue stream. However the cost paid for this service may be greater than it is worth. Keeping the leases in house may help keep the cost down for the Tenants. Be sure the revenue generated is worth the time, effort, and resources spent managing the program. If the shoe doesn t fit, don t wear it. VS.

21 There are plenty of folks in the industry to help WATCH over you!!

22 There are plenty of folks in the industry to help WATCH over you!!

23 Questions?

TITLE 33 REGULATION OF WIRELESS TELECOMMUNICATIONS FACILITIES

CITY OF STURGIS ORDINANCES TITLE 33-1 TITLE 33 REGULATION OF WIRELESS TELECOMMUNICATIONS FACILITIES (Title 33 established effective 8/4/07, Ordinance 2007-17) Chapters: 33.01: General Provisions 33.02: