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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/07/2010 - SECOND READING OF ORDINANCE NO. 120, 2010, AUTHORI ,WITHDRAWN AND MOVED TO DECEMBER 21,_2010 DATE: December 7, 2010 AGENDA ITEM SUMMARY ' STAFF: Helen Matson, Kayla Ballard _ Bill Whirty T COLLINS CITY COUNCIL Second Reading of Ordinance No. 120, 2010, Authorizing an Option to Lease, and a Subsequent Lease of, City- Owned Property at Southridge Greens Golf Course to New Cingular,,LNireless PCS, LLC for the Installation of a Telecommunication Monopine Tower and Related Equipment, and filgelkant of Associated Easements. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First e 2010, authorizes an option to lease 700 square feet of City-owned property at Sout i to New Cingular Wireless PCS, LLC (AT&T) to install a 50-foot monopine and relate reless service in the area. Additionally, AT&T is requesting utility and access easem t the operation and maintenance of its monopine and ground equipment. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- November 16, 2010 (w/o attachments) y , .5 ATTACHMENT 1 DATE: November 16, 2010 STAFF: Helen Matson, Kayla Ballard AGEND . ITEM SUMMARY Bill Whirty T COLLINS CITY COUNCIL First Reading of Ordinance No. 120, 2010, Authorizing an Option to Lease, and a Subsequent Lease of, City-Owned Property at Southridge Greens Golf Course to New Cingular Wireless PCS, LLC for the Installation of a Telecommunication Monopine Tower and Related Equipment, and the Grant of Associated Easements. EXECUTIVE SUMMARY New Cingular Wireless PCS, LLC (AT&T) h-reque\ ste)to II as 00 squla�a feet of City-owned property to install a 50-foot monopine and related equipment-to enhance'wireless service in the area. Additionally, AT&T is requesting utility and access easements that are necessary for the operation and maintenance of its monopine and ground equipment. BACKGROUND / DISCUSSION AT&T approached the City regarding the possible lease of land for the installation of a 50-foot monopine tower with related ground equipment to enhance wireless service and necessary utility and access easements needed for tower operation. A"monopine" is a cellular�an`tenna tower-designed=to looks ike a p ne tree. The monopine pole is made of steel and will have branches made of a fiberglass-like materiial to camouflage the pole. The color of the pole and branches will match the existing landsca\ pings 1 v The proposed lease area is located along-bouth Lemay Alenue on the`east side of the Southridge Greens Golf Course. Through a series of negotiations, staff developed a Ground Site Option, Lease and Easement Agreement with AT&T 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 AT&T the opportunity to complete its due diligence of the site,which includes going through the Community Development&Neighborhood Services'regulatory requirements process,and, if AT&T continues;(2) a proposed lease term for an initial five years with automatic renewal of four successive five-year periods. FINANCIAL/ ECONOMIC IMPACTS\ �,—�� �1 1�\ /7 AT&T will be responsible for all cost(to install�a(d maintl i the mo�pine and equipment shelter. AT&T will also be responsible for all utility expenses,for�the,monop new d al'�related 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. 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 infrastructure. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ATTACHMENTS r1 f:% I I JI W 1. Photo Simulation 2. Location Map ORDINANCE NO. 120, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING AN OPTION TO LEASE, AND A SUBSEQUENT LEASE OF, CITY-OWNED PROPERTY AT SOUTHRIDGE GREENS GOLF COURSE TO NEW CINGULAR WIRELESS PCS, LLC FOR THE INSTALLATION OF A TELECOMMUNICATION MONOPINE TOWER AND RELATED EQUIPMENT, AND THE GRANT OF ASSOCIATED EASEMENTS WHEREAS, the City is the owner of that certain parcel of real property described as Tract A, Southridge Golf Course, City of Fort Collins, County of Larimer, State of Colorado, EXCEPT that portion set forth in First Replat of a Portion of Tract A, Southridge Golf Course,Recorded May 19, 1992 at Reception No. 92027686 (the "Property"); and WHEREAS, New Cingular Wireless PCS, LLC ("AT&T") has asked the City to lease to AT&T 700 square feet of space on the Property(the"Lease Parcel")for the installation of a 50-foot "monopine" (a wireless service tower designed to look like a pine tree) and related equipment to enhance its wireless service, and to grant it a utility easement and an access and utility easement to serve the tower(the "Easements"); and WHEREAS, the proposed Lease Parcel and Easements are described on Exhibit "A", attached and incorporated herein by reference; and WHEREAS, staff has worked with AT&T to negotiate and prepare 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,AT&T 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 AT&T 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 AT&T 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 AT&T to sublease space to up to two sub-tenants, including the right to partially assign its use of the Easements, provided AT&T pays the City rent for each such sublease in the amount of$7,200 per year for the first five years of each sublease,with that rate to be increased by twenty percent for each additional five year period of a sublease; and WHEREAS, the Agreement requires AT&T to comply with any applicable regulatory requirements or restrictions, including the City Land Use Code and building permit requirements; and WHEREAS, City staff believes that the proposed installation and use by AT&T 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 further believes 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 Cingular Wireless PCS, LLC, and the associated grant of a utility easement and an access and utility easement on and across the Property, all as described on Exhibit"A", 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 Cingular Wireless PCS,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 November,A.D.2010,and to be presented for final passage on th day of December,A.D. 010. A Mayor ATTEST: � u ems. Chief Deputy City Clerk -2- Passed and adopted on final reading on the 7th day of December, A.D. 2010. Mayor ATTEST: City Clerk I -3-