REPORT TO THE CITY COUNCIL Date: July 24, 2014 FROM: JENNIFER CLARK, Director Development and Resource Management Department BY: DEL ESTABROOKE, Manager Parking Services Division SUBJECT ..Title Approve Structure Lease Agreement with Cingular Wireless at City of Fresno Parking Garage #7 located at 801 Van Ness Avenue (Council District 3) ..Body RECOMMENDATION Approve a Structure Lease Agreement between Cingular Wireless and the City of Fresno to provide 475 square feet of rooftop structure space for placement of Tenant Communications Facility at parking garage #7 located at 801 Van Ness Avenue. EXECUTIVE SUMMARY Cingular Wireless desires to install a Tenant owned and maintained communications structure on the garage rooftop parking area of City of Fresno Parking Garage #7, located at 801 Van Ness. The structure is in the shape of a small one story building that will occupy approximately four hundred and seventy five (475) square feet of the rooftop located on the northwest corner of the garage. The roof of the garage is actually built as additional roof top parking spaces. The tenant will use this property in connection with its federally licensed communications business. After the building and its associated equipment is installed the tenant will use the premises for the transmission and reception of communication signals. BACKGROUND Currently and for the past several years T Mobile had a similar type facility located on the roof of Parking Garage #7. The new structure operated by Cingular Wireless will be constructed adjacent to the existing T Mobile unit. Other than allowing Cingular technicians' access to the parking garage, the tenant is responsible for its complete operation including maintenance, repair, inspection, insurance, etc. The City Attorney has approved as to form the Structure Lease Agreement. ENVIRONMENTAL FINDINGS This project is exempt under Section 15332 (Class 32/Infill Development) and Section 15303 (Class 3/New Construction or Conversion of Small Structures) of the California Environmental Quality Act (CEQA) Guidelines. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project. EXPLANATION: Section 15332/Class 32 exempts from the provisions of CEQA, construction of projects characterized as in-fill development meeting the following conditions: a) the project is consistent with the applicable general plan designation and all applicable general plan policies as well as with the applicable zoning designation and regulation, b) the proposed development occurs within city limits within a lease area of approximately 716 square feet, which is less than the five acre maximum, and is substantially surrounded by urban use, c) the project site has no value as habitat for endangered, rare or threatened species, or d) approval of the project would not result in any significant effects relating to traffic, noise, air quality, and e) the site can be adequately served by all required utilities and public services. LOCAL PREFERENCE N/A FISCAL IMPACT Revenue generated from this agreement will be deposited into the Parking Services General Fund account. The Lease terms are set up for an initial term of five (5) years. The agreement will automatically renew for four (4) additional five (5) year terms which are defined as "Extension Terms" with the continued agreement of both parties. There are termination clauses in the agreement. For the first five years of the agreement the tenant shall pay the City $1,000 per month. At the commencement of each extension term, the monthly rent will increase by seven and one half percent (7.5%) over the rent paid during the previous five (5) year term. The lease terms of this agreement are similar to the terms of the other communications provider currently under agreement at the same location. Attachment: Garage #7 Cell Tower Option and Structure Lease Agreement