To: Honorable Mayor and Members of City Council
From: Phil Brun, Utilities Director
Prepared By: Sara Gallegos, Management Analyst II
TITLE:
Title
Amendments to Telecommunications Site Lease Agreements
LABEL
RECOMMENDED ACTION:
Recommendation
Authorize the Utilities Director to execute (1) an Amended and Restated Cell Site Lease with New Cingular Wireless PCS, LLC for lease of a portion of the City-owned Foster Road water tank site located at 1542 Foster Road for telecommunications facilities purposes; and (2) Amendment No. 1 to Agreement C7971 with GTE Mobilenet of California Limited Partnership, dba Verizon Wireless for lease of a portion of the City-owned water tank site located at 3691 Montana Drive for telecommunications facilities purposes, and determine this action is exempt from CEQA.
Body
DISCUSSION:
The Water Division of the City’s Utilities Department owns water storage and treatment facilities at high elevations throughout the city and unincorporated Napa County. These locations are ideal for cell signal and telecommunications coverage. Water rate payers benefit from the income generated by leasing these highly regarded sites; however, staff protects the sites and facilities to ensure these leases do not interfere with the mission of providing clean, safe, reliable drinking water to its customers.
C7066, AT&T, C Tank - In 1997, the City of Napa and Napa Cellular Telephone Company, dba Cellular One, entered into Communications Site Lease Agreement C7066 for a portion of property at the City’s Foster Road water tank site, located at 1542 Foster Road (APN 043-190-014), aka “C” Tank. The initial term of the lease was for five (5) years, with options to extend for three additional five (5) year terms (total of twenty (20) years).
New Cingular Wireless, PCS, LLC acquired the lease from Cellular One and in 2013, City Council approved modifications of the lease via Amendment No. 1 to C7066. In exchange, the City received an increase of $100 per month in rent and a requirement of 24-hour notice prior to site entry. The tenant has been occupying the leased premises with consent on a month-to-month basis since the lease expired in 2018.
The proposed Amended and Restated Cell Site Lease (“Lease”) includes modifications requested by the tenant, including larger antennas, and added equipment. The Planning Division of the Community Development Department has reviewed the modifications and determined this to be an “eligible facilities request” under federal law and not a substantial change that would require additional entitlements, therefore the proposed modifications do not require a revision to their Use Permit. The proposed Lease increases the rent by $1,977/mo. and is for an initial term of four years, with an option to extend for two additional five (5) year terms.
C7971, Verizon, B Tank - In November 2000, the City entered into Communications Site Lease Agreement C7971 with Verizon Wireless. This agreement entailed placement of antennae, equipment, equipment cabinets, and equipment building at a portion of the City of Napa water tank located at 3691 Montana Drive (APN 035-120-029), aka “B” Tank. The initial term of the lease was for five (5) years, with options to extend for four (4) additional five (5) year terms (a total of twenty-five (25) years). This tenant has been occupying the leased premises with consent on a month-to-month holdover tenancy basis since 2020.
The proposed Amendment No. 1 to C7971 with Verizon Wireless includes modifications requested by the tenant, specifically to the monopole (replacing old antennas with 3’ higher, larger antennas, 2 additional antennas, radio units and surge units being added). The Planning Division of the Community Development Department has reviewed the modifications and determined this to be an “eligible facilities request” under federal law and not a substantial change that would require additional entitlements, therefore the proposed modifications do not require a revision to their Use Permit. The proposed Amendment No. 1 increases the rent by $200 per month and restarts with an initial term of five (5) years, with options to extend for four (4) additional five (5) year terms.
FINANCIAL IMPACTS:
Existing lease agreement C7066 with New Cingular Wireless, PCS, provides current rental income to the City in the amount of $2,023.70 per month, adjusted annually by the Consumer Price Index (CPI). The proposed Lease base rental rate shall be for $4,000 per month, adjusted annually by 3.5%, collected in Water Enterprise Account 53060100- 45540.
Existing lease agreement C7971 with Verizon Wireless provides current rental income to the City in the amount of $2,593.85 per month, adjusted annually by the Consumer Price Index (CPI). The proposed agreement base rent shall increase by $200 per month to $2,793.85 per month, effective installation commencement, or one year from execution date with annual CPI adjustments pursuant to the terms of the original agreement. Revenue to be collected in Water Enterprise Account 53060100-45540.
CEQA:
City staff recommends that the City Council determine that the Recommended Action is exempt from CEQA pursuant to CEQA Guidelines Section 15301(a) (Existing Facilities) which exempts operation, repair, maintenance or minor alteration of existing public or private structures, facilities, mechanical equipment or topographic features involving no or negligible expansion of use beyond that previously existing.
DOCUMENTS ATTACHED:
ATCH 1 - Amended and Restated Cell Site Lease
ATCH 2 - Amendment No. 1 to Agreement C7971
NOTIFICATION:
None