CITY OF R IYC O MI2AGE
121
STAFF REPORT
TO: Mayor and City Council DATE: July 20, 2023
FROM: Ben Torres, Planning Manager
Majna Dukic, Director of Development Services
SUBJECT: Authorization to Execute a Land Lease Agreement for a Proposed AT&T Wireless Telecommunication Facility Located at 70801 Highway 111
SPECIFIC REQUEST OR RECOMMENDATION
That the City Council authorize the City Manager and City Attorney to execute a land lease agreement and all related documents for a new AT&T wireless telecommunication facility located at 70801 Highway 111 (APNs: 690-182-016; & -017).
JUSTIFICATION OR INFORMATION
BACKGROUND
The City has a history of supporting telecommunication facilities on City -owned properties for the improvement of cellular coverage throughout the City. There is currently an existing monopalm on City -owned property operated by Verizon. On March 23, 2015, the Verizon Land Lease Agreement for the installation and maintenance of a 60-foot tall monopalm wireless telecommunications facility on the aforementioned property was executed by all parties and the agreement became effective. The facility is located approximately 115 feet northwest of the Rancho Mirage Fire Station off of Highway 111 (Fire Station 50). On September 15, 2022 the City Council authorized an amendment to the Verizon Land Lease Agreement which established a rent amount of $2,400.00 per month with a ten percent increase every 5-year term. The lease allows up to seven (7) additional (5) year term extensions.
In 2022, City Staff was approached by Smartlink representatives looking to install a new wireless telecommunications facility at the Fire Station property since there is a large gap in indoor and in vehicle cellular coverage within the general vicinity for AT&T customers. City Staff brought up the potential to collocate onto the existing Verizon monopalm, but due to the new antenna's placement required to be at a lower height, AT&T stated that would not meet their need to fill in the coverage gap. AT&T either had to have a minimum setback of 100 feet from the existing Verizon monopalm or propose a facility taller than 60' if a new monopalm was placed close to the existing Verizon monopalm. Therefore, the proposed location was selected on the east side of Fire Station on a vacant lot owned by the City, which met the minimum 100 setback (APN: 690-182-017).
AGENDA ITEM #
13-1
DATE: July 20, 2023 Page 2 of 2
AT&T Wireless Telecommunication Facility at 70801 Highway 111 JUSTIFICATION OR INFORMATION CONTINUED:
LAND LEASE AGREEMENT
City Staff are currently working on a Land Lease Agreement with AT&T representatives for a proposed 60-foot-tall AT&T wireless telecommunication facility that will resemble a palm tree enclosed within a 30 foot by 30-foot block wall enclosure (900 square foot). The facility will be accessed through the parking lot at Fire Station 50. Entitlement of the subject wireless telecommunications facility will require a separate action by the City Council with review of the project's Conditional Use Permit.
Initial lease payments for use of City owned property are proposed to be $2,000 per month with rent increases of two (2) percent beginning in year two of the lease and each year thereafter.
The initial lease term is proposed at five (5) years which will automatically review for five (5) additional five (5) year extension terms. The lease terms and rent are similar to the Verizon Land Lease Agreement, which is detailed above. The proposed facility will increase cellular coverage to ensure better access to emergency services and improve services for Rancho Mirage residents and visitors for vehicles near the facility and for residential areas like Thunderbird Country Club, Morningside Country Club, Sunrise Country Club, and The Springs Country Club.
Authorization to enter into a Land Lease Agreement for City owned property is within the jurisdiction of the City Council. The financial terms for the AT&T Land Lease Agreement are presented for the City Council's consideration. If authorized, City Staff, including the City Attorney will work with AT&T representatives on the final terms and language of the Land Lease Agreement.
FISCAL IMPACT
Once the lease is executed and based on the final terms there will be an increase in land lease revenue to the City in the amount of $2,000 per month during the first year with yearly increases thereafter.
AGENDA ITEM #
13-2