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REQUEST FOR JOINT ACTION <br />COUNCIL & SANTA ANA <br />FINANCING AUTHORITY <br />JOINT MEETING DATE: <br />CLERK OF COUNCIL USE ONLY: <br />AUGUST 24, 2011 <br />TITLE: <br />LEASE AGREEMENT WITH <br />T-MOBILE FOR INSTALLATION OF <br />TELECOMMUNICATIONS SITE AT <br />CORPORATE YARD <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 151 Reading <br />? Ordinance on 2Id Reading <br />? Implementing Resolution <br />? Set Public Hearing For_ <br />CITY MANAGER <br />RECOMMENDED ACTION <br />Santa Ana Financing Authority: <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the Executive Director to execute the attached Certification with consent to sublease <br />City Council: <br />1. Authorize the City Manager and the Clerk of the Council to execute the attached <br />lease agreement with T-Mobile for a telecommunications cell site at the City's <br />Corporate Yard, subject to non-substantive changes approved by the City Manager <br />and City Attorney. <br />2. Receive and file Categorical Exemption for Environmental Review No. 2009-132 <br />(City Yard). <br />DISCUSSION <br />In 2008 T-Mobile sought to lease a small portion of the City's Corporate Yard to construct and <br />maintain a cell monopine site. The City Yard site is the collateral for a lease and lease-back <br />arrangement between the City and the Santa Ana Financing Authority related to the 1998 <br />Certificates of Participation for the City Hall Expansion Project. In order for the City to approve a <br />lease with T-Mobile, it is required to obtain consent of Assured Guaranty, the Municipal Bond <br />Insurer for the 1998 Project. This consent is contingent on the finding that such sublease will not <br />adversely affect the underlying property value of the City Yard. The sublease also requires an <br />opinion letter from our bond counsel stating that the sublease will not cause the interest <br />components of the Lease Payments to become subject to taxation. The City obtained the <br />required consent and opinion in May 2011. The City now requires consent from the Finance <br />Authority for the sublease of a portion of the property for the T-Mobile cell site project. <br />City approval of a lease agreement will allow T-Mobile to construct and maintain a <br />telecommunications site at the City's Corporate Yard facility. T-Mobile will install a Canary Island <br />pine camouflaged `monopine' tower structure using the City's detailed specifications to improve <br />telecommunication tower aesthetics and blend with adjacent natural pines. The portion leased is <br />approximately twenty-three foot (23') by twenty-eight foot (28') space on the ground containing <br />six hundred forty-four (644) square feet for radio equipment cabinets, and space required for <br />cable runs to connect equipment. <br />80B 1 <br />-