Title
Approval of an Ordinance Amending Olympia Municipal Code Title 11.08.130 to Give the City Manager Express Authority to Grant Facilities Lease Renewals for City Water-Tower Sites
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Approval of an Ordinance amending Olympia Municipal Code Title 11.08.130 to give the City Manager express authority to grant facilities lease renewals for City water-tower sites.
Report
Issue:
Whether to approve an Ordinance amending Olympia Municipal Code Title 11.08.130 to give the City Manager express authority to grant facilities lease renewals for City water-tower 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:
Title 11.08 of the Olympia Municipal Code (OMC) governs telecommunication leases on City property. The City of Olympia’s Drinking Water Utility (Drinking Water Utility) has lease agreements with telecommunications companies which allow the use of a portion of several water storage tank sites for siting antenna facilities and associated equipment. In nine (9) cases, leases have expired, and the telecommunications companies have been informed that they are now considered to have month-to-month tenancy pending new lease development. The Drinking Water Utility is currently negotiating new lease language with the telecommunications companies with expired leases.
OMC 11.08.030A contains the criteria under which a new (or initial) application for a lease to operate on city-owned property will be approved and provides the authority to the City Manager to make the determination whether to grant a new lease application.
The criteria under which a lease renewal will be approved is included in OMC 11.08.130; however, this section of the OMC is ambiguous as to who has the authority to make a determination whether to grant a lease renewal.
The proposed change to OMC 11.08.130 would provide the authority to the City Manager to make lease renewal determinations, consistent with the City Manager’s authority to make initial lease decisions.
Climate Analysis:
Electricity is used as the power source for cellular antennas and associated equipment located on Drinking Water Utility property. Additionally, some telecommunications companies have sited diesel or propane generators on Drinking Water Utility property as a backup power supply in the event of a power outage. Cellular antennas and associated equipment have a negligible impact on greenhouse gas emissions during normal operations. In the event of a power outage necessitating the use of a backup power source, an increase of greenhouse gas emissions would occur.
Equity Analysis:
The revenue received from cellular communications companies leasing space on Drinking Water Utility property goes into the Drinking Water Utility’s operating budget thereby helping to reduce rates that are charged to Olympia’s water customers. People who live by or frequent the area surrounding Drinking Water Utility property with cellular equipment may be disproportionately impacted by the antenna facilities located at the sites due to aesthetic considerations while the greater Olympia community benefits from the cellular technology supported by the antenna facilities.
Neighborhood/Community Interests (if known):
The Drinking Water Utility occasionally receives complaints from neighbors in proximity to water storage tanks with cellular communications antennas and associated equipment regarding early morning, weekend or after hour work being done by cellular companies or their contractors.
Options:
1. Approve an Ordinance amending Olympia Municipal Code Title 11.08.130 to give the City Manager express authority to grant facilities lease renewals for City water-tower sites. This will resolve an ambiguity in the code by authorizing the City Manager to make both initial facilities lease determinations and renewal determinations.
2. Do not approve an Ordinance amending Olympia Code Title 11.08.130 to give the City Manager express authority to grant facilities lease renewals for City water-tower sites. This will not resolve the ambiguity in the code by providing clarity on who makes lease renewal determinations.
3. Take other action.
Financial Impact:
The Drinking Water Utility currently receives approximately $350,000 in annual revenue from existing leases. The annual revenue the Drinking Water Utility receives is expected to increase when the nine currently expired leases are renewed.
Attachment:
Ordinance