Title
Body
MEMORANDUM
TO: Board of Supervisors
FROM: Carol J. Huchingson, County Administrative Officer
DATE: February 27, 2018
SUBJECT: Consideration of Option and Lease Agreement with Verizon Wireless
EXECUTIVE SUMMARY:
The attached Option and Lease Agreement with Verizon Wireless would allow Verizon to develop a communications site on the property occupied by the North Lakeport Water Treatment Plant located at 55 Worley Drive, in Lakeport. The proposed site consists of a 30’ x 40’ parcel which is a relatively modest footprint within the overall North Lakeport property.
This Agreement only provides the ground space needed to facilitate a communications site. Full scale development of such a site, including construction of a tower, is contingent upon Verizon satisfying requirements that may be promulgated by the Lake County Community Development Department and the Planning Commission.
The Agreement provides Verizon with an option period of up to three years during which they will determine the feasibility of the site and attempt to obtain the appropriate approvals and permits. Should Verizon exercise the option, the Agreement provides for an initial a lease term of five (5) years as well as the option to extend the Agreement for up to three additional terms of five years each.
FISCAL IMPACT: X_ None __Budgeted __Non-Budgeted
Estimated Cost: None
Amount Budgeted: None
Additional Requested: None
Annual Cost (if planned for future years): None
FISCAL IMPACT (Narrative): An initial option fee of $1,200 provides for the first two-year option period and another $1,200 for a one year extension of the initial option period. Subsequent to the option period, the initial annual lease fee will be $21,000 subject to an annual increase of 3%.
In addition to the annual lease fee from Verizon, should Verizon desire to allow other “subtenants” to occupy their tower, the prospective subtenants will first have to negotiate directly with the County for access to the site. The County has a similar arrangement the ground lease with AT&T for the subtenants that occupy its tower on Buckingham Peak. Based on that arrangement, the County should expect to charge Verizon’s prospective subtenants 50% of the amount paid by the primary tenant. That would equate to another $10,500 annual from each subtenant.
STAFFING IMPACT (if applicable): None
Recommended Action
RECOMMENDED ACTION:
Adopt the Option and Lease Agreement with Verizon Wireless and authorize the Chair to execute it along with the accompanying “Memorandum of Option and Land Lease Agreement” which upon its recordation, will evidence the existence of the lease.