PURPOSE

The purpose of this report is to request City Council approval of a ten year lease agreement between the City of Burbank and Sprint PCS Assets, LLC, authorizing Sprint to install three cellular phone antennas, approximately five feet in length, at Valley Park, 1625 North Valley Street.  Staff is also requesting that the revenue generated be used for future park capital improvement projects.

BACKGROUND

In March 2005, Pacific Site Acquisition Services, a Sprint PCS LLC (Sprint) representative, contacted staff seeking a location in the area of Valley Park for placement of three cellular antennas to improve customer reception.  Ballfield poles were identified as a possible site for the placement of the antennas, specifically the poles closest to the corner of Edison Boulevard and Clybourn Street.  The City would collect a monthly rent for the antennas.  Sprint is interested in entering into a ten year lease agreement with the City, with an option of one additional five year term. 

On April 14, 2005, staff presented this item to the Park Board for discussion and direction.  The Board supported the initial proposal and directed staff to move forward with the project.  The Board also requested follow-up on a couple of issues.  The Board asked whether there was a required residential notification process for this project, and the overall approval process, specifically if the project would need to go before the Planning Board.  The Board also asked about possible environmental impacts. 

ANALYSIS

On May 4, 2005, staff met with Sprint representatives to discuss the exact proposed location of the three antennas and related equipment.  Each antenna, eight inches wide by fifty-six (56) inches long, would be attached approximately fifty-five (55) feet high on the poles, which are estimated to be sixty-five (65) feet high.  It was mutually agreed that all three antennas would be mounted to the poles in such a manner where the poles would protect the antennas from any balls coming from home plate.  The netting will remain in tact.  Sprint also agreed to paint the antennas brown, to match the existing poles, which secure the fencing material in left field.  (Attachment A)

An additional area of approximately twenty (20) feet by fifteen (15) feet on the ground would be needed for placement of the associated equipment, consisting of up to four cabinets similar in size to a refrigerator.  In an effort to preserve the aesthetics of the park, Sprint agreed to place the equipment in a sunken vault, with only two feet exposed above ground level.  The equipment would be at the corner of Edison Boulevard and Clybourn Street, with a steel grating cover.  (Attachment B) 

Staff met with the Community Development Department�s Planning Division and City Attorney�s Office to discuss the proposed project, specifically regarding the required notifications and environmental impact.  The Planning Division considers the antennas to be building mounted; as such a Conditional Use Permit is not required.  Notification to nearby residents and business is also not required. 

Mobile phones and their base stations are two-way radios, producing radio-frequency (RF) energy, which is how they communicate.  People near them are exposed to RF energy. However, because both the phones and the base stations are low power or short range, the RF energy exposure levels from them are generally very low.  The consensus of the scientific community, both in the US and internationally, is that the power from these mobile phone base station antennas is far too low to produce health hazards.

It has been determined that the project is Categorically Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15303 of the State CEQA Guidelines pertaining to the installation of small structures.

Staff surveyed forty-three municipalities, including the cities of Beverly Hills, Long Beach, Torrance, and Irwindale, which have similar agreements with cellular phone companies.  The average monthly rent for the cities surveyed was $1,798.  However, a number of these cities have cell phone towers, not small antennas.  Typically cellular phone companies pay higher rent for the tower locations, as they can be obtrusive and not aesthetically appealing.    

Based on the findings, staff successfully negotiated a monthly lease payment of $1,500, with an annual CPI increase, at a minimum of 3%.  In addition to the monthly rent, Sprint will also reimburse the City $22,800 for the cost of a new park sign.  Together, the monthly rent and reimbursement, makes the value of the agreement equal to or better than most surveyed cities. 

FISCAL IMPACT

The proposed lease agreement with Sprint will provide a revenue source for the City and will not have a negative fiscal impact.  Over the ten year agreement, the City will generate a minimum of $206,350 in additional revenue.  The total value of the agreement is $229,150.  Staff is requesting that the revenue generated from this agreement be used for park capital improvement projects.    

RECOMMENDATION

It is staff�s recommendation that City Council approve the ten year lease agreement between the City of Burbank and Sprint PCS LLC, authorizing Sprint to install cellular phone antennas at Valley Park; and authorizing the Park, Recreation and Community Services Department to use the revenue for future park capital improvement projects.

Attachment A � Valley Park Antenna Locations

Attachment B � Valley Park Equipment Location

Attachment C � Lease Agreement