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Approve a Structure Lease Agreement with New Cingular Wireless PCS, LLC, dba AT&T Wireless a Delaware limited liability company to install a wireless telecommunications antenna and associated equipment on the rooftop of the County Administration Building at 675 Texas Street in Fairfield for a 5-year initial term effective January 9, 2024, with four successive 5-year options to extend the Agreement, for an initial rent of $3,000 per month with three percent (3%) annual increases; and Authorize the County Administrator or designee to execute the Structure Lease Agreement and any subsequent modifications or amendments, pending County Counsel concurrence, within the term of the lease
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Approve a Structure Lease Agreement with New Cingular Wireless PCS, LLC, dba AT&T Wireless (“New Cingular Wireless") a Delaware limited liability company to install a wireless telecommunications antenna and associated equipment on the rooftop of the County Administration Center at 675 Texas Street in Fairfield for a 5-year initial term effective January 9, 2024, with four successive 5-year options to extend the Agreement, for an initial rent of $3,000 per month with three percent (3%) annual increases; and
2. Authorize the County Administrator or designee to execute the Structure Lease Agreement and any subsequent modifications or amendments, pending County Counsel concurrence, within the term of the lease.
SUMMARY/DISCUSSION:
New Cingular Wireless approached the County to discuss the possibility of installing a rooftop wireless telecommunications “cell” site and associated equipment on the County Administration Center at 675 Texas Street in Fairfield (CAC). The Department of General Services has evaluated the request to determine its feasibility and potential issues, including site security, access, screening, and revenue potential. As part of the evaluation process, the Department of General Services retained a consultant specializing in wireless cell site negotiations and rental rates to assist County staff in developing lease terms and conditions favorable to the County, consistent with industry standards and current market conditions.
Accordingly, the Structure Lease Agreement (Attachment A) has been developed to authorize New Cingular Wireless to install a wireless telecommunications antenna and associated cellular equipment on the roof of the CAC to store related cellular equipment. The Agreement will allow New Cingular Wireless to lease approximately 908 square feet of total area on the rooftop for antenna with appropriate screening and an equipment shelter. When completed, the wireless telecommunications installation will provide improved local wireless coverage for County staff and the public using AT&T wireless services at the County’s facilities in downtown Fairfield.
FINANCIAL IMPACT:
The initial term of the Structure Lease Agreement is for a 5-year period commencing January 9, 2024. The total revenue that will be received by the County over the initial 5-year lease term will be $191,129. In addition, there are four separate and successive 5-year options to extend the term of the Structure Lease Agreement. The initial lease rate is $3,000 per month with an annual escalation of three percent (3%). The total County revenue over the potential 25-year term of the Structure Lease Agreement would be $1,312,534. Revenue will be deposited into the Department of General Services Budget Unit 1642-Real Estate.
The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2023/24 Working Budget.
ALTERNATIVES:
The Board of Supervisors may choose not to approve the proposed Structure Lease Agreement; or choose to propose other terms and conditions for the Structure Lease Agreement, which will require additional negotiations with the New Cingular Wireless.
These alternatives are not recommended as the proposed Structure Lease Agreement provides revenue to the County and will improve local wireless coverage in the County’s downtown campus facilities in Fairfield.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed the Structure Lease Agreement as to form. The County Office of Emergency Services supports the installation of the wireless telecommunications antenna and related equipment to improve communications capabilities for County staff and the public.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION