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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/20/2005 - SECOND READING OF ORDINANCE NO. 098, 2005, AUTHORI ITEM NUMBER: 9 AGENDA ITEM SUMMARY DATE: September 20, 2005 FORT COLLINS CITY COUNCIL STAFF: Bill Whirty SUBJECT Second 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 Second Reading. 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. Ordinance No. 098, 2005, was unanimously adopted on First Reading on September 6, 2005. 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 readinganyl ordered published this 6th day of September, A.D. 2005, and to be presented for final pp4sag on the 0th day o embpT, A.D. 2005. i A,T TEST: Mayor City Clerk Passed and adopted on final reading this 20th day of September, A.D. 2005. Mayor ATTEST: City Clerk ITEM NUMBER: 14 AGENDA ITEM SUMMARY DATE: September 6, Zoos FORT COLLINS CITY COUNCIL STAFF: Bill Whirty SUBJECT s :; 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 generatevene $2;0Q0 for each six-month option period. The lease will generate $12,000 annually ovthe inif five x at term. Tti' ease rate will increase 20 percent each additional five-year 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 *g The Option Agreement is for anrnitial six=montb 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 a tr nna to__the upperportiory jusl ow the VoiceStream antenna) of the concrete pole. a „ " 4. Cingular will construct 8' fence to enclose the site4hat 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 Ci lar"" s inc es e n 'f a tonexclusive utility easement for use by Cingular consis nt with e leas d he of the lease. The revenue from the lease will`b`� sed epa' nd reno 'on 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 o t'on and lease in order to generate the needed revenue for the Parks Division's Life Ce imp eme s r i ` f � .