AGENDA REPORT
Meeting Date: April 16, 2024
Item Number:
To: Honorable Mayor & City Council
From: Logan Phillippo, Real Property Development Manager Jonathan Gernes, Senior Management Analyst
Subject: FIRST AMENDMENT OF "PERMIT TO INSTALL WIRELESS
TELECOMMUNICATIONS ANTENNAS ON LIGHT
STANDARDS/POLES AND VAULTS FOR SUPPORTING
EQUIPMENT" WITH NEW CINGULAR WIRELESS PCS, LLC
Attachments: 1. First Amendment of Permit
RECOMMENDATION
Staff recommends City Council approve the First Amendment of “Permit to Install Wireless Telecommunications Antennas on Light Standards/Poles and Vaults for Supporting Equipment” by and between the City of Beverly Hills and New Cingular Wireless PCS, LLC. The First Amendment extends the term of the agreement to September 30, 2029, and provides two, automatic five-year extensions thereafter.
INTRODUCTION
The proposed First Amendment of Permit with New Cingular Wireless PCS, LLC would extend the term expiration date to September 30, 2029 with two, five-year options to extend, and require a one-time permit renewal fee of $9,944.00 to be paid to the City.
DISCUSSION
The City provides a nonexclusive encroachment permit to New Cingular Wireless PCS, LLC to place its wireless telecommunication antennas on City light standards and vaults at several locations. There are currently five locations where this equipment is placed, including Sunset and Ladera, Sunset and Greenway, Sunset and Beverly, Sunset and Foothill, and Sunset and Hillcrest. The current permit expires September 30, 2024, and there are no further options to extend the term under the agreement.
Meeting Date: April 16, 2024
In consideration of the upcoming expiration date, the proposed First Amendment of Permits provides the following key terms:
• Expiration Date: The term is extended to September 30, 2029; • Automatic Extensions: Subject to either party’s objection nine-months prior, the term shall be automatically extended for two, five-year periods; • Extension Permit Renewal Fee: New Cingular Wireless PCS, LLC shall pay the City a fee of $9,944.00 upon execution of the amendment; • Extension Term Annua Permit Fee: The annual fee shall increase to $6,000.00 per light standard beginning October 1, 2024, and shall thereafter increase annual by
3.5%;
• City Termination Option: The City may terminate the permit agreement at any one or more sites upon nine months prior written notice to New Cingular Wireless PCS, LLC; and
• Tenant Waiver of Relocation Claims: New Cingular Wireless PCS, LLC waives and releases the City from any obligations to provide relocation benefits upon City’s termination of the permit agreement at any one or more sites.
FISCAL IMPACT
The proposed Fire Amendment of Permit will provide a one-time payment of $9,944.00 to the City. The annual permit fee per light standard shall increase from about $5,070.86 to $6,000.00 beginning October 1, 2024. The City would collect a total of $160,874.00 in annual permit fees for all five light standard locations through the extended expiration date on September 30, 2029.
Ryan Gohlich,
Assistant City Manager
Approved By
Attachment 1
-1-
Error! Unknown document property name.
FIRST AMENDMENT OF “PERMIT TO INSTALL WIRELESS
TELECOMMUNICATIONS ANTENNAS ON LIGHT STANDARDS/POLES AND VAULTS FOR SUPPORTING EQUIPMENT”
THIS FIRST AMENDMENT OF PERMIT (this “First Amendment”) is dated as of ____________, 2024, and is entered into by and between the CITY OF BEVERLY HILLS, a municipal corporation (“City”) and New Cingular Wireless PCS, LLC, a Delaware limited liability company, successor-in-interest to AB CELLULAR LA, LLC.
R E C I T A L S
A. City and AB Cellular LA, LLC entered into a “Permit to Install Wireless Telecommunications Antennas on Light Standards/Poles and Vaults for Supporting Equipment” dated July 20, 2004 (“Agreement”) for a nonexclusive and revocable encroachment permit (the “Permit”) for space at various locations in the City of Beverly Hills described in said Agreement (the “Permit Areas”) .
B. AB Cellular LA, LLC was merged into New Cingular Wireless PCS, LLC on December 31, 2004. New Cingular Wireless PCS, LLC is hereafter referred to as “AT&T”.
C. AT&T terminated the Permit as to one of the Permit Areas, specifically the Permit Area at the northeast corner of Beverly Drive and Beverly Drive North, as of May 20, 2018.
D. The Permit expires as to the other Permit Areas on September 30, 2024, and the parties desire to extend the term of the Permit, include an extension payment by AT&T, adjust the annual payments to be made by AT&T and provide certain termination rights to the City.
A G R E E M E N T
NOW, THEREFORE, in consideration of the foregoing recitals, the mutual agreements and releases contained herein, and other consideration, the sufficiency of which is hereby acknowledged, the City and AT&T hereby agree as follows:
1. Extension of Term of Permit; Further Automatic Extensions. The term of the Permit is hereby extended to September 30, 2029.
Such extended term shall be automatically further extended for two (2) consecutive periods of five (5) years each (i.e., to September 30, 2034 and September 30, 2039, respectively), (each an “Extended Term”) unless as to a particular automatic extension, either party delivers a written notice on or before the date that is at least nine (9) calendar months prior to the commencement of the applicable extension (i.e., by January 1, 2034 or January 1, 2039) that the then-existing term is not to be further extended. (City may also terminate the Agreement based on an uncured default by AT&T, as provided in the Agreement.) DocuSign Envelope ID: D7F74B8E-6AB3-46B6-956B-84D18BEE7DE4
2. Extension/Permit Renewal Fee, and Annual Permit Fee Adjustment. Upon execution of this First Amendment by AT&T, AT&T shall pay to City, without deduction or offset, the sum of Nine Thousand Nine Hundred Forty-Four and No/100 Dollars ($9,944.00) as a nonrefundable extension/permit renewal fee.
Commencing on October 1, 2024, the annual Permit Fee under the Agreement shall be adjusted to Six Thousand and No/100 Dollars ($6,000.00) per Light Standard, which shall then be increased annually thereafter on each anniversary of October 1, 2024, on a cumulative basis by three and one half percent (3.5%).
(The annual Permit Fee is to be paid annually, on or before October 1.)
3. City Termination Rights. The City may terminate the Permit at one or more Permit Area(s), from time to time, upon nine (9) months’ prior written notice to AT&T.
4. AT&T Waiver of Relocation Claims/Benefits. In exchange for the extension of the term of the Permit, AT&T hereby waives, and releases City from (and agrees not to assert any claim for), any and all obligations to pay or provide relocation benefits upon City’s termination of the Permit as to any or all Permit Areas(s) under Section 3 above (such that City shall have no obligation to provide assistance or payments under any federal, state, or local relocation laws, regulations or guidelines, including, without limitation, the California Relocation Assistance and Real Property Acquisition statutes).
5. Continuing Effect. Except as specifically modified hereby, the Agreement shall remain unaffected and unchanged. The Agreement is hereby ratified and affirmed by City and AT&T and remains in full force and effect as modified hereby.
6. Counterparts. This First Amendment may be executed in any number of counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, taken together, shall be deemed to be one and the same instrument.
7. DocuSign. The parties may use DocuSign to execute and deliver this First Amendment.
IN WITNESS WHEREOF, City and AT&T have executed this First Amendment as of the date and year first above written.
CITY:
CITY OF BEVERLY HILLS
By:
Lester J. Friedman, Mayor
ATTEST:
Huma Ahmed, City Clerk
DocuSign Envelope ID: D7F74B8E-6AB3-46B6-956B-84D18BEE7DE4 APPROVED AS TO CONTENT:
_____________________________
Nancy Hunt-Coffey, City Manager
APPROVED AS TO FORM:
Laurence S. Wiener, General Counsel
AT&T:
New Cingular Wireless PCS, LLC, a Delaware
limited liability company
By: AT&T Mobility Corporation
Its: Manager
By: ______________________
Misty Snowden, Associate Director Network
Design Engineering
DocuSign Envelope ID: D7F74B8E-6AB3-46B6-956B-84D18BEE7DE4 Certificate Of Completion
Envelope Id: D7F74B8E6AB346B6956B84D18BEE7DE4 Status: Sent Subject: Complete with DocuSign: First Amendment of Permit - New Cingular Wireless PCS, LLC.pdf Source Envelope:
Document Pages: 3 Signatures: 2 Envelope Originator:
Certificate Pages: 3 Initials: 1 Jonathan Gernes
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 72.134.81.22
Record Tracking
Status: Original
3/20/2024 9:23:26 AM
Holder: Jonathan Gernes
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Nicole Lindman
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Misty Snowden
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Assoc Director Network Design Eng
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Logan Phillippo
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Real Property Development Manager
City of Beverly Hills
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Lester J. Friedman
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Logan Phillippo
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Real Property Development Manager
City of Beverly Hills
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