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050223 CED Verizon Lease Amendment Agenda Report

City Council - Successor Agency - Housing Authority
May 2, 2023

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050223 CED Verizon Lease Amendment Agenda Report
Meeting
May 2, 2023
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City Council - Successor Agency - Housing Authority
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Agenda Report
Fullerton City Council
MEETING DATE: MAY 2, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: SUNAYANA THOMAS, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT PREPARED BY: TAYLOR SAMUELSON, SENIOR ADMINISTRATIVE ANALYST SUBJECT: VERIZON WIRELESS TELECOM LEASE AGREEMENT AMENDMENT – 2470 WEST PIONEER AVENUE COYOTE RESERVOIR

SUMMARY
City Council consideration of a First Amendment to Telecommunications Site Lease Agreement with Los Angeles SMSA Limited Partnership (DBA Verizon Wireless) entered into on November 23, 2020. The amendment allows an eight-foot premise modification to avoid an existing fiber pull box not previously noted in the initial land survey at the telecommunications facility located at 2470 West Pioneer Avenue, known as the Coyote Reservoir site. The amendment does not constitute a lease area expansion.

RECOMMENDATION
Approve and authorize City Manager, or designee, to execute and administer the First Amendment to Telecommunications Site Lease Agreement with Los Angeles SMSA Limited Partnership with an April 19, 2023 effective date, in a form approved by City Attorney.

CITY MANAGER REMARKS
The City Manager concurs with the recommendation from the Community Development Director.

PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:

Fiscal and Organizational Stability
Infrastructure and City Assets.

FISCAL IMPACT
This item generates no fiscal impact as this item does not request a premise expansion and the amendment does not affect the existing lease terms.

The current lease provides the City with a $3,200 monthly rental rate for an initial five-year term with an annual three-percent escalation and possible extensions through 2041.

DISCUSSION
Verizon identified the need to make an adjustment to their existing land lease at 2470 West Pioneer Avenue following land survey work on the site. The adjustment involves a premise shift as identified in the lease amendment exhibit in Attachment 1. The adjustment relates to an existing fiber pull box not previously noted in the initial land survey. The lease amendment memorializes the adjustment, per the tenant, and ensures staff has necessary access to the facility. This item does not request adjustments to lease rates or any expansion of the total premises. The item requires City Council approval as it adjusts an agreed upon eight-square feet land lease area.

The tenant has submitted plans for plan check process and has signed and executed a separate encroachment agreement with the Public Works Department.

Attachments:

Attachment 1 – Lease Amendment Number One
Attachment 2 – Commencement Letter and Original Lease Agreement Attachment 3 – Lease Abstract Summary
cc: City Manager Eric J. Levitt
Verizon Wireless Telecom Lease Agreement Amendment – 2470 West Pioneer Avenue May 2, 2023 - Page PAGE \* MERGEFORMAT 2

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