STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of October 10, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, Community Development Director Patrick Tang, City Attorney
SUBJECT: Lease Agreement with AT&T Mobility – Communication Tower on Wheels at 111 Civic Drive RECOMMENDED ACTION:
Approve the draft Site Lease agreement, Attachment 1, between the City of Hercules and AT&T Mobility and authorize the City Manager to execute all related site lease documents that are substantially similar to the approved draft.
BACKGROUND:
In 2006, the Hercules Planning Commission approved Design Review Permit No. 05-09 and Conditional Use Permit No. 05-01, a request to install and operate an unmanned telecommunications facility on an existing 55-foot-tall PG&E transmission tower and construct a 250-square-foot equipment enclosure at 1625 Sycamore Avenue. On May 3, 2023, AT&T was notified that the lease agreement with PG&E would not be renewed, and all equipment must be removed by August 25, 2023. On August 9, 2023, after consultation with Robert Ross, the City’s wireless consultant, the applicant Jason Osborne, on behalf of AT&T Mobility, applied for a Temporary Use Permit to allow a communication tower on wheels (COW) at 111 Civic Drive until a permanent location can be established.
Once a termination notice is received, AT&T proceeds with reviewing the area for alternative locations. On behalf of AT&T, Crown Castle has had preliminary discussions with staff regarding a permanent site for a new tower at 111 Civic Drive. The main concern is that the timeline to secure a viable permanent alternative takes many months to conduct required public outreach, obtain City approval, and construct the new tower. This typically takes anywhere from 9 months to one year.
To mitigate the loss of the previous cellular facility at 1625 Sycamore, AT&T is proposing a temporary facility on City-owned property.
On August 21, 2023, the Hercules Planning Commission reviewed and approved the Temporary Use Permit (TUP #23-28) to allow a temporary AT&T cell site at 111 Civic Drive, including a communication tower on wheels, 35 feet in height, for 24 months or until an approved replacement facility has been constructed and issued a certificate of compliance, whichever is sooner.
DISCUSSION:
Staff requests that Council approve the attached Site Lease and authorize the City Manager to execute all related site lease documents that are substantially similar to the approved draft. The draft lease has been approved by AT&T.
The City’s consultant, Center for Municipal Solutions (CMS), negotiated a lease rate of $1,800.00 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 Site Lease. The proposed Site Lease agreement is for approximately 1,225 square feet, which will include an area for a temporary communication tower on wheels, approximately 35 feet in height, with one pole and six (6) panel antennas affixed to two (2) telescopic masts. The base of the structure will house a temporary equipment shelter with an access door and emergency generator for the site. The length of the lease is for the duration of the approved Temporary Use Permit, which is up to 24 months from its approval (through August 21, 2025) or until a permanent site is established, whichever is sooner.
Approval of this lease for the temporary facility would help AT&T Mobility to minimize coverage gaps due to the loss of the facility at 1625 Sycamore. The temporary facility would provide cellular coverage primarily to the Highway 80 and Highway 4 interchange and to the City of Hercules. Additionally, the facility would provide emergency service coverage via Band 14 / FirstNet to the City of Hercules Police and Fire Departments. Providing consistent cellular coverage to the community and Band 14 / FirstNet to first responders, furthers public safety and general welfare.
FISCAL IMPACT:
Increased revenue to the City of $1,800 per month or $21,600 annually, with an annual CPI adjustment of 3-4%.
ATTACHMENTS:
Draft Site Lease Agreement.
Resolution Authorizing the City Manager to Execute the Site Lease.