TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. Subject
title
Land Lease Agreement and Memorandum of Lease with New Cingular Wireless PCS, LLC at El Modena Park.
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2. Summary
Land Lease Agreement and Memorandum of Lease with New Cingular Wireless PCS, LLC to lease a certain portion of El Modena Park containing an area of approximately 200 square feet to install ancillary supporting equipment for their wireless facility. Minor Site Plan Review approval was granted October 2022. The proposed Land Lease Agreement with New Cingular provides for annual payments of $42,000.
3. Recommended Action
recommendation
Approve the Land Lease Agreement and Memorandum of Lease with New Cingular Wireless PCS, LLC; and authorize the Mayor and City Clerk to execute on behalf of the City.
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4. Fiscal Impact
The proposed Land Lease Agreement and Memorandum of Lease provides for an annual rent payment of $42,000 and includes a provision for 3% annual increases. New Cingular Wireless PCS, LLC will also provide a capital contribution in the amount of $10,000 to the City towards improvements to El Modena Park. Annual rent payment and the capital contribution will be allocated to the El Modena Park Facility Fund (512) through:
512.7021.44212.00000 Cell Phone Tower Rent Revenue
5. Strategic Plan Goals
Goal 2: Be a fiscally healthy community
b: Analyze future fiscal needs and potential revenue opportunities.
Goal 2: Be a fiscally healthy community
d: Effectively manage and develop City assets.
6. Discussion and Background
New Cingular Wireless PCS, LLC is proposing to lease approximately 200 square feet of El Modena Park to install ancillary supporting equipment for their wireless facility, located on the west side of the park, north of the parking lot, at the ground level abutting an existing equipment shelter and trash enclosure. The proposed exterior materials would match the existing shelter with a CMU block and wood trellis to screen the equipment from surrounding ground views.
A Minor Site Plan Review under Orange Municipal Code Section 17.10.060 was only needed for this project, and a final determination for the wireless facility was approved on October 2022.
The terms and conditions of the Land Lease Agreement and Memorandum of Lease include:
• Annual rental payments of $42,000;
• Rental rate is subject to an annual increase of 3% starting in year two of the agreement;
• New Cingular Wireless PCS, LLC will make a one-time $10,000 capital contribution to be used towards improvements at El Modena Park, and;
• The initial lease term is five years, with four five-year renewal options. The renewal options are automatic unless New Cingular Wireless PCS, LLC notifies the City of its intent not to renew 60 days prior to the expiration of the Land Lease Agreement.
7. ATTACHMENTS
• Land Lease Agreement with New Cingular Wireless PCS, LLC
• Memorandum of Lease