City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00508 3/25/2025 Consent Item 4.
Third Amendment to Lease Agreement 1995-95-061 for a Telecommunications Tower at Johnston Park
File ID: 2025-00508
Location: Johnston Park, 218 Eleanor Ave, District 2
Recommendation: Adopt a Resolution authorizing the Interim City Manager or designee to execute the Third Amendment to Lease Agreement with Sacramento-Valley Limited Partnership dba Verizon Wireless (City Agreement No. 95-061) to extend the Lease Agreement for a three-year renewal term plus two additional three-year renewal options, terminating on January 1, 2033, if all renewals are exercised, with annual rent of $30,000 for 2025 and 3% annual increases thereafter (rounded to the nearest $100), for the operation of a telecommunications tower and associated equipment at Johnston Park.
Contact: Long Thao, Development Project Manager, (916) 808-8577, [email protected]; Jennifer Johnson, Supervising Engineer, (916) 808-7754, [email protected]; Department of Public Works; Dana Repan, Senior Planner, (916) 808-2762, [email protected]; Jason Wiesemann, Park Planning and Development Services Manager, (916) 808-7634, [email protected]; Youth, Parks and Community Enrichment
Presenter: None.
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A - Third Amendment to Lease Agreement
Description/Analysis
Issue Detail: City Agreement No. 95-061 (Agreement) was executed on March 22, 1995, between the City and Sacramento-Valley Limited Partnership for the lease of real property for the operation of a telecommunications tower and associated equipment at Johnston Park, located at 218 Eleanor Avenue. Sacramento-Valley Limited Partnership became Verizon Wireless through a series of mergers and acquisitions. Verizon Wireless (Lessee) has assumed all of the rights and obligations under the Lease Agreement, but the proposed Third Amendment authorizes American Tower to be
File ID: 2025-00508 3/25/2025 Consent Item 4.
Verizon Wireless’ agent for purposes of managing the Agreement and telecommunications tower.
The stated term under the Lease Agreement ended on March 31, 2015; however, the Lessee has continued to operate under the terms of the Lease Agreement, make lease payments to the City as provided in the Lease Agreement and, operate the telecommunications tower as provided in the Lease Agreement. Without an amendment to the Lease Agreement, recommended upgrades that are needed to provide increased cellular coverage and data capacity to the surrounding neighborhood are not permitted. The annual lease rate has not been adjusted to current market value since March 31, 2015, so this amendment will provide for higher lease payments.
City staff are currently working on a Master Lease Agreement (MLA) for these types of agreements but until the MLA is finalized, this recommended Third Amendment will extend the term through January 1, 2033, if all renewal terms are exercised.
Policy Considerations: The recommendation in this report is in accordance with City Code Chapter
12.14 regarding telecommunications facilities located on City-owned property, as well as the 2040 General Plan regarding telecommunication infrastructure. City Code Section 3.68.120 provides the council may by resolution approve the amendment of any lease.
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): No environmental review is necessary as the recommendation in this report involves an existing public or private utility with negligible or no expansion under provision of the California Environmental Quality Act (CEQA) under Article 19- Categorical Exemptions, Section Number 15301.
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: Executing the amendment to the Lease Agreement will allow for improvements to telecommunications coverage in an area where there are few nearby telecommunications towers. Without the continued operation of the subject telecommunications facility, cellular coverage and data capacity would be considerably slower in the surrounding neighborhoods. The Third Amendment will increase the annual lease rate closer to market value.
File ID: 2025-00508 3/25/2025 Consent Item 4.
The following table provides information about the prior amendments:
Amendment No. Date Purpose
First 3/29/2012 Minor equipment modification
Second 2/20/2014 Minor equipment modification
Approval by the City Council is required because the potential contract amount exceeds $250,000.
Financial Considerations: The annual rent for the renewal terms authorized in the Third Amendment will be $30,000 in 2025 and increase by 3% each year thereafter (rounded to the nearest $100), for a potential total of $306,300 under the Third Amendment if all renewals are exercised and the Agreement continues in effect until January 1, 2033.
The Lessee’s telecommunications infrastructure is located on city-owned property , and the revenue from the third amendment will be deposited in the General Fund (Fund 1001) in the Citywide and Community Support (Non-Departmental) budget in accordance with Section 9 (A) of Resolution No. 2012-020 adopted by City Council on January 31, 2012.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO.
Adopted by the Sacramento City Council
Approving Third Amendment to Lease Agreement 1995-95-061
BACKGROUND
A. On March 22, 1995, the City and Sacramento-Valley Limited Partnership entered into City Agreement No. 1995-95-061 for the lease of real property for the operation of a telecommunications tower and associated equipment at Johnston Park, located at 218 Eleanor Avenue. Sacramento-Valley Limited Partnership became Verizon Wireless through a series of mergers and acquisitions. Verizon Wireless (Permittee) has assumed all of the rights and obligations under the Lease Agreement.
B. The stated term under the Lease Agreement ended on March 31, 2015; however, the lessee has continued to operate under the terms of the Lease Agreement, make lease payments to the City as provided in the Lease Agreement and, operate the telecommunications tower as provide in the Lease Agreement.
C. The recommendation in this report is in accordance with City Code Chapter
12.14 regarding telecommunications facilities located on City-owned property, as well as the 2040 General Plan regarding telecommunication infrastructure.
D. The annual rent for the renewal terms authorized in the Third Amendment will be $30,000 in 2025 and increase by 3% each year thereafter (rounded to the nearest $100), for a potential total of $306,300 under the Third Amendment if all renewals are exercised and the Agreement continues in effect until January 1, 2033. The telecommunications structure is located on General Fund property and revenue will be deposited into the General Fund (Fund 1001) in the Citywide and Community Support (Non-Departmental) budget in accordance with Section 9 (A) of Resolution No. 2012-020 adopted by City Council on January 31, 2012.
BASE ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or designee is authorized to execute the attached third amendment with Sacramento-Valley Limited Partnership dba Verizon Wireless to extend the Lease Agreement for a three-year renewal term plus two additional three-year renewal options, terminating on January 1, 2033 if all renewals are exercised, with annual rent of $30,000 for 2025 and 3% annual increases thereafter (rounded to the nearest $100), for the operation of a telecommunications tower and associated equipment at Johnston Park.
Section 2. Exhibit A is part of this Resolution
Table of Contents:
Exhibit A - 3rd Amendment to 1995-95-061
THIRD AMENDMENT TO LEASE AGREEMENT
This THIRD AMENDMENT TO LEASE AGREEMENT (“Third Amendment”) is made as of , 2025, by and between Sacramento-Valley Limited Partnership d/b/a Verizon Wireless (“Verizon”), a California corporation , and the City of Sacramento, a municipal corporation (“City”) with reference to the facts set forth in the Background below . The City and Verizon Wireless may be referred to collectively as “Parties” or in the singular as “Party.”
BACKGROUND
A. Verizon and City entered into a Lease dated March 22, 1995, for use of a certain portion Johnston Park (the “Premises” or “Site”), located at 218 Eleanor Avenue (formerly known as 100 Eleanor Avenue), Sacramento, CA 95815 (the “Property”) for the installation, operation and maintenance of telecommunications equipment, and further identified as City Agreement No. 95-061 (the “Original Lease”).
B. Verizon and City have amended the Original Lease on two occasions and each amendment, along with the purpose of each amendment, is defined in the table attached hereto as Exhibit A.
C. The Original Lease together with the two amendments and this Third Amendment to Lease Agreement are hereinafter collectively referred to as the “Lease”.
D. The Lease had an initial term of ten (10) years that commenced on April 1, 1995 and expired on March 31, 2005. The Lease provides for two (2) renewal terms of five (5) years each. According to the Lease, the second five (5) year renewal term expired on March 31, 2015, and Lessee has since continued to make monthly rent payments, operate and maintain its facilities, and adhere to the terms of the Lease.
E. The City and Verizon now desire to enter into this Third Amendment to extend the term of the Lease.
F. The Parties acknowledge that the City intends to implement the use of a Master License Agreement process (“MLA”) in place of current leases, licenses, or revocable permits that provide authority for use of City facilities or propert y for placement of telecommunication equipment and the need to terminate the Lease upon implementation of the MLA process.
G. The Parties acknowledge the need for an access road through Johns ton Park in order for Version to continue to access the Site. As set forth below, Version agrees to apply for any necessary permits to construct an access road.
THIRD AMENDMENT TO LEASE AGREEMENT
JOHNSTON PARK – 218 ELEANOR AVENUE
NOW THEREFORE, in consideration of the facts contained in the background above, the parties agree as follows:
1) The defined term of “Airtouch” in the prefatory paragraph of the Original Lease is deleted and replaced with “Verizon Wireless.”
2) Lease Term. The Lease shall be extended for one (1) additional three (3) year term commencing on January 1, 2025 and expiring on December 31, 2027.
Notwithstanding any other provision in the Lease, upon written consent of each Party, the Lease may be extended for two (2) additional terms of three (3) years each. Written notice of the consent to the extension must be provided to all entities at the addresses listed in Section 12 thirty (30) days prior to ex piration. The first potential extension commences on January 1, 2028 and expir es on December 31, 2030. The second potential extension commenc es on January 1, 2031 an d expires on December 31, 2033.
a. Master License Agreement. Notwithstanding any other provision in this Third Amendment to Lease Agreement or any other provision in the Lease, upon City determination to utilize the MLA process , the City may terminate this Lease upon giving Verizon six months advance notice in writing, which notice shall state the exact date of termination.
b. Access Road. Notwithstanding any other provision in this Third Amendment to Lease Agreement or any other provision in the Leas e, Verizon shall apply for any necessary permits and construct a 12-foot wide, asphalt access road from the public right-of-way or Eleanor Avenue to the Site to the satisfaction of the City by . If the access road is not constructed by to the satisfaction of the City, the City may terminate this Lease upon giving Verizon six months advance notice in writing, which notice shall state the exact date of termination.
3) Annual Rent.
a. First Year Rent. Effective January 1, 2025, the rent payable from Verizon Wireless to City under the Lease is increased to Two Thousand Five Hundred Dollars ($2,500) per month (the “Rent”). The to tal annual rent (the “Annual Rent”) shall be Thirty Thousand Dollars ($30,000 ). The Annual Rent must be paid in full by January 1 of each calendar year.
b. Annual Adjustment. Beginning on January 1, 2026, and for each subsequent year of the extended lease term or for each year of either potential extension the Annual Rent shall increase by an amount of three percent (3%) of the previous year’s Annual Rent. The escalations in this paragraph shall be the only escalations to the Rent and any escalations specified elsewhere in the Lease are null and void and of no further force and effect.
4) The following addresses replace those listed in Paragraph 12 of the Lease:
THIRD AMENDMENT TO LEASE AGREEMENT
JOHNSTON PARK – 218 ELEANOR AVENUE
City:
City of Sacramento
Department of Public Works
300 Richards Blvd, 3rd Floor
Sacramento, CA 95811
Attn: Telecom Program Manager
Email: [email protected]
Verizon Wireless:
Sacramento-Valley Limited Partnership
d/b/a Verizon Wireless
180 Washington Valley Road
Bedminster, New Jersey 07921
Attention: Network Real Estate
with copy to:
American Tower,
Attn: Property Management
10 Presidential Way
Woburn, MA 01801
5) Verizon Wireless appoints American Tower as its agent for purposes of this Lease and authorizes American Tower to manage, operate, and maintain the Site, and to execute future amendments to this Lease on Verizon Wireless’ behalf. However, Verizon Wireless shall not be released or discharged from any of its obligations under the Lease, and pursuant to Section 9(c) of the Original Lease, Verizon Wireless shall remain responsible for any action , inaction, or activity of its agents, including but not limited to American Tower, relating to the performance of the terms of this Lease.
Additionally, Verizon Wireless shall continue to maintain insurance as specified in Section 9(a) of the Original Lease.
6) Continued Effect. Except as specifically modified by this Amendment; all of the terms and conditions of the Lease shall remain in full force and effect. In the event of a conflict between any term and provision of the Lease and this Amendment, the terms and provisions of this Amendment shall control. In addition, except as otherwise stated in this Amendment, all initially capitalized terms will have the same respective defined meaning stated in the Lease. All captions are for reference purposes only and shall not be used in the construction or interpretation of this Amendment.
[Signature Page Follows]
THIRD AMENDMENT TO LEASE AGREEMENT
JOHNSTON PARK – 218 ELEANOR AVENUE
IN WITNESS WHEREOF, Permittee and the City have executed this Fourth Amendment as of the day and year first above stated.
Sacramento-Valley Limited Partnership City of Sacramento d/b/a Verizon Wireless a municipal corporation
By: By:
Print Name:
Title: Print Name: Matthew Eierman
Title: Director, Dept. of Public Works
For Howard Chan, City Manager
APPROVED AS TO FORM:
By:
Deputy City Attorney
ATTEST:
By:
Assistant City Clerk
THIRD AMENDMENT TO LEASE AGREEMENT
JOHNSTON PARK – 218 ELEANOR AVENUE
EXHIBIT A
Amendment
No.
Date
Modified
Council
Agreement
No.
Purpose
First 3/29/2012 95-061-1
Replace six (6) existing Verizon Wireless antennas
with six (6) new Verizon Wireless Antennas mounted
on existing tower; Install twelve (12) new coax runs.
Second 2/20/2014 95-061-2
Remove twelve (12) existing panel antennas; Install
six (6) new panel antennas; Install two (2) new surge
protectors; Install three (3) new remote radio units;
Install one (1) new hybrid cable; Install one (1) new
cable; Install twelve (12) new lines of coax runs.