HomeMy WebLinkAboutE-3.1. Consent of Assignment of Communications Site Lease with T-Mobile West LLCE-3
AZUSA LIGHT & WATE:.
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES C::fll YL-
DATE: FEBRUARY 24, 2020
SUBJECT: CONSENT OF ASSIGNMENT OF COMMUNICATIONS SITE LEASE WITH T
MOBILE WEST LLC
BACKGROUND:
In May 2015, the Utility Board approved a lease agreement for approximately 300 square feet of the
Dalton Reservoir site with T-Mobile West LLC ("T-Mobile") for the purpose of constructing and
operating a cell phone tower at that location ("Lease"). T-Mobile has requested that the City
consent to the assignment of the Lease to a T-Mobile subsidiary named VTB Subl LLC, which will
then be sold to a subsidiary of Vertical Bridge Towers III LLC ("Vertical Bridge"). Staff
recommends the approval of this assignment as requested.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Approve the Consent of Assignment Agreement for the assignment of the
Communications Site Lease Agreement with T-Mobile West LLC, a subsidiary ofT
Mobile USA to a subsidiary of Vertical Bridge Towers III LLC; and
2)Authorize the Director of Utilities, in a form acceptable to the City Attorney, to
execute the Consent of Assignment Agreement with T-Mobile USA.
ANALYSIS:
T-Mobile is transitioning to a business model in which the communication towers needed for their
wireless communication operations will be owned and managed by a separate entity that specializes
in the management of communication facilities across different platforms. As such, T-Mobile has
requested the City's consent to assign the subject lease agreement to Vertical Bridge. Staff has
reviewed the organizational structure and financial stability of Vertical Bridge and recommends this
assignment.
UB-45
Approved
Utility Board
02/24/20
Under the assignment, all terms and conditions of the lease will remain the same. The City currently
receives $2,926 per month under the Lease, which will escalate by 3% per year through the end of
the term of the lease. The first five-year term of the lease will end in May 2020; however, the Lease
includes an option for three five-year extensions, and Staff expects Vertical Bridge to exercise at
least one extension.
FISCAL IMPACT:
There is no fiscal impact associated with recommended actions of this consent item.
Prepared by: Reviewed and Approved:
Jared Macias Manny Robledo
Assistant Director of Utilities Director of Utilities
Water Operations
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachment:
1) Consent of Assignment Agreement
2)Communication Site Lease Agreement
UB-46