Title
Approval of a Resolution Authorizing the Approval of Four Cell Tower Lease Amendments with T-Mobile West LLC for the Birch Storage Tank, Fir Storage Tank, Hoffman Storage Tank and Log Cabin Storage Tank Sites
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a Resolution Authorizing the Approval of Four Cell Tower Lease Amendments with T-Mobile West LLC for the Birch Storage Tank, Fir Storage Tank, Hoffman Storage Tank and Log Cabin Storage Tank Sites.
Report
Issue:
Whether to approve a Resolution Authorizing the Approval of Four Cell Tower Lease Amendments with T-Mobile West LLC for the Birch Storage Tank, Fir Storage Tank, Hoffman Storage Tank and Log Cabin 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 T-Mobile West LLC which allows T-Mobile West LLC to use a portion of several Olympia Drinking Water Utility water storage tank sites for siting antenna facilities. As lessee, T-Mobile West LLC is requesting to amend leases at four water storage tank sites. The four sites are as follows:
• 505 Birch Street NW, Birch Storage Tank (also referred to as the Bush Street Storage Tank)
• 707 Fir Street NW, Fir Storage Tank
• 3920 Hoffman Court, Hoffman Storage Tank
• 2711 Log Cabin Road SW, Log Cabin Storage Tank (also referred to as the Boulevard Road Storage Tank)
The lease amendments for all four sites include the following revisions:
• Term extension through October 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 Hoffman Storage Tank and Log Cabin Storage Tank sites are as follows:
Hoffman Storage Tank
Currently, unmarked antenna infrastructure is in close proximately to the Hoffman Storage Tank’s access vent. The lease amendment requires the lessee to label its antenna sectors and associated equipment located on the Hoffman Storage Tank within 60 days of amendment execution. If T-Mobile West LLC’s equipment is found to require relocation, T-Mobile West LLC shall relocate the identified equipment as Olympia determines necessary.
Log Cabin Storage Tank (also referred to as the Boulevard Road 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 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 Storage Tank site to a temporary tower located at the Boulevard Road 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 Storage Tank within 120 days of receiving notice to do so.
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 T-Mobile West LLC to purchase green power in the event T-Mobile West 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 Birch Storage Tank, the Fir Storage Tank, the Hoffman Storage Tank and/or the Boulevard 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 $88,063.30 in annual lease revenue from T-Mobile West LLC for the time period November 1, 2022 to October 31, 2023 for the four subject locations. This revenue goes into the 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 T-Mobile West LLC lease agreements for the Birch Storage Tank, Fir Storage Tank, Hoffman Storage Tank and Log Cabin Storage Tank sites. T-Mobile West LLC will continue to locate antenna facilities at four sites, label equipment and move any which limits Olympia Drinking Water Utility staff from accessing the Hoffman Storage Tank access hatch, and temporarily relocate equipment on the Boulevard Road Storage Tank while necessary improvements are made to the Boulevard Road Storage Tank.
2. Modify the resolution authorizing amendments to the lease agreements with T-Mobile West LLC to change the terms and conditions. Additional negotiations with T-Mobile West LLC would be required, delaying improvements to the Boulevard Road 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 Storage tank will also occur.
3. Do not approve the resolution authorizing amendments to the lease agreements with T-Mobile West LLC. T-Mobile West LLC would no longer have access to four Olympia Drinking Water sites for antenna facilities and the Olympia Drinking Utility will not receive annual lease revenue for the four sites from T-Mobile West LLC.
Attachments:
Resolution
Agreement - Birch Street
Agreement - Fir Street
Agreement - Hoffman Court
Agreement - Log Cabin