Title
Department of Transportation recommending the Board approve and authorize the Chair to sign a lease agreement between El Dorado County (Lessor) and New Cingular Wireless (Lessee) PCS, LLC for a total of 728 square feet for operating a wireless facility at 7101 Wilson Boulevard in Tahoma for three years upon execution, with an annual rent amount of $48,600, for the initial term, including four five-year renewal options with guaranteed increase as outlined in Section 3, “Term and Payment” in Attachment B, and a one-time amount of $10,000 upon execution for complete execution of the lease agreement.
(District 5)
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
In 2003, a lease agreement was approved for AT&T to lease space for a cell tower facility to be constructed on County-owned property in Tahoma, El Dorado County. At that time, AT&T had indicated that cell phone coverage along the Tahoe west shore was inadequate and that there were limited opportunities to locate cell tower sites in that area on properties that would provide suitable transmission characteristics and at the same time satisfy environmental restrictions. The artificial pine tree cell tower has been in operation under the previous lease agreement.
In 2024, New Cingular Wireless PCS LLC approached El Dorado County to lease an additional 148 square feet in the Tahoma Corporation Yard to accommodate equipment that would provide back-up power. No additional cell towers will be constructed. Department of Transportation continues to work with New Cingular Wireless PCS LLC to ensure all regulatory requirements and permitting are completed.
With the approval and full execution of the New Cingular Wireless PCS, LLC lease, the current AT&T lease will be terminated without interrupting the cell tower services.
The material terms of the lease, as negotiated, are as follows:
- Lease term is initially five-years with the right to an automatic renewal for four (4) additional five (5) year terms.
- A one-time payment of $10,000 upon execution of the lease agreement.
- Annual rent payment of $48,600 with periodic increases through the term of the agreement
- New Cingular Wireless PCS LLC to provide County-required insurance coverage.
The proposed lease agreement does not impede Department of Transportation operations.
ALTERNATIVES
The Board could choose not to approve the lease agreement. The cell tower occupying 580 square feet would remain for the duration of the current lease agreement and New Cingular Wireless PCS LLC would not be authorized to expand their footprint by 148 square feet under the proposed lease agreement.
PRIOR BOARD ACTION
September 11, 2003, Item #53
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel, Risk Management
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Department of Transportation will receive an immediate one-time payment of $10,000 upon execution and will receive $48,600 per year in lease payments (with periodic escalations) for the duration of the lease. The property was acquired with Road Fund monies; therefore, funds generated from the property shall be properly deposited into the Road Fund.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair's signature on two (2) originals of each lease agreement.
2) Return one (1) fully executed Lease Agreement to Ashley Johnson in DOT.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Rafael Martinez, Director
Department of Transportation