Agenda Report
Fullerton City Council
MEETING DATE: OCTOBER 20, 2026
TO: CITY COUNCIL
SUBMITTED BY: STEPHEN BISE, P.E., PUBLIC WORKS DIRECTOR PREPARED BY: JEROME JOAQUIN, PUBLIC WORKS ADMIN. MANAGER SUBJECT: LEASE AGREEMENT WITH PTI ACQUISITIONS, LLC FOR CELLULAR TOWER OPERATION AND MAINTENANCE AT 3151 NORTH EUCLID STREET
SUMMARY
Staff requests City Council approve a lease agreement with PTI US Acquisitions, LLC for a 1,045 square-foot land lease to install and maintain improvements and property to operate communications systems located on City-owned property at 3151 North Euclid Street.
PROPOSED MOTION
Approve Lease Agreement with Phoenix Tower International (PTI US Acquisitions, LLC) for cellular monopine tower site operation and maintenance located at 3151 North Euclid Street.
Authorize City Manager, or designee, to execute and administer lease agreement on behalf of City of Fullerton, in a form approved by the City Attorney.
ALTERNATIVE OPTIONS
Approve Proposed Motion
Other options brought by City Council.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
Staff anticipates the lease agreement would generate $60,000 in lease revenue to the Water Enterprise Fund (Fund 44) in Year 1, which represents an approximately 44 percent increase (or $18,466 increase) over the previous lease. The new lease agreement has a five-year term retroactively commencing on November 21, 2025. The five-year lease includes up to three automatic five-year renewals, for a total twenty-year lease unless terminated by the City. The lease also includes three percent annual rate increases.
DISCUSSION
The City of Fullerton leases City-owned property to cell service providers for network infrastructure. The City generated this lease based on discussions with PTI US Acquisitions, LLC following the previous lease expiration. The proposed lease includes a 16 percent increase in revenues and facilitates continued partnership with the telecommunications provider.
The proposed lease uses existing infrastructure and allows equipment installation to facilitate telecommunications facility operations. The tenant requested a 20-foot-wide right of way, extending from the nearest public right of way to access the facility. The lease agreement does not constitute a regulatory approval and PTI US Acquisitions, LLC remains subject to the standard permitting process for any telecommunications facility.
The City calculates lease rates based on the California Department of General Services (CADGS) standardized lease telecom rate guidelines. The proposed structure falls under a prime urban category for facilities in a US census designated urban area. The agreement proposes a five-year term and up to three five-year optional renewals thereafter. Staff continues to pursue lease agreements that align with market rate standards that scale to other potential telecom operators.
Attachments:
Attachment 1 – Draft Agreement
cc: City Manager Eddie Manfro
PTI US Acquisitions, LLC Cell Tower Lease Agreement
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