SR - AGR-5154.1 - FIRST AMENDMENT PROPERTY LEASE 6112 EAST CARVER LANE1. SUBJECT
First Amendment to Agreement between the City of Orange and SBC Tower Holdings, LLC to
lease a portion of real property for purposes of gaining access to operate certain wireless
communication facilities located on Serrano Water District's property.
2. SUMMARY
It is proposed that the City Council approve a First Amendment to License Agreement Coupled
with an Interest in Real Property (First Amendment) between the City of Orange and SBC Tower
Holdings, LLC (T- Mobile) to lease a portion of water facility property that allows T- Mobile
access to maintain a wireless facility at 6112 East Carver Lane. The proposed First Amendment
with T- Mobile provides for annual payments of $20,000 to the City.
3. RECOMMENDED ACTION
1. Approve First Amendment between City of Orange and SBC Tower Holdings, LLC for
access to a wireless facility at 6112 East Carver Lane; and
2. Authorize the Mayor and City Clerk to execute the First Amendment and Memorandum of
First Amendment on behalf of the City.
14. FISCAL IMPACT
The proposed First Amendment provides for an annual rent payment of $20,000 to the City's
General Fund and includes a provision for five percent annual increases.
ITEM 1 06/14/16
5. STRATEGIC PLAN GOAL(S)
Be a fiscally healthy community
b. Analyze future fiscal needs and potential revenue opportunities.
d. Effectively manage and develop City assets.
6. GENERAL PLAN IMPLEMENTATION
Infrastructure Goal 4.0: Ensure adequate provision of electricity, natural gas, telephone and
data services and cable television.
Policy 4.1: Continue to work with dry utility service providers to ensure that the community's
current and future needs are met.
7. DISCUSSION and BACKGROUND
T- Mobile (SBC Tower Holdings, LLC) is proposing the extension of an existing agreement to
lease a portion of a water reservoir site to allow access to a wireless facility at 6112 East Carver
Lane. The wireless facility is located on a property owned by the Serrano Water District and this
agreement allows T- Mobile to access the wireless facility via City -owned property. The original
agreement started on November 7, 1996 and had a ten year term. In February 2006, the City
entered into a new agreement that extended this term through February 2016.
The proposed First Amendment will extend the term of this access for an additional ten years.
Staff negotiated an increase of the annual rent from $15,161 to $20,000 per year to bring it in line
with current lease rates for wireless facilities. The annual rent will continue to increase by five
percent per year for the term of the lease.
8. ATTACHMENTS
• First Amendment to License Agreement Coupled with an Interest in Real Property
between City of Orange and SBC Holdings, LLC
NASTAFF REPORTS\2016 \061416a_TMobile First Amendment.doe
ITEM 2 06/14/16