Agenda Report
Fullerton City Council
MEETING DATE: SEPTEMBER 17, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: SUNAYANA THOMAS, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT PREPARED BY: TAYLOR SAMUELSON, SENIOR ADMINISTRATIVE ANALYST SUBJECT: AGREEMENT WITH VERIZON WIRELESS FOR CELLULAR TOWER LEASE AT RICHMAN PARK
SUMMARY
Verizon Wireless (Verizon) seeks a land lease to construct a monopine cellular tower at Richman Park (711 South Highland). The agreement would generate $57,963.33 annually with a three-percent escalator for the agreement term and a $15,000 one-time park improvement allocation for Richman Park landscaping and maintenance.
PROPOSED MOTION
Approve lease agreements with Verizon Wireless (Verizon) for cellular monopine tower site construction, operation and maintenance located at 711 South Highland Avenue, Parcel No. 032-190-08.
Authorize City Manager to execute the lease agreement, in a form approved by the City Attorney.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Do not approve lease agreements and provide further direction Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
The City Manager recommends approval.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
The City General Fund would receive $57,963.33 annually, escalating by three percent each year to generate a $1,557,496.39 total net revenue over the first 20 years of the agreement. The lease would also provide $15,000 for Richman Park landscaping improvements.
BACKGROUND AND DISCUSSION
The City of Fullerton leases some City-owned property to cell service providers for network infrastructure. Verizon Wireless seeks to expand coverage throughout the areas surrounding Richman Park with a land lease incorporating cellular tower construction.
The City Planning Division and Parks and Recreation Department conducted a comprehensive review of the plans. Staff included the final proposed monopine design as Attachment 2. The design proposes a high-quality faux tree structure with minimal visual impact to park users. The structure would reside in a conspicuous location adjacent to a storage structure in the northern quadrant of the park.
The project would lease 280 square feet non-usable park space. The area would not contain any park infrastructure or facility with minimal impact to park functions.
The lease would generate $1,557,496.39 non-restricted general fund dollars over the term of the agreement. Additionally, the project would provide a $15,000 one-time payment for site improvements. Staff calculated lease rates based on California Department of General Services (CADGS) standardized lease telecom rate guidelines for a prime urban minicell category. This category covers facilities with four to eight antennas in a US Census designated urban area. The agreement proposes a five-year term with three additional five-year terms and optional additional renewals thereafter.
Attachments:
Attachment 1 – Verizon Wireless Lease Agreement
Attachment 2 – Plans and Specifications for Monopine
cc: City Manager Eric J. Levitt
Richman Park Cellular Tower Lease Agreement
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