REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
January 23, 2024
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
LYNN FYHRLUND, Chief Information Officer, Innovation and Technology Department
SUBJECT
Title
Revenue License Agreement for Rack and Antenna Space with Southwest Gas Corporation in Big Bear
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of a 10-year Revenue License Agreement with Southwest Gas Corporation for rack and antenna space is an exempt project under the California Environmental Quality Act Section 15301 - Existing Facilities (Class 1).
2. Find that pursuant to California Government Section 25526.6, a 10-year Revenue License Agreement, with two five-year options to extend the term with Southwest Gas Corporation, commencing upon full execution of the License, projected to be from January 23, 2024 through January 22, 2034, for the use of rack and antenna space at the San Bernardino County-owned Bertha Peak North Communication Site in Big Bear, is in the public interest and that the license will not substantially conflict nor interfere with San Bernardino County’s use of the site.
3. Approve a 10-year Revenue License Agreement, with two five-year options to extend the term of the license with Southwest Gas Corporation, commencing upon full execution of the License, projected to be from January 23, 2024 through January 22, 2034, in which the agreement will also terminate the existing License Agreement No. 15-561 between San Bernardino County and Southwest Gas Corporation, and will provide for the continued use of rack space and antenna space at the San Bernardino County-owned Bertha Peak North Communication Site in Big Bear for the licensee’s wireless communication equipment, for total revenue in the amount of $154,561.
4. Direct the Real Estate Services Department to file the Notice of Exemption in accordance with the California Environmental Quality Act.
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The total revenue to be received by San Bernardino County (County) during this 10-year Revenue License Agreement (License) is $154,561. The existing license fee that has been received for the period of September 1, 2023, through August 31, 2024, will be prorated between Revenue License Agreement No. 15-561 (Existing License) and this new License upon approval by the Board of Supervisors (Board), projected to commence on January 23, 2024. The revenue from the License will be deposited in the Real Estate Services Department (RESD) Rents budget (7810001000). Annual license revenue is as follows:
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Period |
Revenue |
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January 23, 2024 - August 31, 2024* |
$ 8,574 |
|
September 1, 2024 - August 31, 2025 |
$13,677 |
|
September 1, 2025 - August 31, 2026 |
$14,087 |
|
September 1, 2026 - August 31, 2027 |
$14,510 |
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September 1, 2027 - August 31, 2028 |
$14,945 |
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September 1, 2028 - August 31, 2029 |
$15,394 |
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September 1, 2029 - August 31, 2030 |
$15,856 |
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September 1, 2030 - August 31, 2031 |
$16,331 |
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September 1, 2031 - August 31, 2032 |
$16,821 |
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September 1, 2032 - August 31, 2033 |
$17,326 |
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September 1, 2033 - January 22, 2034 |
$ 7,040 |
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Total Revenue |
$154,561 |
*Prorated revenue which includes a one-time contract administration
charge of $500
BACKGROUND INFORMATION
This License, with two five-year options to extend the term of the License, with Southwest Gas Corporation (SW), will commence upon full execution of the License, projected to be for the period of January 23, 2024 through January 22, 2034. The License will allow for SW’s continued use of rack space within the County-owned equipment shelter and antenna space on the County-owned antenna tower located at the Bertha Peak North Communication Site (Bertha North) in Big Bear for SW to operate its wireless communication equipment. The License will also provide for termination of the Existing License between the County and SW.
On December 17, 2013 (Item No. 66), the Board approved a Bill of Sale and assignment and Assumption Agreement No. 13-996 with Falcon Cablevision (FC) that provided for (a) the transfer to the County of 2.4 miles of electric utility service poles, cables and associated equipment and a 100 square foot communications equipment shelter and roof antenna structure located at Bertha North; (b) the assignment to the County of a 20-year ground lease agreement with the U.S. Department of Agriculture, Forest Service (USFS) for approximately two acres of USFS-controlled land; and (c) the assignment of a 10-year revenue license agreement with SW for rack and antenna space.
On August 11, 2015 (Item No. 28), the Board accepted the assignment of the Existing License from FC to the County, with four five-year automatic options to extend the term of the Existing License with SW for rack and antenna space in the County-owned equipment shelter, and on the County-owned antenna structure which commenced September 1, 2005, for the remaining one month of the then current 10-year term.
On September 1, 2015, the term of the Existing License was automatically extended for five-years through SW’s exercise of the first of four five-year automatic options to extend the term for the period of September 1, 2015 through August 31, 2020. The term of the Existing License is automatically extended unless SW elects not to exercise an extension by providing notice to the County not less than one year’s advance written notice prior to the end of the then existing term.
On September 1, 2020, the term of the Existing License was automatically extended for five-years through SW’s exercise of the second of four five-year automatic options to extend the term for the period of September 1, 2020 through August 31, 2025.
In mid-2023 SW requested the Innovation and Technology Department (ITD) consider a proposal to allow SW to upgrade its radio equipment and antennas within the County-owned equipment shelter and antenna tower at Bertha North. ITD requested RESD prepare an amendment to the Existing License to allow SW to exchange their existing antenna array and existing radio equipment for new digital radio equipment and new antennas with increased efficiency. RESD prepared an amendment for SW consideration. During negotiations regarding the terms and conditions of the amendment, SW proposed the County consider a new 10-year License with two five-year options to extend the term of the License which would also terminate the Existing License between the County and SW. The new License continues the fee structure established in the Existing License and provides upgrades to standard license agreement language.
The project to approve this License was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15301 - Existing Facilities (Class 1) because approval of a license agreement for existing facilities is an exempt activity under CEQA. There is no possibility that the licensing of the subject property will have a significant effect on the environment; therefore, the activity is exempt from the provisions of CEQA.
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Summary of License Terms |
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Licensee: |
Southwest Gas Corporation (Samuel Grandlienard, Vice President, Southern California Division) |
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Location: |
Bertha Peak North Communication Site in Big Bear |
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Size: |
Rack and Antenna Space |
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Term: |
10 years, commencing upon full execution of the License, projected to be from January 23, 2024 through January 22, 2034 |
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Options: |
Two five-year automatic options to extend the term of the License |
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Rent: |
Monthly: $1,107* |
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Annual: $13,279 |
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*Mid-range for comparable facilities in the San Bernardino area per the competitive set analysis on file with RESD |
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Annual Increases: |
3% |
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Improvement Costs: |
Provided by Licensee |
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Maintenance: |
Provided by County for County’s equipment shelter and antenna tower; provided by Licensee for Licensee’s equipment and antennas |
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Utilities: |
Provided by County for electric but reimbursed through the rental rate |
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Insurance: |
Both parties are self-insured public entities |
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Right to Terminate: |
The County has the right to terminate with one-years’ prior written notice; SW has the right to terminate during the two extension terms, if exercised, with 30-day’s prior written notice |
PROCUREMENT
Pursuant to California government Code Section 25526.6, the Board may grant licenses for use of any County property to a public utility in the manner and upon the terms and conditions as the Board determines, upon a finding by the Board that the License is in the public interest and that the License will not substantially conflict or interfere with the County’s use of the property.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs, Deputy County Counsel, and Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on December 14, 2023; Innovation and Technology (Tim Trager, Chief of Public Safety Communications Division, 388-5563) on December 19, 2023; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on December 15, 2023; Finance (Iliana Rodriguez, 387-4205, and Garrett Baker, Administrative Analysts, 387-3077) on December 27, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on December 27, 2024.
(KB: 677-7961)