REPORT TO CITY COUNCIL
DATE: July 26, 2022
TO: Mayor Bailey and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, Community Development Director Patrick Tang, City Attorney
SUBJECT: Revised Lease agreement with New Cingular Wireless RECOMMENDED ACTION:
Approve an Amended & Restated Site Lease Agreement between the City of Hercules and New Cingular Wireless PCS, LLC (AT&T) and Authorize the City Manager Execute Related Documents.
FISCAL IMPACT OF RECOMMENDATION:
Increased revenue to the City of $612.33 per month or $7,347.96 annually, with an annual CPI adjustment of 3-4%.
BACKGROUND:
Resolution #17-048, Contract #17-024 is an existing lease agreement between the City of Hercules CA and New Cingular Wireless for approximately 477 square feet for the right to maintain telecom equipment on a PG&E-owned tower on City-owned open space south of the intersection of Refugio Valley and Redwood Roads. The proposed Amended & Restated Site Lease Agreement is for approximately 620 square feet, which will include an area for an emergency generator for the site. This lease amendment increases the base lease amount owed to the City from $2,500 to $3,481 per month, to be increased annually by 3% or the CPI, whichever is higher, with a maximum cap at 4% increase as stated in the attached Lease. The length of the lease is 5 years, with two 5-year extensions under the same terms.
ENVIRONMENTAL DETERMINATION
The adoption of the below Lease is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to §15378 and California Public Resources Code § 21065, as this ordinance is not a “project” because its adoption is not an activity that has the potential for a direct physical change or reasonably foreseeable indirect physical change in the environment; and that, even if this ordinance qualified as a “project” subject to CEQA, pursuant to CEQA Guidelines §15061(b)(3), this Ordinance does not have the potential for causing a significant effect on the environment as it does not allow for any new or expanded uses not otherwise permitted under existing federal, state, and local regulations. The wireless communications facilities themselves are exempt from CEQA pursuant to Section 15301 of the CEQA Guidelines.
ATTACHMENTS
Draft Amended and Restated Site Lease signed by New Cingular Wireless PCS, LLC (AT&T) (See Exhibit B for depiction of project.)
Resolution Authorizing the City Manager to Execute the Amended and Restated Site Lease 11 1
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