HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/16/2010 - FIRST READING OF ORDINANCE NO. 032, 2010, AUTHORIZ DATE: March 16, 2010 Lk
STAFF: Helen Matson, Kayla Ballard AGENDA ITEM SUMMARY
Bill Whirty
T COLLINS CITY COUNCIL
First Reading of Ordinance No. 032, 2010,Authorizing an Option to Lease, and a Subsequent Lease of, City-Owned
Property at Collindale Golf Course to Clear Wireless, LLC for the Installation of a Wireless Service Tower and Related
Equipment, and the Grant of Associated Easements.
EXECUTIVE SUMMARY
Clear Wireless, LLC has requested to lease 625 square feet of City-owned property on South Lemay Avenue at the
Collindale Golf Course to install a 50-foot tower and related equipment to enhance wireless service in the area.
Additionally, Clear Wireless is requesting utility and access easements that are necessary for the operation and
maintenance of its tower and equipment.
BACKGROUND / DISCUSSION
Clear Wireless has approached the City regarding the possible lease of land for the installation of a 50-foot tower with
related equipment to enhance wireless service and necessary utility and access easements needed for tower
operation. The proposed lease area is located on South Lemay Avenue at the south end of the Collindale Golf Course
Driving Range. Through a series of negotiations,staff developed aground site option and lease agreement with Clear
Wireless that meets the needs of both parties. The Lease Agreement contains the following:
(1) an option to lease for a six-month period for a payment of$2,500 with one 6-month renewal period for an
additional payment of$2,500. The option to lease allows Clear Wireless the opportunity to complete its due
diligence of the site, which includes going through the Community Development& Neighborhood Services'
regulatory requirements process, and, if it continues;
(2) a proposed lease term for an initial five (5) years with automatic renewal of four (4) successive five-year
periods.
FINANCIAL IMPACT
Clear Wireless will be responsible for all costs to install and maintain its tower and fence. Clear Wireless will also be
responsible for all utility expenses for the tower and equipment. The lease will generate $16,800 annually over the
initial five-year term. The lease rate will increase 20% each additional five-year term. The Golf Division will use the
revenue from this lease for minor capital improvements, known as the Life Cycle Funding Program,at the golf courses
for renovations and replacement of worn out infrastructures.
SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS
There is a rapidly growing need for wireless internet. The installation and operation of this tower will provide wireless
services to many businesses and residences that currently do not have access to this service.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
ATTACHMENTS
1. Photo Simulation
2. Location Map
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Location of Tourer and Related Equipment s
ORDINANCE NO. 032, 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING AN OPTION TO LEASE, AND A SUBSEQUENT LEASE OF,
CITY-OWNED PROPERTY AT COLLINDALE GOLF COURSE TO
CLEAR WIRELESS, LLC FOR THE INSTALLATION OF
A WIRELESS SERVICE TOWER AND RELATED EQUIPMENT,,
AND THE GRANT OF ASSOCIATED EASEMENTS
WHEREAS,the City is the owner of that certain parcel of real property described on Exhibit
"A", attached and incorporated herein by reference (the "Property"); and
WHEREAS, the Property is part of Collindale Golf Course; and
WHEREAS, Clear Wireless, LLC ("Clear Wireless") has asked the City to lease it 625
square feet of space on the Property (the "Lease Parcel") for the installation of a 50-foot wireless
service tower and related equipment to enhance its wireless service, and grant it a utility easement
and an access easement to serve the tower (the "Easements"); and
WHEREAS, the proposed Lease Parcel and Easements are described on Exhibit "B",
attached and incorporated herein by reference; and
WHEREAS, staff has worked with Clear Wireless on negotiating and preparing an option,
lease and easement agreement(the"Agreement'),a copy of which is on file in the office of the City
Clerk; and
WHEREAS, under the terms of the Agreement, Clear Wireless would receive a six-month
option to lease the Lease Parcel and acquire the Easements for a payment of$2,500 with one six-
month renewal period for an additional $2,500; and
WHEREAS, if Clear Wireless exercises the option, the Agreement would remain in effect
for an initial lease term of five years,with four additional,successive five-year renewal periods;and
WHEREAS, use of the Easements would be governed by the terms of the Agreement, and
would terminate when the lease of the Lease Parcel terminates; and
WHEREAS, the Agreement further provides that Clear Wireless shall make annual lease
payments to the City at a rate of$16,800 per year for the initial lease term, said rate to be increased
each renewal term by twenty percent; and
WHEREAS,the Agreement would allow Clear Wireless to sublease space to up to two sub-
tenants,including the right to partially assign its use of-the Easements,provided Clear Wireless pays
the City rent for each such sublease in the amount of$7,200 per year for the first five years of each
sublease, said rate to be increased by twenty percent for each additional five year period of a
sublease; and
WHEREAS, the Agreement requires Clear Wireless to proceed in accordance with any
applicable regulatory requirements or restrictions, including the City Land Use Code and building
permit requirements; and
WHEREAS, City staff has determined that the proposed installation and use by Clear
Wireless of its equipment on the Lease Parcel and use of the Easements on and under the Property
are consistent with and will not conflict or interfere with the City's and the public's use of the
Property; and
WHEREAS, City staff has further determined that the financial benefits to the City of
permitting the proposed use are substantial, and the impacts to the City are minimal; and
WHEREAS, Section 23-111(a)of the City Code authorizes the City Council to sell,convey
or otherwise dispose of any and all interests in real property owned by the City, provided that the
City Council first finds, by ordinance, that such sale or other disposition 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 Parcel to Clear Wireless, LLC , and the associated grant of a utility
easement and an access easement on and across the Property, all as described on Exhibit "B", on
terms and conditions consistent with this Ordinance, are in the best interests of the City.
Section 2. That the Mayor is hereby authorized to enter into the Agreement with Clear
Wireless, LLC for the option to lease and lease of the Lease Parcel and grant of the Easements, in
substantially the form as is on file in the office of the City Clerk,together with such additional terms
and conditions as the City Manager, in consultation with the City Attorney, determines to be
necessary or appropriate to protect the interests of the City or effectuate the purposes of this
Ordinance, including but not limited to any necessary changes to the legal description of the Lease
Parcel or either of the Easements, as long as such changes do not materially increase the size or
change the character of the Lease Parcel or either Easement.
Introduced, considered favorably on first reading, and ordered published this 16th day of
March, A.D. 2010, and to be presented for final passage on the 6th day of April, A.D. 2010.
Mayor
ATTEST:
City Clerk
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Passed and adopted on final reading on the 6th day of April, A.D. 2010.
Mayor .
ATTEST:
City Clerk
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Exhibit A
PARENT PARCEL DESCRIPMON:
The Nbdtmst Wader of the Northwest Wsrrter end the Northwest Quaderaf da NoMmtWmderWa Westof the
Unlon Pacft Ra&oad Right of Way.Sec%n 31.Tomb*T.Raw 69.C*4 of Fort Ccffii Wffw Counly,
Colorado,
DGUBIT B
LEASE AREA DESCRIPTION:
That part of the Northeast Quarter of the Northwest Quarterand the Nartlywest Qusrterof the Northeast Quarter lying
West of the Union Pacific Railroad Right of Way,Section 31,Townshtp 7,Range 66,City of Fott Co@ins,Larlmer
County,Colorado described as follows:
Referring to the Northwest comer of sold Section 31.an alumtnumcap found for comer,thence easterly N 89050320E
on the North fine of the Nodhwdst Quarter of Sect]an 31,1623.00 feet;thence southerly S 001072W E,1214.28 feet,
to the true Point of Beginning for the described Leas Area;thence following the pedrneierof the lease Area on the
following bearings and distances: S 84"1943"E,26.00 feet thence!)05MIy47"W.25 t10 fsel thence N 84019'13"W,
25.00 feet:thence N t18"4047"E,25.00 feet,to the true Point of Beginning. Canwiriing violet calculated area of 625
Square feet,more or less.
ACCESS EASEMENT DIwSCRIPTiON:
An Access Easement,l6 feet In width,located in that putt of the Northeast Quarter of the Nndhwest Quarter and the
Northwest Quarter of the Northeast Quarter lying West of the Union Pae18o Raifroad Rlghtof Way,Section 31,
Township 7,Range 68,City of Fort Collins,Larimer County,Col MO I to center line desadbed as follows:
Refutin0 to the Southeast comer of the described lease Area;thence westerly N 84°19'13"W,7.50 feet,.tq the true
Point of Beginning for the center line of the described easement thence southedy S 05"4014P'1N,19,43 feet:thence
westerly N 90"00'00"W,164.72 feet,to the Paint of Termination for the center line of the described easement
UTILITY EASEMENT DESCRIPTIONwa
A Utility Easement,4 feet in width,located in that part of the Northeast Quarter of the NoMwat.Ova rter and the
Northwest Quarter of the Northeast Quarter tying West of the Union Pacific Ralltoad Right of Way,Becton 31,
Township 7.Range 68,City of Fort Collins,Lorimar County,Colorado the oenter9ne described as follows:
Referring to the Northeast come rof the described Lease Area;thence westerly N 84.1913"W,12.50 feat,to the Uwe
Point of Beginning for the center line of the described easement;thence northerly N 05°40'47"E,8.00 feet:thence
westerly N 84"19'13"W,12a.43 feel;thence northwesterly N 45"4115'W.101.49 feet,thence norlhedy N 00'00'001
W.9.53 feel,to a point of intersec0on with an oxistng transformer.also being the Point ofTermirtetlmi for the center
line of the described easement