DATE: December 14, 2021
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director, Internal Services/Chief Information Officer
SUBJECT: Amendment to Agreement with Fresno MSA Limited Partnership
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute First Amendment to Agreement with Fresno MSA Limited Partnership, dba. Verizon Wireless, for communications equipment storage and antennae space atop the County Plaza Building located at 2220 Tulare Street, to extend the term by five years from August 1, 2024 to July 31, 2029 and increasing the maximum by $193,055 to a total of $831,381.
REPORT
Approval of the recommended action will extend the term of the antenna lease with Fresno MSA Limited Partnership, dba. Verizon Wireless (Verizon), provide for increased cellular coverage to the residents of Fresno County, and generate approximately $38,000 per year in rent revenues. This item pertains to a location in District 3.
ALTERNATIVE ACTION(S):
If the recommended action is not approved, the existing antenna lease with Verizon will expire on July 31, 2024.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The maximum compensation of the lease agreement will increase from $638,321 to $831,381. Verizon will pay rent to the County in the amount of $37,097.12, beginning August 1, 2024, and the rent will increase 2% on August 1st of each year of the lease term. The funds will be deposited into Discretionary Revenues, Org 0415, Account 3404.
DISCUSSION:
On August 1, 2019, the Director of Internal Services/Chief Information Officer (ISD Director) executed antenna lease AntL-011, pursuant to the Board’s delegated authority per Leases and licenses excluded from bidding procedures [County Ordinance, Chapter13.28, Section 13.28.030(C)]. The agreement leased communication equipment storage and antenna space atop the County Plaza Building, located at 2220 Tulare Street, to Verizon for a five year term. On August 1, 2019, Verizon began to pay rent to the County in the amount of $33,600, and the rent has increased 2% on August 1st of each year. The current rent is $34,975.44 per year.
Approval of the recommended action will add a five-year extension to the lease and provide for an average $38,000 per year in rent revenue to the County over the proposed extension term. The extension is brought before your Board, as the terms of the amendment now exceed the ISD Director’s delegated authority.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment to Agreement with Fresno MSA Limited Partnership
CAO ANALYST:
Sonia M. De La Rosa