To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Lease with State of California, Department of Transportation (Caltrans) for a portion of Nadeen Peak in Crockett, California.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Public Works Director, or designee, to execute a lease with the State of California, Department of Transportation (Caltrans), to authorize Caltrans to access and use a portion of the County’s Nadeen Peak telecommunications facilities during an initial ten-year term beginning October 1, 2024, for payment to the County at an initial monthly fee of $4,455, with annual increases, as recommended by the Public Works Director.
FISCAL IMPACT:
100% General Fund
BACKGROUND:
The County entered into a long-term lease with a private landowner (Master Lease), which expires July 31, 2081, that permits the County to maintain a telecommunications facility and tower on the property off Cummings Skyway in Crockett, identified as Assessor’s Parcel No. 354-300-007, commonly referred to as Nadeen Peak.
The County, as sub-lessor, and Caltrans, as sub-lessee, are parties to a lease dated August 12, 2003, for a portion of Nadeen Peak (Original Lease). On July 31, 2023, the parties agreed to extend the term of the Original Lease on a month-to-month basis. The County and Caltrans wish to terminate the Original Lease and enter into a long-term lease that will have an initial term that begins on October 1, 2024, and expires on September 30, 2034, with three five-year options to renew.
Under the terms of the Original Lease, Caltrans constructed and installed site improvements that included a 120-foot high, four-legged antenna tower, a 12’ x 10’ structure used to house Caltrans’ assorted communications equipment, a fence, and associated improvements on the Property. The parties agreed that, in lieu of Caltrans paying rent during a portion of the term of the Original Lease, these site improvements would become the property of the County when they were completed.
The new lease requires Caltrans to pay the County an initial monthly rent of $4,455, which will increase 3% annually. The new lease could be extended through September 30, 2049. Either party may terminate the new lease upon advance written notice to the other party.
The new lease allows Caltrans to maintain critical communications equipment, and it adequately compensates the County for the use of its facility. For these reasons, the Department recommends that the Board approve entering into the new lease with Caltrans.
CONSEQUENCE OF NEGATIVE ACTION:
County and Caltrans would continue to operate within the terms of the existing month-to-month lease.