Decision Title: Rugby Police Station – Telecommunications Monopole
Decision Reference Number: WPCC3-0113
Lead Officer: James Richmond-Davies
If force business, date approved by Chief Officer: 25 October 2023, ACC Ben Smith
Date: 25/10/23
Status: Partly-Confidential
If confidential or partly confidential*, rationale:
Lease document is confidential: Exempt from publication under Section 43 (Commercial Interests)
Decision summary:
Lease of communications site at the front of Rugby Police Station, Newbold Road, Rugby for 5 years.
I confirm that my register of interests declaration is up to date and that none of my interests preclude me from making this decision.
Signature: P. Seccombe
Date: 27.11.2023
Supporting information
1. Background information
EE Limited and Hutchinson 3G UK (the “Operators”) approached Warwickshire Police on behalf of the PCC regarding a proposal to install telecommunications monopole and associated equipment at Rugby Police Station. The Operator’s surveyors undertook surveys at the site and applied for planning permission (which was granted in October 2021). The Operator’s require the site as a replacement for a decommissioned site on Corporation Street to reinstate coverage and lost capacity.
Heads of Terms were issued by the Operator’s surveyors in September 2021 for the grant by the PCC of a 10 year lease to the Operators.
The grant of the lease will also confer rights to the Operators under the Electronic Communications Code (the “Code”).
Negotiations have continued between Warwickshire Police (on behalf of the PCC) and the Operators on the terms of the lease and the rights required by the Operators over the Rugby Police Station site.
Many of the terms of the lease mirror the rights which the Operators could expect to be granted under the Code. In September 2022 the Operators’ solicitors issued a letter before action threatening to apply to the Upper Tribunal (Lands Chamber) for an order to grant them Code rights unless the PCC agreed to grant them the lease. The Operator’s agents have indicated in subsequent conversations that they will pursue proceedings if the PCC refuse to enter into the lease because of the importance of the site to their infrastructure and the lack of readily identifiable alternatives.
The form of lease and the lease plan have now been agreed, with a focus within it made to both minimise operational or public access impacts to the site of planned or future work, as well as minimise any impacts of the works on asset value or future sale opportunities of Rugby Police Station.
The key terms of the agreed lease are as follows:
- Extent of the land to be leased: The area at the front of Rugby Police Station shown edged red on the [attached plan] (the “Site”).
- Term: 5 years from the date of completion of the lease, with a 3 year redevelopment clause
- Rent: £600.00 per year (exclusive of VAT), payable in advance on completion of the lease and on each anniversary of it.
- Outgoings: The Operators are required to pay all outgoings in respect of the Site, and ensure that there is a separate electricity supply to their apparatus.
- Permitted Use: The provision of electronic communications networks and services within the meaning of the Code.
- Repair: The Operators are required to keep the Site in good repair and condition.
- Insurance: PCC is not required to insure the Site. The Operators are required to maintain public liability insurance to a minimum of £10,000,000.
- Dealings: The Operators are not allowed to assign, underlet, share occupation or transfer the lease to any other person except to another operator under the Code or to a group company.
- Rights granted to the Operators:
- The Operator may use the areas edged blue on the lease plan (or such other areas approved by the PCC) during the initial installation of the Operator’s equipment, and any later repairs, replacements or upgrades, to:
- Park and turn vehicles to access the Site;
- Use a cherry picker or crane to install, repair and replace etc the equipment;
- The Operator may use the areas edged blue on the lease plan (or such other areas approved by the PCC) during the initial installation of the Operator’s equipment, and any later repairs, replacements or upgrades, to:
- Store and use materials, equipment, welfare units and toilets needed in connection with the works.
The Operators must give the PCC not less than 21 days prior notice. The Operators must also first use reasonable endeavours to use the public highway to access the Site for these purposes.
- The Operator may use the route coloured brown on the lease plan at all times in order to gain access to the Site. The Operator may install a temporary or permanent track over this route to facilitate its access.
- The Operator may lay and maintain etc cables through the land edged in green on the lease plan (or such other areas approved by the PCC) to serve the Site. The Operator must give the PCC not less than 21 days notice (except where any works are required as an emergency). The Operator must also first use reasonable endeavours to lay the cables directly to the Site from the public highway.
- The Operators must also pay to the PCC the reasonable costs incurred by the PCC in providing alternative car parking provision for Warwickshire Police’s employees, agents and visitors during such time that any car parking spaces on the land edged green on the lease plan are unusable or inaccessible due to the Operators exercising these rights.
- Termination Rights:
- The Operators are entitled to terminate the lease by giving the PCC at least 3 months’ notice if they cease to be operators under the Code.
- The Operators are entitled to terminate the lease by giving the PCC not less than 6 months’ notice.
- The PCC may terminate the lease by giving the Operators not less than 18 months’ notice if they are persistently late in paying rent or there are substantial unremedied breaches of their obligations under the lease.
- The lease contains a redevelopment break for the PCC. The PCC may terminate the lease at any time after the 3rd anniversary of its commencement by giving the Operators not less than 18 months’ notice. (The 18 month notice period reflects the provisions of the Code.) The PCC must have planning permission and a settled intention to redevelop the Site or the adjoining land and it cannot undertake the redevelopment without the Operators vacating the Site.
2. List of additional information attached as appendices
Agreed form of lease and Rugby Police Station Plan July 2023
3. Expected benefits
No expected benefits directly relating to either the PCC or Warwickshire Police
4. Impact of not approving the application
The Operators are likely to commence proceedings against the PCC and apply to the Upper Tribunal (Lands Chamber) under the Code for an order to grant them the rights to install and maintain their equipment on the Site. It is likely that the Upper Tribunal would grant the Operators these rights. It is possible that the Upper Tribunal would grant the Operators rights on terms which are less favourable to the PCC than the terms of the negotiated lease. (See Legal Comments below).
5. Costs (including any identified savings)
- a) The Operators will pay on completion of the lease a contribution of £1,500 to the PCC’s surveyor’s costs and £1,500 to the PCC’s legal costs (together with any irrecoverable VAT.)
- b) The Operators will pay an annual rental charge of £600 to the PCC
c) The Operators must also pay to the PCC the reasonable costs incurred by the PCC in providing alternative car parking provision for Warwickshire Police’s employees, agents and visitors during such time that any car parking spaces on the land edged green on the lease plan are unusable or inaccessible due to the Operators exercising these rights.
There are no identifiable savings from this decision.
6. Equality implications
No equality impact/ implications.
7. Legal comments
Rights under the Code may be acquired by Operators either by agreement (e.g. the grant of a lease) or by an order issued by the Tribunal. The Tribunal will make an order if it believes that any prejudice caused to the PCC may be adequately compensated by money and the public benefit likely to result from having high-quality electronic communications services outweighs the prejudice to the PCC. The PCC’s position is weakened because it has already indicated agreement in principle to the Operator’s proposals.
The Code provides for an Operator’s rights under the Code to continue after the lease has ended until such time that the rights are terminated under the Code. For this reason the PCC must also comply with the requirements to give formal notices (and comply with the procedures) set out in the Code to ensure that the rights are terminated and the Operator removes its equipment from the Site.
8. Publication
Information in this form is subject to the Freedom of Information Act 2000 (FOI Act) and other legislation. Unless the information provided is covered by an exemption and stated to be either confidential or partly confidential, the information contained in the form will be published on the PCC website.
Comments from the Treasurer
The revenue cost implications are minimal, but they will be included in the annual budget and medium-term financial plan. It is understood that legal provisions are made within the agreement, including break clauses, which can be activated should the position of either party change, which will help to manage any future costs.
Comments from the Chief Executive and Monitoring Officer
This land is required to support Communications Infrastructure in the Rugby area.