AGENDA #4n
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Renegotiation of Encroachment and Lease Agreement for Town Right-of-Way along Cleland Drive for Continued Use as a Cellular Tower Site
DATE: January 9, 2006
The attached resolution would state the Town Council’s intention to renegotiate and execute the encroachment and lease agreement for Town right-of-way space on Cleland Drive with the New Cingular Wireless PCS, LLC.
In 1996, the Town entered into an encroachment and lease agreement with BellSouth Carolinas PCS, L.P., (now New Cingular Wireless PCS, LLC) to construct and operate a tower for the purpose of providing wireless transmission of telephone signals (personal communication system) along a 20-foot-wide easement on Cleland Drive. This encroachment and lease agreement is due to expire on November 12, 2006.
In 2001, steps were taken to formally dedicate the Cleland Drive right-of-way to the Town of Chapel Hill to resolve questions about leasing requirements.
North Carolina General Statute 160A-372 states that property may be rented or leased by a municipality pursuant to a resolution of the Council authorizing the execution of the lease, adopted at a regular meeting.
The existing lease requires Council reauthorization if we are to continue to allow New Cingular Wireless PCS, LLC to use Town right-of-way. We believe that the arrangement has worked well for both parties. If the Council agrees we would renegotiate a lease on the following terms:
New Cingular Wireless PCS, LLC has also requested to install additional equipment and modify the tower to enable other wireless carriers to offer services from the same tower. The equipment would be installed in the right-of-way space in a manner similar to the existing equipment requiring an extension of the width of the equipment area by an additional 35 feet. The tower height would also be increased by 34 feet (for a total height of 104 feet).
The proposed additional tower height would raise the tower from below tree top level to above tree top level which would provide significant improvements to cellular services for users in the general area of the tower. Included in the attached letter from the legal counsel acting on behalf of Cingular and Sprint PCS are diagrams that show the changes in mobile service coverage that are anticipated by making the changes. Also included are pictures that were taken in September when a test was conducted to evaluate the effect of the added height of the tower. With Town staff permission, a large balloon was flown at the height of the proposed addition to the tower and pictures were taken from several directions.
Since the tower and associated equipment are located within the Town right-of-way, it is not subject to the Land Use Management Ordinance requirements that would apply to other structures in the area. Any new ground area construction will require review by the Town Engineering Department staff and may require an engineering construction permit.
We believe the proposed changes to the tower facilities will provide increased capability for mobile communications services in the area that will benefit citizens and provide additional communication options for public safety uses.
Manager’s Recommendation: That the Council adopt the attached resolution that would state the Town Council’s intention to renegotiate and execute an encroachment and lease agreement of Town right-of-way along Cleland Drive to New Cingular Wireless PCS, LLC for a 10-year term. The public would have an opportunity to comment on the proposed lease at the Town Council Meeting on January 23, 2006.
ATTACHMENTS
1. Encroachment and Lease Agreement of November 12, 1996 (p. 4).
2. Proposed Encroachment and Lease Agreement for 2006 (p. 15).
3. Letter from Legal Counsel representing Cingular and Sprint PCS (p. 36).