CITY COUNCIL,
LIBRARY AND OBSERVATORY BOARD,
HOUSING AUTHORITY BOARD,
AND THE CITY COUNCIL REPRESENTING
THE REDEVELOPMENT SUCCESSOR AGENCY
REGULAR MEETING
THURSDAY, SEPTEMBER 15, 2022
1:00 P.M.
LATE SUBMISSIONS AND/OR REVISIONS
• Agenda Item No. 4 - Authorize the City Manager to Execute an Amendment to Land Lease Agreement to Ensure Continued Operation of Wireless Communication Tower Located at 70801 Highway 111.
• Agenda Item No. 11 - Consider Special Assistance Fund (SAF) Award(s). ~ CITY OF RANCHO MIRAGE
AGENDA ITEM #
STAFF REPORT
TO: M
ayor and City Council DATE: September 15, 2022
FR
OM: Jessica L. Pulliam, Sr. Management Analyst
Isaiah Hagerman, City Manager
SUBJECT: A uthorize Amendment to Land Lease Agreement to Ensure Continued Operation of Wireless Communication Tower Located At 70801 Highway 111
SPECIFIC REQUEST OR RECOMMENDATION
That the City Council authorize the City Manager to execute an amendment to land lease agreement dated March 23, 2015, of the wireless communication services tower located at 70801 Highway 111.
JUSTIFICATION OR INFORMATION
BACKGROUND
On A
pril 17, 2014, the City Council authorized the City Manager to execute a lease and all related documents necessary to lease a portion of the land located at 70801 Highway 111, in the City of Rancho Mirage for the installation of Verizon communications facilities and equipment to enhance and expand cellular reception within the jurisdictional boundaries of the city. The City Council approved certain business terms including the length of the initial lease agreement, the monthly rent, and annual increases as well as lease extension provisions.
On March 23, 2015, the Land Lease Agreement for the installation and maintenance of a cellular tower on the aforementioned property was executed by all parties and the agreement became effective. The term was for five years from the date of execution with four automatic five years renewals and provisions for additional extensions thereafter if not terminated by either party. The starting monthly rental payment was $2,367.00 ($28,404.00 annually) with a 3% increase every annual anniversary. We are currently in year two of five of the second five- year extension, the current extension term ends on 03/23/2025.
By letter dated May 20, 2022, MD7, LLC on behalf of Verizon Wireless contacted the city to demand a reduction and other modification s to the current Land Lease Agreement stating that amongst other things Verizon Wireless is re-evaluating its network and that it “ hopes that you [the city] choose to secure your site…”
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CIN OF~ MIRl'IG~
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DATE: September 15, 2022 Page 2 of 2
Land Lease Agreement Amendment - 70801 Hwy. 111
JUSTIFICATION OR INFORMATION CONTINUED:
AGE NDA ITEM #
The let
ter included a request, under threat of tower reduction, for additional contract language, a reduction in rent to $2000 per month, a change to the rent escalator and additional renewal terms.
City Council formed a subcommittee consisting of Councilmembers Weill and Kite at the June 16, 2022, council meeting. On June 28, 2022, the subcommittee met with staff and a counteroffer was formed and submitted. On June 29th a response was received, and these terms were found to be acceptable by the subcommittee. Upon City attorney review additional language under remedies and default were requested.
The final proposed amendment is attached to this report. A summary of the main points is below:
1. New Rent Amount: $2,400.00 per month, commencing on 08/01/22.
2. New Rent Escalator: Ten Percent (10%) every 5-year term
3. Additional Renewal Terms: Seven (7) additional five (5) year term extensions.
FISCAL IMPACT
There i
s a decrease in land lease revenue for the following years:
FY 23: $5,884.23
FY 24: $7,451.20
FY 25 (through the end of the current extension term of March 23, 2025): $6,195.58
RECOMMENDATION
That t
he City Council authorize the City Manager to execute an amendment to land lease agreement dated March 23, 2015, of the wireless communication services tower located at 70801 Highway 111.
ATTACHMENT
1. Pr
oposed Amendment to Land Lease Agreement
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ATTACHMENT 1
PROPOSED AMENDMENT TO LAND LEASE AGREEMENT
(SEE ATTACHED)
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LESSEE Site Name: Boothill
LESSEE Location Code: 123119
1 SE
COND AMENDMENT TO LAND LEASE AGREEMENT
This Second Amendment to Land Lease Agreement (“Second Amendment”) is made, and shall be effective, as of the last date of the signatures below (“Effective Date”), between the City of Rancho Mirage, a municipal corporation (“ LESSOR”), and Los Angeles SMSA Limited Partnership, a California limited partnership d/b/a Verizon Wireless ( “LESSEE”). LESSOR and LESSEE (or their predecessors in interest) are parties to that certain Land Lease Agreement dated March 23, 2015, as may have been previously amended and/or assigned, (the “Agreement”), pursuant to which LESSEE is leasing or licensing from LESSOR a portion of that certain property located at 70801 Highway 111, in the City of Rancho Mirage, County of Riverside, State of California, as more particularly described in the Agreement . LESSOR and LESSEE may be referenced in this Second Amendment individually as a “Party” or collectively as the “Parties.”
In consideration of the mutual covenants and promises contained in this Second Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, the Parties agree to amend the Agreement as follows:
1. Term. Notwithstanding anything contained in the Agreement to the contrary, the current term of the Agreement shall expire on July 31, 2022. Commencing on August 1, 2022, the Agreement shall be extended for 5 years ( “Initial Extension Term” ). The term of the Agreement shall thereafter automatically extend for 7 addi tional terms of 5 years each (each, an “Additional Extension Term ”), unless LESSEE terminates the Agreement by giving LESSOR notice of such termination at least 30 days prior to the expiration of the Initial Extension Term or then-current Additional Extension Term.
2. Rent . Commencing on August 1, 2022, the annual rent during the Initial Extension Term shall be $28,800.00 to be paid in equal monthly installments on the first day of the month in advance to LESSOR or such other person as LESSOR may designat e in writing at least 30 days in advance of any rental payment date. Thereafter, commencing on August 1, 2027, annual rent for each Additional Extension Term shall increase by 10% upon commencement of each Additional Extension Term.
3. Ho ldover. Notwithstanding anything contained in the Agreement to the contrary, the Parties agree that a holding over beyond the expiration or termination of the Agreement shall operate as an extension of the Agreement from month-to-month only (the “Holdover Period”), with rent due monthly in an amount equaling the monthly rent applicable during the month immediately preceding such expiration or earlier termination . Either Party may terminate the Agreement at the end of any month during the Holdover Period by providing 30 days written notice.
4. Rent Credit. This Second Amendment provides for a reduc tion in rent, effective August 1, 2022. The Parties acknowledge and agree that LESSEE shall be entitled to a credit in the event of any overpayment of rent resulting from said reduction in rent. Such credit shall be applied against LESSEE’s rent due under the Agreement.
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LESSEE Site Name: Boothill
LESSEE Location Code: 123119
2 5. Remedies. In addition to the remedies set forth in the Agreement, as amended, including but not limited to those set forth in Section 30, LESSOR shall have the following rights and remedies:
a. Continuation of Agreement in Effect. LESSOR has the remedy descried in California Civil Code Section 1951.4, which provides that when a lessee has the right to sublet or assign (subject only to reasonable limitations), lessor may continue the lease in effect after the lessee’s breach and abandonment and recover rent as it becomes due (“lessor may continue lease in effect after lessee’s breach and abandonment and recover rent as it becomes due, if lessee has the right to sublet or assign, subject only to reasonable limitations”). Accordingly, if LESSOR does not terminate this Agreement on account of any default by LESSEE, LESSOR may enforce all of LESSOR’s rights and remedies under this Agreement, including the right to r ecover all rent as it becomes due.
b. Termination of Agreement. Once LESSOR has terminated this Agreement pursuant to the terms of this Agreement, LESSEE must immediately surrender the Premises to LESSOR.
Should LESSOR duly terminate this Agreement as set forth herein, LESSOR shall have the rights and remedies of a landlord provided by Section 1951.2 of the Civil Code of State of California, or any successor code Sections. Upon such termination, in addition to any other rights and remedies to which LESSOR may be entitled under applicable law or at equity, LESSOR shall be entitled to recover from LESSEE: (1) the worth at the time of award of the unpaid rent and other amounts which had been earned at the time of termination, (2) the worth at the time of award of the amount by which the unpaid rent and other amounts that would have been earned after the date of termination until the time of award exceeds the amount of such rent loss that LESSEE proves could have been reasonably avoided; (3) the worth at the time of award of the amount by which the unpaid rent and other amounts for the balance of the Term after the time of award exceeds the amount of such rent loss that the LESSEE proves could be reasonably avoided; and (4) any other amount and court costs necessary to compensate LESSOR for all detriment proximately caused by LESSEE’s failure to perform LESSEE’s obligations under this Agreement or which, in the ordinary course of things, would be likely to result therefrom. The "worth at the time of award" as used in (1) and (2) above shall be computed at the Applicable Interest Rate (defined below). The "worth at the time of award" as used in (3) above shall be computed by discounting such amount at the Federal Discount Rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%).
6. Continued Effect. Except as amended hereby, all of the other terms and conditions of the Agreement shall remain in full force and effect. In the event of a conflict between any term and provision of the A greement and this Second Amendment , the terms and provisions of this Second Amendment shall control. In addition, except as otherwise stated in this Second Amendment, all initially capitalized terms shall have the same respective defined meaning stated in the Agreement. All captions are for reference purposes only and shall not be used in the construction or interpretation of this Second Amendment.
7. Ratification and Reaffirmation. LESSOR and LESSEE do hereby ratify, reaffirm, adopt, contract for and agree to be , or continue to be, bound by all of the terms and conditions of the above -referenced Agreement . Except as modified by this Second Amendment , all of the terms and conditions of the Agreement are incorporated by reference herein as if set forth at 4-5
LESSEE Site Name: Boothill
LESSEE Location Code: 123119
3 length. It is acknowledged and agreed that the execution of this Second Amendment by the Parties is not intended to and shall not constitute a release of either Party from any obligation or liability which said Party has to the other pursuant to the Agreement.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the authorized representatives of the Parties hereto execute this Second Amendment below, intending to be bound.
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LESSEE Site Name: Boothill
LESSEE Location Code: 123119
4 LESSOR:
City of Rancho Mirage, a municipal corporation
By:
Name: ______________________________
Title: ______________________________
Date:
LESSEE:
Los Angeles SMSA Limited Partnership,
A California limited partnership
d/b/a Verizon Wireless
By AirTouch Cellular Inc., Its General Partner
By:
Name: Sergei Mislevy
Title: Executive Director-Network Engineering and Operations Date:
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AGENDA ITEM #
STAFF REPORT
TO: Mayor and City Council DATE: September 15, 2022 FR
OM: Gloria Griego, Sr. Management Analyst
SUBJECT: Consideration of FY 22-23 Special Assistance Fund (SAF) Awards SPECIFIC REQUEST OR RECOMMENDATION:
That
the City Council approve the attached Exhibit A awarding FY 22-23 Special Assistance Funds (SAF).
INFORMATION:
BACKGROUND:
In 1990, the City Council implemented the Special Assistance Funds (SAF) program to award funds to qualified nonprofit organizations that provide special activities, programs, or services to the citizens of the community. Council has amended the guidelines from time to time as the need arises.
DISCUSSION:
On July 6, 2022, a press release was issued notifying the public of the Fiscal Year (FY) 22-23 SAF Application process; this information was also placed on the City’s website.
The FY 22-23 SAF Subcommittee recommends an award of funds to 17 qualified nonprofits for a total amount of $51,000. The City receives multiple funding requests throughout the year and the Subcommittee will have the opportunity to recommend funding to other qualified nonprofits that submit requests during the fiscal year.
ATTACHMENT(S):
1. Exhibit “A”-FY 22-23 SAF Award Recommendations
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EXHIBIT “A”
FY 22-23 S AF AWARD RECOMMENDATIONS
(SEE ATT
ACHED)
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EXHIBIT "A"
FY 22/23
SAF Awards
(09-15-22)
Organizations Program Award Recommendations
Angel View
Children's Outreach
Program. $3,500.00
Assistance League Coachella
Valley
Operation School Bell
Provides Children With
School Clothing. $2,500.00
Desert Access and Mobility
Part-Time Driver to Drive
Clients to Clinics and
Medical Appointments. $2,000.00
Desert Arc
Nutrition Program for Work
Activity Clients. $5,000.00
Galilee Center
Emergency Food
Distribution Program. $3,000.00
Jewish National Fund USA
Series of Educational
Programs. $3,500.00
Mama's House Ministries
Mortgage Payments for
Mama's House. $5,000.00
Museum of Ancient Wonders
Support for Construction of
Pedestals for Exhibitions
and Artifacts. $1,000.00
Olive Crest
Program to Support over
600 Children and Families. $3,000.00
Palm Springs Opera Guild of the
Desert
OPERA Outreach for
Classical Music and
Theatrical Art of Opera. $1,500.00
Pegasus Therapeutic Riding
Center
Equine Assisted Therapy
for Special Needs Children
and Adults. $3,000.00
SongShine Foundation Arts-In Health Program. $2,500.00
The Hero In You Foundation
Rocket Rule's for Safety
Program. $5,000.00
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EXHIBIT "A"
FY 22/23
SAF Awards
(09-15-22)
Organizations Program Award Recommendations
The LGBTQ Community Center of
the Desert
Support for Community
Food Bank, Behavioral
Health Clinic, and Eastern
Coachella Valley Latinx
Program. $5,000.00
Tools for Tomorrow
After-School Program and
Online Integrated Arts
Literacy Program. $2,000.00
Transgender Health and Wellness
Center
Palm Springs Equality
Garden Party. $1,000.00
Variety-The Children's Charity of
the Desert
Future, Freedom and Care
Program provides Services
for Children who are At-
Risk, with Special Needs,
and the Vulnerable. $2,500.00
17 Organizations = Total $51,000.00
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