Title
Approval of a Resolution Authorizing the Approval of Two Cell Tower Lease Amendments with New Cingular Wireless PCS LLC for the Boulevard Road Water Storage Tank and the Hoffman Water Storage Tank Sites
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a Resolution Authorizing the Approval of Two Cell Tower Lease Amendments with New Cingular Wireless PCS LLC for the Boulevard Road Water Storage Tank and the Hoffman Water Storage Tank Sites.
Report
Issue:
Whether to approve a Resolution Authorizing the Approval of Two Cell Tower Lease Amendments with New Cingular Wireless PCS LLC for the Boulevard Road Water Storage Tank and the Hoffman Water Storage Tank Sites.
Staff Contact:
Susan Clark, Engineering and Planning Supervisor, Public Works Drinking Water Utility, 360.753.8321
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The City of Olympia (Olympia) has lease agreements with New Cingular Wireless PCS LLC which allows New Cingular Wireless PCS LLC to use a portion of several Olympia Water Utility water storage tank sites for siting antenna facilities. As lessee, New Cingular Wireless PCS LLC is requesting to amend leases at two water storage tank sites. The two sites are as follows:
• Boulevard Road Water Storage Tank, 2711 Log Cabin Road SW
• Hoffman Water Storage Tank, 3920 Hoffman Court
The lease amendments for the two sites include the following revisions:
• Term extension through December 31, 2023, during which time Olympia will develop new master lease language in anticipation of the Parties entering into a new lease agreement.
• Revision to the basic rent for the new lease term.
• Addition of language requiring the lessee to contact Public Works Dispatch 24 hours in advance of accessing the property and allowing Olympia to charge lessee for after-hours expenses.
• Minor revisions to the time period required to terminate the agreement.
Additional lease conditions unique to the Boulevard Road Water Storage Tank and Hoffman Water Storage Tank sites are as follows:
Boulevard Road Water Storage Tank
In 2019, Olympia’s Drinking Water Utility was awarded a Drinking Water State Revolving Fund loan to construct retrofits needed to bring the Boulevard Road Water Storage Tank up to current seismic codes, replace the existing access ladder and conduct interior and exterior coatings. This work requires the temporary relocation of existing antenna facilities.
The lease amendment allows for the temporary relocation of antenna facilities at the Boulevard Road Water Storage Tank to a temporary tower located at the Boulevard Road Water Storage Tank site while the seismic upgrades and other improvements to the tank are completed. Following the completion of the upgrade project, the lessee shall relocate its antenna facilities from the temporary tower to the Boulevard Road Water Storage Tank within 120 days of receiving notice to do so.
Hoffman Water Storage Tank
Currently, unmarked antenna infrastructure is in close proximately to the Hoffman Water Storage Tank’s access vent. The lease amendment requires the lessee to label its antenna sectors and associated equipment located on the Hoffman Water Storage Tank within 60 days of amendment execution. If New Cingular Wireless PCS LLC’s equipment is found to require relocation, New Cingular Wireless PCS LLC shall relocate the identified equipment as Olympia determines necessary.
Climate Analysis:
The proposed cell tower lease amendment does not have a direct effect on greenhouse gas emissions. As new master lease language is developed, Olympia could consider a provision requiring New Cingular Wireless PCS LLC to purchase green power in the event New Cingular Wireless PCS LLC is not otherwise doing so.
Equity Analysis:
The revenue received from the lessee goes into the Drinking Water Utility’s annual operating budget thereby helping to reduce rates that are charged to water customers. People who live by or frequent the area surrounding the Boulevard Road Water Storage Tank or the Hoffman Water Storage Tank sites may be disproportionately impacted by the antenna facilities located at the sites due to aesthetic considerations while the general greater Olympia community benefits from the telecommunications technology supported by the antenna facilities.
Neighborhood/Community Interests (if known):
No known neighborhood concerns.
Financial Impact:
None. Under the amendments, the Olympia Drinking Water Utility will receive $78,050.62 in annual lease revenue from New Cingular Wireless PCS LLC for the time period January 1, 2023 to December 31, 2023 for the two subject locations. This revenue goes into the Drinking Water Utility’s annual operating budget thereby helping to reduce rates that are charged to water customers.
Options:
1. Approve the resolution and authorize the City Manager to sign amendments to the New Cingular Wireless PCS LLC lease agreements for the Boulevard Road Water Storage Tank and the Hoffman Water Storage Tank sites. New Cingular Wireless PCS LLC will continue to locate antenna facilities at two sites, temporarily relocate equipment on the Boulevard Road Water Storage Tank while necessary improvements are made to the Boulevard Road Water Storage Tank and label equipment and move any which limits Olympia Drinking Water Utility staff from accessing the Hoffman Water Storage Tank access hatch.
2. Modify the resolution authorizing amendments to the lease agreements with New Cingular Wireless PCS LLC to change the terms and conditions. Additional negotiations with New Cingular Wireless PCS LLC would be required, delaying improvements to the Boulevard Road Water Storage Tank and putting a Drinking Water State Revolving Fund Loan in jeopardy. A delay in improving the access to critical infrastructure features on the Hoffman Water Storage tank will also occur.
3. Do not approve the resolution authorizing an amendment to the lease agreement with New Cingular Wireless PCS LLC. New Cingular Wireless PCS LLC would no longer have access to two Olympia Drinking Water sites for antenna facilities and the Olympia Drinking Utility will not receive annual lease revenue for the two sites from New Cingular Wireless PCS LLC.
Attachments:
Resolution
Agreement - Boulevard Road
Agreement - Hoffman