FOR THE COUNCIL MEETING OF JUNE 18, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Director of Utilities Shad S. Springer
SUBJECT: Adoption of a Resolution Approving an Agreement with Santa Barbara Cellular Systems, LTD for a Communication Site License Agreement for Collocation at Oakley Park, 1300 North Western Avenue
Description:
The City Council will consider approving a Communications Site License Agreement with Santa Barbara Cellular Systems, LTD for the collocation of an existing communications site on a portion of the property at Oakley Park.
Environmental Notice: The project qualifies for a Class 3 Categorical Exemption pursuant to Section 15303 (New construction or conversion of small structures ) of the California Environmental Quality Act (CEQA) State Guidelines.
RECOMMENDATION:
Adopt a Resolution authorizing a Communications Site License Agreement with Santa Barbara Cellular Systems, LTD for the collocation of an existing communications site on a portion of the property at Oakley Park, 1300 North Western Avenue.
BACKGROUND:
As authorized under Resolution 2013-41, the City and G TE Mobilnet of Santa Barbara Limited Partnership d/b/a Verizon Wireless entered into a Communications Site License Agreement dated August 26, 2013 , granting Verizon Wireless use and occupancy of a portion of the City’s property at Oa kley Park, and Verizon Wireless subsequently constructed and installed a communications facility and towe r. Unless further extended, that agreement will terminate in 2033.
In 2023, Santa Barbara Cellular Systems, LTD requested to co llocate and install its own communications facilities on the existing Verizon Wireless site. Collocation is a provision permitted within the City’s license agreement with Verizon Wireless, whereby Verizon Wireless has the right to sublicense all or any portion of their antenna support structure, provided that their sublicensee (in this case, Santa Barbara Cellular Systems, LTD) enters into a separate license agreement directly with the City. To effectuate the collocation, Santa Barbara Cellular Systems, LTD will l icense ground s pace from the City to 2 accommodate their communications facilities, equipment, and appurtenances at the Verizon Wireless site.
DISCUSSION:
Since 2021, City staff and representatives of Santa Barbara Cellular Systems, LTD have been negotiating the terms of a separate C ommunications Site License Agreement (Attachment “A”) at Oakley Park for the collocation . A summary of the proposed collocation agreement follows:
Initial License Fee $18,000 per annum
Initial Term Five years
Renewal Terms Four successive five-year terms
Annual Escalator Three percent
Development Cost Santa Barbara Cellular Systems, LTD is required to pay all permit related fees associated with any site development and/or construction.
Operational Cost Santa Barbara Cellular Systems, LTD is required to pay for all operational costs, including utilities, maintenance, repairs, improvements, equipment, operations , and uses incidental thereto.
Due Diligence Clause Santa Barbara Cellular Systems, LTD is required to pay 20 percent of an initial annual license fee. After one year, Santa Barbara Cellular Systems, LTD will be required to pay an additional 20 percent of the initial annual license fee if the building permit has not yet been obtained.
Collocation Clause Santa Barbara Cellular Systems, LTD may not sublicense to any other party.
Santa Barbara Cellular Systems, LTD will be required to coordinate construction and ongoing maintenance of the site with the Recreation and Parks Department, who serves City representative for the property.
Alternative(s)
1. The City Council can elect not to enter into the agreement; or
2. The City Council can direct City staff to reopen negotiations with Santa Barbara Cellular Systems, LTD ; h owever, the terms of the agreement are in line with industry standards and even go further to ensure revenues in exchange for reserved use of the property until such time as construction can commence (i.e., the Due Diligence clause).
3 Fiscal Considerations
Annual rent revenue and the signing bonus will be attributed to the General Fund, with a priority placed on expenditures for improvements to Oakley Park and park services.
There will also be a one-time payment of $ 5,000 to the Utilities Department (Enterprise Funds) for negotiation and preparation of the agreement.
Impact to the Community
The original agreement with Verizon Wireless, and this collocation agreement with Santa Barbara Cellular Systems, LTD , both prohibit the operation of the site in a manner that causes interference with the use or enjoyment of the City’s property.
Other Agency Review
This project was approved by the Recreation and Parks Department and the Building Division will review construction plans after submittal to ensure they meet all applicable building codes prior to issuing the building permit.
ATTACHMENTS
Attachment “A” Communication Site License Agreement at Oakley Park