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BACKGROUND The City owns property on which various water tanks are sited. Because these sites are often in higher elevations, these sites are viewed by cellular companies as highly desirable for the placement of cellular antenna. Recently, Metro PCS contacted City staff to inquire whether the City would have an interest in leasing a portion of its Santos Ranch Road site (it has a Foothill Road address) for such purposes. The company's representatives have stated that an antenna in that location will better serve its customers in Pleasanton and the Tri-Valley area. City staff from the Public Works Utilities Division met with the company's representatives at the site to understand what was being proposed and City staff has determined the proposed location of the company's facilities (a pole, antenna and supporting infrastructure) at the site will not interfere in any respect with the City's operation of the tank site. Other City staff then met with the company to negotiate the terms of a proposed lease. Those terms are discussed below. DISCUSSION The rent at the site will be $1,750 per month, with a 15% increase every five years. This rent is generally consistent with rents paid by cellular companies to public entities in the Bay Area. There is an initial term of five years with four five-year options; the last two renewals, however, are at the City's sole discretion. The company will be leasing only a small area of the site, less than 100 square feet. The company will have the right to construct on the property improvements necessary to operate its communication system, will have the right to remove the improvements at the end of the lease, and will have access to the site in order to maintain its facilities. The company shall not, however, use the property in any way that interferes with the City's use of the property and the City may terminate the lease if the company's use of the property unreasonably interferes with the City's use, although that is not expected to occur. Zoning Aaprovals Although this property is in the unincorporated area of Alameda County and locating the cellular antenna is subject to the County's zoning ordinance and approval, Metro PCS has also been advised that the facilities must also comply with the City's telecommunications ordinance. The company has been advised that Pleasanton retains its full discretionary land use authority over the planning application for the facilities and the City's approval of this lease is a process separate from the land use decision. Submitted by: / i% "`~""`~~~" Michael Roush City Attorney Fiscal Review: (~ Y ,~ Daw P. Culver Director of Finance Approve y: Nelson Fialho City Manager Attachments: 1. Lease Agreement Page 2 of 2