Public Works Agency
www.santa-ana.org/pw
Item # 13
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 21, 2025
TOPIC: Amendment to Cell Tower Lease at Jerome Park
AGENDA TITLE
First Amendment to Lease Agreement with T-Mobile West LLC, as successor in interest to Royal Street Communications, LLC, for Communication Tower Facilities at Jerome Park (Non-General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute the first amendment to the lease agreement with T-Mobile West LLC as successor in interest to Royal Street Communications, LLC for communication tower facilities at Jerome Park located at 2115 W. McFadden Avenue with an estimated beginning date of December 10, 2025 through February 19, 2027 for total revenue, including all extensions, in the amount of $26,833 (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 the Public Works Agency, Parks, Fleet, Facilities, and Refuse Services Division (PWA) who facilitates a standing meeting with a Cell Tower Steering Committee that includes PWA, Parks, Recreation, and Community Services, City Attorney’s Office, and a consultant that has expertise in the field of wireless communication technology. Revenue generated from these leases fund park maintenance and improvements. PWA is responsible for managing agreements, site analysis, and identifying and addressing deferred maintenance needs.
On January 3, 2006, City Council approved a consultant agreement with Telecom Partners Group, doing business as ATS Communications, to provide services in the field of wireless communication technology and negotiate leases for wireless cell towers on behalf of the City. ATS Communications successfully assisted the City in marketing and facilitating the development of cell towers on City owned parks property. Under the terms of the agreement, ATS Communications retains 20% of the revenues collected from each new cell tower lease, over the life of the lease, including any renewals or
Amendment to Cell Tower Lease at Jerome Park
October 7, 2025
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8 9
extensions. This is stated in Section 2 Compensation of said agreement: “If any Existing Lease is amended or modified after the Effective Date, where such modification results in the co- location of additional equipment or the inclusion of additional wireless providers at any existing site, Consultant shall receive twenty percent (20%) of the incremental lease revenue over the life of the lease attributable to such modification.” On February 20, 2007, City Council approved a cell tower lease agreement with Royal Street Communications, LLC for a communications tower at Jerome Park. The lease was later assigned by Royal Street Communications to T-Mobile West, LLC. In January 2023, T-Mobile West, LLC notified the City of its intent to upgrade the equipment installed on the Jerome Park tower. The lease agreement allows upgrades provided that the equipment, cables, or antennas remain within the original physical parameters of the premises. Staff determined that the proposed upgrades (Exhibit 1) would exceed those parameters, and as a result, the City denied T-Mobile West, LLC’s request.
The proposed upgraded equipment footprint is about 10.7% larger than the existing. To allow for the upgrades, the City negotiated with T-Mobile West, LLC to increase the lease amount by a proportionate amount from $44,880 to $49,690 annually, an increase of $4,800 per year. The increase will become effective on the first day of the month following the date upon which a building permit for the improvements is issued by the City and will be subject to an annual rent escalation of 4%. The City will receive 80% of all revenues received from this amended cell tower lease agreement and ATS Communications will receive the remaining 20% as established under the terms and conditions of the City’s agreement with ATS Communications, for the life of the lease through February 2032.
Staff recommends approval of the amendment to the lease agreement with T-Mobile West, LLC (Exhibit 2). The amendment authorizes the proposed equipment upgrades and establishes the corresponding payment increase. Revenues from the lease will continue to be allocated exclusively to the maintenance and capital improvements of City Parks.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with the action.
FISCAL IMPACT
The revenues received from this amendment will be deposited into the following account for the specified years.
Amendment to Cell Tower Lease at Jerome Park
October 7, 2025
5 3
8 9
Fiscal
Year
Accounting
Unit-
Account #
Fund
Description
Accounting Unit,
Account Description
Amount
Amendment
FY 25-26
(Dec-Jun)
05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower Lease
Agreement
$2,240
FY 26-27
(Jul-Feb)
05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower Lease
Agreement
$2,535
Optional One, 5-Year Extension
FY 26-27
(Feb-Jun)
05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower Lease
Agreement
$1,438
FY 27-28 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower Lease
Agreement
$4,132
FY 28-29 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower Lease
Agreement
$4,297
FY 29-30 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower Lease
Agreement
$4,469
FY 30-31 05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower Lease
Agreement
$4,648
FY 31-32
(Jul-Feb)
05113002-
57363
Capital Outlay
Fund
Miscellaneous Revenue,
Cell Tower Lease
Agreement
$3,074
TOTAL $26,833
Funds will be appropriated exclusively for the maintenance and capital improvements at City Parks during the City’s yearly budget process.
EXHIBIT(S)
1. Equipment Upgrade Plans
2. First Amendment to Lease Agreement
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager