TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for a Communications Site License Agreement with Southern California Edison and T-Mobile West, LLC, for the operation of a Wireless Telecommunications Facility at El Dorado East Regional Park, 7290 Carson Boulevard, pursuant to Section 21.56.140(B) of the Long Beach Municipal Code. (District 5)
DISCUSSION
In July 2018, Southern California Edison (SCE) on behalf of T-Mobile West, LLC (T-Mobile), approached the City of Long Beach (City) and the Parks, Recreation and Marine Department with a proposal to install and operate a new Wireless Telecommunications Facility (WTCF) within the easement area, and on the existing electrical facility, belonging to SCE at 7290 Carson Boulevard (Premises) (Attachment A). The Premises is adjacent to Glider Field and near the Long Beach Police Academy training facility, located on the northeast corner of El Dorado East Regional Park, Area 3. Some of the benefits of installing a WTCF on existing SCE infrastructure are that all equipment will be within the footprint of the existing electrical tower, will prevent the loss of park space, and the visual environment will be undisturbed.
City staff negotiated a Communications Site License Agreement (Agreement) that would provide the Parks, Recreation and Marine Department consistent revenue throughout the term. Upon full execution of the Agreement, tenants will pay the City an initial annual rental payment of $18,000. Beginning in year two of the Agreement, and every year thereafter, the rent will increase by 4 percent
In summary, the proposed Agreement includes the following major terms and provisions:
• Landlord: City of Long Beach, a municipal corporation.
• Tenants: Southern California Edison, and T-Mobile West, LLC, a Delaware limited liability corporation.
• Premises: Existing transmission tower on the SCE utility easement within El Dorado Park at 7290 Carson Boulevard.
• Initial Term: The term of the Agreement is for a five-year period.
• Options to Renew: Tenant will have three, five-year options to renew.
• Rent: Upon full execution of the Agreement, tenants will pay the City an initial annual rental payment of $18,000. Beginning in year two of the Agreement, and every year thereafter, the rent will increase by 4 percent.
• Operation, Maintenance and Utilities Costs: Tenants will continue to assume all costs associated with the operation, maintenance, and use of utilities on the Premises.
• Insurance: Insurance provisions within the Agreement will be updated to reflect current requirements of the City’s Risk Management Office.
Consistent with Chapter 21.56, Section 21.56.130 of the Long Beach Municipal Code that sets forth the process for approving a WTCF within Park Zoning Districts, the Parks and Recreation Commission reviewed this item at the December 20, 2018 meeting and approved the recommendation.
The new WTCF subject to this agreement was granted a Conditional Use Permit (CUP) by the Planning Commission on May 17, 2018 and CE-18-002 was accepted as the CEQA environmental clearance document for the project.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on January 30, 2019 and by Budget Management Officer Rhutu Amin Gharib on January 31, 2019.
TIMING CONSIDERATIONS
City Council action is requested on February 19, 2019, to finalize and execute the Agreement in a timely manner.
FISCAL IMPACT
Annual revenue of $18,000 will accrue in the General Fund (GF) in the Parks, Recreation and Marine Department (PR) as will any future annual rent payments. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
GERARDO MOUET
DIRECTOR OF PARKS, RECREATION AND MARINE
APPROVED:
PATRICK H. WEST
CITY MANAGER