DATE: November 6, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: PROPERTY USE AGREEMENT WITH VERIZON WIRELESS FOR WIRELESS TELECOMMUNICATION PURPOSES
RECOMMENDATION
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Staff recommends that the City Council approve a Property Use Agreement with Cellco Partnership, doing business as Verizon Wireless to use a portion of City-owned real property at Lake Park for telecommunications purposes, for a total revenue of $913,076 for a 15-year period; and authorize the City Manager to execute the agreement upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
Cellco Partnership, doing business as Verizon Wireless (“Verizon”), is one of the major providers of wireless cellular telecommunication services in the United States. Due to the increased demand for wireless cellular telecommunication services, Verizon is looking to increase its wireless cellular telecommunication capabilities to its customers nationally, statewide and regionally.
Verizon approached the City of Oceanside (“City”) about using a portion of the real property situated at Lake Park, located at 4940 Lake Boulevard in the City of Oceanside (“Property”) to construct and operate a wireless cellular telecommunication facility to provide better service in the region, including Verizon’s customers within the City.
The initial term of the Property Use Agreement (“Agreement”) with Verizon is for a period of 15 years with the option for two additional terms of five years each. The portion of Lake Park to be utilized is located in an area that will be minimally impacted by the telecommunication facility. The cellular equipment will be placed on a park light pole that currently exists. The supporting equipment will be housed in an area that is not currently used for recreational purposes on the perimeter of the Property. The telecommunication equipment facility that Verizon proposes to construct upon the Property will not interfere with the use of the recreational and related amenities within Lake Park. Architecture of the telecommunication equipment facility will be consistent with the existing park restroom architecture.
The facility to be constructed upon the Property will provide better wireless cellular telecommunication services to Verizon customers living in the City. In addition, the Agreement would also bring annual revenue to the City’s General Fund.
Notwithstanding approval of the Agreement, the design and construction of Verizon’s telecommunication facility at the Property will require approval of a Conditional Use Permit through the City’s Development Services Department.
FISCAL IMPACT
The Agreement requires an initial annual rent payment of $45,600, payable in equal monthly installments of $3,800 subject to a fixed annual increase of four percent during the initial 15-year term. The annual increase of four percent will also apply to the two five-year extension periods. For the initial 15-year term the revenue to the City is $913,076. The rent payments under the Agreement will be deposited into General Fund Account No. 1101.4351.
|
Description |
Monthly Rent Year 1 |
Annual Rent Year 1 |
Account No. |
|
Property Use Agreement: Verizon Wireless |
$3,800 |
$45,600 |
1101.4351 |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Candice Diaz, Property Agent I
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Agreement