Exhibit CC 01-19-2016 Item No. 14 Staff Report Revision for Proposed Lease with Verizon Wireless for Cell TowerCUPERTINO
Subject
Proposed Lease with Verizon
Recommended Action
OFFICE OF THE CITY MANAGER
CITY HALL
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10300 TORRE AVENUE• CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3212 www.cupertino.org
CITY COUNCIL STAFF REPORT I
Meeting: January 19, 2016
Approve Lease with Verizon for Civic Center Cellular
Description
At its meeting of October 6, 2015, the City Council its meeting of October 6, 2015, a Planning
Commission approval for a treepole at the Civic Center was upheld. At the same meeting, a
proposed lease with Verizon was continued by the City Council with additional direction to staff
and the applicant to:
1) The applicant to run field tests at a pole height of 55 feet and up to 66 feet in order to
determine the actual minimum height requirement for the ante1ma array.
2) Staff to contact AT&T Wireless to see if it continues to be interested in the joint project
and obtain its input on two potential solutions: a) what antenna height was needed if it
collocated above the Verizon antenna array on the same treepole, and b) what was the minimum
antenna height needed if it built its own treepole in the same area.
3) Staff to bring back the following design options for Council review: a) Construct the
Verizon treepole at the minimum height requirement with the flexibility to extend the height for
another wireless provider; or b) construct another treepole for the second provider at the
minimum height required (Attachment A).
Verizon is proceeding as the lead on the pennitting and construction of the Civic Center cell
tower. The cell tower and the lease are designed for and will accommodate colocation of a
second telecommunications finn, whether it is AT&T or another carrier in the future. AT&T
continues to indicate its interest in locating on the tower.
Discussion
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The Commencement Date of this Lease shall be the first of the month during which the
latter of the two dates listed occurs, which are: (i) the date of final approval of any
Building Pennit, if required, provided that Lessee is diligently pursuing this Building
Permit after obtaining the necessary Use Pennit; or (ii) the date of the vacation of the
wire clearance easement encumbering the City Property by the CityThe lease 'Nill
commence on the date of approval of the bl1ilding permit or 90 days after the Council
approves the Use Permit. Verizon is required to diligently pursue the building permit.
This will protect the City as Verizon vlill need to start paying under the lease 'vvithin 90
days of Council approval e>1en if there is a delay in Verizon's installation plans.
The ground lease portion is 743 square feet. The proposed lease is for a pole 55' in height.
Additional tenants on the proposed treepole will require a separate lease with the City that will
come before the City Council for approval. Verizon has agreed to one initial 5 year tenn with
two subsequent terms of 5 years each for a total of 15 years. The City has the right of relocation
at its own expense in the event that City Hall redesign dramatically changes (see Section 2.4).
Base rent is set at $$3244.803120.00 per month. This sum is consistent with other leases in
Silicon Valley or just above current market level. The annual increase is set at 4% per year; it is
calculated at a compound rate. This is a favorable term for the City.
As long as the antennas serve a public purpose and do not interfere with Verizon the City may
install additional antennas.
Verizon agreed to "preapprove" one co-locator. Subsequent co-locators would need Verizon
approval. The lease contains an indemnification provision that protects the City. Verizon has to
pay any additional taxes that the City may incur as a result of this installation.
Sustainability Impact
No sustainability impact
Fiscal Impact
The agreement will generate at least $$3244.803120.00 per month for the next five years
Prepared by: Rick Kitson, Public Affairs Director
Reviewed by: Timm Borden, Director Public Works
Approved for Submission by: David Brandt, City Manager
Attachments:
A. Draft proposed lease with Verizon
B. Letter from AT&T Re: Proposed Colocation Cell Site Near City Hall, November 17, 2015