HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/06/2001 - FIRST READING OF ORDINANCE NO. 163, 2001, AUTHORIZ AGENDA ITEM SUMMARY ITEM NUMBER: 16
FORT COLLINS CITY COUNCIL DATE: November 6,2001
STAFF:
Virgil Taylor
SUBJECT:
First Reading of Ordinance No. 163, 2001, Authorizing an Option to Lease, and a Subsequent
Lease of, City-Owned Property at City Park North Ballfield to Cricket Colorado Property
Company, for the Location of Antenna Equipment and Related Facilities, Along With
Associated Easements.
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:
Cricket Colorado Property Company, a division of Cricket Communication ("Cricket").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 and
Voice Stream in the same area. Through a series of negotiations, staff has developed a proposed
Site Lease with Option that meet the needs of the City and Cricket. Maps of the location of the
antenna and related equipment are attached to this Agenda Item Summary.
The Option Agreement is for an initial six-month term, with one additional six-month extension,
if necessary. The Option Agreement gives Cricket the right to lease the subject property once it
completes testing of the site to confirm its suitability for Cricket's purposes.
The key terms of the Lease Agreement include:
1. Annual rent of$12,000, with increases of 20 percent every five years.
2. A sub-lease of a 20 x 20 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: November 6, 2001 2 ITEM NUMBER: 16
3. Cricket will attach its antenna to the upper portion (just below the Sprint antenna) of the
concrete pole and will attach the ballfield lights to the upper middle portion of the pole.
4. Cricket will construct an 8' fence to enclose the site that will house its communication
equipment. The site will have a sloped fence top that will prevent softballs from entering
the enclosure. This enclosure will be built to match the existing fenced enclosures leased
by Sprint and VoiceStream.
5. Sprint, Voicestream and Cricket 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 three 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,just over 21 years
from now,to coincide with both the Sprint and VoiceStream leases.
8. The lease incorporates the requirements of the City's Planning Department under which
Cricket must fund the purchase of four trees for installation by the City in the spring of
2002.
9. The lease also includes the grant of nonexclusive utility and access easements for use by
Cricket 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. 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.
Cricket Communication will complete the required development review process for the proposed
antenna and equipment enclosure. Nothing in the Site Lease with Option relieves Cricket 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. 163,2001
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 CRICKET COLORADO PROPERTY COMPANY,
FOR THE LOCATION OF ANTENNA EQUIPMENT AND RELATED FACILITIES,
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, Cricket Colorado Property Company, a division of Cricket Communication
("Cricket") has approached City staff, seeking to lease space on a pole owned by the City at the
North Ballfield (the "Lease Space") for an antenna and related equipment to enhance its cellular
phone service; and
WHEREAS, staff has negotiated with Cricket a proposed option to lease for a six-month
period 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 three 5-year options to renew plus a final renewal
period to expire on March 8, 2023; and
WHEREAS, staff has prepared a Site Lease with Option Agreement including provisions
for the term of the lease, together with other conditions for the lease, a draft of which is dated
November 2, 2001, and is on file in the office of the City Clerk(the "Agreement"); and
WHEREAS, the Agreement further provides that Cricket 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 Cricket 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 Cricket to install, operate and maintain the necessary equipment
in connection with the Agreement, Cricket has also requested that the City grant Cricket access
and utility easement rights on and under the Easement Property, for Cricket'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 Cricket
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, the Council has previously approved similar leases for Sprint Spectrum L.P.
and VoiceStream PCS II Corp. 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 IN 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 Cricket Colorado Property Company 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 Mayor is hereby authorized to enter into the Agreement with
Cricket Colorado Property Company 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 Cricket Colorado Property Company 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 6th day of
November, A.D. 2001, and to be presented for final passage on the 20th day of November, A.D.
2001.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 20th day of November, A.D. 2001.
Mayor
ATTEST:
. City Clerk
• "EXHIBIT A"
LEASE AREA
BEING A TELECOMMUNICATION LEASE PARCEL,LOCATED WITHIN THE SOUTHWEST
ONE QUARTER OF SECTION 10,TOWNSHIP 7 NORTH,RANGE 69 WEST OF THE 6TH P.M.
IN THE CITY OF FORT COLLINS, LARIMER COUNTY, STATE OF COLORADO MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHEAST CORNER OF SECTION 10, TOWNSHIP 7 NORTH,
RANGE 69 WEST, 6TH P.M.;THENCE N61°20'22W,A DISTANCE OF 3576.95 FEET TO THE
POINT OF BEGINNING; THENCE S67°31'24"W, A DISTANCE OF 20.14 FEET; THENCE
N29°09'33"W, A DISTANCE OF 19.69 FEET; THENCE N61'38'53"E, A DISTANCE OF17.29
FEET TO POINT "A'; THENCE CONTINUING N61"38'53"E, A DISTANCE OF 2.71 FEET;
THENCE S 29°09'33"E,A DISTANCE OF 10.81 FEET TO POINT"B';THENCE CONTINUING
S 29°09'33"E, A DISTANCE OF 8.32 FEET TO POINT "C"; THENCE CONTINUING S
29°09'33"E, A DISTANCE OF 2.62 FEET TO THE POINT OF BEGINNING.
CONTAINING 414.3 SQUARE FEET MORE OR LESS.
BASIS OF BEARINGS: BEARINGS ARE BASED UPON THE EAST LINE OF THE
SOUTHEAST ONE-QUARTER OF SECTION 10, TOWNSHIP 7 SOUTH, RANGE 69 WEST,
6TH P.M. BEING N 0°13'08"E.
UTILITY/ACCESS EASEMENTS
• STRIP ONE (UTILITY EASEMENT)
BEING A STRIP OF LAND 5.00 FEET WIDE LYING 2.50 FEET ON EACH SIDE OF THE
FOLLOWING DESCRIBED CENTERLINE:
BEGINNING AT POINT"A" DESCRIBED ABOVE;THENCE N 5°20'40"W,A DISTANCE OF
79.36 FEET TO THE END OF STRIPE ONE.
STRIP TWO (ACCESS EASEMENT)
BEING A STRIP OF LAND 12.00 FEET WIDE LYING 6.00 FEET ON EACH SIDE OF THE
FOLLOWING DESCRIBED CENTERLINE:
BEGINNING AT POINT "B" DESCRIBED ABOVE;THENCE N 68°21'37E,A DISTANCE OF
68.76 FEET; THENCE N 21"38'23"W, A DISTANCE OF 88.80 FEET; THENCE N 8°47'24"W,
A DISTANCE OF 69.00 FEET MORE OR LESS TO THE SOUTH RIGHT OF WAY ON
MOUNTAIN AVENUE AND THE END OF STRIP TWO.
STRIP THREE (UTILITY EASEMENT)
BEING A STRIP OF LAND 5.00 FEET WIDE LYING 2.50 FEET ON EACH SIDE OF THE
FOLLOWING DESCRIBED CENTERLINE:
BEGINNING AT POINT"C"DESCRIBED ABOVE;THENCE N 72*31'49"E,A DISTANCE OF
32.90 FEET; THENCE S 66°08'34"E, A DISTANCE OF 149.51 FEET TO THE END OF STRIP
THREE.
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