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MEMORANDUM
TO: Board of Supervisors
FROM: Carol J. Huchingson, County Administrative Officer
DATE: June 26, 2018
SUBJECT: (a) Approve Settlement Agreement and Release with Accord Communications and authorize the Chair to sign; and (b) Approve Restructured Agreement with Accord Communications and authorize the Chair to sign
EXECUTIVE SUMMARY:
When the County acquired the communications facilities on Mt. Konocti, it inherited a contract with Accord Communications who had served as the communications site manager for the previous property owner. Mt. Konocti's strategic location has made it a long-standing hub for facilitating radio and microwave communications and Accord's specialized expertise has been an essential resource in maintaining the facilities, growing the tenant base and managing use of the facilities in accordance with best practices.
For its services, Accord receives 25% of the revenue generated from the communications sites. Accord's efforts have resulted in a substantial increase in the revenue generated from the communications sites. Currently, Accord's 25% commission translates to about $50,657 a year. While Accord's efforts have been very beneficial to the County, staff believes that we have reached a plateau in the growth and management of the site such that it now makes financial sense to compensate Accord on an hourly basis rather than a commission basis.
FISCAL IMPACT: __ None _X_Budgeted __Non-Budgeted
Estimated Cost: $101,313.36
Amount Budgeted: $101,313.36
Additional Request: None
Annual Cost or Savings (if planned for future years): $40,000 annual savings.
FISCAL IMPACT (Narrative): Staff estimates the paying Accord on an hourly basis will cost no more than $10,000 per year. Although the contract provides for a sizeable termination payment that is equivalent to two years of compensation ($101,313.36), the on-going annual savings of $40,000 is clearly in the County's long-t...
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