08-16-2022 CC RPT 35 - Laserfiche WebLink

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First Amendments to Schedule of Licensed Property ' Page 2 operating telecommunications equipment, commonly referred to as cell towers. When the Master Agreement was initially executed, the City Manager was authorized to administratively manage individual Schedules of Licensed Property within the terms and conditions of the Master Agreement. Per the Master Agreement, the City was entitled to a 90% revenue share for any sublicences/colocations that occur on a licensed site. Sublicensing was discovered at three locations without the City's prior consent, CA7247C Castleview/Ross Reservoir, CA6758 Nichols Park, and RV03XCO20 Villegas Park. Castleview was sublicensed to Verizon, and Nichols Park and Villegas Park were sublicensed to Sprint. Settlement was ultimately reached by the parties to provide the City's consent to the sublicenses to Verizon and Sprint, revise the sublicensing revenue sharing percentage to align with current market practices, and provide compensation for past revenue not paid to the City. In order to effectuate the settlement, the parties need to execute the First Amendments to the Schedules of Licensed Property for each location. DISCUSSION: Staff negotiated with SBA Communications Corporation and agreed-upon 55% of any consideration the Licensee receives from the initial sublicensee and 60% for any additional sublicenses. The City will also receive a one-time fee of $65,000, through a Settlement Agreement with SBA Communications Corporation. Subject to City Council approval, the City Manager, or designee, will continue negotiating terms, conditions, and minor and non -substantive changes to current Communication Site Licenses. Anything outside the previously approved terms will be subject to City Council review and approval. STRATEGIC PLAN ALIGNMENT: The Communication Site License update contributes to Strategic Priority 5 - High Performing Government and Goal 5.4 — Achieve and maintain financial health by addressing gaps between revenues and expenditures and aligning resources with strategic priorities to yield the greatest impact. This also aligns with each of the Cross -Cutting Threads as follows: 1. Community Trust — Review of this Lease Amendment by the City Council ensures transparency and demonstrates the City's commitment to the community by making sound business decisions. 2. Equity - The City Cell Tower Program benefits the entire community of the City of Riverside. This update will continue to ensure reliable cellular service for residents and fair and equitable rate setting for all our cell tower tenants. 3. Fiscal Responsibility — Approval of this Lease Amendment demonstrates the importance placed on the Cell Tower Leasing Program's fiscal responsibility and helps to ensure that all cell tower tenants are abiding by the terms of their Agreements.