AgdaPkt 2019-01-14 Joint SA PFA - Laserfiche WebLink

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6.H. - Page 2 of 56 2016, New Cingular has continued to lease the wireless communication site on a month-to-month basis while New Cingular and the City finalized an updated agreement to incorporate certain legal and administrative changes that have taken place since the original execution of this lease. ANALYSIS New Cingular currently leases space on the City -owned Emerald Lake Hills Water Tank located at 555 California Way. Substantive changes to the new agreement relate to the term length and fee; there are no physical changes requested at this time. Any future physical changes would have to go through the City's permitting approval process. The proposed Wireless Communications Site License Agreement would extend the lease up to 15 years. The initial term is five years with two automatic renewals of five years each, for a total of 15 years. New Cingular and the City will have the option to terminate the lease every five years with proper notice. New Cingular would begin its lease at $42,000 annually with a 3% cost escalator every year. 1) Term of Agreement — The proposed agreement would amend the license agreement with the initial term of five years commencing on February 1, 2019 (the first day of the month following the latter of the signature dates on the agreement) and ending on January 31, 2024. The license will automatically renew for two additional five-year terms unless New Cingular notifies the City in writing of its intention not to renew. 2) License Fee — The proposed agreement would increase the license fee from $30,000 to $42,000 annually as of the effective date. The license fee will increase annually during the term of the agreement by 3%. In addition, New Cingular will pay a one-time commitment fee of $4,000 to offset staffing costs related to the preparation and negotiation of this License, and will provide a security deposit in the amount of $10,500. FISCAL IMPACT Commencing on February 1, 2019, the annual license fee shall increase to $42,000 annually, with 3% increases every year commencing February 1, 2019 through the duration of the lease. Projected revenue over the initial five-year term of the lease is approximately $222,984. ENVIRONMENTAL REVIEW This Wireless Communication Site License Agreement is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. If the License Agreement is considered a project, it is exempt under CEQA Guidelines Section 15301 (Existing Facilities) in that it involves the licensing of an existing public or private structure, facility, mechanical equipment, or topographical feature, involving negligible or no expansion of use beyond that already in existence. PUBLIC NOTICE Public Notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting. City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 155