To: Board of Supervisors
Department or Agency Name(s): Sonoma County Public Infrastructure
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2550
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Second Amendment to Lease with Bendan, LLC for Telecommunications Facilities at 33550 Pine Mountain Road, Cloverdale, CA
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Recommended Action:
Recommended action
Authorize the Board Clerk to publish notice declaring the intent of the Board of Supervisors to authorize the proposed Second Amendment to Lease with Bendan, LLC, to extend the existing lease for a ten (10) year term commencing June 1, 2035, with rent of $1,000 per month subject to 3% increase each year of the extension term, together with two additional five (5) year extension options.
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Executive Summary:
The Director of Sonoma County Public Infrastructure (SPI) requests Board consideration of a proposal to extend the County’s lease at 33550 Pine Mountain Road, Cloverdale. The County currently leases space to operate the telecommunications facility on Pine Mountain. The County is in the process of upgrading the facility and desires to secure the long term right to continue to operate for telecom purposes at said site at its election. The proposed Amendment will extend the existing lease term for an additional ten years, at an initial rent of $1,000 per month, with two 5 year extension options, subject to 3% increases annually commencing in 2036. The Amendment will allow for long term and continuing operations at the site through 2055.
Discussion:
The premises leased to County are located at 33550 Pine Mountain Road, Cloverdale (APN 117-240-049 and -051), is approximately 2,500 sf in size, which is located on the south flank of Pine Mountain, approximately 4.5 miles northeast of downtown Cloverdale, Sonoma County, California (the “Site”). The Site is used for public emergency communications and safety purposes.
The County has operated a telecommunications facility at the Site since before 1975. The existing Lease, with Bendan LLC, was executed in 1998 and later amended in 2005, providing for an extension of the term through 2025. The County recently exercised its option to extend the lease an additional ten (10) years, through May 31, 2035. Pursuant to Section 4 of the Lease, the rent on June 1, 2025, will be $800/month and will remain at that rate through May 31, 2035.
The County is in the process of making significant upgrades to the vault and tower at the site, as well as improving the access road. Operations at this Site are part of the County’s long-term plan for efficient telecommunications across the County.
Lease Amendment. The proposed Second Lease Amendment between Bendan, LLC, , as Lessor, and the County of Sonoma, as Lessee, contains the following key provisions:
1. One, ten-year lease extension from June 1, 2035, through May 31, 2045, with rent at $1000/month escalating 3% per year.
2. Two (2) five (5) year lease extension options, for a new lease expiration date of May 31, 2055, if both options are exercised.
3. 3% annual rent increases in during each year of the first extended term commencing June 1, 2036, and any option term.
4. County pays for all improvements installed and operated and all utilities needed to operate at the Site.
5. County maintains the road to the Site at its expense.
6. All other terms of the existing lease remain unchanged, including the County’s responsibility for paying for its own utility use and the County right to terminate the Lease for any or no reason with 90 days’ written notice, and upon 30 days’ notice if the Board determines to no longer appropriate funds for this Site.
Strategic Plan:
Pillar: Resilient Infrastructure
Goal 2: Invest in capital systems to ensure continuity of operations and disaster response.
Objective 1: Strengthen critical communications infrastructure, interoperability, and information technology tools relied upon during disasters.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
11/07/2005 - Authorize General Services Director to execute First Amendment to Lease pursuant to resolution No 05-0919
06/02/1975 - Resolution No 49363 of Board of Supervisor Authorizing Chair to Execute a Lease for Radio Repeater Installation
Fiscal Summary
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Expenditures |
FY 24-25 Adopted |
FY 25-26 Projected |
FY 26-27 Projected |
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Budgeted Expenses |
$ |
$ |
$ |
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Additional Appropriation Requested |
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Total Expenditures |
$ |
$ |
$ |
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Funding Sources |
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General Fund/WA GF |
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State/Federal |
$ |
$ |
$ |
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Fees/Other |
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Use of Fund Balance |
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Contingencies |
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Total Sources |
$ |
$ |
$ |
Narrative Explanation of Fiscal Impacts:
The proposed Lease expenditures will be included in a future SPI Real Estate (10005-21020300) Recommended Budgets commencing in 2035.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Attachment 1 - Second Amendment to Lease between Bendan, LLC, as Lessor and the County of Sonoma as Lessee
Attachment 2 - Notice of Intent to Lease
Attachment 3 - Rent Schedule
Related Items “On File” with the Clerk of the Board:
Pine Mountain Lease and First Amendment to Lease