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Agenda Item
ASR
Control 22-000790 |
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MEETING DATE: |
09/13/22 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
5 |
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SUBMITTING
Agency/Department: |
OC Waste & Recycling (Approved) |
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Department contact
person(s): |
Tom Koutroulis (714) 834-4122 |
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Lisa Smith (714) 834-4357 |
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Subject: Approve Coyote Canyon
Landfill Telecommunications License Agreement Amendment
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Agreement to Form |
Consent Calendar |
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3 Votes Board Majority |
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Budgeted: Yes |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: See Financial Impact Section
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Prior Board Action: 7/11/2017
#32, 1/28/2014 #57 |
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RECOMMENDED ACTION(S):
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1. |
Approve Amendment Number One to the Amended and Restated Communications Site License PM123-18A&R between the County of Orange and Los Angeles SMSA Limited Partnership dba Verizon Wireless, effective upon date executed, and authorize the OC Waste & Recycling Director or designee to execute Amendment Number One. |
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2. |
Authorize the OC Waste & Recycling Director or designee to approve and execute future amendments and associated rent increases, for equipment modifications with the Amended and Restated Communications Site Licenses PM123-15A&R, PM123-16A&R, PM123-17A&R and PM123-18A&R. |
SUMMARY:
Approval of Amendment Number One to the Amended and Restated Communications Site License PM123-18A&R between the County of Orange and Los Angeles SMSA Limited Partnership dba Verizon Wireless, will result in an annual increase of $3,600 in revenue, and will streamline the amendment process by authorizing the Director of OC Waste & Recycling or designee to make similar amendments in the future on all four Coyote Canyon communication site licenses.
BACKGROUND INFORMATION:
OC Waste & Recycling (OCWR) is responsible for managing the County of Orange’s (County) solid waste disposal system including operations at three active landfills and five closed landfills. One of the closed landfills is the Coyote Canyon Landfill (Landfill) in the City of Newport Beach. The Landfill was operated by the County from 1963 to 1990 to meet the solid waste disposal needs of the Southern portion of the County.
In 1988, Fortistar Methane Group (Fortistar) commenced operations of a gas-to-energy plant (Gas Plant) at the Landfill under a lease agreement with The Irvine Company, the former landowner of the Landfill. During its tenancy, Fortistar’s predecessor in interest entered in to four subleases with the communications carriers allowing each carrier to install their telecommunications equipment on Fortistar’s 105-foot-high exhaust stack. In November 2006, the County acquired fee interest in the Landfill and became entitled to receive a portion of the revenue from the Fortistar subleases.
By December 2015 the Gas Plant, as operated by Fortistar, ceased generating landfill gas-to-electricity and demobilization and removal of the energy plant was initiated. Because the communication carriers’ equipment was located on the energy plant’s exhaust stack, OCWR worked with carriers to construct new cellular towers at the site.
To provide for uninterrupted wireless voice and data transmission services while the Gas Plant was being dismantled and demolished, the County entered into four Temporary Communications Site Licenses (Licenses) with Sprint PCS Assets, LLC (Sprint), New Cingular Wireless PCS, LLC (AT&T), T-Mobile West LLC (T-Mobile) and Los Angeles SMSA Limited Partnership d/b/a Verizon Wireless (Verizon) (Referred to as a group as “Carriers”) in September and October 2016, while permanent towers were constructed. These four Licenses were executed under delegated authority by the Chief Real Estate Officer per Resolution No. 14-014 and Minute Order dated January 28, 2014, (Gov. Code 25537) and authorized the Carriers to erect two temporary telecommunications facilities onto which all four Carriers could collocate before the demolition of the Gas Plant could be completed.
In 2016, upon the completion of the permanent towers, the Carriers wished to enter into long term agreements with the County. Amended and Reinstated agreements were approved for each carrier at the July 11, 2017, Board of Supervisors meeting, with a term commencing upon execution of the agreements and terminating on October 31, 2046. Rent for each of these Licenses started at $3,300 per month individually in the first year and increase by a percentage each year thereafter.
Each license agreement allows for Carriers to make minor repairs and replace failing equipment (like for like). All other non-minor repairs, improvements, upgrades and capability increases require a rent increase and approval by the Board of Supervisors.
Verizon has submitted plans (included in Attachment A) to install two additional communication antennas to increase its capabilities. Per a Telecommunication Rent Study conducted by Colliers International for OCWR, $150 per additional antenna was identified. The Study compared rent increases between property owners and Carriers within Southern and Northern California for various telecommunications equipment and site modifications. OCWR proposed a rent increase of $300 per month and Verizon has approved the proposed rent increase. The proposed increase is reflected in the attached Amendment Number One (Attachment A).
Additionally, in an effort to streamline future amendments and align OCWR Communication Site License with County CEO Real Estate’s Communication Site License template, OCWR is requesting authority for future equipment modifications and rent increases related to the Carrier site licenses be delegated to the Director of OCWR or designee. This delegated authority will establish consistency between County real estate site license agreement, as other County site license agreements have established delegated authority to the Department Director for equipment/construction modifications and rent increases.
Compliance with CEQA: The proposed Amendment Number One to the Amended and Restated Communications Site Licenses is a necessarily included element of the Coyote Canyon Landfill Gas Recovery Facility Demolition and Telecom Update (PA2016-091) project considered in the Final Mitigated Negative Declaration adopted by the City of Newport Beach, on September 22, 2016, as lead agency. On July 7, 2017, the County of Orange, a responsible agency under CEQA Guidelines 15381, relied on the Final Mitigated Negative Declaration pursuant to CEQA Guidelines section 15096, to approve the original four Amended and Restated Communications Site Licenses. The proposed Amendment Number One results in the minor modification and upgrade of existing equipment and the addition of two additional communication antennas that will be integrated into the existing permanent telecommunication structure and will not result in a change to the facility footprint or a new physical change to the environment. The circumstances of the project are substantially the same as described in the Final Negative Declaration and no substantial changes have been made in the project, no substantial changes have occurred in the circumstances under which the project is being undertaken and no new information of substantial importance to the project which was not known or could not have been known when the Mitigated Negative Declaration No. PA2016-091 was approved has become known; therefore no further environmental review is required.
FINANCIAL IMPACT:
Approval of the proposed telecommunications equipment modifications will result in a revenue increase of $3,600 annually, plus associated consumer price index annual increase. Revenue from the amendment will go to the OCWR Revenue Fund, Fund 299, and will be included in the budgeting process for future years. Annual total revenue, including the proposed revenue increase, is noted in the table below.
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License Year |
Annual Rent |
License Year |
Annual Rent |
License Year |
Annual Rent |
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FY 2016-17 |
$39,600.00 |
FY 2026-27 |
$62,868.00 |
FY 2036-37 |
$92,088.00 |
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FY 2017-18 |
$41,184.00 |
FY 2027-28 |
$65,316.00 |
FY 2037-38 |
$95,664.00 |
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FY 2018-19 |
$42,828.00 |
FY 2028-29 |
$67,860.00 |
FY 2038-39 |
$99,384.00 |
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FY 2019-20 |
$44,544.00 |
FY 2029-30 |
$70,500.00 |
FY 2039-40 |
$103,248.00 |
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FY 2020-21 |
$46,320.00 |
FY 2030-31 |
$73,248.00 |
FY 2040-41 |
$107,256.00 |
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FY2021-22 |
$51,876.00 |
FY 2031-32 |
$76,104.00 |
FY 2041-42 |
$111,180.00 |
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FY 2022-23 |
$53,916.00 |
FY 2032-33 |
$77,868.00 |
FY 2042-43 |
$115,752.00 |
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FY 2023-24 |
$56,028.00 |
FY 2033-34 |
$82,140.00 |
FY 2043-44 |
$120,252.00 |
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FY 2024-25 |
$58,224.00 |
FY 2034-35 |
$85,332.00 |
FY 2044-45 |
$124,932.00 |
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FY 2025-26 |
$60,504.00 |
FY 2035-36 |
$88,644.00 |
FY 2045-46 |
$129,792.00 |
The total revenue to the County for the remaining maximum term of the license is projected to be $2,129,976.
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Amendment Number One to Amended and
Restated Communications Site License Agreement PM123-18.1A&R
Attachment B - Amended and Restated Communications Site License PM123-18A&R
Los Angeles SMSA Limited Partnership d/b/a Verizon Wireless