ROCKINGHAM A CITY LOOKING FORWARD CITY COUNCIL AGENDA September 8, 2020 6:30 p.m.  1. Opening of meeting by Mayor Steve Morris. 2. Invocation by Mayor Steve Morris. 3. Amendments and Changes to Agenda.  4. Consent Agenda:  A. Disposition of Minutes of the August 11, 2020 Regular Meeting.  B. Tax Collector's Report. (See Pages 4-9)  Informational Items: 1.) Monthly Collection Report  2.) Uncollected Taxes as of August 31, 2020 1.) Refunds per County Assessor's Office. 2.) Discovery bills added to Tax Scroll. 3.) Releases per County Assessor's Office.  Action Items:  5. Business by Planning Board.  A. Set Public Hearings. (none) B. Hold Public Hearings: (none)  C. Minutes from Various Boards. (none)  514 Rockingham Road, Rockingham, NC 28379 Phone (910) 895 9088 Fax (910) ")-mmayeee    City Council Agenda September 8, 2020  6. Consideration of sale of water tank lease agreement between City and Celico Partnership dba Verizon Wireless to SBA Site Management, LLC with a 50 year easement for $409,400. (See Pages 10-15)  7. Board Appointment- Consideration of appointment of Kristin Hudson to fill vacant seat on Historic Preservation Board. (See Page 16)  8. Consideration of Resolution for a NC Governor's Highway Safety Program Grant in the amount of $25,000. (See Page 17)  9. Business by' Visitors. 10. Business by City Clerk. 11. Business by City Manager. 12. Business by City Attorney.  13. Items of discussion by City Council Members.  14. Business by Mayor. 15. Adjournment.    Rockingham, NC  City Council Agenda  SUPPORT DOCUMENTS    V  6  $?  5 2    UNCOLLECTED TAXES  YEAR 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010  AMOUNT 2,716,166.49 15,334.10 9,791.36 8,855.13 7,057.60 7,525.48 7,442.57 8,821.76 6,621.68 6,258.94 5,461.12  Aug-20  2,716,166.49 83,169.74 2,799,336.23  Total Current Year Total Past Years Total All Years    o  8 8 - 8  8  8    8 a  9 0  o 4  3  9  153  I    - 888 0 8 88 00  00  8 3  E    3  8  0    John R. Massey, Jr. AICP Planning Director  ROCKINGHAM A CITY LOOKING FORWARD  INO  MEMORANDUM  To: Mayor Steve Morris and City Council Members From: John R. Massey, Jr., Assistant City Manager  Date: August 28, 2020  Re: Sale of Verizon Water Tank Lease to SBA Site Management, LLC for $409,400  In January 2019, the City Council approved a lease agreement with Cellco Partnership (d/b/a Verizon Wireless) to locate telecommunication equipment on the City's water tank beside the police department. The initial lease term is five years and automatically renews for four additional five-year terms unless the lessee opts out after any five-year term. The total value for the lease agreement from date of commencement (July 1, 2020) assuming the agreement lasts the full term (25 years) is $714,296.70. As thé City Council may recall, there is a market for telecommunication lease agreements. The City has previously sold two similar agreements to generate immediate capital for City projects (ie. DPK building purchase and Patton's). The sale of these leases is advantageous to the City for several reasons. The sale generates an immediate lump sum of cash for the City that can be put toward a large project as opposed to having lease payments trickle in over a 25-year period; and the buyer of the lease agreement assumes the risk of the lessee opting out prior to the end of the agreement - only the first five-year With assistance from a firm that specializes in finding buyers for telecommunication lease agreements - Cell At Auction, LLC, the City has received eight offers to purchase the Cellco Partnership lease agreement. The highest/best offer is from SBA Site Management with an amount of $409,000. The offer also includes the purchase of a 50-year easement on the City's water tank for future collocations with a 65 percent revenue share to the City. A copy of the letter of intent from SBA Site Management is City staff recommends the City Council authorize the sale of the lease agreement as proposed by SBA Site Management. If approved, City staff recommends the funds be allocated to continue ongoing downtown revitalization efforts - specifically the needed floor repairs to the former Food King building.  period is guaranteed.  attached for your reference.  514 Rockingham Road, Rockingham, NC 28379 - Phone (910) 895 9088 Fax (910) 9976617-www.gorockingham.com    8051 Congress Avenue Boca Raton, FL3 33487-1307  SBA )  sbasite.com  August 11, 2020  **Via Email**  The City of Rockingham, North Carolina Al Municipal Corporation 514 Rockingham Road Rockingham, NC28379 Attn: John Massey Agreement Dear Mr. Massey:  RE: Letter ofl Intent (the "Letter") Regarding Proposed Telecommunications Site Easement  This Letter outlines the essential features of a proposed agreement between The City of Rockingham, North Carolina A Municipal Corporation ("Grantor"), and SBA Site Management, LLC,  oran affiliated entity ("Grantee").  Subject to the preparation, execution and performance of a definitive agreement for purchase of easement (the Agreement"), containing the mutual covenants and agreements of both parties and such other terms, conditions, covenants or representations and warranties as either party in good faith may  require, we propose in principle at transaction on the following general terms:  TERMS OF TRANSACTION Purchase Price and Method ofl Payment: Site Easement Agreement:  Four Hundred Nine Thousand Four Hundred and 00/100 Dollars  ($409,400) paid in cash at closing.  At Closing the parties shall enter into a fifty (50) year easement agreement (the "Easement") allowing Grantee the exclusive use of a portion of the property for the installation, removal, operation and maintenance of multiple radio and telecommunication systems, video systems and any other communication systems (the "Systems") at the building located at 119 South Lawrence Street, Rockingham, NC 28379 (the "Property"). Additionally, at closing, Grantor shall assign all agreements ("Tenant Leases") that grant the right to any Systems located at the Property, and commencing on the closing day any rental payments made thereunder shall no longer be paid to Grantor, but shall be paid directly to Grantee.    The City ofl Rockingham, North Carolina  August 11,2020 Page 2 Revenue Share:  Grantor shall receive sixty-five percent (65%) of the gross rent collected by Grantee from any additional tenants installed on the site, commencing with the first dollar provided Grantee continues to receive the amount of rent transferred at closing (the "Annual Net Revenue") equal to Twenty Three Thousand Four Hundred and 00/100 Dollars ($23,400) which shall increase in accordance with the escalations and amendments associated The later to occur of: (i) Forty-Five (45) days from that date that Grantor and Grantee execute the Agreement, or (ii) Sixty (60) days after Grantor's notice of this proposed transaction is received by Verizon Wireless without Verizon Wireless' exercise of its Right of First Refusal, or (iii) following Grantor's receipt of notice from Verizon Wireless stating it will During the term of the Easement, Grantor shall not lease space to third parties or telecommunications providers on the Property for  with the Tenant Leases purchased at closing.  Closing:  not exercise its Right of] First Refusal  Noncompetition:  telecommunications purposes.  Grantee and Grantor will each pay their own attorney's fees and expenses and other expenses related to the transactions contemplated hereunder. Grantor shall pay all applicable Transfer Taxes due at closing. Other than Cell at Auction who shall be compensated by Grantor at closing, there are no  broker/finder fees associated with this transaction. CONDITIONS PRECEDENTTO CLOSING  The consummation of the transactions will be subject to, among other things, the following (a) Execution and delivery of the Agreement and all other documents and instruments (b) Satisfactory due diligence investigation by Grantee, and its agents, as determined in Grantee's: sole discretion, of the financial, operating and business affairs and prospects of the Property; (c) The receipt of all approvals to the consummation of the transaction from all governmental and regulatory agencies, landlords, mortgagees, secured parties or other third parties deemed reasonably necessary by Grantee including but not limited to satisfactory non-disturbance agreements from any holders of any superior mortgages or other liens affecting thej property;  conditions, unless waived: contemplated thereby;  (d) The absence of any pending or threatened litigation which, in the opinion of Grantee has or could have any material adverse effect on the consummation of the transactions contemplated hereby  and/or the enjoyment oft the benefits thereof; and  SBA )    The City of Rockingham, North Carolina  August 11,2020 Page 3  (e) The aggregate Annual Net Revenue generated from the Tenant Leases transferred to Grantee as ofthe Closing Date shall be at least $23,400 as scheduled on Exhibit A. Ifthe Annual Net Revenue at Closing is less than $23,400 then the purchase price shall be reduced by the amount the  Annual Net Revenue at Closing is less than $23,400: multiplied by 17.5.  OPERATIVE PROVISIONS  In consideration oft the foregoing, while this Letter isi in effect:  (a) Except with the prior written consent of Grantee, neither the Grantor, nor any officer, director or any representative thereof, shall solicit, authorize the solicitation of, enter into or authorize any discussions with any third party concerning, or furnish or authorize the furnishing of any confidential information relating to the Property to any third party for the purpose of studying, considering, soliciting or inducing, any offer or possible offer by any such third party or any other third  party to enter into any similar agreement concerning the Property;  (b) From the date of execution of the Agreement (and thereafter as may be provided in the Agreement), Grantor shall permit Grantee, and its authorized representatives reasonable access during  regular business hours to the Property;  (c) All information furnished to Grantee under this Letter shall be treated as confidential and Grantee shall take normal and reasonable precautions to preserve the confidentiality of such information until the Closing and, ift this Letter is terminated, Grantee shall return all documents and other materials containing, reflecting and referring to such information and shall take normal and reasonable precautions to preserve the confidentiality of such information. Grantee's obligations hereunder shall not apply to any information which: (i) was already in its possession prior to the disclosure thereof by Grantor, (i) was then generally known to the public, (ini) became known to the public through no fault of Grantee or any ofi its agents or representatives, or (iv) was disclosed to Grantee by a third party unaffiliated with Grantee who was not known by Grantee to be bound by an obligation of confidentiality to Grantor. This Letter is not intended as a contract, but merely as a statement of the intentions and undertaking of the parties. The transaction will be binding upon the parties only in accordance with the terms contained in the Agreement if, as, and when such Agreement has been duly authorized and executed by the parties. Notwithstanding the foregoing and in consideration of the time, effort and expense to be incurred by Grantee in connection with the conduct of its due diligence review and the preparation and negotiation of the definitive documents, all of the paragraphs of the "Operative Provisions" sections hereof shall constitute al binding and continuing agreement between the parties. In consideration of the expenses that Grantee has incurred and will incur in connection with the transaction contemplated by this Letter, Grantor agrees that until such time as this LOI has terminated (such period, the "Exclusivity Period"), the Grantor will not, and Grantor agrees to cause their respective subsidiaries, affiliates, members, investors, managers, representatives, directors, officers, agents or employees not to, directly or indirectly, initiate, solicit, offer, entertain, accept, discuss, encourage, participate in any discussions or negotiations with, or provide any information to, any person or entity,  SBA )    The City ofl Rockingham, North Carolina  August 11,2020 Page 4  other than Grantee and its officers, employees, representatives and agents concerning any proposal or agreement with respect to the transactions contemplated by this Letter or any other transaction that would be reasonably construed as an alternative to the transactions contemplated by this Letter. During the Exclusivity Period, Grantor hereby agrees that Grantee will have the exclusive right to negotiate and enter into the Agreement. Grantor agrees to notify Grantee immediately if Grantor receives any indications ofi interest, request for information, offer or any other communication regarding any Assets that are the subject of this Letter and will communicate to Grantee in reasonable detail the terms of any such indication, request or offer, and will provide Grantee with copies of all written communications relating to any such indication, request or offer. Immediately upon execution oft this Letter, Grantor shall terminate any and all existing discussions or negotiations with any person or group of persons other than Grantee regarding this or any similar transaction concerning the Assets. Grantor represents that iti is not bound by any agreement with respect to a transaction involving the assets other than under this Letter. Neither Grantor nor Grantee may assign this Letter or any rights or obligations hereunder to any third party without the written consent of the other. This Letter will automatically terminate and be ofno further force and effect upon the earlier of (i) mutual agreement of Grantor and Grantee; or (ii) ninety (90) days from Grantor's acceptance date if no Agreement is reached between the parties. Notwithstanding anything in the previous sentence, the "Operative Provisions" shall survive the termination of this Letter and the termination of this Letter shall not affect any rights any party hereto has with respect to the breach ofthis Letter by another party hereto prior to such termination. the enclosed copy ofthis letter at the bottom and returning it to the undersigned.  If the foregoing correctly expresses our understanding, please sO indicate by signing and dating  Very truly yours, SBA SITE MANAGEMENT, LLC 4 Marcos Pinares  Analyst II, Mergers and. Acquisitions.  Agreed and accepted this  day of August 2020.  GRANTOR: The City of] Rockingham, North Carolina  Signature: Print Name: Title:  SBA - )    The City of] Rockingham, North Carolina  Augustl 11, 2020 Page 5  Exhibit. A "Annual Net Revenue"  Tenant Name Verizon  Annual Rent $23,400  SBA D)    John R. Massey, Jr. AICP Planning Director  ROCKINGHAM A CITY LOOKING FORWARD  NO  MEMORANDUM  To: Mayor Steve Morris and City Council Members From: John R. Massey, Jr., Assistant City Manager  Date: August 31, 2020 Re: Board Appointment  The City's Historic Preservation Board currently has two vacant seats. Kristin Hudson, who resides at 913 Ann Street, (in the Historic District) has expressed an interest in serving on the Board. City staff recommends the City Council appoint Mrs. Hudson to fill one of the vacant seats on the Board.  514 Rockingham Road, Rockingham, NC 28379 Phone (910) 895 9088 Fax (910) 997 6617 wwgerectingham.con    Resolution  North Carolina Governor's Highway Safety Program LOCAL GOVERNMENTAL RESOLUTION  Rockingham Police Department  WHEREAS, the "Agency") has  (herein called the  (The Applicant Agency)  of  an completed application  contract  fori traffic safety funding; and that City Rockingham (herein called the "Governing Body") has thoroughly considered the problem  (The Governing Body oft the Agency)  identified and has reviewed the project as described in the contract; MEETING ASSEMBLED IN THE CITY OF Rockingham  of  THEREFORE,  RESOLVED  NOW BE ITI  BY THE. City  Rockingham (Governing Body)  JNOPEN  NORTH CAROLINA,  THIS 8th DAY OF September 20 20 AS FOLLOWS:  1. Thatt the project referenced above is in the best interest of the Governing Body and the general public; and  2. That Chief Billy Kelly  isa authorized to file, on behalf of the Governing  (Name and" Title of Representative)  Body, an application contract in the form prescribed by the Governor's Highway Safety Program for federal  funding int the amount of $ $25,000  to! be made to the Governing Body to assist in defraying  (Federal Dollar Request)  the cost of the project described in the contract application; and 3. That the Governing Body has formally appropriated the cash contribution of s0  as  (Local Cash Appropriation)  required by the project contract; and  4. That the Project Director designated in the application contract shall furnish or make arrangement for other appropriate persons to furnish such information, data, documents and reports as required by the contract, if  approved, or as may be required by the Governor's Highway Safety Program; and 5. That certified copies of this resolution bei included as part of the contract referenced above; and  6. Thatt this resolution shall take effect immediately upon its adoption.  DONE. AND ORDERED in open meeting by.  (Chaiperson/Mayor)  ATTESTED BY. DATE.  SEAL  (Clerk)  Rev. 7/11    DEPARTMENTAL ACTIVITY REPORTS  for  COUNCIL'S INFORMATION    ROCKINGHAM cITY LOOKING FORWARD W.D. Kelly, Chiefof Police  Rockingham Police Department  To: Monty Crump From: W. D. Kelly Chief of Police Date: September 1, 2020 Ref: August Activity Report  On behalf of the Rockingham Police Department, I am pleased to submit this report for your consideration. The following activities have been undertaken by officers of the Rockingham Police Department.  Total Calls for the Month: Public Service Calls - INCLUDES Alarms, Unlocks and Battery Boosts) Charges Generating Arrest: Felonies: Misdemeanors: Drug Violations: Juvenile: Warrants Served: Citations:  1556 574 50 54 12 01 81 20 50 04 3 180  Accidents Reported/Investyated: Property Damage only: Personal Injury: Officer Hours Spent in Court: Officer Training Hours Logged  Geptembe  311 E. Franklin Street, Rockingham, N.C. 28379 Phone (910) 895-2468 Fax (910) 895-0899 ngorcknghamplcom    - ROCKINGIAM  FIRECHIEF HAROLDISLER ADMIN.ASST. KRISTY PLAYER  FIRE DEPT. August  We are pleased to submit the monthly fire report on the activities undertaken by the Rockingham  Fire Department during the month of August 2020.  Total Alarms: Turn In Alarms: Wrecks: Service Call: Power line down: 0 Smoke scare: Electrical:  45 0 15 5 0 3  In Town: Silent Alarms: Alarm Malf: Assist Police: Assist Ems: Building Collaspe: Cooking:  45 45 11 1 0 1 1  Out of Town: Structure fire: Good Intent: Trash/outside fire: 1 Unauthorized burn: 0 Vehicle fire: Gas Leak:  0 2 3 0 2  Hours Spent on Calls: 8 hours 26 minutes Total Property Exposed to Fire: Total Property Damaged by Fire: Total Property Saved:  $471,000.00 $20,500.00 $450,500.00  During the month of August members of the fire department averaged 331 training hours per person; part-paid members averaged 9 hours per person for the month.  Respectfully Submitted, nelal Harold Isler Fire Chief  231 S. LAWRENCE ST. ROCKINGHAM, NC. 28379 1 910-997-4002