AGENDA #4d

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:      Re-negotiation of Encroachment and Lease Agreement for Town Right-of-Way along Cleland Drive for Continued Use as a Cellular Tower Site

 

DATE:            January 23, 2006

 

 

The attached resolution would authorize the Manager to renegotiate the encroachment and lease agreement for Town right-of-way space on Cleland Drive to the New Cingular Wireless PCS, LLC.

 

BACKGROUND

 

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.

 

DISCUSSION

 

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 Ordnance 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. The Town landscape architect will recommend improvements to the screening at the site and the improvements will be incorporated into the lease agreement.

 

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.

 

The lease payment schedule is consistent with other cellular towers located on public property in Chapel Hill. As an example, a tower located on the Homestead Community Park which is in the eighth year of service has a current annual lease payment of $25,460.

 

RECOMMENDATION

 

Manager’s Recommendation: That the Council adopt the attached resolution that would authorize the Manager to 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.

 

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).