HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/06/2005 - FIRST READING OF ORDINANCE NO. 098, 2005, AUTHORIZ ITEM NUMBER: 14
AGENDA ITEM SUMMARY DATE: September6, 2005
FORT COLLINS CITY COUNCIL STAFF: Bill Whirty
SUBJECT
First Reading of Ordinance No.098,2005,Authorizing an Option to Lease,and a Subsequent Lease
of,City-Owned Property at City Park North Ballfield to New Cingular Wireless PCS, LLC, for the
Location of Antenna Equipment and Related Facilities, Along With an Associated Easement.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
The option to lease will generate revenue of$2,000 for each six-month option period. 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
Cingular Wireless Company contacted the Parks Division to discuss the possible lease of land for
an antenna and related equipment to enhance its cellular phone service. The property to be leased
and a related utility easement are located in City Park,north of the ballfields. Council has approved
similar leases for Sprint, VoiceStream, and Cricket in the same area. Through a series of
negotiations, staff has developed a proposed Option and Structure Lease Agreement that meet the
needs of the City and Cingular. Maps of the location of the antenna and related equipment are
attached as an exhibit to the Ordinance.
BACKGROUND
The Option Agreement is for an initial six-month term,with one additional six-month extension, if
necessary. The Option Agreement gives Cingular the right to lease the subject property once it
completes testing of the site to confirm its suitability for Cingular's purposes.
The key terms of the Lease Agreement include:
1. Annual rent of$12,000, with increases of 20 percent every five years.
September 6, 2005 -2- Item No. 14
2. Lease of an 11 foot by 22 foot ground space to house Cingular's equipment.
3. Cingular will attach its antenna to the upper portion (just below the VoiceStream antenna)
of the concrete pole.
4. Cingular will construct an 8' fence to enclose the site that will house its communication
equipment. The fence will have a sloped top that will prevent softballs from entering the
enclosure. This enclosure will be built to match the existing fenced enclosures leased by
Sprint, VoiceStream and Cricket.
5. Cingular will maintain the site.
6. The antenna and equipment will not interfere with other communication equipment used in
the area of the site.
7. The lease is for five years and will be automatically renewed for up to two additional five-
year periods and one shorter period unless either party provides notice of non-renewal. The
lease must terminate no later than March 8, 2023.
8. The agreement with Cingular also includes the grant of a nonexclusive utility easement for
use by Cingular 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 underfunded since its
inception because of the significant cost of keeping the extensive Parks infrastructure in good repair.
Parks is constantly searching for new and innovative ways to meet these unfunded needs without
requiring additional General Fund dollars.
The antenna and equipment enclosure have 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.Cingular
will complete the required development review process for the proposed antenna and equipment
enclosure. Nothing in the Site Lease with Option relieves Cingular of its obligation to seek all
necessary regulatory approvals.
Staff recommends that Council approve the option and lease in order to generate the needed revenue
for the Parks Division's Life Cycle improvements.
ORDINANCE NO. 098, 2005
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 NEW CINGULAR WIRELESS PCS, LLC, FOR THE LOCATION OF ANTENNA
EQUIPMENT AND RELATED FACILITIES,
ALONG WITH AN ASSOCIATED EASEMENT
WHEREAS, the City is the owner of that certain parcel of real property known as the
City Park North Ballfield (the "Property"); and
WHEREAS, New Cingular Wireless PCS, LLC, ("Cingular") has approached City staff,
seeking to lease ground space and space on a pole owned by the City on the Property (the "Lease
Space"), as described and shown on attached Exhibit "A", for an antenna and related equipment
to enhance its cellular phone service; and
WHEREAS, staff has negotiated with Cricket a six-month option to lease the Lease
Space for a payment of $2,000 with one six-month renewal period, and proposed lease terms
providing for an initial term of five years, with two 5-year options to renew plus a final renewal
period to expire on March 8, 2023; and
WHEREAS, staff has worked with Cingular on negotiating and preparing an Option and
Structure Lease Agreement including provisions for the term of the lease, together with other
conditions for the lease, a draft of which is on file in the office of the City Clerk (the
"Agreement"); and
WHEREAS, the Agreement further provides that Cingular shall make lease payments to
the City 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 Cingular to proceed in accordance with any
applicable City regulations, policies and requirements; and
WHEREAS, in order for Cingular to install, operate and maintain the necessary
equipment in connection with the Agreement, Cingular has also requested that the City grant
Cingular a five-foot wide utility easement on and under the Property, for Cingular's
nonexclusive use in connection with the Agreement during the term of the Agreement; and
WHEREAS, use of the proposed utility easement would be governed by the terms of the
Agreement, and would terminate when the lease terminates; and
WHEREAS, City staff has determined that the proposed installation and use by Cricket
of the Lease Space, along with the utility easement on and under the Property is consistent with
and will not conflict or interfere with the City's and the public's use of the Property; 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, the Council has previously approved similar leases for Sprint Spectrum
L.P., VoiceStream PCS II Corp. (now T-Mobile) and Cricket Colorado Property Company in
the same area for similar purposes; 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.
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 Cingular Wireless PCS, LLC, as set forth in the
Agreement, together with the associated grant of a utility easement over that certain City
property described on Exhibit "A", attached hereto and incorporated herein by this reference, are
in the best interests of the City.
Section 2. That the Mayor is hereby authorized to enter into the Agreement with
Cingular Wireless PCS, LLC, 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 Cingular Wireless PCS, LLC, non-exclusive utility easement rights on and under
the 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 6th day of
September, A.D. 2005, and to be presented for final passage on the 20th day of September, A.D.
2005.
ATTEST: Mayor
City Clerk
EXHIBIT "A"
PROPERTY DESCRIPTION-LEASE AREA:
A LEASE PARCEL LOCATED IN THE SW1/4 OF SECTION 10, T7N, R69W OF THE
SIXTH P.M.. COUNTY OF LARIMER, STATE OF COLORADO, MORE PARTICULARLY
DESCRIBED AS FOLLOWS:
THE BASIS OF BEARING IS THE WEST LINE OF THE SOUTHWEST 1/4 OF SAID
SECTION 10 BEING NORTH 0076'49" EAST; -
BEGINNING AT A POINT WHENCE THE SOUTHWEST CORNER OF SAID SECTION 10
BEARS SOUTH 52'10'24" WEST A DISTANCE OF 2.656.72 FEET;
THENCE N54&05'56"E A DISTANCE OF 22.00 FEET;
THENCE S35'54'040E A DISTANCE OF 11.00 FEET;
THENCE S54005'56"W A DISTANCE OF 22.00 FEET;
THENCE N35%54'04"W A DISTANCE OF 11.00 FEET TO THE POINT OF BEGINNING
OF THIS LEASE PARCEL
THIS PARCEL CONTAINS 242.00 SO. FEET, MORE OR LESS.
PROPOSED 5' UTIUTY EASEMENT:
AN EASEMENT 5.00 FEET IN WIDTH CROSSING A PART OF THE SW/4 OF SECTION
10, T7N, R69W OF THE 6th P.M., COUNTY OF LARIMER, STATE OF COLORADO,
SAID EASEMENT BEING 2.50 FEET ON EITHER SIDE OF THE FOLLOWING DESCRIBE[
CENTERLINE, SIDELINES TO BE EXTENDED OR SHORTENED TO ELIMINATE GAPS
AND OVERLAPS.
COMMENCING AT THE NORTHWESTERLY CORNER OF SAID LEASE AREA;
THENCE N54605'56"E ALONG THE NORTH LINE OF SAID LEASE AREA A DISTANCE
OF 4.50 FEET TO THE POINT OF BEGINNING OF THIS EASEMENT DESCRIPTION;
THENCE N35'54'040W A DISTANCE OF 18.27 FEET;
THENCE N3912'23"E A DISTANCE OF 115.27 FEET;
THENCE NOO'DO'00"W A DISTANCE OF 23.50 FEET TO THE POINT OF TERMINUS
OF THIS EASEMENT DESCRIPTION.
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