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 for Telecommunications Facilities at 33550 Pine Mountain Road, Cloverdale, CA
End
Recommended Action:
Recommended action
Authorize the Public Infrastructure Department Director to execute a Second Amendment to Lease, for telecommunications purposes, extending the existing lease term for one additional ten (10) year term commencing June 1, 2035, and expiring May 31, 2045, with a monthly rent of $1,000 per month and which will increase at 3% per year for each year of this 10 year term, together with two additional five (5) year options to extend thereafter with an outside expiration of term of May 31, 2055.
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Executive Summary:
The Director of Sonoma County Public Infrastructure (SPI) requests Board approval of the amendment to the County lease at 34333 Pine Mountain Road, Cloverdale. The County is in the process of upgrading the telecommunications site it has operated since at least 1975 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 allow the Department to extend its lease term for a 10 year initial term, at an initial monthly rent of $1,000 per month, with two 5 year optional extensions thereafter, with 3% increases annually commencing in 2036, thereafter, allowing for long term and continuation operations at the Site through 2055.
Discussion:
The premises leased to County are located at 34333 Pine Mountain Road, Cloverdale (APN 117-240-049 and -051), are approximately 2,500 square feet in size, which site 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 occupied by Public Infrastructure and contains equipment used for public emergency communications and safety purposes.
The County recently exercised its option to extend the existing lease with Bendan, LLC, as Lessor, and the County of Sonoma, as Lessee for a period of ten (10) years commencing June 1, 2025, and terminating May 31, 2035. Pursuant to Section 4 of the Lease, the rent on June 1, 2025, will be $800/month and will remain that rate through May 31, 2035. County of Sonoma, as lessee, executed that certain executed Lease agreement dated May 17, 1998, that was later amended pursuant to that First Amendment dated November 7, 2005, providing County with the right to occupy the premises through 2035. 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.
2. Two (2) five (5) year lease extension options, for a new lease expiration date of May 31, 2055, if both options to extend are exercised.
3. 3% annual rent increases 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:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
12/10/2024 - Declare Intent to execute Second Amendment to the County lease at 34333 Pine Mountain Road, Cloverdale.
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
|
Expenditures |
FY 24-25 Adopted |
FY 25-26 Projected |
FY 26-27 Projected |
|
Budgeted Expenses |
$7,400 |
$9,600 |
$9,600 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$7,400 |
$9,600 |
$9,600 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
$7,400 |
$9,600 |
$9,600 |
|
State/Federal |
|
|
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$7,400 |
$9,600 |
$9,600 |
Narrative Explanation of Fiscal Impacts:
Current lease payments for this site are $600 per month but will increase to $800 per month on June 1, 2025. The $800 per month lease amount will remain in effect until May 31, 2035, when terms of this proposed amendment in this Board Item will become effective. Appropriations for the current lease are included in the FY 2024-25 SPI - Real Estate (10005-21020300) Adopted Budget. Lease expenditures associated with this Agreement will be included in a future year SPI - Real Estate Recommended Budgets.
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
Related Items “On File” with the Clerk of the Board:
Pine Mountain Lease and First Amendment to Lease