Agenda Report
Fullerton City Council
MEETING DATE: MAY 3, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: Gregory Pfost, INTERIM community AND ECONOMIC development director PREPARED BY: KELLEE FRITZAL, Acting COMMUNITY AND ECONOMIC development DEPUTY director
TAYLOR SAMUELSON, ADMINISTRATIVE ANALYST II
SUBJECT: SPECTRUM PACIFIC WEST CABLE LEASE AGREEMENT AMENDMENT FOR 2011 NORTH ACACIA AVENUE HUBERT C. FERRY RESERVOIR
SUMMARY
Spectrum Pacific West LLC (Charter Communications), formerly known as Time Warner Cable Pacific West, seeks a lease amendment for their Community Antenna Television (CATV) operations facility at the Hubert C. Ferry Reservoir site located at 2011 North Acacia Avenue for a period of three years with the option of extending for two additional terms of five years each.
RECOMMENDATION
Approve First Amendment to the lease agreement with Spectrum Pacific West LLC with an effective date of January 1, 2022, in a form approved by the City Attorney.
Authorize City Manager, or designee, to execute and administer lease agreement on behalf of the City of Fullerton, in a form approved by the City Attorney.
PRIORITY POLICY STATEMENTS
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
The City will receive a total average of approximately $51,595 annually with a grand total revenue of $154,784.64 over the three-year term of the lease.
DISCUSSION
Background
Time Warner Cable LLC acquired Adelphia Cablevision on June 20, 2006. Along with the franchise, the company acquired the lease that ran conterminously with the franchise agreement for an 800 square-foot Head-End site located at the Hubert C. Ferry Reservoir. Both the franchise and lease agreement expired on December 30, 2016.
The City extended the lease agreement for the facility on March 21, 2017 for a period of two years, with the option of one additional year agreement.
The City extended the lease on October 27, 2020 for 12 months, expiring December 31, 2021, based on a $4,051.58 monthly rate. The City and Spectrum Pacific West, formerly known as Time Warner Cable Pacific West, fully executed and entered into the agreement.
The agreement contained herein extends the lease further by three years and increases monthly rent as follows:
PERIOD
MONTHLY RENT
01/01/2022 – 12/31/2022
$4,173.13
01/01/2023 – 12/31/2023
$4,298.32
01/01/2024 – 12/31/2024
$4,427.27
If Spectrum seeks to pursue the optional extensions following completion of the three-year term, rent will increase by 3% annually.
The terms of the agreement also address any outstanding rent and Spectrum has remained generally consistent in payment of rent for the property.
Attachments:
• Attachment 1 – First Amendment to Lease Agreement – 2011 North Acacia Drive Attachment 2 – Original Lease Agreement and Transfer of Franchise Agreement 2006 Spectrum Pacific West Cable Lease Agreement Amendment for 2011 North Acacia Ave May 3, 2022 - Page 2