REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 29, 2025
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
LYNN FYHRLUND, Chief Information Officer, Innovation and Technology Department
SUBJECT
Title
Amendment to Revenue License Agreement with Los Angeles SMSA Limited Partnership dba Verizon Wireless for Land and Antenna Space in Twentynine Palms
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 5 to Revenue License Agreement No. 09-714 with Los Angeles SMSA Limited Partnership dba Verizon Wireless, for land and antenna space, is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 5 to Revenue License Agreement No. 09-714 with Los Angeles SMSA Limited Partnership dba Verizon Wireless, for the use of land and antenna space on the County controlled antenna tower and approximately 1,000 square feet of County controlled land located at the Donnell Hill Communication Site in Twentynine Palms, to extend the term of the license by five years, commencing May 1, 2025, through April 30, 2030, following a permitted nine month holdover period from August 1, 2024, through April 30, 2025, for a total contract period of August 1, 2009, through April 30, 2030, with the option to extend for two additional five-year terms, add additional equipment on to the tower, update standard license agreement language, and adjust the license fee schedule increasing the revenue in the amount of $491,857, that includes a holdover period rental amount of $56,948, for a total contract amount of $1,215,514.
3. 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.
FINANCIAL IMPACT
Approval of Amendment No. 5 (Amendment) to Revenue License Agreement No. 09-714 (License) will not result in the use of Discretionary General Funding (Net County Cost). The total revenue to be received by the County during this five-year Amendment is $491,857, which includes $56,948 from the holdover period of nine months. Revenue will be deposited in the Real Estate Services Department (RESD) Rents budget (7810001000). Annual license revenue is as follows:
|
Year |
Revenue |
|
*August 1, 2024, through April 30, 2025 |
$56,948 |
|
May 1, 2025, through April 30, 2026 |
$80,296 |
|
May 1, 2026, through April 30, 2027 |
$83,508 |
|
May 1, 2027, through April 30, 2028 |
$86,848 |
|
May 1, 2028, through April 30, 2029 |
$90,322 |
|
May 1, 2029, through April 30, 2030 |
$93,935 |
|
Total Revenue |
$491,857 |
*Permitted holdover period annual amount paid.
BACKGROUND INFORMATION
On July 28, 2009 (Item No. 19), the Board of Supervisors (Board) approved the License with Los Angeles SMSA Limited Partnership dba Verizon Wireless (Verizon), for the continued use of 1,000 square feet of County controlled land for an equipment shelter and antenna space on the County controlled tower, located at Donnell Hill in Twentynine Palms.
The County leases approximately 4,500 square feet of land from the Twentynine Palms Water District (District) under the provisions of Lease Agreement No. 87-736 as approved by the Board on August 24, 1987 (Item No. 21) on which the County constructed a tower. Lease Agreement No. 87-736 provides the County with the right to sublease space and requires the District to provide 180-days' notice to the County in the event of termination, which notice period matches the County's notice period to Verizon to early terminate the License. The original term was for the period of August 1, 2009, through July 31, 2014. In the 16 years since the License was originally approved, the Board has approved four amendments extending the term and adding additional antennas to the County controlled tower.
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
February 8, 2011 |
40 |
|
2 |
December 6, 2011 |
39 |
|
3 |
November 15, 2016 |
41 |
|
4 |
July 23, 2019 |
34 |
This Amendment extends the term by five years, commencing May 1, 2025, through April 30, 2030, following a permitted holdover period from August 1, 2024, through April 30, 2025. The holdover period is due to a delay in processing the additional antenna equipment that Verizon plans to add to the tower which is approved by the County. The Amendment provides for the continued use of County controlled antenna space and approximately 1,000 square feet of County controlled land for a monopole and equipment shelter by Verizon, through an extension of the term of the License of five years. The Amendment provides an additional 4-foot antenna on the tower for an additional yearly license fee. The Amendment also provides option extensions to extend the term for two additional five-year terms at the Donnell Hill Communication Site in Twentynine Palms for Verizon to operate its wireless communication equipment and updates certain license terms to current County-standard terms, such as adding a Campaign Contribution Disclosure, and updates the County’s address for license fees.
The project to approve this Amendment with Verizon was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Guidelines Section 15301 - Existing Facilities (Class 1) because approval of a license amendment 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: |
Los Angeles SMSA, Limited Partnership, dba Verizon Wireless |
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Location: |
Donnell Hill Communication Site in Twentynine Palms |
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Size: |
Approximately 1,000 square feet of County controlled land and antenna space on the County controlled tower |
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Term: |
Twenty years, commencing August 1, 2009, through April 30, 2030 |
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Options: |
Two five-year options to extend |
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Rent: |
Monthly: $6,691.33 |
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Annual: $80,296* |
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*High-range for comparable facilities in the Twentynine Palms area per the competitive set analysis on file with RESD |
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Annual Increases: |
4% |
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Improvement Costs: |
Provided by Licensee for Licensee’s equipment, monopole, and equipment shelter |
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Maintenance: |
Provided by Licensee for Licensee’s equipment and equipment shelter |
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Utilities: |
Provided by Licensee |
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Insurance: |
The Certificate of Liability Insurance, as required by the License, is on file with the RESD |
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Holdover: |
Upon the end of the term, if permitted by Licensor the License shall continue on a month-to-month basis upon the same terms and conditions which existed at the time of expiration |
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Right to Terminate: |
The County has the right to terminate with 180-days' written notice, which may be extended to a total period of 240-days' while Licensee identifies a replacement site; the Licensee has the right to terminate with 90-days' prior written notice only in the event it cannot secure, loses or forfeits any permits required to operate its facility |
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, and Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on March 14, 2025; Innovation and Technology Department (Steve Miller, IT Division Chief, 388-0705) on March 6, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on March 10, 2025; Finance (Ivan Ramirez, 387-4205, and Eduardo Mora, 387-4376, Administrative Analysts) on April 8, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on April 14, 2025.
(BR: 531-2674)