CC 2019-01-22_08g Verizon Land Lease Amendment 1221 Ash
MEMORANDUM
TO: CITY COUNCIL
FROM: HEATHER K. WHITHAM, CITY ATTORNEY
SUBJECT: CONSIDERATION OF APPROVAL OF FIRST AMENDMENT TO LAND
LEASE AGREEMENT WITH VERIZON WIRELESS - 1221 ASH STREET
DATE: JANUARY 22, 2019
SUMMARY OF ACTION:
Approval of the lease amendment will allow Verizon Wireless to upgrade existing
telecommunication equipment at the Soto Sports Complex and provide additional
revenue to the City.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Verizon Wireless currently pays rent to the City for the existing cell site facility in the
amount of $2,809.47 per month. This amount will be increased by $100 per month upon
execution of the First Amendment to Land Lease Agreement. There is also a built in 3%
rent escalation each year. In addition, Verizon Wireless will pay a one-time administrative
fee of $500 for the review and processing of the amendment.
RECOMMENDATION:
It is recommended that the City Council approve and authorize the Mayor to execute a
First Amendment to the Land Lease Agreement with Verizon Wireless for use of an
additional approximately 130 square feet of property located at 1221 Ash Street for an
upgrade to their existing telecommunication facility equipment.
BACKGROUND:
The City currently leases land to Verizon Wireless within the Soto Sports Complex
adjacent to Porter Field for a telecommunication facility. Verizon Wireless proposes to
make modifications to its equipment facility, which requires approximately 130 square feet
of additional ground space. Verizon Wireless’ application for an amended conditional use
permit to modify its telecommunication facility equipment was approved by the Planning
Commission on October 2, 2018.
In a separate motion, the Planning Commission made a recommendation that the City
Council give specific consideration of allocating the additional revenue derived from the
amended lease to the Soto Sports Complex budget in an effort to mitigate the increase in
fees charged for youth sports. Should the Council wish to consider the Planning
Commission’s recommendation regarding the budget, it would be appropriate to discuss
and provide direction to staff during the mid-year budget review.
Item 8.g. - Page 1
CITY COUNCIL
CONSIDERATION OF APPROVAL OF FIRST AMENDMENT TO LAND LEASE
AGREEMENT WITH VERIZON WIRELESS - 1221 ASH STREET
JANUARY 22, 2019
PAGE 2
ANALYSIS OF ISSUES:
The additional approximately 130 feet is easily accommodated at the existing site. The
additional space will be utilized primarily to house a new generator, which will ensure
coverage continues in the event of a power failure. This is particularly important to
accommodate public safety and emergency needs. In addition, the additional space will
allow Verizon Wireless to further develop its overall plan for increased network
consistency and reliable service to the community.
In order to compensate the City for the additional land being used by Verizon Wireless,
the City and Verizon Wireless negotiated an increase in rent of $100 per month. Verizon
Wireless is currently paying $2,809.47 per month, which is the highest rent of all of the
City’s current cell site leases. In addition, Verizon Wireless will pay a one-time fee of $500
for the administrative review and processing of the amendment.
Prior to the construction of any improvements on the proposed site, Verizon Wireless will
be required to obtain all necessary building permits and comply with all applicable
conditions for its proposed facility.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Approve the First Amendment to Land Lease Agreement;
2. Do not approve the First Amendment; or
3. Provide alternative direction.
ADVANTAGES:
Approval of the lease amendment will result in increased General Fund revenue of $1,200
per year, which amount shall increase annually by 3%. In addition, the City will receive a
$500 one-time fee for administrative and processing costs. The additional
telecommunication equipment should also provide enhanced cell phone service.
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
No environmental review is required for the approval of this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 8.g. - Page 2
Halcyon 69871672A.1620040.10 12/20/2018.V10 1
FIRST AMENDMENT TO LAND LEASE AGREEMENT
This FIRST AMENDMENT TO LAND LEASE AGREEMENT (“Amendment”) is made
as of the last date of execution indicated on the signature page below, by and between The City
of Arroyo Grande, a municipal corporation (“Lessor”), and AirTouch Cellular Inc. d/b/a Verizon
Wireless (“Lessee”), with reference to the facts set forth in the Recitals below:
RECITALS
A.Lessor and Lessee, or their predecessors in interest, are parties to a Land Lease
Agreement dated August 27, 2002 (“Lease”), whereby Lessor has leased a portion of Lessor’s
Property (as defined in the Lease) to Lessee to construct, operate and maintain a communications
facility.
B.Lessor and Lessee desire to expand the size of the Premises to allow Lessee to
install, operate, and maintain a new generator on the Premises and to increase the monthly Rent
paid by Lessee to Lessor.
AGREEMENT
NOW, THEREFORE, in consideration of the facts contained in the Recitals above, the
mutual covenants and conditions below, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:
1.EXPANSION OF PREMISES. Lessor hereby leases to Lessee an additional
portion of the Property consisting of ground space measuring 12.67' x 10.17' for installation,
operation and maintenance of a new generator (the "Additional Ground Space"), together with
the non-exclusive right for ingress and egress seven days a week, 24 hours a day to and from the
Additional Ground Space. The Additional Ground Space and the non-exclusive right for ingress
and egress thereto shall be included in the definition of the "Premises."
2.EXHIBIT "B". Exhibit "B" attached to the Lease is hereby supplemented with
Exhibit "B" attached hereto and made a part hereof. All references in the Lease to Exhibit "B"
shall hereinafter refer to Exhibit "B" as modified and supplemented by Exhibit "B" attached
hereto.
3.EXHIBIT "D". Exhibit "D" attached to the Lease is hereby supplemented with
Exhibit "D" attached hereto and made a part hereof. All references in the Lease to Exhibit "D"
shall hereinafter refer to Exhibit "D" as modified and supplemented by Exhibit "D" attached
hereto.
4.RENT INCREASE. Commencing upon the first day of the month following the
date this Amendment is executed by the parties or the first day of the month following the date
Lessee is granted a building permit by the governmental agency charged with issuing such
permits, whichever event occurs last (the “Rent Increase Date”), the Rent due under the Lease
shall increase by the amount of One Hundred and 00/100 Dollars ($100.00) per month ("Rent
Item 8.g. - Page 3
12/20/2018.V10 2
Increase"). Lessor and Lessee acknowledge and agree that the initial Rent Increase payment(s)
shall not actually be sent by Lessee until sixty (60) days after the Rent Increase Date. The Rent
Increase is subject to the annual escalator in the Lease.
5.ADMINISTRATIVE FEE. Lessee shall pay to Lessor a one-time only
administrative fee in the amount of Five Hundred and 00/100 Dollars ($500.00) within sixty (60)
days after the Rent Increase Date.
6.CONTINUED EFFECT. Except as specifically modified by this Amendment, all
of the terms and conditions of the Lease shall remain in full force and effect. In the event of a
conflict between any term and provision of the Lease and this Amendment, the terms and
provisions of this Amendment shall control. In addition, except as otherwise stated in this
Amendment, all initially capitalized terms will have the same respective defined meaning stated
in the Lease. All captions are for reference purposes only and shall not be used in the
construction or interpretation of this Amendment.
IN WITNESS WHEREOF, Lessor and Lessee have caused this FIRST AMENDMENT
TO LAND LEASE AGREEMENT to be executed by each party’s duly authorized representative
effective as of the date last below written.
LESSOR:
The City of Arroyo Grande,
a municipal corporation
By:
Name: Caren Ray Russom
Title: Mayor
Date:
ATTEST:
By:
Name: Kelly Wetmore
Title: City Clerk
APPROVED AS TO FORM:
By:
Name: Heather K. Whitham
Title: City Attorney
Halcyon 69871672A.1620040.10
LESSEE:
AirTouch Cellular Inc. d/b/a Verizon Wireless
By:
Name:
Title:
Date:
Item 8.g. - Page 4
Halcyon 69871672A.1620040.10 12/20/2018.V10 3
EXHIBIT "B"
Item 8.g. - Page 5
Item 8.g. - Page 6LEASE AREA DESCRIPTION
ALL THAT CERTAIN LEASE AREA BEING A PORTION OF THAT CERTAIN "PORTION LOT 106" AS IS SHOWN ON THAT
CERTAIN RECORD OF SURVEY FILED FOR RECORD IN BOOK 35 OF SURVEYS AT PAGE 81 OFFICIAL RECORDS OF
SAN LUIS OBISPO COUNTY, AND BEING LOCATED IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO,
STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT A STANDARD MONUMENT IN BOX, SET FOR THE WESTERLY TERMINUS OF THAT CERTAIN
CENTERLINE TANGENT COURSE OF BAKEMAN NORTH LABELED "N89"45'00"E 133.16"' AS IS SHOWN ON THAT
CERTAIN TRACT MAP FILED FOR RECORD AT BOOK 2B OF TRACT MAPS AT PAGE 45, OFFICIAL RECORDS, FROM
WHICH A SIMILAR MONUMENT BEARS NORTH 89"45'00" EAST 133.16 FEET; THENCE FROM SAID POINT OF
COMMENCEMENT NORTH 32"07'21" WEST 586.65 FEET TO SOUTHEAST FENCE CORNER OF AN EXISTING VERIZON
WIRELESS COMMUNICATIONS COMPOUND AND THE TRUE POINT OF BEGINNING; THENCE FROM SAID POINT OF
BEGINNING ALONG THE EAST FENCE LINE OF SAID COMPOUND NORTH 03"40'24" WEST 10.17 FEET; THENCE NORTH
86"19'36" EAST 12.67 FEET; THENCE SOUTH 03"40'24" EAST 10.17 FEET; THENCE SOUTH 86"19'36" WEST 12.67
FEET TO THE POINT OF BEGINNING.
BOUNDARY SHOWN IS BASED ON
MONUMENTATION FOUND AND RECORD
INFORMATION. THIS IS NOT A BOUNDARY
SURVEY. THIS IS A SPECIALIZED
DATE OF SURVEY: 07-31-17
SURVEYED BY OR UNDER DIRECTION OF: KENNETH D. GEIL, R.C.E. 14803
CONTRACTOR IS RESPONSIBLE TO VERIFY LEASE AREA PRIOR TO
CONSTRUCTION.
LOCATED IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA
BEARINGS SHOWN ARE BASED UPON MONUMENTS FOUND AND RECORD
INFORMATION. THIS IS NOT A BOUNDARY SURVEY.
ELEVATIONS SHOWN ON THIS PLAN ARE BASED UPON U.S.G.S. N.A.V.D.
88 DATUM. ABOVE MEAN SEA LEVEL UNLESS OTHERWISE NOTED.
N.G.V.D. 1929 CORRECTION: SUBTRACT 2.83' FROM ELEVATIONS SHOWN.
CONTOUR INTERVAL: N/A
ASSESSOR'S PARCEL NUMBER: 077-121-004
OWNER(S): CITY OF ARROYO GRANDE
300 E. BRANCH STREET
ARROYO GRANDE, CA 93420
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THESE DRAWINGS AND/OR THE ACCOMPANYING
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EXCLUSIVE PROPERTY OF GEIL ENGINEERING AND THEIR
USE AND PUBLICATION SHALL BE RESTIRICTED TO THE
ORIGINAL SITE AND CARRIER FOR WHICH THEY ARE
PREPARED. REUSE, REPRODUCTION OR PUBLICATION BY
ANY METHOD, IN WHOLE OR IN PART, IS PROHIBITED
EXCEPT BY WRITTEN PERMISSION FROM GEIL ENGINEERING
TITLE TO THESE PLANS AND/OR SPECIFICATIONS SHALL
REMAIN WITH GEIL ENGINEERING WITHOUT PREJUDICE AND
VISUAL CONTACT WITH THEM SHALL CONSTITUTIE PRIMA
FACIE EVIDENCE OF ACCEPTANCE OF THESE RESTRICTIONS.
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GATHERED FROM VARIOUS SOURCES OF
RECORD AND AVAILABLE MONUMENTATION
FOUND DURING THE FIELD SURVEY. NO
EASEMENTS WERE RESEARCHED OR
PLOTTED. PROPERTY LINES AND LINES OF
TITLE WERE NOT INVESTIGATED NOR
SURVEYED. NO PROPERTY MONUMENTS
WERE SET.
THESE DRAWINGS AND/OR THE
ACCOMPANYING SPECIFICATION AS
INSTRUMENTS OF SERVICE, ARE THE
EXCLUSIVE PROPERTY OF GEIL
ENGINEERING AND THEIR USE AND
PUBLICATION SHALL BE RESTRICTED TO
THE ORIGINAL SITE AND CARRIER FOR
WHICH THEY ARE PREPARED. REUSE,
REPRODUCTION OR PUBLICATION BY ANY
METHOD, IN WHOLE OR IN PART, IS
PROHIBITED EXCEPT BY WRITTEN
PERMISSION FROM GEIL ENGINEERING TITLE
TO THESE PLANS AND/OR SPECIFICATIONS
SHALL REMAIN WITH GEIL ENGINEERING
WITHOUT PREJUDICE AND VISUAL
CONTACT WITH THEM SHALL CONSTITUTIE
PRIMA FACIE EVIDENCE OF ACCEPTANCE
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Halcyon 69871672A.1620040.10 12/20/2018.V10 4
EXHIBIT "D"
Item 8.g. - Page 8
Item 8.g. - Page 9LEASE AREA DESCRIPTION
ALL THAT CERTAIN LEASE AREA BEING A PORTION OF THAT CERTAIN "PORTION LOT 106" AS IS SHOWN ON THAT
CERTAIN RECORD OF SURVEY FILED FOR RECORD IN BOOK 35 OF SURVEYS AT PAGE 81 OFFICIAL RECORDS OF
SAN LUIS OBISPO COUNTY, AND BEING LOCATED IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO,
STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT A STANDARD MONUMENT IN BOX, SET FOR THE WESTERLY TERMINUS OF THAT CERTAIN
CENTERLINE TANGENT COURSE OF BAKEMAN NORTH LABELED "N89"45'00"E 133.16"' AS IS SHOWN ON THAT
CERTAIN TRACT MAP FILED FOR RECORD AT BOOK 2B OF TRACT MAPS AT PAGE 45, OFFICIAL RECORDS, FROM
WHICH A SIMILAR MONUMENT BEARS NORTH 89"45'00" EAST 133.16 FEET; THENCE FROM SAID POINT OF
COMMENCEMENT NORTH 32"07'21" WEST 586.65 FEET TO SOUTHEAST FENCE CORNER OF AN EXISTING VERIZON
WIRELESS COMMUNICATIONS COMPOUND AND THE TRUE POINT OF BEGINNING; THENCE FROM SAID POINT OF
BEGINNING ALONG THE EAST FENCE LINE OF SAID COMPOUND NORTH 03"40'24" WEST 10.17 FEET; THENCE NORTH
86"19'36" EAST 12.67 FEET; THENCE SOUTH 03"40'24" EAST 10.17 FEET; THENCE SOUTH 86"19'36" WEST 12.67
FEET TO THE POINT OF BEGINNING.
BOUNDARY SHOWN IS BASED ON
MONUMENTATION FOUND AND RECORD
INFORMATION. THIS IS NOT A BOUNDARY
SURVEY. THIS IS A SPECIALIZED
DATE OF SURVEY: 07-31-17
SURVEYED BY OR UNDER DIRECTION OF: KENNETH D. GEIL, R.C.E. 14803
CONTRACTOR IS RESPONSIBLE TO VERIFY LEASE AREA PRIOR TO
CONSTRUCTION.
LOCATED IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA
BEARINGS SHOWN ARE BASED UPON MONUMENTS FOUND AND RECORD
INFORMATION. THIS IS NOT A BOUNDARY SURVEY.
ELEVATIONS SHOWN ON THIS PLAN ARE BASED UPON U.S.G.S. N.A.V.D.
88 DATUM. ABOVE MEAN SEA LEVEL UNLESS OTHERWISE NOTED.
N.G.V.D. 1929 CORRECTION: SUBTRACT 2.83' FROM ELEVATIONS SHOWN.
CONTOUR INTERVAL: N/A
ASSESSOR'S PARCEL NUMBER: 077-121-004
OWNER(S): CITY OF ARROYO GRANDE
300 E. BRANCH STREET
ARROYO GRANDE, CA 93420
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GRAND I AVENUE
ASH STREET
-'110,.,,
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7
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" <(
0
PROJECT
AREA
PASO I ROBLES ST.
f-'
'-"
::,
~ w
vi
,.,,,.,,,_
707
M.N.
J
N.T.S.
TOPOGRAPHIC MAP WITH PROPERTY LINES
AND EASEMENTS BEING A GRAPHIC DEPICTION
BASED ON INFORMATION GATHERED FROM
VARIOUS SOURCES OF RECORD AND
AVAILABLE MONUMENTATION FOUND DURING
THE FIELD SURVEY. NO EASEMENTS WERE
RESEARCHED OR PLOTTED. PROPERTY LINES
AND LINES OF TITLE WERE NOT INVESTIGATED
NOR SURVEYED. NO PROPERTY MONUMENTS
WERE SET.
THESE DRAWINGS AND/OR THE ACCOMPANYING
SPECIFICATION AS INSTRUMENTS OF SERVICE, ARE THE
EXCLUSIVE PROPERTY OF GEIL ENGINEERING AND THEIR
USE AND PUBLICATION SHALL BE RESTIRICTED TO THE
ORIGINAL SITE AND CARRIER FOR WHICH THEY ARE
PREPARED. REUSE, REPRODUCTION OR PUBLICATION BY
ANY METHOD, IN WHOLE OR IN PART, IS PROHIBITED
EXCEPT BY WRITTEN PERMISSION FROM GEIL ENGINEERING
TITLE TO THESE PLANS AND/OR SPECIFICATIONS SHALL
REMAIN WITH GEIL ENGINEERING WITHOUT PREJUDICE AND
VISUAL CONTACT WITH THEM SHALL CONSTITUTIE PRIMA
FACIE EVIDENCE OF ACCEPTANCE OF THESE RESTRICTIONS.
ARROYO CiRANt7f, CA f VICINITY MAP
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BOUNDARY SHOWN IS BASED ON
MONUMENTATION FOUND AND RECORD
INFORMATION. THIS IS NOT A BOUNDARY
SURVEY. THIS IS A SPECIALIZED
TOPOGRAPHIC MAP WITH PROPERTY LINES
AND EASEMENTS BEING A GRAPHIC
DEPICTION BASED ON INFORMATION
GATHERED FROM VARIOUS SOURCES OF
RECORD AND AVAILABLE MONUMENTATION
FOUND DURING THE FIELD SURVEY. NO
EASEMENTS WERE RESEARCHED OR
PLOTTED. PROPERTY LINES AND LINES OF
TITLE WERE NOT INVESTIGATED NOR
SURVEYED. NO PROPERTY MONUMENTS
WERE SET.
THESE DRAWINGS AND/OR THE
ACCOMPANYING SPECIFICATION AS
INSTRUMENTS OF SERVICE, ARE THE
EXCLUSIVE PROPERTY OF GEIL
ENGINEERING AND THEIR USE AND
PUBLICATION SHALL BE RESTRICTED TO
THE ORIGINAL SITE AND CARRIER FOR
WHICH THEY ARE PREPARED. REUSE,
REPRODUCTION OR PUBLICATION BY ANY
METHOD, IN WHOLE OR IN PART, IS
PROHIBITED EXCEPT BY WRITTEN
PERMISSION FROM GEIL ENGINEERING TITLE
TO THESE PLANS AND/OR SPECIFICATIONS
SHALL REMAIN WITH GEIL ENGINEERING
WITHOUT PREJUDICE AND VISUAL
CONTACT WITH THEM SHALL CONSTITUTIE
PRIMA FACIE EVIDENCE OF ACCEPTANCE
OF THESE RESTRICTIONS.
BUILDING
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