TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for a Lease with New Cingular Wireless PCS, LLC, a Delaware limited liability company, dba AT&T Mobility, for the construction and operation of a wireless telecommunications facility on City-owned property within Wardlow Park. (District 5)
DISCUSSION
In May 2018, New Cingular Wireless, LLC, dba AT&T Mobility (AT&T), contacted the City of Long Beach (City) about the reactivation of a proposal to construct and operate a new Wireless Telecommunications Facility (WTCF) at Wardlow Park, at 3457 Stanbridge Avenue (Wardlow Park). This would be the second iteration of a proposal for a WTCF at Wardlow Park by AT&T, as it was first proposed in 2014 and was recommended by the Parks and Recreation Commission (Commission) on January 9, 2014. However, the initial proposal was subsequently terminated at AT&T’s request prior to receiving its regulatory approvals.
This proposal would provide for construction and operation of a WTCF adjacent to the southwest corner of the Wardlow Park Community Center (Attachment A). The WTCF would encompass approximately 385 square feet of City-owned passive park space (Premises) and would include a 70-foot tall monopole disguised as a eucalyptus tree (monoeucalyptus), pole-mounted dishes/antennae, and support equipment. Additionally, the Premises would be enclosed by fencing and include landscaped buffer to match the existing area (Attachment B).
As the proposed WTCF would be in a City park, it would be subject to the recommendation of the Commission and administered by the Parks, Recreation and Marine Department. As many of the terms and conditions have been updated from the initial proposal, this iteration of the proposed WTCF was taken to the Commission, and re-recommended for approval by City Council, on December 20, 2018. Concurrently, the City’s Site Plan Review Committee granted its conditional approval of the WTCF on June 3, 2019.
The Economic Development Department (ED) has negotiated a new Lease with AT&T, which would contain the following major terms and provisions:
• Lessor: City of Long Beach, a municipal corporation.
• Tenant: New Cingular Wireless PCS, LLC, a Delaware limited liability company, dba AT&T Mobility.
• Premises: Approximately 385 square feet of land within Wardlow Park, immediately adjacent to the southwest corner of the community center.
• Use: The Premises will be used for the construction and operation of a WTCF, including a 70-foot monoeucalyptus collocatable tower structure, trenching/connections to utilities, landscaping, as well as support equipment and structures.
• Initial Lease Term: The Lease will commence upon the date of issuance of a certificate of occupancy for the WTCF; or August 1, 2020, whichever comes first (Commencement Date); and terminate on the tenth anniversary of the Commencement Date.
• Options to Renew: The Tenant will have one option to extend the term of the Lease for one, five-year period.
• Annual Rent: Within 30 days of the Commencement Date, Tenant will pay the City an initial Annual Rent of $40,000. On the second anniversary of the Commencement Date and every year thereafter, Annual Rent will increase by 5 percent per year, providing for $42,000 in the second year, $44,100 in the third year, etc.
• Collocation Rent: In addition to Annual Rent, the City will receive monthly Collocation Rent from the Tenant in an amount equal to 40 percent of the rents received by the Tenant for the use of any portion of the Leased Premises by Subtenant(s), Licensee(s) and/or Collocator(s).
• Operation, Maintenance and Utilities Costs: Tenant will bear all costs associated with the establishment, operation, maintenance, and use of utilities on the Premises.
• Insurance: Tenant will provide the City with appropriate insurance, as set, reviewed and approved to sufficiency by the City's Risk Manager.
This matter was reviewed by Deputy City Attorney Richard F. Anthony and by Budget Management Officer Rhutu Amin Gharib on August 5, 2019.
TIMING CONSIDERATIONS
City Council action is requested on September 3, 2019, to execute any necessary documents to facilitate the execution of the proposed new Lease and commencement of construction.
FISCAL IMPACT
Beginning in FY 20, Annual Rent of $40,000 and monthly Collocation Rent of 40 percent of all the rents received by the Tenant will accrue to the General Fund Group in the Parks, Recreation and Marine Department. Annual Rent will increase by 5 percent per year starting on the second anniversary of the commencement date and every year thereafter. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There will be several temporary local construction jobs associated with the proposed action; however, the exact amount is unknown at this time.
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