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Memorandum <br /> <br /> August l9, 1998 <br /> Page 2 of 4 <br /> telecommunications policies. <br /> Proposed Internal Policies <br /> Criteria for determining fair rent <br /> The City will consider the following criteria when establishing the amount a telecom <br /> company will pay to the City for use of a City asset: <br /> a. Market Forces <br /> The City will seek to maximize the revenue from private commercial use of City assets. <br /> Where competition exists (i.e. when other sites are available), the City may accept lower rent <br /> amounts. Where a City's asset is uniquely qualified as a site for telecommunications <br /> technology, the City will negotiate for a higher return for the public's investment in that asset. <br /> b. Precedents with Other Providers <br /> The City will seek consistency in developing agreements with providers. For example, if two <br /> companies place similar devices on the same city asset, the rent amount should be the same <br /> unless there is a compelling reason for the amounts to be different. <br /> c. Precedents in Other Cities <br /> The City will seek agreements with providers which allow the City at least as favorable <br /> benefits as other cities have with the same provider in similar situations. <br /> d. Potential to Reduce Burden on Viewshed <br /> The City may accept lower-than-market rent in order to provide incentives for providers to <br /> use existing City assets rather than build new structures. <br /> e. Potential for Cost-Effective Public-Private Partnerships <br /> The City may accept lower-than-market rent in order to provide incentives for providers to <br /> share the expense of building a structure which could hold both the private and public <br /> telecommunications equipment. For example, if the City needs a tower to position public <br /> safety telecommunications equipment, the city may forgo rent on city land in order to provide <br /> a private provider incentive to share the cost of and co-locate on the tower. <br /> f. Full Cost Recovery <br /> The Franchise Manager will coordinate with facilities and finance staff to ensure that revenue. <br /> from telecommunications companies' use of public assets at least covers the full cost of <br /> negotiating and managing the agreement, and any increased cost associated with the presence <br /> of telecom equipment on City property (eg. utility expense, maintenance, etc.) that is not <br /> covered by permit fees. (For full cost recovery guidelines, see July 1998 Cost Recovery <br /> Policy.) The City may decide to accept alower-than-cost amount if there is a compelling <br /> reason in the public interest. In this case, the Franchise Manager will bring the proposal to <br /> Executive Managers for review. <br /> <br />