Public Works Agency
www.santa-ana.org/pw
Item # 12
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
March 18, 2025
TOPIC: Ground License Agreement for Wireless Telecommunications Facilities
AGENDA TITLE
Ground License Agreement for Wireless Telecommunications Facilities at Three Existing Cell Tower Sites at El Salvador Park, Jerome Park, and the Santa Ana Stadium
RECOMMENDED ACTION
1. Authorize the City Manager to execute the Ground License Agreement with CCTM1 LLC for wireless telecommunication facilities on City property at El Salvador Park located at 1825 ¾ Civic Center Drive West beginning April 1, 2025 through March 31, 2035, with provision for three, five-year extension options, for total revenue, including all extensions, in the amount of $2,163,572 (Agreement No. A-2025-XXX).
2. Authorize the City Manager to execute the Ground License Agreement with CCTM1 LLC for wireless telecommunication facilities on City property at Jerome Park located at 2115 W. McFadden Avenue beginning April 1, 2025 through March 31, 2035, with provision for three, five-year extension options, for total revenue, including all extensions, in the amount of $2,045,426 (Agreement No. A-2025-XXX).
3. Authorize the City Manager to execute the Ground License Agreement with NCWPCS MPL 30 – Year Sites Tower Holdings LLC, by and through CCATT LLC, for wireless telecommunication facilities on City property at the Santa Ana Stadium located at 951 West 6th Street beginning April 1, 2025 through March 31, 2035, with provision for three, five-year extension options, for total revenue, including all extensions, in the amount of $1,202,913 (Agreement No. A-2025-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The City currently has 17 existing wireless telecommunications facility lease agreements for cell towers on City park properties. These agreements were made between 2001 and 2012 and vary in terms, conditions, and format. The cell tower program is managed by Public Works Agency (PWA) Park, Fleet, Facilities, and Refuse Division. PWA is responsible for managing agreements, site analysis, and identifying and addressing deferred maintenance needs. When PWA initially took over the program, the existing agreements were inconsistent and thus, staff began discussions
Ground License Agreement for Wireless Telecommunications Facilities March 18, 2025
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with the City Attorney’s Office to create a new standardized license agreement to better the process of managing agreements and tracking revenue generated. This newly formatted agreement will be used for new cell tower applications and modifications or renewals to existing agreements. A steering committee led by PWA worked on the development and creation of the standard agreement template. The steering committee included staff from the City Attorney’s Office; Parks, Recreation, and Community Services Agency; and Pyramid International, a City consultant.
Pyramid International conducted a rate study to make sure lease fees match fair market value. The study included researching agreements from private and public properties in neighboring cities and reviewing industry data. The municipalities surveyed included Costa Mesa, Orange, Newport Beach, and Fullerton. The survey showed average rent amounts of $3,692/month. Additionally, all four cities had escalation rates of 3%. The City’s new standard agreement, for new sites, will increase the minimum initial rent to $4,000/month with a 4% annual escalation, which is significantly greater than most of the current Santa Ana agreements and the four surveyed municipalities.
Crown Castle USA, a major wireless infrastructure company, manages five existing cell tower leases in four City parks - El Salvador Park, Jerome Park, Madison Park, and Riverview Park - as well as at the Santa Ana Stadium; of which, three of the locations, El Salvador Park, Jerome Park, and the Santa Ana Stadium are being updated (Exhibit 1). Each lease includes a tower disguised as a tree and includes ground space for carrier equipment. These agreements generate approximately $220,000 annually, which helps fund park maintenance and capital improvements.
Recently, Crown Castle approached the City about modifying agreements at Jerome Park and El Salvador Park to allow a new carrier, DISH, to install equipment on the existing towers. This process is called colocation. To accommodate the colocations, DISH needs an additional area. The additional area at El Salvador Park can and will be accommodated within the current Crown Castle equipment room. The additional area required at Jerome Park is 66 square feet and will be provided in an exterior location adjacent to the existing Crown Castle equipment room. The location was vetted on site by Staff and brought into a discussion with the Cell Tower steering committee. The City plans to implement the new standard license agreement for these sites, as well as update the existing lease at the Santa Ana Stadium to a license agreement. The remaining two agreements, Madison Park and Riverview Park, are being updated and will be presented to Council at a later date.
El Salvador Park has two cell tower installations. The first is owned by SBA and features a large “monopine” tree with an equipment room located near the poolside fencing. The second tower, owned by Crown Castle, consists of a large camouflaged “monopine” tree, with an equipment room attached to the existing restroom building.
DISH's additional equipment will be housed in Crown Castle’s existing equipment room, does not require additional ground area, and will not impact existing restroom Ground License Agreement for Wireless Telecommunications Facilities March 18, 2025
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renovations. As this is an existing tower agreement, adding capacity and migrating to the new standard agreement, negotiations for additional revenues resulted in a 4% escalation, a one-time additional payment, and increased monthly rental rate from $3,457 to $4,322.
Jerome Park has four cell tower installations. Two “monopalm” trees located adjacent to the concession building, one “monopine” tree located due north of the concession building, and one “monopine” cell tower located east at the park restroom building. The subject cell tower owned by Crown Castle is one of the “monopalms” by the concession, closest to the ballfield. The equipment room for this tower is within an equipment room located behind the bleachers of the southernmost baseball diamond. DISH's additional equipment will be housed in a new, 66 square foot exterior cage connected to the existing Crown Castle equipment room. As this is an existing tower agreement, adding capacity and migrating to the new standard agreement, negotiations for additional revenues resulted in a 4% escalation, a one -time additional payment, and increased monthly rental rate from $3,966 to $4,086.
Santa Ana Stadium has two cell tower installations. The first, owned by Verizon, features a large camouflaged “monopine” tree with an equipment room located near the southeast corner of the stadium. The second tower, owned by Crown Castle, also consists of a large camouflaged “monopine” tree, with its equipment room situated along the southwest corner of the stadium, adjacent to 6th Street. The rent for this tower was negotiated in 2001, and was subject to annual 3% escalation rates. At this time, no capacity is being added to this location. As this is an existing tower agreement simply migrating to the new standard agreement, negotiations for additional revenues were limited to 4% escalation, a one-time additional payment, increased monthly rental rate from $2,368 to $2,400 and identifying potential future colocation fees.
New Standard License Agreements
Key features of the new standard license agreement include:
•Maximum term of 25 years,
•The City retains rights to relocate towers if needed for redevelopment , •Wireless carriers must notify the City before modifying equipment, •4% annual rent increase,
•The City must approve any future colocation requests,
•Additional rent charged when extra land is needed for colocation, •Updated insurance requirements, and
•A one-time additional payment of $3,500.
Site/Park Monthly Fee for First Year License Fee for First Year El Salvador Park $4,322 $51,867
Jerome Park $4,086 $49,030
Santa Ana Stadium $2,400 $28,800
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Switching from existing lease agreements to the new standard license agreement provides several advantages:
•More control over City Property allowing carriers to use City land without exclusive possession.
•Standardizes the agreements by ensuring all agreements follow the same terms and timelines.
•Streamlined process allowing staff to handle modifications, insurance, and liability changes more efficiently.
•Increased revenue potential as the City will receive additional rent for colocation.
This approach will improve the City’s ability to manage wireless facilities while ensuring fair compensation for the use of public land. Additionally, revenue generated by these ground license agreements will be utilized exclusively for the maintenance and capital improvements at City Parks. Therefore, staff recommends approving the two license agreements with CCTM1 LLC (Crown Castle subsidiary) for El Salvador Park and Jerome Park, and one license agreement with CCATT LLC (Crown Castle subsidiary) for the Santa Ana Stadium (Exhibits 2-4).
ENVIRONMENTAL IMPACT
There is no environmental impact associated with the action.
FISCAL IMPACT
The funds from these new agreements will be deposited into the following account for the specified years:
Fiscal
Year
Accounting
Unit-
Account #
Fund
Description
Accounting Unit,
Account Description
Amount
FY 24-25
(Apr-Jun)
05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower License
Agreement
$42,925
FY 25-26 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower License
Agreement
$130,995
FY 26-27 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower License
Agreement
$136,236
FY 27-28 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower License
Agreement
$141,685
FY 28-29 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower License
Agreement
$147,353
Ground License Agreement for Wireless Telecommunications Facilities March 18, 2025
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Fiscal
Year
Accounting
Unit-
Account #
Fund
Description
Accounting Unit,
Account Description
Amount
FY 29-30 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower License
Agreement
$153,247
FY 30-31 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower License
Agreement
$159,376
FY 31-32 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower License
Agreement
$165,751
FY 32-33 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower License
Agreement
$172,381
FY 33-34 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower License
Agreement
$179,276
FY 34-35
(Jul
-Mar)
05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower License
Agreement
$138,452
Optional Three, 5-Year Extensions
FY 34-35
(Apr-Jun)
to
FY 49-50
05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower License
Agreement
$3,844,234
TOTAL $5,411,911
Funds will be appropriated exclusively for the maintenance and capital improvements at City Parks during the City’s yearly budget process.
EXHIBIT(S)
1. Site Plans and Photos – El Salvador, Jerome, Santa Ana Stadium
2. License Agreement – El Salvador Park
3. License Agreement – Jerome Park
4. License Agreement – Santa Ana Stadium
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager