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Approve a revenue Telecommunications License Agreement with CCTM1, LLC for approximately 1,300 square feet of additional ground space at its wireless communications facility at 301 County Airport Road in Vacaville from October 1, 2017 to March 31, 2018; and Authorize the County Administrator or designee to execute the agreement and any modifications or amendments
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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 revenue Telecommunications License Agreement with CCTM1 LLC for approximately 1,300 square feet of additional ground space at its wireless communications facility at 301 County Airport Road in Vacaville from October 1, 2017 to March 31, 2018; and
2. Authorize the County Administrator to execute the agreement and any modifications or amendments.
SUMMARY/DISCUSSION:
CCTM1 LLC is a subsidiary of Crown Castle International Corporation, which is the nation’s largest provider of shared wireless infrastructure. In December 2013, CCTM1 LLC acquired most of the rights to T-Mobile’s wireless telecommunications facility located at the Nut Tree Airport at 301 County Airport Road in Vacaville. T-Mobile’s ground lease agreement with the County for this +/- 500 square-foot site commenced in 1996 and expires on March 31, 2018; however, two 5-year options remain.
The County also had a ground lease agreement with Sprint-Nextel for a +/- 1,300 square feet site adjacent to T-Mobile’s site for Sprint-Nextel’s equipment shelter. Sprint-Nextel had a separate agreement with T-Mobile to co-locate on T-Mobile’s tower. Both agreements expired in 2014 and Sprint-Nextel removed its equipment and shelter from the tower and site. Currently the vacant site is not being used (Attachment A and B - Map). CCTM1 LLC desires to enter into an agreement with the County for the former Sprint-Nextel site for the co-location of other telecom companies on its tower through its industry connections. The first company is Verizon, which approval of its construction permit is pending approval of this agreement.
The term of the proposed Telecommunications License Agreement (Attachment C) will run concurrently with the existing T-Mobile term, including remaining options; however, the County may terminate it if there is no co-location for a period of three months. Upon the expiration of the last 5-year option, CCTM1 LLC will have acquired all of the rights to the T-Mobile site and tower at which time one new agreement can be executed with CCTM1 LLC for both sites.
FINANCIAL IMPACT:
There is no cost to the County associated with the proposed Telecommunications License Agreement. Approval of the proposed Telecommunications License Agreement will generate unanticipated revenue for the Airport budget 9002 when CCTM1 LLC finalizes agreements with the co-locating telecom companies. Rent payments to the County will be 50% of all rent collected by CCTM1 LLC from co-locating telecom companies (50% to land owner, 50% to tower owner). The County’s share of the Verizon rent is anticipated to be $14,700 annually for its +/- 250 square feet footprint, which is slightly less than what Sprint-Nextel was paying for the entire 1,300 square-foot site. The rent for the T-Mobile site is currently $30,888 annually for twice the size site as the Verizon space. All maintenance and utility costs associated with the facility will be the responsibility of T-Mobile and CCTM1 LLC.
ALTERNATIVES:
The Board may:
1. Approve the proposed Telecommunications License Agreement with any modifications as desired by the Board. This alternative will require approval of the modifications by CCTM1 LLC.
2. Choose not to approve the proposed Telecommunications License Agreement. This alternative is not recommended as the operation of the wireless communications facility by CCTM1 LLC does not interfere with County operations, and approval of the proposed Telecommunications License Agreement will provide an increased revenue stream to the Airport.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed the proposed Telecommunications License Agreement for legal sufficiency. The Nut Tree Airport Manager has reviewed the agreement and supports the Departmental Recommendation.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION