HomeMy WebLinkAboutItem 13 - Amendment to Cell Tower Lease at Jerome Park Public Works Agency
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Item # 13
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 21, 2025
TOPIC: Amendment to Cell Tower Lease at Jerome Park
AGENDA TITLE
First Amendment to Lease Agreement with T-Mobile West LLC, as successor in interest
to Royal Street Communications, LLC, for Communication Tower Facilities at Jerome
Park (Non-General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute the first amendment to the lease agreement with
T-Mobile West LLC as successor in interest to Royal Street Communications, LLC for
communication tower facilities at Jerome Park located at 2115 W. McFadden Avenue
with an estimated beginning date of December 10, 2025 through February 19, 2027 for
total revenue, including all extensions, in the amount of $26,833 (Agreement No. A-
2025-XXX).
GOVERNMENT CODE 484308 APPLIES: Yes
DISCUSSION
The City currently has 17 existing wireless telecommunications facility lease
agreements for cell towers on City park properties. These agreements were made
between 2001 and 2012 and vary in terms, conditions, and format. The cell tower
program is managed by the Public Works Agency, Parks, Fleet, Facilities, and Refuse
Services Division (PWA) who facilitates a standing meeting with a Cell Tower Steering
Committee that includes PWA, Parks, Recreation, and Community Services, City
Attorney's Office, and a consultant that has expertise in the field of wireless
communication technology. Revenue generated from these leases fund park
maintenance and improvements. PWA is responsible for managing agreements, site
analysis, and identifying and addressing deferred maintenance needs.
On January 3, 2006, City Council approved a consultant agreement with Telecom
Partners Group, doing business as ATS Communications, to provide services in the
field of wireless communication technology and negotiate leases for wireless cell towers
on behalf of the City. ATS Communications successfully assisted the City in marketing
and facilitating the development of cell towers on City owned parks property. Under the
terms of the agreement, ATS Communications retains 20% of the revenues collected
from each new cell tower lease, over the life of the lease, including any renewals or
Amendment to Cell Tower Lease at Jerome Park
October 7, 2025
Page 2
extensions. This is stated in Section 2 Compensation of said agreement: "If any Existing
Lease is amended or modified after the Effective Date, where such modification results
in the co- location of additional equipment or the inclusion of additional wireless
providers at any existing site, Consultant shall receive twenty percent (20%) of the
incremental lease revenue over the life of the lease attributable to such modification."
On February 20, 2007, City Council approved a cell tower lease agreement with Royal
Street Communications, LLC for a communications tower at Jerome Park. The lease
was later assigned by Royal Street Communications to T-Mobile West, LLC. In January
2023, T-Mobile West, LLC notified the City of its intent to upgrade the equipment
installed on the Jerome Park tower. The lease agreement allows upgrades provided that
the equipment, cables, or antennas remain within the original physical parameters of the
premises. Staff determined that the proposed upgrades (Exhibit 1) would exceed those
parameters, and as a result, the City denied T-Mobile West, LLC's request.
The proposed upgraded equipment footprint is about 10.7% larger than the existing. To
allow for the upgrades, the City negotiated with T-Mobile West, LLC to increase the
lease amount by a proportionate amount from $44,880 to $49,690 annually, an increase
of$4,800 per year. The increase will become effective on the first day of the month
following the date upon which a building permit for the improvements is issued by the
City and will be subject to an annual rent escalation of 4%. The City will receive 80% of
all revenues received from this amended cell tower lease agreement and ATS
Communications will receive the remaining 20% as established under the terms and
conditions of the City's agreement with ATS Communications, for the life of the lease
through February 2032.
Staff recommends approval of the amendment to the lease agreement with T-Mobile
West, LLC (Exhibit 2). The amendment authorizes the proposed equipment upgrades and
establishes the corresponding payment increase. Revenues from the lease will continue
to be allocated exclusively to the maintenance and capital improvements of City Parks.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with the action.
FISCAL IMPACT
The revenues received from this amendment will be deposited into the following account
for the specified years.
Amendment to Cell Tower Lease at Jerome Park
October 7, 2025
Page 3
Fiscal Accounting Fund Accounting Unit, Amount
Year Unit- Description Account Description
Account #
Amendment
FY 25-26 05113002- Capital Outlay Miscellaneous Revenue, $2,240
(Dec-Jun) 57363 Fund Cell Tower Lease
Agreement
FY 26-27 05113002- Capital Outlay Miscellaneous Revenue, $2,535
(Jul-Feb) 57363 Fund Cell Tower Lease
Agreement
Optional One, 5-Year Extension
FY 26-27 05113002- Capital Outlay Miscellaneous Revenue, $1,438
(Feb-Jun) 57363 Fund Cell Tower Lease
Agreement
FY 27-28 05113002- Capital Outlay Miscellaneous Revenue, $4,132
57363 Fund Cell Tower Lease
Agreement
FY 28-29 05113002- Capital Outlay Miscellaneous Revenue, $4,297
57363 Fund Cell Tower Lease
Agreement
FY 29-30 05113002- Capital Outlay Miscellaneous Revenue, $4,469
57363 Fund Cell Tower Lease
Agreement
FY 30-31 05113002- Capital Outlay Miscellaneous Revenue, $4,648
57363 Fund Cell Tower Lease
Agreement
FY 31-32 05113002- Capital Outlay Miscellaneous Revenue, $3,074
(Jul-Feb) 57363 Fund Cell Tower Lease
Agreement
TOTAL 1 $26,833
Funds will be appropriated exclusively for the maintenance and capital improvements at
City Parks during the City's yearly budget process.
EXHIBIT(S)
1. Equipment Upgrade Plans
2. First Amendment to Lease Agreement
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director— Public Works Agency
Approved By: Alvaro Nunez, City Manager
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FIRST AMENDMENT TO LEASE AGREEMU'INT BETWEEN THE CITY OF SAINTA ANA
AND ROYAL STREET COMMUNICATIONS,LLC REGARDING COMMUNICATION
TOWER FACILITIES AT JEROME PARK .
THIS FIRST AMENDMENT to the above-referenced lease agreement is entered into on October 21,
2025, by and between T-Mobile West LLC, a Delaware limited liability company C'LESSEE"),
and the City of Santa Ana,a charter city and municipal corporation organized and existing under the
Constitution and laws of the State of California (`LESSOR").
RECITALS.
A. The City and Royal Street Communications, LLC ("Royal Street"), a Delaware limited
Iiability company, entered into Lease Agreement No. A-2007-042 ("Agreement") dated
February 20, 2007, for Royal Street's use of a portion of real property ("Premises'),
commonly known as Jerome Park and located at 2115 W. McFadden Ave., Santa Ana,CA
92704, APN: 109-050-30("Property"), as further described in Exhibit A-1 of this First
Amendment.
B. By a letter dated,August 10,2016,the City received notification from LESSEE that it was a
successor in interest to Royal Street for the site located at 2115 W. McFadden Ave., Santa
Ana, CA 92704, upon which LESSEE operates wireless antenna facilities.
C. The parties now wish to amend the Agreement to allow LESSEE to expand its use of the
Premises.
The Parties therefore agree:
1. Section 4A, RENT, is hereby amended to reflect:
Beginning on the first (1st) day of the month following the date upon which a building
permit for the improvements depicted in Exhibit B-1 of this First Amendment is issued by
the City of Santa Ana, LESSEE's annual rent shall be increased by four-thousand,eight
hundred and 00/100 dollars ($4,800.00)to be paid in equal monthly installments of four
hundred and 00/100 dollars($400.00)per month on the first day of the month, in advance,
to LESSOR or to such other person,firm or place as the LESSOR may,from time to time,
designate in writing at least thirty (30)days in advance of any rental payment date. The
increased rent, as specified in this Section, shall be subject to the annual rent increases
described in Section 5 of the Agreement.
2. Section 10, USE, is hereby amendeol to reflect:
In addition to the terms as referenced in the Agreement,the Agreement is hereby amended
to grantLESSEE the use of the Premises as depicted in Exhibit B-1 of this First Amendment.
3. Except as modified by this First Amendment, all terms and conditions of the Agreement shall
remain in full force and effect.
Page 1 of 2
SIGNATURE PACE FOR
FIRST AMENDMENT TO TEASE AGREEMENT BETWEEN THE. CITY OF SANTA
ANA AND ROVAI, STREET COMMUNICATIONS, I,I,C REGARDING
COMMUNICATION TOWER FACILITIES AT JEROME PARK
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the
Agreement on the date and year first written above.
Jennifer L. Hall Alvaro Nunez
City Clerk City Manager
APPROVED AS TO FORM T-MOBILE WEST
SONIA R. CARVALHO, City Attorney LLC
DocuSigned by:
(hwtR
By. lk
Br' n Salvatierra Name: Lowell Handy
Deputy City Attorney Title:
Director
RECOMMENDED FOR APPROVAL
Rodolfo Rosas o,tim„am,.,,,yo,o, aao
Rodolfo Rosas, P.E.
Acting Executive Director
Public Works Agency
Page 2 of 2
EXHIBIT A-1 EXHIBIT A
LEGAL DESCRIPTION
OF THE PROPERTY
APN: 109-050-30
All that certain real property located in the County of Orange, State of California, being more
particularly described as follows:
Lots 31 and 32 of Re-plat of Santa Ana Acres, in the City of Santa Ana,
County of Orange, State of California, as shown on a map thereof
recorded in Book 5, at Page 8 of Miscellaneous Maps, records of said
Orange County.
That certain portion of public street in the State of California, County of
Orange, City of Santa Ana, shown as Center Street 30 feet wide on a map
of Santa Ana Acres recorded in Book 5, Page 8 of Miscellaneous Maps of
said Orange County, said portion bounded Southerly by the North line of
McFadden Avenue, shown on said map as Fairview East Avenue, and
bounded Northerly by the Westerly extension of the Northerly line of said
Lot 32.
Except therefrom the Easterly 30 feet of Lot 31 conveyed to the Orange
County Flood Control District by deed recorded June 10, 1974 in Book
11167 Page 340 of Official Records.
Assessor's Parcel Number 109-050-30
LESSOR INITIALS:
LESSE>! INITIALS:
17
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