COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Shad Springer, Director of Utilities
DATE: October 21, 2025
SUBJECT: Adoption of a Resolution Authorizing a Communication Site License Agreement with T-Mobile West LLC and Easement Deed to Pacific Gas and Electric Company at Minami Park
Description:
The City Council will consider approving a Communication Site License Agreement with T-Mobile West LLC and an Easement Deed dedication to Pacific Gas and Electric Company at Minami Park.
Environmental Notice: Environmental Review: 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:
1. Adopt a Resolution authorizing a Communications Site License Agreement with T- Mobile West LLC and authorizing execution of an Easement Deed to Pacific Gas and Electric Company to provide electric service to the facility; and
2. Authorize City Manager, or designee, to execute agreement.
BACKGROUND:
T-Mobile West LLC (T-Mobile) has requested to construct and operate a wireless communications facility on City-owned property located at Minami Park, 600 West Enos Drive, in order to improve wirel ess coverage within the Santa Maria city limits. The proposed facility will occupy a chain-link fenced area of approximately 355 square feet, along with necessary equipment and battery cabinets to construct a 62-foot-tall field lighting pole and landscaping. Building Permit # B22-1047 was issued by the Community Development Department’s Building Division on April 15, 2024.
As part of the project, Pacific Gas and Electric Company ( PG&E) requires a standard utility easement deed from the City to provide elec tric service to the communications facility. The City will execute the grant of e asement in favor of PG&E for this purpose, consistent with past practice for similar projects.
2 DISCUSSION:
Since 2019, City staff and T -Mobile representatives have been neg otiating a Communications Site License Agreement (Agreement) for the facility at Minami Park.
Below is a summary of the proposed key terms (Agreement attached as Attachment “B”).
Initial License Fee $40,000 per annum
Initial Term 5 years
Renewal Terms 4 successive 5-year terms
Escalator 3% increase each year
Development Costs T-Mobile is responsible for all site development and construction permits.
Operational Costs T-Mobile is responsible for utilities, maintenance, repairs, and operations of its facilities.
Due Diligence Clause T-Mobile will pay 20% of the initial annual license fee at execution. If the building permit is not obtained within one year, T-Mobile will pay an additional 20%.
Collocation Clause If additional carriers are allowed to collocate on the site, T- Mobile will pay a minimum of $15,000 annually per
sublicense, subject to City approval.
The Agreement has been negotiated to ensure a fair and competitive arrangement that aligns with industry standards, while providing the City with both immediate and long-term benefits. Granting the e asement with PG&E is necessary to serve the facility and is routine for projects requiring new utility connections.
Staff recommends that the City Council approve both the Communications Site License Agreement with T-Mobile and the related easement deed with PG&E. These actions will provide improved wireless coverage, generate reliable revenue for the City, and safeguard the use of City property.
Alternative(s)
1. The City Council can choose not to enter into the Agreement with T -Mobile or execute the PG&E Easement.
2. The City Council can direct City staff to reopen negotiations with T -Mobile.
However, the terms of the Agreement and Easement are consistent with industry standards and include additional protections for the City, such as the Due Diligence Clause, ensuring the City receives revenue even before construction begins.
3 Fiscal Considerations
Annual Revenue: The City will receive $40,000 annually from the license fee, with revenue directed to the General Fund and priority given to funding improvements at Minami Park.
One-Time Payments : A signing bonus of $25,000 and a one -time payment of $5,000 will be directed to the Utilities Department for reimbursement of expenses incurred during the negotiation and preparation of the Agreement. Easement Considerations: Execution of the PG&E easement deed does not create additional costs for the City and ensures electrical service is provided to the facility.
Impact on the Community
The Agreement with T -Mobile and related PG&E easement ensures that T -Mobile’s operation, and necessary utility connections, will not interfere with the public’s use or enjoyment of Minami Park. T-Mobile will be responsible for coordinating construction and ongoing maintenance of the facility with the Recreation and Parks Department, and PG&E will provide electric service, ensuring that park operations and City property use continue without disruption.
ATTACHMENT(S)
A. Resolution
B. Communications Site License Agreement with T-Mobile West LLC C. Grant of Easement Deed to PG&E