Agenda Item No. 9
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: May 13, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer Gabriel Munoz-Morris, Senior Engineer
SUBJECT: Generator Lease Agreement at Hillcrest Drive Water Tank Site
RECOMMENDATION
Approve a lease agreement with T-Mobile for a new generator located at the City’s Hillcrest Drive water tank site.
BACKGROUND
In 2021, T-Mobile contacted the Community Development Department and Public Works Department to seek approval for a new backup generator for their communication facilities at the City’s Hillcrest Drive water tank site. This request came in response to new requirements from Assembly Bill 2421, which required that backup power be provided at critical communication facilities to support first responders during emergency events including wildfires. T-Mobile’s project team submitted project plans for a building permit for the construction of the improvements.
Staff reviewed plans for the generator enclosure and approved the design after ensuring that the design would not conflict with the City’s operation of its water system.
As part of the design approval, the applicant was conditioned to enter into a multi-year lease agreement for this new facility at the City’s water tank site. Staff has worked with T-Mobile over the last two years to draft the lease agreement for this new backup generator which would ensure operation and maintenance of the generator in a way that would not disrupt City utility operations.
The agreement also requires a monthly rent payment by T-Mobile of $500 for the first year. The rent amount escalates at 2% per year every year after for the duration of the agreement or until the lease is terminated.
Staff recommends approval of the lease agreement and related Memorandum of Lease for the new backup generator which will ensure local communications networks are available during emergency events. Once the agreement is approved, the construction of the generator can begin under the approved building permit.
FISCAL IMPACT
There is no cost to the City associated with this action. The City would receive a monthly rent payment of $500 per month for the first year of the lease or $6,000 for the year which would escalate at 2% per year for the term of the lease.
Staff Report: Lease Agreement for Generator at Water Tank Site Page 2 May 13, 2024
ALTERNATIVES
The Council has the following alternatives to consider:
1. Approve a lease agreement for a new generator at the City’s Hillcrest Drive water tank site for T-Mobile; or,
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Lease Agreement
2. Memorandum of Lease
TMO Signatory Level: L06
NLG-91925
Attachment 1
TMO Signatory Level: L06
NLG-91925
TMO Signatory Level: L06
NLG-91925
TMO Signatory Level: L06
NLG-91925
TMO Signatory Level: L06
NLG-91925
TMO Signatory Level: L06
NLG-91925
TMO Signatory Level: L06
NLG-91925
TMO Signatory Level: L06
NLG-91925
TMO Signatory Level: L06
NLG-91925
TMO Signatory Level: L06
NLG-91925
H I L L C R E S T D R . APN 060-581-041 APN 077-021-033 APN 060-581-031 APN 077-013-005
TMO Signatory Level: L06
NLG-91925
TMO Signatory Level: L06
NLG-91925
Attachment 2
TMO Signatory Level: L06
NLG-91925
TMO Signatory Level: L06
NLG-91925
TMO Signatory Level: L06
NLG-91925
TMO Signatory Level: L06
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RECORDING REQUESTED BY:
T-Mobile USA, Inc.
12920 SE 38th Street
Bellevue, WA 98006
Attn: Lease Compliance
Site Number: SV00522A
AND WHEN RECORDED MAIL TO:
T-Mobile USA, Inc.
12920 SE 38th Street
Bellevue, WA 98006
Attn: Lease Compliance
Site Number: SV00522A
APN: 060-581-032
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY
MEMORANDUM OF LEASE
A Generator Agreement (the “Lease”) by and between City of Grover Beach, a California municipal corporation (“Landlord”), and T-Mobile West LLC, a Delaware limited liability company (“Tenant”) was made regarding a portion of the following property (as more particularly described in the Lease, the “Premises”):
See Attached Exhibit A incorporated herein for all purposes.
Without limiting the terms and conditions of the Lease, the Landlord and Tenant hereby acknowledge the following:
1. Capitalized terms used, but not otherwise defined herein, shall have the meanings ascribed to such terms in the Lease.
2. Under the Lease, the term of this Lease and the rights granted herein shall continue until the Tenant’s Antenna Facilities Lease terminates, in which event this Lease shall terminate on the same date. (the “Term”).
3. This memorandum is not a complete summary of the Lease. It is being executed and recorded solely to give public record notice of the existence of the Lease concerning the Premises. Provisions in this memorandum shall not be used in interpreting the Lease provisions and in the event of a conflict between this memorandum and the said unrecorded Lease, the unrecorded Lease shall control.
4. This memorandum may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto were upon the same instrument.
IN WITNESS WHEREOF, the parties hereto have respectively executed this memorandum effective as of the date of the last party to sign. [SIGNATURES ON FOLLOWING PAGES]
LANDLORD: City of Grover Beach,
A California Municipal Corporation
By:
Printed Name:
Title:
Date:
ACKNOWLEDGMENT
State of California
County of _____________________________)
On _______________________ before me, _______________________________________ (insert name and title of the officer)
personally appeared __________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within the instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature ______________________________ (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
TENANT: T-Mobile West LLC
a Delaware limited liability company
By:
Printed Name:
Title:
Date:
ACKNOWLEDGMENT
State of California
County of _____________________________)
On _______________________ before me, _______________________________________ (insert name and title of the officer)
personally appeared __________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within the instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature ______________________________ (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
Memorandum of Lease - Exhibit A
Legal Description
Property address of Hillcrest Drive, Grover Beach, CA 93421 Assessor’s tax parcel number of 060-581-032
The Property is legally described as follows:
Lessor's Property of which the Premises are a part is legally described as follows:
1541 Hillcrest Drive Grover Beach, CA 93420 APN: 060-581-032 All that real property located in the State of California, County of San Luis Obispo, described as
follows:
PARCEL 1:
That portion of Blocks 21 and 22 of the Town of Grover, in the City of Grover Beach, in the County of San Luis Obispo, State of California, according to map of said Town drawn by A.
Lundquist and recorded November 23, 1892 in Book A, Page 6 of Maps, in the office of the County Recorder of said County, described as follows:
Beginning at the Northeast comer of Block 21 and running thence South 66°45' East along the North line of Block 22, 35.97 feet to the most Northerly corner of the land described in the deed to Robert B. Ewing and Fayetta M. Ewing, husband and wife, recorded July 14, 1950 in Book 571, Page 202 of Official Records; thence South 3°22'30" East along the West line of the land described in said deed, 253.42 feet to the Southwest corner thereof; thence South 86°37'30" East along the South line of the land described in said deed, 100 feet to the Southwest corner thereof; thence South 3°22'30" West 62.30 feet; thence North 86°37'30" West, 360.70 feet; thence North 3°22'30" East, 258.07 feet; thence South 86°37'30" East,
62.30 feet; thence North 3°22'30" East, 70 feet to a point on the North line of Block 21; thence South 86°37'30" East along the North line of said Block 21, 164.42 feet to the point of beginning.
PARCEL 2:
A right of way and easement with right of entry upon, over, along, across, under and through the Southerly 10 feet of Tract No. 165, Vista Grande Homes, in the County of San Luis Obispo, State of California, as shown on map of said tract, recorded December 16, 1959 in Book 6, Page 35 of Maps, in the office of the County Recorder of said County and a right of way and easement with right of entry upon, over, along, across, under and through the Easterly 10 feet of Lot 10 of Block 1 of said Tract No. 165, Vista Grande Homes; each of said rights of way and easement being for the purpose of laying, constructing, erecting, operate, repairing, relaying and maintaining a water main or water mains for the purpose of transmission of water and said rights of way and easements to be used in conjunction with other public utilities.
PARCEL 3:
An easement for the purpose of constructing, installing, maintaining and repairing a water main or mains in, under and through that portion of Block 21 of the City of Grover Beach, in the County of San Luis Obispo, State of California, as said lot is shown on Map of the town of Grover Beach, recorded in the office of the County Recorder of said County in Book A,
Commencing at the Southwesterly corner of said Block 21; thence along the Northerly line of Newport Avenue, a public street 100 feet in width, South 86°45' East, 292.70 feet to the Southeasterly corner of that parcel of land conveyed to Joseph L. and Dorothy C. Andrus by deed recorded in Book 938, Page 225 of Official Records and the true point of beginning; thence leaving the Northerly line said Newport Avenue and following the Easterly side of said Andrus Property, North 3°10' East, 270.00 feet to the Northeasterly corner thereof; thence North 3°04' East, 111.68 feet to the Southwesterly corner of that parcel of land conveyed to Grover Beach County Water District by deed recorded in Book 930, Page 430 of Official Records; thence along the Southerly line of the property so conveyed, South 86°50' East,
10.00 feet; thence leaving said Southerly line and running South 3°04' West, 111.67 feet; thence South 3°10' West, 270.02 feet to a point in the Northerly line of said Newport Avenue; thence following the Northerly line of Newport Avenue, North 86°45' West, 10.00 feet to the true point of beginning.