DATE: June 4, 2024
TO: Board of Supervisors
SUBMITTED BY: Edward Hill, Chief Operating Officer/Interim Director of Internal Services/Chief Information Officer
SUBJECT: First Amendment to Lease Agreement with Vast Networks/CVIN
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a First Amendment to Option and Lease Agreement with Central Valley Independent Network, LLC dba VAST Networks, a California Limited Liability Company, for use of County-owned property on the northeast corner of East Jensen and the Fowler Switch Canal, to extend the option term to June 30, 2024 with no change to the term or compensation ($500).
REPORT
There is no additional Net County Cost associated with the recommended action. Central Valley Independent Network, LLC dba VAST Networks (VAST) works in conjunction with the Corporation for Education Network Initiatives in California (Corporation) to improve the availability of broadband network access, particularly in rural and unserved areas of Central California. Approval of the recommended action will amend the Option and Lease Agreement No. 20-285 with VAST (Agreement), to allow VAST to use approximately 1,200 square feet of vacant County-owned land in Sanger, to provide broadband services to developments in the western areas of the City of Sanger. The Agreement was entered into on August 4, 2020, and provided VAST a six-month period, until February 3, 2021, to execute the option to lease (lease option), however, due to issues related to the pandemic, this project was put on hold and the lease option was erroneously not exercised in time. Approval of the recommended amendment will extend the lease option term to June 30, 2024 and allow the Agreement to continue. This item pertains to a location in District 4.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, the western portion of the City of Sanger will continue with limited access to broadband internet, and the County will not receive a monthly bill credit from VAST, in exchange for use of the County owned land.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. Consideration for the option period is $500, and the compensation for the lease term, if exercised, shall be a monthly credit on the County’s bill of an amount equivalent to the value of a 1-Gigabit Internet Connection, which is currently valued at approximately $1,200. The credit will be budgeted in the Internal Services Department (ISD) - Org 8905. Sufficient appropriations and estimated revenues are included in the ISD - Org. 8905 FY 2023-24 Adopted Budget and will be included in future budget requests.
DISCUSSION:
VAST works in conjunction with the Corporation to improve the availability of broadband network access, particularly in rural and unserved areas of Central California. The Corporation has a project plan designed to improve the availability of broadband networking infrastructure for 18 counties (Amador, Calaveras, Colusa, El Dorado, Fresno, Kings, Kern, Mariposa, Merced, Madera, Nevada, Placer, Tuolumne, Tulare, San Joaquin, Stanislaus, Sutter and Yuba) including the Central Valley.
The County has approximately 1,500 square feet of vacant County-owned land located at the northeast corner of East Jensen and the Fowler Switch Canal. VAST identified this property as a suitable location for use in their project plan. On August 4, 2020, your Board approved the Agreement with VAST. The approved Agreement included a portion of the subject property, approximately 1,200 square feet, for the installation of a telecommunication facility. The facility will consist of three telecommunication cabinets and associated support equipment. VAST will install fencing to encompass the open space. The facility will be unmanned, and access will only be required by VAST for routine equipment checks. Due to complications during the response to the pandemic, this project was put on hold and due to an administrative oversight, the option to lease was not exercised. Earlier this year, VAST reached out to move forward with amending the agreement to allow for this project to move forward.
With your Board’s approval, the Agreement will be amended to extend the Option Period through June 30,2024. This will allow the Agreement to move forward as planned and use otherwise unused County property for the installation of telecommunication equipment that will support the expansion of broadband network services in the western area of the City of Sanger.
REFERENCE MATERIAL:
BAI #36, August 4, 2020
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - First Amendment
CAO ANALYST:
Ahla Yang