City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01742 11/18/2025
Third Amendment to Lease Agreement 1995-95-061 for a Telecommunications Tower at Johnston Park
File ID: 2025-01742
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) and any other documents necessary to implement the amendment, to extend the 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 up 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]; Evangeline Lucas Lee, Senior Engineer, (916) 808-7615, [email protected]; Development Engineering; 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 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 the rights and obligations under the Agreement, but the proposed Third Amendment authorizes American Tower to be Verizon Wireless’ agent for purposes of
File ID: 2025-01742 11/18/2025
managing the Agreement and telecommunications tower.
The expiration date of the agreement was March 31, 2015. However, the Lessee has operated as a holdover tenant and has continued to make payments under the lease while the Lessee continues to operate the telecommunications tower. This third amendment provides for recommended upgrades that are needed to for increased cellular coverage and data capacity to the surrounding neighborhood. The third amendment also provides for annual lease rate increases to current market value.
The 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.
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): The recommendation in this report involves an existing public or private utility with negligible or no expansion and is exempt from CEQA review pursuant to Section 15301 of the CEQA Guidelines.
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: Executing the amendment to the Agreement will allow for continued 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.
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 potential lease amount exceeds $250,000.
File ID: 2025-01742 11/18/2025
Financial Considerations: The annual rent for the renewal terms authorized in the Third Amendment will be $30,000 in 2025 and will increase by 3% each year thereafter (rounded up 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 permittee’s telecommunications infrastructure is located on General Fund property, so 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 (“Agreement) 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 Agreement.
B. The expiration date of Agreement was March 31, 2015. However, the Lessee has operated as a holdover tenant and has continued to make payments under the lease while continuing to operate the telecommunications tower.
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 up 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 Council Finds and determines that the background states A through D are true.
Section 2. The City Manager or designee is authorized to execute the Third Amendment to Lease Agreement with Sacramento-Valley Limited Partnership dba Verizon Wireless (City Agreement No. 95-061) and any other documents necessary to implement the amendment, to extend the 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 up to the nearest $100), for the operation of a telecommunications tower and associated equipment at Johnston Park.
Section 3. Attachment 1 is part of this Resolution
Table of Contents:
Attachment 1 - 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 limited partnership, and the City of Sacramento, a municipal corporation (“City”) with reference to the facts set forth in the Background below. The City and Verizon 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 Original Lease had an initial term of ten (10) years that commenced on April 1, 1995 and expired on March 31, 2005. The Original Lease provides for two (2) renewal terms of five (5) years each. According to the Original 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 Original Lease and prior amendments.
E. The City and Verizon now desire to enter into this Third Amendment to extend the term of the Lease and the addition of an access road.
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 property 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 for Verizon to continue to access the Site. The Department of Youth, Parks and Community Enrichment (YPCE) staff will review and approve plans to verify location and profile of access road prior to permitting and construction of improvements.
THIRD AMENDMENT TO LEASE AGREEMENT
JOHNSTON PARK – 218 ELEANOR AVENUE
H. As set forth below, Ver izon agrees to coordinate with the Department of Youth, Parks and Community Enrichment on location and plans specifications, and apply for any necessary permits/Right-of-Entry agreement to construct an access road.
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 and expir es on December 31, 2033.
a. Master License Agreement. Notwithstanding any other provision in this Third Amendment 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 Lease, Verizon shall apply for any necessary permits and construct an access road from Eleanor Avenue to the Site, the location of which shall be approved by YPCE in advance. A separate Right-of-Entry agreement will be required to be executed prior to making any improvements to the park. If the access road is not constructed in the approved location or as otherwise specified herein within six months of the executed date, the City shall notify Verizon of the aspect(s) of the road that deviates from the submitted plan or specifications herein. If Verizon fails to correct any such defects within six months from the date of receipt of such notice, 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 to City under the Lease is increased to Two Thousand Five Hundred Dollars ($2,500) per month (the “Rent”). The total 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.
THIRD AMENDMENT TO LEASE AGREEMENT
JOHNSTON PARK – 218 ELEANOR AVENUE
b. Initial Rent Payment. Verizon agrees to pay the City the full amount for the time period from the date this agreement is fully executed to December 31, 2025 at an amount of $2,500 per month within 30 days after this agreement is fully executed.
Any partial month will be calculated at a prorated amount.
c. 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:
City:
City of Sacramento
Department of Public Works
300 Richards Blvd, 3
rd Floor
Sacramento, CA 95811
Attn: Long Thao, Telecom Program Manager
Email: [email protected]
Verizon:
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 appointed American Tower as its agent for purposes of this Lease and authorized 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 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 shall continue to maintain insurance as specified in Section 9(a) of the Original Lease.
THIRD AMENDMENT TO LEASE AGREEMENT
JOHNSTON PARK – 218 ELEANOR AVENUE
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 Third Amendment, the terms and provisions of this Third Amendment shall control. In addition, except as otherwise stated in this Third 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 Third Amendment.
7) Counterparts. This Third Amendment may be executed in multiple counterparts, each of which when so executed and delivered, shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument.
[Signature Page Follows]
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.