Loading...
HomeMy WebLinkAboutR-11650 approving the Second Amendment with PTI US Towers II, LLC for telecommunications facilitiesR 11650 RESOLUTION NO. 11650 (2026 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE SECOND AMENDMENT WITH PTI US TOWERS II, LLC FOR TELECOMMUNICATIONS FACILITIES AT SANTA ROSA PARK WHEREAS, the City entered into a lease agreement with Pacific Bell Wireless, LLC (d/b/a Cingular Wireless) on April 1, 2003, for an initial five-year term with options to extend for three additional five-year terms; and WHEREAS, a First Amendment to the agreement was executed in June 2003 to revise the Improvements associated with the site; and WHEREAS, T‑Mobile became the sole owner of Pacific Bell Wireless, LLC in 2005 and later transferred ownership and management rights for this tower site to PTI US Towers II, LLC (PTI) through a 2015 agreement, resulting in PTI now serving as the operator of the tower and ground lessee; and WHEREAS, PTI has exercised all three initial five-year renewal options, and the current lease term expired in March 2023; and WHEREAS, PTI has expressed interest in further extending the lease, and while the lease has technically expired, PTI has continued providing rent payments through 2026; and WHEREAS, the City Council met in closed session on November 18, 2025, to discuss options for the Santa Rosa Park telecommunications site and determine negotiating parameters for the lease extension, and staff subsequently negotiated a lease amendment within the parameters established by Council; and WHEREAS, the Financial Management Manual (Section 475-C) authorizes long- term leases of City property on a case-by-case basis when they support City goals, plans, or policies and provide measurable community benefits. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council has determined, based on the circumstances at the time, that approval of Second Lease Amendment is in the best interest of the City and ensures continued reliable telecommunications service to the community. SECTION 2. The City Council hereby approves the Second Amendment to the Lease Agreement with PTI US Towers II, LLC, substantially in the form attached hereto as Exhibit A, and authorizes the City Manager or designee to execute the amendment and any related documents necessary to effectuate the lease extension. Docusign Envelope ID: 78795B13-B2F3-8115-8325-D6C4ACD4956D Resolution No. 11650 (2026 Series) Page 2 R 11650 SECTION 3. The City Manager or designee is authorized to take all actions necessary to implement this Resolution, including recording the lease amendment and updating financial records to reflect the updated annual rent. SECTION 4. This Resolution shall take effect immediately upon adoption. Upon motion of Council Member Boswell, seconded by Council Member Marx, and on the following roll call vote: AYES: Council Member Boswell, Marx, Vice Mayor Francis, and Mayor Stewart NOES: None ABSENT: Council Member Shoresman The foregoing resolution was adopted this 19th day of May 2026. ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Docusign Envelope ID: 78795B13-B2F3-8115-8325-D6C4ACD4956D 5/27/2026 | 7:19 AM PDT 1 PTI Site US-CA-1258/ Santa Rosa Park PTI US Towers II LLC 999 Yamato Road, Suite 100 Boca Raton, FL 33431 SECOND AMENDMENT TO TELECOMMUNICATIONS FACILITY LEASE AT SANTA ROSA PARK THIS SECOND AMENDMENT TO TELECOMMUNICATIONS FACILITY LEASE AT SANTA ROSA PARK (“Second Amendment”) is executed this ______ day of _____________, 202___, and is effective April 1, 2023 (“Effective Date”) by and between CITY OF SAN LUIS OBISPO, a California municipal corporation, having an address at 990 Palm Street, San Luis Obispo, CA 93401 (“Lessor”) and PTI US Towers II LLC, having a principal office located at 999 Yamato Road, Boca Raton, FL 33431 (“Lessee”). WHEREAS, Lessor and PACIFIC BELL WIRELESS, LLC a Nevada limited liability company d/b/a CINGULAR WIRELESS, entered into that certain Telecommunications Facility Lease at Santa Rosa Park dated February 11, 2003, as thereafter amended from time to time (hereinafter referred to as "Lease") and assigned to Lessee, PTI US Towers II LLC, for Lessee’s use of a portion of the real property (“Premises”), located at 190 Santa Rosa Street, San Luis Obispo, CA 93405 (hereinafter referred to as “Land”), being more particularly described in the attached Exhibit “A”; and WHEREAS, Lessor and Lessee desire and intend to amend and supplement the Lease as provided herein. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby, acknowledged, the parties hereto covenant, agree, and bind themselves to the following modifications to the Lease: 1. Section 3. Term, of the Lease is hereby amended to include the following: In addition to the Renewal Terms as referenced in the Lease, the Lease is hereby amended to include four (4) additional successive Renewal Terms of five (5) years, each of which shall be deemed automatically extended unless Lessee notifies Lessor of its intention not to renew the Lease at least sixty (60) days prior to the commencement of the succeeding Renewal Term. The first additional Renewal Term shall commence on April 1, 2023, upon the expiration of the Renewal Term expiring on March 30, 2023. In the event Lessor determines in its reasonable discretion that the Premises are required for public purposes, during each Renewal Term Lessor may terminate this Lease upon providing two (2) years’ prior written notice. Following such notice, the parties shall negotiate in good faith to identify a potential relocation site within the Land. Should the parties fail to reach an agreement on a mutually acceptable site, or if Lessee is unable or Docusign Envelope ID: 78795B13-B2F3-8115-8325-D6C4ACD4956D 2 PTI Site US-CA-1258/ Santa Rosa Park unwilling to relocate, this Lease shall terminate automatically upon the expiration of the two-year notice period. 2. Section 4. Rent, subsection A, of the Lease is hereby deleted and replaced with the following, wherein all other subsections of Section 4 remain unchanged and in full force and effect: A. Lessee shall pay to Lessor the sum of Forty-Five Thousand and No/100 Dollars ($45,000.00) (“Annual Rent”) and Additional Annual Rent per tenant in the same amount as Annual Rent (as further set forth in Section 22.E.), beginning upon Lessee’s payment of Annual Rent due and payable on or before April 1, 2026. All payments of Annual Rent previously provided by Lessee to Lessor for calendar years 2023, 2024 and 2025 are acknowledged as received by Lessor. Partial payment of Lessee’s Annual Rent due and payable on or before April 1, 2026 is acknowledged as received by Lessor, and Lessee and Lessor agree to reconcile the full amount of Annual Rent due for such period for which Lessee shall provide a true-up differential payment to Lessor within thirty (30) days of the Effective Date of this Second Amendment. 3. Section 19. Notice, of the Lease is hereby amended as follows: LESSOR: City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 LESSEE: PTI US Towers II LLC 999 Yamato Road, Suite 100 Boca Raton, FL 33431 4. Within thirty (30) days of full execution of this Second Amendment, Lessee shall pay to Lessor a one-time payment of Twenty-Five Thousand and No/100 Dollars ($25,000.00). Said amount constitutes a one-time signing bonus, and Lessor’s acceptance thereof shall confirm that neither Lessee nor Lessor are in default of any material term or condition of the Lease, including the payment of Annual Rent, at the time of said payment. 5. Capitalized terms not defined in this Second Amendment will have the meaning ascribed to such terms in the Lease. 6. This Second Amendment will be governed by and construed and enforced in accordance with the laws of the state in which the Land is located without regard to principles of conflicts of law. 7. Except as specifically set forth in this Second Amendment, the Lease is otherwise unmodified and remains in full force and effect and is hereby ratified and reaffirmed. In Docusign Envelope ID: 78795B13-B2F3-8115-8325-D6C4ACD4956D 3 PTI Site US-CA-1258/ Santa Rosa Park the event of any inconsistencies between the Lease and this Second Amendment, the terms of this Second Amendment shall take precedence. 8. Lessor acknowledges that the exhibits attached to the Lease may be incomplete or contain inaccuracies and, accordingly, Lessee may replace and substitute such exhibits at its cost and with written consent of Lessor, with an accurate survey and/or legal descriptions of the Premises and re-record this Second Amendment with copy provided to Lessor. Following such re-recording, the descriptions contained therein shall serve as the descriptions for the same for all purposes under the Lease. 9. Lessor represents and warrants to Lessee that Lessor is the sole owner in fee simple title to the Land and Lessor’s interest under the Lease and that consent or approval of no other person is necessary for Lessor to enter into this Second Amendment. 10. This Second Amendment may be executed in one or more counterparts and by the different parties hereto in separate counterparts, each of which when executed shall be, deemed to be an original but all of which taken together shall constitute one, and the same Second Amendment. 11. Lessee shall have the right to record this Second Amendment. [The remainder of this page is intentionally left blank. Signatures to follow.] Docusign Envelope ID: 78795B13-B2F3-8115-8325-D6C4ACD4956D 4 PTI Site US-CA-1258/ Santa Rosa Park IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the day and year first above written. LESSOR: City of San Luis Obispo, a California municipal corporation By: ___________________________________ Print Name: _________________________ Title: __________________________________ A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. STATE OF CALIFORNIA ) COUNTY OF ) On _________________________, 202___, before me, ____________________________ personally appeared __________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ____________________________________ Notary Public________________________ My Commission Expires _______________ (NOTARY SEAL) Docusign Envelope ID: 78795B13-B2F3-8115-8325-D6C4ACD4956D 5 PTI Site US-CA-1258/ Santa Rosa Park WITNESSES: LESSEE: PTI US Towers II LLC 999 Yamato Road, Suite 100 Boca Raton, FL 33431 _______________________________________ By: ________________________________ Print Name: __________________________ _______________________________________ Print Name: __________________________ STATE OF FLORIDA COUNTY OF PALM BEACH The foregoing instrument was acknowledged before me by means of [X] physical presence or [ ] online notarization, this _____ day of _______________________, 202___, by _________________________, on behalf of said company, who is personally known to me and did not take an oath. ___________________________________ Notary Public ________________________ My Commission Expires _______________ (NOTARY SEAL) Docusign Envelope ID: 78795B13-B2F3-8115-8325-D6C4ACD4956D 6 PTI Site US-CA-1258/ Santa Rosa Park EXHIBIT “A” Docusign Envelope ID: 78795B13-B2F3-8115-8325-D6C4ACD4956D