Item Coversheet

Resolutions - C7  H




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:May  13, 2020
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, A TEN (10) FOOT WIDE UNDERGROUND UTILITY EASEMENT, HAVING APPROXIMATELY 813 SQUARE FEET, IN FAVOR OF CROWN CASTLE FIBER LLC (CROWN CASTLE); SAID EASEMENT LYING IN A PORTION OF LOT 1, BLOCK 3, OF SECOND OCEAN FRONT SUBDIVISION, RECORDED IN PLAT BOOK 28, AT PAGE 28, OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA, HAVING A STREET ADDRESS OF 6444 INDIAN CREEK DRIVE, FOR A TERM OF NINE (9) YEARS AND 364 DAYS, PROVIDING FOR THE PAYMENT TO THE CITY OF AN INITIAL ANNUAL USE FEE OF $5,945 PER YEAR, SUBJECT TO ESCALATIONS OF 3% PER YEAR, FOR THE INSTALLATION AND MAINTENANCE OF TELECOMMUNICATIONS EQUIPMENT; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL EASEMENT AGREEMENT.

RECOMMENDATION

The City Manager recommends approving, in substantial form, the easement agreement incorporated herein, which agreement provides for the payment to the City of a fair market use fee.

BACKGROUND/HISTORY

The City of Miami Beach owns the Property located at 6444 Indian Creek Drive, Miami Beach Florida, commonly known as Brittany Bay Park (the "Property"). Crown Castle Fiber LLC ("Crown Castle") has requested that the City grant them a ten (10) foot wide underground easement, having approximately 813 square feet (the "Easement Area").

Crown Castle intends to install four (4) 1.5 inch diameter conduits utilizing directional boring within the Easement Area, in order to develop a small cell wireless facility telecommunication infrastructure, which can accommodate "5G" telecommunication equipment.

Pursuant to the terms of the Easement ("Agreement"), the City would convey to Crown Castle a non-exclusive underground utility easement in, on, over, across and under the Property (the "Easement Area"), including ingress and egress over the property to permit Crown Castle to install improvements within the easement area for utility purposes only.

The City will retain the right to construct and maintain other improvements within the easement area so long as such improvements do not unreasonably impede Crown Castle's authorized use of the easement area.

The City had secured an appraisal from The Urban Group Real Estate Consultants ("Appraiser"), dated December 3, 2019, for an initial proposed underground utility easement, having 435 square feet, which appraised the annual use fee for the easement at $3,180.00.

After securing the appraisal, the City requested that Crown Castle use a standard ten-foot wide easement size, increasing the square footage of the proposed easement to 813 square feet. By using the same valuation methodology used by the appraiser for the first easement, the use fee for the initial year for the proposed 813 square foot easement was calculated to be $5,945.06.

Pursuant to the terms of the proposed easement agreement, the use fee will be increased every year by 3% over the use fee paid in the prior year. This utility easement for Crown Castle will satisfy the needs of Crown Castle to maintain their fiber service within the City of Miami Beach, to provide the residents of Miami Beach with more efficient telecommunication services.

ANALYSIS

Results from the 2019 Resident Survey show 79% of residents rated the City of Miami Beach as a place to live, 73% were satisfied with the overall image of the City, and 79% overall quality of City services.  In order to continue maintaining excellent standards in this area, the City plans to grant Crown Castle a utility easement for the installation and maintenance of telecommunications equipment.

CONCLUSION

The City Manager recommends approving, in substantial form, the easement agreement incorporated herein, which agreement provides for the payment to the City of a fair market use fee.

Applicable Area

Citywide
Is this a Resident Right to Know item? Does this item utilize G.O. Bond Funds?
Yes No 
Legislative Tracking
Public Works

ATTACHMENTS:
Description
Appraisal Report-Brittany Bay Park Underground Easement
Survey Legal Combined 040120
RESO
DRAFT agreement