Agenda Item: 8
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: July 11, 2023
SUBJECT: FIFTH AMENDMENT TO REVOCABLE LICENSE AGREEMENT
WITH CCATT LLC
DEPARTMENT: Neighborhood Services
PRESENTER: Susan Nelson
RECOMMENDED ACTION
City Council:
1. Approve the Fifth Amendment with CCATT LLC.
2. Increase anticipated revenues for Fiscal Year 2023-24 by $6,000 in revenue account 100- 401204 Franchise Agreement-Other.
3. Authorize the City Manager, or designee, to execute all documents subject to City Attorney approval.
BACKGROUND
The City of Santa Clarita (City) took ownership of 136.4 acres of open space property, known as Round Mountain (Open Space), in 2012. The Open Space property came with an existing communications facility and associated equipment, which was installed in 1995 under a Revocable License Agreement between The Newhall Land and Farming Company and the Los Angeles Cellular Telephone Company. The Round Mountain Open Space, and associated communications tower, is located in a non-residential area adjacent to the Valencia Industrial Center.
The Revocable License Agreement had undergone four amendments before City ownership of the Open Space. Each amendment was requested by CCATT LLC (CCATT), an AT&T parent company that purchased the Los Angeles Cellular Telephone Company, and executed as follows:
• The First Amendment was a Letter Agreement dated November 26, 1996, resulting in the monthly payment to be $1,750 with a 10 percent annual increase.
• The Second Amendment was in July 1997, for the installation of an additional antenna resulting in the monthly payment being increased to $2,000 a month by CCATT and a 5 percent annual increase.
• The Third Amendment was in August 1997, and allowed the installation of additional equipment.
• The Fourth Amendment in March 2005 increased the payment to $2,544 a month with an annual 5 percent increase and extended the agreement to February 1, 2034.
A new amendment has been requested by CCATT LLC. Under the terms of the proposed Fifth Amendment of the Revocable License Agreement. Based on comparable agreements, the City will receive an additional $500 monthly in revenue for installing and using new Dish Network antenna and equipment. The current monthly lease amount is $3,564 and will increase to $4,064.
The annual 5 percent increase towards monthly payment will occur until the agreement expires on February 1, 2034. Per municipal code chapter 17.69, wireless communications facilities and satellite dish antennas can add additional equipment to existing equipment, reducing the need to build more and new towers. The project is a co-location of the Dish Network equipment onto an existing wireless communications facility. The project is subject to any required planning entitlements and building permits.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
Increase annual revenues by $6,000 including an annual increase by 5 percent, to account 100- 401204 Franchise Agreement-Other.
ATTACHMENTS
CCATT LLC at Round Mountain Open Space (Site Map)
Fifth Amendment (available in the City Clerk's Reading File)