County of Sonoma Agenda Item Summary Report

Transcription

1 County of Sonoma Agenda Item Summary Report Agenda Item Number: 22 (This Section for use by Clerk of the Board Only.) Clerk of the Board 575 Administration Drive Santa Rosa, CA To: Sonoma County Board of Supervisors Board Agenda Date: October 21, 2014 Vote Requirement: Majority Department or Agency Name(s): General Services/Sheriff Staff Name and Phone Number: General Services: Teryl Phillips Sheriff: Sgt. Dennis Smiley Title: Moonraker Sea Ranch Ground Lease and Tower License Recommended Actions: Supervisorial District(s): All Authorize the General Services Director to execute the following agreements needed for installation and operation of communications improvements at the Moonraker Sea Ranch telecommunications site: 1) A license agreement between the County of Sonoma and GTE Mobilnet of California Limited Partnership, a California limited partnership doing business as Verizon Wireless, for installation and operation of communications equipment on a portion of the communications tower at the Moonraker Sea Ranch telecommunications site located at Timber Ridge Road, The Sea Ranch, Sonoma County, for an initial term of five (5) years at an annual rental cost of $14,400, with four (4) extension options of five (5) years each. 2) After execution of the license agreement identified in item (1), a ground lease between the County of Sonoma and The Sea Ranch Association, a California non-profit mutual benefit corporation, for installation and operation of communications improvements at the Moonraker Sea Ranch telecommunications site located at Timber Ridge Road, The Sea Ranch, Sonoma County, for an initial term of fifteen (15) years at an annual rental cost of $21,600, with two (2) extension options of five (5) years each. Executive Summary: Purpose. General Services staff, in consultation with staff from the Sheriff s Office, are requesting Board approval of two new agreements needed for the installation of communications network improvements at the Moonraker Sea Ranch communications facility located adjacent to The Sea Ranch coastal community area of western Sonoma County. A ground lease is needed with the landowner, The Sea Ranch Association ( TSRA ), to provide for construction of a County-owned equipment vault, and a license agreement is needed with Verizon Wireless ( Verizon ) to allow installation and operation of

2 County antennas and other appurtenances on the existing 170 tall tower owned by Verizon. Radio coverage on the Sonoma County coast is problematic since hilly terrain and densely forested areas impede the reach of transmission signals, and there are no existing communication site facilities that can adequately cover large swaths of coastline. Instead, the topography necessitates equipment installations at multiple sites to achieve coverage objectives. Consequently, staff has identified an operational network of existing and proposed communication sites to meet the Sheriff Department s public safety communications objectives along the coast. Most of the identified coastal network locations require that leases and/or licenses be secured with tower and property owners prior to installation of new facilities. General Service s staff has negotiated both a ground lease and a tower license for installation of County facilities at the Moonraker site that satisfies the Sheriff s technical requirements. Following installation of the proposed improvements, the Moonraker facilities will fill coverage gaps in the area north of Salt Point to the Mendocino County line, which currently has poor to no radio coverage, from Salt Point to The Sea Ranch. The goal is to improve emergency radio coverage for the Sheriff s Department, fire services, and emergency medical services from approximately Salt Point north to the Mendocino County line. If the agreements are not approved for project implementation, radio coverage for emergency responders will not improve, leaving large areas of poor to no radio coverage along the north Sonoma County coast. Ground Lease. The proposed ground lease would allow the County to utilize a portion of the property owned by TSRA consisting of approximately 912 square feet in area for installation of a communications shelter and associated infrastructure for housing ground equipment and for installation of a cable tray and other utility connections to the Verizon tower. The leased premises would include a non-exclusive right for ingress and egress seven (7) days per week and twenty-four (24) hours a day over private access roads and public rights-of-way serving the site. The proposed ground lease contains the following key provisions: 1. An initial term of fifteen (15) years, which will commence within 180 days following full execution of the lease, and upon fulfillment of pre-term conditions, which include full execution of the tower license with Verizon, issuance of a building permit, and commencement of construction of the County s equipment vault facility. 2. Two (2) options to extend the lease term, each for a period of five (5) additional years, upon delivery of written notice by County at least 120 days prior to term expiration. 3. Initial base rent of $1,800 per month ($21,600 annually), with annual increases of 2% during the initial fifteen-year term. 4. After the initial fifteen-year term, rent for each extended term period is to be established by agreement between County and landlord, or if agreement cannot be reached within 30 days of County s notice to exercise its option, County will obtain a valuation prepared by a consultant, with landlord s consent to selected consultant. 5. County must obtain landlord s prior written consent to sublet to private entities or to assign the lease. Other public agencies or quasi-public agencies acting as an agent of County may use the

3 premises and will not be considered as subtenants. 6. County may terminate the lease for discretionary reasons upon ninety (90) days notice, and upon thirty (30) days notice for non-appropriation of funds. 7. County may hold over on a month-to-month tenancy following expiration of the lease term, subject to landlord s written consent and based upon all the terms and conditions of the original lease. Tower License. The proposed tower license with Verizon will permit installation of 11 antennas and associated utility and transmission connections to the County s equipment shelter. The license is subject to the terms and conditions of Verizon s master lease with TSRA, and contains the following key provisions: 1. An initial term of five (5) years, which will commence the first day of the month in which the license is fully executed by both parties. 2. Four (4) options to extend the term of the license, each for a period of five (5) additional years, subject to written notice by County at least six months prior to the end of the current term. 3. Initial base rent of $14,400 annually, to be paid in equal monthly installments of $1,200 each, with annual increases of 3% during the initial five-year term. 4. After the initial five year term, rent for each year of each extension period will increase on the anniversary of the commencement date by 3% over the previous year s annual rent. 5. County must obtain licensor s prior written consent to sublet or to assign the license. 6. The County s tower equipment is subject to relocation elsewhere on the tower if deemed necessary by licensor, with the relocation location to be mutually agreed upon. Costs of relocation will need to be negotiated with licensor. 7. Either party may terminate the license upon one hundred eighty (180) days notice with or without cause to the other party. 8. County, at its cost, must remove its equipment and other improvements within thirty (30) days following expiration of the license and restore the premises to pre-installation condition. Staff utilized the services of an industry consultant, G Squared Consulting, Inc., to assist with establishment of fair market rent values, lease negotiations and preparation of both agreements. In both cases, the negotiated rents represent acceptable fair market rates for the location, and are consistent with rent rates paid by other existing tower tenants at the site. Project Costs and Construction Schedule. The construction cost of the Moonraker Sea Ranch project is estimated at $750,000. This project was approved as part of the Capital Projects Plan. The funding for this project, along with all other tower construction projects, is included in the approved Capital Projects budget. General Services staff will return to the Board to request award of the construction contract pursuant to bid procedures by December 2014, and commencement of construction is anticipated shortly thereafter. Construction is expected to be completed during Fiscal Year Ongoing operating costs will include electrical utility charges which will be billed directly by PG&E to County General Services, based upon actual metered usage. These costs are estimated to be approximately $300 per month ($3,600 annually).

4 Regulatory Conformance. On April 28, 2014, the Permit and Resources Management Department (PRMD) staff issued a Notice of Final Action on a Coastal Permit for the County s Moonraker Sea Ranch project. The Notice included findings that the project is categorically exempt from the California Environmental Quality Act ( CEQA ) under Section 15301(b) of the CEQA Guidelines, because it consists of an addition of equipment to an existing telecommunications facility and will not have a significant effect on the environment. The project was also determined to be consistent with zoning and design review requirements applicable to the site. The issued Coastal Permit includes conditions of approval that must be met by the County prior to building permit issuance and commencement of the use. Procedural Authority. Government Code Section requires the Board to publish a notice of its intention to enter into a lease or license agreement valued at more than $50,000 for three (3) consecutive weeks in accordance with Government Code Section 6063, before consummation of the agreement. The required notice was published by the Clerk of the Board in accordance with Government Code Section 6063, with the first notice being published on September 20, No public comments regarding the ground lease or tower license have been received by General Services staff. Staff requests that the Board authorize the General Services Director to execute the ground lease and the tower license agreements on behalf of the County. Because Verizon will not execute the license agreement prior to the County s signature thereto, staff requests that the Board authorize the execution of the ground lease, the need for which is dependent on the concurrent execution of the license agreement, contingent upon full execution of the license agreement. Prior Board Actions: : Board authorized publication of the Notice of Intent to execute the ground lease with The Sea Ranch Association and the tower license with Verizon Wireless for installation of communications improvements at the Moonraker Sea Ranch telecommunications site. Strategic Plan Alignment Goal 1: Safe, Healthy, and Caring Community The lease and license agreements, along with the resultant telecommunications improvements will support the public safety needs of the residents of Sonoma County, providing continued and improved communication coverage to the surrounding areas. If the agreements are not approved for project implementation, radio coverage for emergency responders will not improve, leaving large areas with poor to no radio coverage along the north Sonoma County coast.

5 Expenditures Fiscal Summary - FY Funding Source(s) Budgeted Amount $ 39,600 County General Fund $ 39,600 Add Appropriations Reqd. $ State/Federal $ $ Fees/Other $ $ Use of Fund Balance $ $ Contingencies $ $ $ Total Expenditure $ 39,600 Total Sources $ 39,600 Narrative Explanation of Fiscal Impacts (If Required): Rent and utility impacts estimated at $39,600 ($21,600 for ground lease rent, $14,400 for tower license rent, $3,600 for utilities) for FY are included in the General Services budget. Construction impacts incurred in FY are estimated to be $750,000 and are included in the Capital Projects budget. Staffing Impacts Position Title (Payroll Classification) Monthly Salary Range (A I Step) Additions (Number) Deletions (Number) Narrative Explanation of Staffing Impacts (If Required): None. Attachments: None Related Items On File with the Clerk of the Board: Lease between the County of Sonoma and The Sea Ranch Association License agreement between the County of Sonoma and Verizon Wireless.