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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 12/19/2000 - FIRST READING OF ORDINANCE NO. 193, 2000, AUTHORIZ AGENDA ITEM SUMMARY ITEM NUMBER: 29 FORT COLLINS CITY COUNCIL DATE: December 19, 2000 STAFF: Virgil Taylor SUBJECT: First Reading of Ordinance No. 193, 2000, Authorizing an Option to Lease, and a Subsequent Lease, of City-owned Property at City Park North Ballfield to Voicestream PCS II, for the Location of Antenna Equipment Along With Associated Easements. RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT: The option to lease will result in a savings of approximately $11,000 as a result of Voicestream's installation of a new pole in lieu of a pole the City had planned to purchase. The lease will generate $12,000 annually over the initial five-year term. The lease rate will increase 20 percent each additional five-year term. EXECUTIVE SUMMARY: Voicestream PCS H Corporation ("Voicestream") contacted the Parks Division to discuss the possible lease of land for an antenna to enhance its cellular phone service. The pole on which the antenna would be located and a related utility and access easement are located in City Park. Through a series of negotiations, staff has developed an option and lease agreement that meets the needs of the City and Voicestream. That agreement is on file in the Office of the City Clerk for review. The agreement gives Voicestream the right to lease the subject property once it completes testing of the site to confirm its suitability for Voicestream's purposes. The key terms of the arrangement include: 1. Annual rent of$12,000 increases by 20 percent every five years. 2. A sub-lease by Voicestream of a 20 x 60 foot site just north of the right field fence of the north City Park ballfield from Sprint, which currently leases that parcel from the City. DATE: December 19, 2000 2 ITEM NUMBER: 29 3. Construction by Voicestream of a 90' metal pole that will replace the existing 70' ballfield light pole. Voicestream will attach its antennas to the top portion of the pole and will attach the ballfield lights to the upper middle portion of the pole. The pole needs to be 90' to clear the tops of the trees in the area, which is critical to the function of the antenna. 4. An 8' fence constructed by Voicestream that will house its communication equipment will enclose the site it is subleasing from Sprint. The site will have a sloped fence top that will prevent softballs from entering the enclosure. 5. The antenna and equipment will not interfere with other communication equipment used in the area of the site. 6. The lease is for five years and will be automatically renewed for additional five-year periods through March 8, 2023, unless either party provides notice of non-renewal. 7. The lease also includes the grant of a nonexclusive utility and access easement for use by Voicestream consistent with the lease during the term of the lease. The revenue from the lease will be used for repair and renovation of existing park facilities and equipment (Life Cycle). The Parks Division life cycle program has been under funded since its inception because of the significant cost of keeping the extensive Parks infrastructure in good repair and condition. Parks is constantly searching for new and innovative ways to meet these unfunded needs without requiring additional General Fund dollars. The antenna and proposed equipment enclosure has been reviewed by the staff in Park Planning and Development, Recreation, and Park Maintenance. The antenna and enclosure will not materially detract from the aesthetics of the area or interfere with recreational uses and maintenance Voicestream will complete the "Type r' development review process for the proposed antenna and equipment enclosure. Staff recommends that Council approve the option and lease agreement and related easements in order to generate the needed revenue for the Parks Division's Life Cycle improvements. • ORDINANCE NO. 193, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING AN OPTION TO LEASE, AND A SUBSEQUENT LEASE, OF CITY-OWNED PROPERTY AT CITY PARK NORTH BALLFIELD TO VOICESTREAM PCS II, FOR THE LOCATION OF ANTENNA EQUIPMENT ALONG WITH ASSOCIATED EASEMENTS WHEREAS, the City is the owner of that certain parcel of real property known as the City Park North Ballfield(the "North Ballfield")which includes the property described on the attached Exhibit "A" (the "Easement Property"); and WHEREAS,Voicestream PCS lI("Voicestream")has approached City staff,seeking to lease a location on a pole Voicestream has agreed to install for the City at the North Ballfield(the"Lease Space"), pursuant to City specifications,for an array of personal communications service antenna; and WHEREAS, Voicestream has requested that the City grant an option to lease the Lease Space,for a two-year period, in exchange for the provision and installation of the above-described pole at Voicestream's sole expense,during which option term Sprint would undertake the necessary site survey and investigation; and • WHEREAS, staff has negotiated with Voicestream proposed lease terms providing for an initial term of five(5)years,with three 5-year options to renew plus a final renewal period to expire on March 8, 2023; and WHEREAS,staff has prepared an Option and Lease Agreement including provisions for the term of the lease, together with other conditions for the lease, a draft of which is dated December 15, 2000, and is on file in the office of the City Clerk (the "Agreement"); and WHEREAS, the Agreement further provides that Voicestream shall pay lease payments at a rate of$12,000 per year for the initial lease term, said rate to be increased each renewal term by twenty percent (20%); and WHEREAS, the Agreement requires Voicestream to proceed in accordance with any applicable regulatory requirements or restrictions, including the City Land Use Code and building permit requirements; and WHEREAS, in order for Voicestream to install, operate and maintain the necessary equipment in connection with the Agreement, Voicestream has also requested that the City grant Voicestream access and utility easement rights on and under the Easement Property, for Voicestream's nonexclusive use in connection with the Agreement during the term of the Agreement; and WHEREAS,City staff has determined that the proposed installation and use by Voicestream of the Lease Space,along with the access and utility easement on and under the Easement Property is consistent with and will not conflict or interfere with the City's and the public's use of the North Ballfield; and WHEREAS,the financial benefits to the City of permitting the proposed use are substantial, and the impacts to the City of the same are minimal; and WHEREAS,under Section 23-114 of the City Code, the Council is authorized to lease any and all interests in real property owned in the name of the City,provided that Council first finds that the lease is in the best interests of the City; and WHEREAS,Section 23-111 of the City Code provides that the Council is authorized to sell, convey or otherwise dispose of real property owned by the City,provided the Council first finds by ordinance that any sale or disposition of real property owned by the City is in the best interests of the City of Fort Collins. NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby determines that the option to lease, and the subsequent lease,of the Lease Space,to Voicestream PCS 11,as set forth in the Agreement,together with the associated grants of an access and utility easement over that certain adjacent City property described on Exhibit"A",also attached hereto and incorporated herein by this reference,are in the best interests of the City. Section 2. That the City Manager is hereby authorized to enter into the Agreement with Voicestream PCS II for the option to lease and lease of the Lease Space,consistent with the terms hereof,along with such other provisions as the City Manager,in consultation with the City Attorney, deems necessary or appropriate to protect the interests of the City. Section 3. That the Mayor is hereby authorized to execute an Easement Agreement conveying to Voicestream non-exclusive access and utility easement rights on and under the Easement Property,as described on Exhibit"A",for the duration of the Agreement,which Easement Agreement shall be consistent with the terms hereof and with the Agreement,along with such other provisions as the City Manager, in consultation with the City Attorney, deems necessary or appropriate to protect the interests of the City. . Introduced, considered favorably on first reading, and ordered published this 19th day of December, A.D. 2000, and to be presented for final passage on the 2nd day of January, A.D. 2001. Mayor ATTEST: City Clerk Passed and adopted on final reading this 2nd day of January, A.D. 2001. Mayor ATTEST: City Clerk •