CITY COUNCIL STAFF REPORT
DATE: JANUARY 14, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF FIRST AMENDMENT TO CITY OF PALM SPRINGS
WIRELESS COMMUNICATIONS FACILITIES SITE LEASE WITH LOS
ANGELES SMSA LIMITED PARTNERSHIP, DBA VERIZON WIRELESS, FOR THE PROPERTY LOCATED AT 1901 EAST BARISTO ROAD
FROM: Scott C. Stiles, City Manager
BY: Housing and Community Development
SUMMARY:
This action is to approve Amendment No. 1 (Attachment A) to the ground lease with Los Angeles SMSA Limited Partnership dba Verizon Wireless dated May 2, 2019, for non-exclusive use of ground space with an existing wireless communication tower at 1901 East Baristo Road (Attachment B). The proposed Amendment will extend the term for three additional renewal periods of five years each, commencing on October 1, 2028, adjusting rent and annual escalation, among other changes.
RECOMMENDATION:
1. Approve the proposed First Amendment to City of Palm Springs Wireless Communications Facilities Site Lease with Los Angeles SMSA Limited Partnership dba Verizon Wireless for the property located at 1901 East Baristo Road to extend the term for three additional renewal periods of five years each, commencing on October 1, 2028, adjust rent and annual escalation and other updates outlined therein.
2. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
See Attachment C.
BACKGROUND:
On April 3, 2019, the City Council approved the original Wireless Communications Facilities Site Lease with Verizon. The Agreement was subsequently executed on May 2, 2019.
City Council Staff Report
January 14, 2026 -- Page 2
Approval of First Amendment to Wireless Communications Facilities Site Lease 6 7
8 STAFF ANALYSIS:
The City of Palm Springs entered into the Agreement with Verizon on May 2, 2019, allowing for the operation of a wireless communications facility on a portion of City- owned property at 1901 East Baristo Road. The initial lease rate was $3,300 monthly and is currently $4,186.26. The current lease is set to expire on September 30, 2028.
Verizon has requested an extension of the lease term, asserting that such extension will ensure long-term operational stability and continued reliable wireless service for residents and visitors in the surrounding area. The proposed Amendment modifies the lease term to extend Verizon’s occupancy of the site beyond its current expiration date, adjusts the rent starting in 2028, and updates Verizon’s notice address.
Key terms of the Amendment include:
1. Term Extension: The lease will be automatically extended for three (3) additional renewal periods of five (5) years each, commencing on October 1, 2028.
2. Rent Adjustment: Commencing October 1, 2028, the monthly base rent will be adjusted to $4,711.86 which reflects a 4.0% annual increase through 2028.
This amount is higher than the projected October 1, 2028, rent based on Consumer Price Index estimated increases of 3.2% for 2026 and continued decline in 2027 and 2028 to just above 2%1.
3. Cost of Living Adjustment Update: The Metropolitan Statistical Area for the Consumer Price Index will be changed from the Los Angeles-Anaheim- Riverside Metropolitan Statistical Area to the Riverside-San Bernardino- Ontario Metropolitan Area which is the current Metropolitan Statistical Area for Palm Springs.
4. Notice Update: Verizon’s notice address will be updated.
All other terms and conditions of the original May 2, 2019 Agreement will remain unchanged and in full force and effect.
ENVIRONMENTAL ASSESSMENT:
The proposed action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1 – Existing Facilities). Class 1 consists of the “operation, permitting, leasing, licensing, or minor alteration of existing public or private facilities or mechanical equipment … involving negligible or no expansion 1 UCLA Anderson Forecast, UCLA Anderson Forecast for the Nation and California: December 2025 Report (Los Angeles: UCLA Anderson School of Management, 2025).
City Council Staff Report
January 14, 2026 -- Page 3
Approval of First Amendment to Wireless Communications Facilities Site Lease 6 7
8 of existing or former use.” The proposed action consists solely of approving Amendment No. 1 to an existing ground lease for a wireless communications facility, extending the lease term, adjusting rent, and revising the applicable Consumer Price Index. No physical modifications to the facility, increase in height, ground disturbance, or change in the intensity or type of use are proposed. As such, the Project qualifies for the Class 1 exemption.
Further, none of the exceptions to the use of a categorical exemptions listed in CEQA Guidelines Section 15300.2 apply: (1) the lease amendment does not involve construction, expansion, or physical change and would not contribute to cumulatively significant environmental impacts; (2) the approval of a lease extension for an existing wireless facility is not an unusual circumstance and does not present a reasonable possibility of a significant environmental effect; (3) the project does not involve physical changes that would affect scenic resources, including those associated with designated scenic highways (4) the site is not included on any list of hazardous waste sites compiled pursuant to Government Code Section 65962.5 and (5) the action does not involve alteration of a historic resource or a structure eligible for listing in the California Register of Historical Resources.
A Notice of Exemption will be filed with the County Clerk and the State Clearinghouse in accordance with CEQA requirements.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Foundation: Infrastructure and Facilities.
FISCAL IMPACT:
The proposed Agreement would generate revenue in the amount of $4,711.86 per month beginning on October 1, 2028 and shall increase each one-year anniversary i) in an amount equal to the increase in the Consumer Price Index published by the United States Department of Labor, Bureau of labor Statistics (1982-1984=100) for “All Items – All Urban Consumers”, for the Riverside-San Bernardino-Ontario Metropolitan Statistical Area, during the preceding twelve (12) month period; or ii) three percent, whichever is greater. This equates to approximately $56,542.32 for the first year of the renewal term.
If the lease is renewed for all three 5-year terms (extending from October 1, 2028 to September 30, 2043), the total base rent revenue the City would receive is approximately $1,051,625 assuming the annual increase is the minimal amount of 3% (which could be higher if CPI exceeds 3%).
City Council Staff Report
January 14, 2026 -- Page 3
Approval of First Amendment to Wireless Communications Facilities Site Lease 6 7
8 City Council Staff Report
January 14, 2026 -- Page 4
Approval of First Amendment to Wireless Communications Facilities Site Lease 6 7
8 REVIEWED BY:
Department Director: Jay Virata
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. First Amendment to City of Palm Springs Wireless Communications Facilities Site Lease.
B. Wireless Communications Facilities Site Lease.
C. Business Principal Disclosure.