That the City Council approve and authorize the City Manager to execute a lease agreement with New Cingular Wireless PCS, dba AT&T, for the placement of a wireless communications facility within Montwood Park located at 231 East Montwood Avenue.

New Cingular Wireless PCS, dba AT&T (AT&T), seeks to build, operate, and maintain a wireless communication facility within Montwood Park at 231 East Montwood Avenue, just east of South Euclid Street. AT&T proposes to lease approximately 240 square feet of space in the park from the City of La Habra to operate its facility. The proposed wireless communication facility will be located at the northeast corner of the property (see Attachment 1, Exhibit B). 

The facility will consist of a 75-foot-high monopole camouflaged as a pine tree and a masonry structure housing electronic equipment located near the base of the monopole.  The wireless monopole and all metal supports will be covered with faux bark. The monopole will be provided with enough branches to screen the pole-mounted equipment and blend in with the nearby trees. The masonry structure measures 20 feet by 12 feet and will contain equipment cabinets and a back-up generator. The building will be sandstone-colored with a wrought iron security covering and designed to match structures found throughout La Habra city parks. Simulated before and after images are shown on the next page and in Attachment 1. 
 

The proposed location has been reviewed by City staff to ensure that the wireless communication site will not interfere with access to the park facilities. Prior to construction, AT&T will be required to obtain all necessary building permits and comply with all applicable conditions of approval for the proposed facility. Pursuant to the proposed lease agreement, AT&T will be responsible for maintaining the facility in good order, condition, cleanliness, and repair. There are no other wireless facilities currently located within Montwood Park.

Given that the placement of the proposed wireless facility will be on City property, staff has negotiated a lease agreement with AT&T for lease of the property. Subject to City Council approval, staff has negotiated a monthly rent for the proposed new lease to start at $2,800 per month, which will automatically increase each year by three percent. The initial term of the proposed agreement is for five years and includes five additional five-year term extensions, unless either party to the lease elects to terminate the agreement in accordance with the termination provisions.  If the agreement is extended to its full 30-year term, it will generate approximately $1.6 million in General Fund revenue. Staff collected survey data of cell site lease rates in other cities in Orange County and found that the proposed $2,800 per month lease rate negotiated with AT&T is within the range of current market rates.
 

In addition to the General Fund revenue, the telecommunication facility also provides enhanced cell phone service within its coverage area. The City Attorney’s office has reviewed this agreement.

Photo Simulation of Proposed Wireless Facility

Approval of the lease agreement will result in annual General Fund revenue of $33,600 in the first year, which will then increase annually by three percent. If approved by City Council, the proposed agreement has the potential to generate approximately $1.6 million in General Fund revenue over the full 30-year agreement period.  

General Plan Relevance:
T1.1 Adequate Facilities and Availability of Services
T1.4 Regulation of Service Providers
T1.6 Regulation of Wireless Communications Facilities
T1.7 Design and Sitting.

City Council Goals & Objectives:
Goal 2, Objective A: Closely monitor revenues, expenditures, and fiscal trends to ensure the City’s long-term fiscal stability.