REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Bill Krill, Real Estate & Project Manager
Subject:
title
Approve and Authorize execution of Third Amendment to the Site License Agreement between the City of Huntington Beach and T-Mobile West LLC, for a Wireless Communications Facility at Fire Station 6-Edwards
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Statement of Issue:
Staff is requesting City Council to approve and authorize the Mayor and City Clerk to execute Third Amendment with T-Mobile West LLC for a wireless communications facility at Fire Station 6-Edwards.
Financial Impact:
This Amendment will increase monthly rent for this site from $3,418.15 to $3,500.00 upon execution. $3,500.00 a month is the market rate for this site based on area analysis. Monthly rent will increase by 4% annually on February 1st of each year. The City will be paid a one-time administrative fee of $5,000.00, due within 90 days of execution of this Amendment. All fees will be deposited into General Fund account number 10000100.45110.
Recommended Action:
recommendation
Approve and Authorize the Mayor and City Clerk to execute the Third Amendment to the Site License Agreement between the City of Huntington Beach and T-Mobile West LLC.
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Alternative Action(s):
Do not approve the recommended action and direct staff accordingly.
Analysis:
In 1999, Fire Station 6 - Edwards was constructed at 18591 Edwards Street. Included in the site plan was a large clock tower, which serves as a fire hose-drying tower. In 2002, a site license agreement was executed between the City of Huntington Beach and Cingular Wireless. This agreement permitted the installation of a wireless communication facility in the clock tower and adjacent ground space. In 2004, T-Mobile assumed the site license agreement from Cingular Wireless.
In 2021, the First Amendment to the License Agreement was executed between the City and T-Mobile. This Amendment restated certain terms of the Agreement and allowed for the extension of the Agreement through 2028 by adding three, five-year renewal periods. Additionally in 2021, T-Mobile was authorized to install a generator to allow the wireless operations to continue in case of a power outage. Although the generator was installed within the lease area, the placement of the generator blocked the City’s Fire Department staff from accessing a storage area. As a result in 2023, a Second Amendment was executed requiring T-Mobile to make additional site improvements to re-establish a pedestrian pathway to the storage area.
This Third Amendment will increase rent to market rates, which has been determined to be $3,500.00 per month based on market analysis. Rent will increase by 4% annually on February 1st of each year. Additionally, the City will be paid an additional one-time administrative fee of $5,000.00 upon execution of this Amendment. This Amendment will also extend the total site license term by an additional 25 years with a new expiration date of January 31, 2053. These periods will automatically renew unless either party gives written notice of their intention to not renew 30 days prior to the expiration of any renewal period.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Goal 2 - Fiscal Stability, Strategy A - Consider new revenue sources and opportunities to support the City's priority initiatives and projects.
Attachment(s):
1. Third Amendment
2. Power Point Presentation