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Agenda 12/11/2018 Item #16C 512/11/2018 EXECUTIVE SUMMARY Recommendation to approve a Second Amendment to Agreement for the Provision of Telecommunication Services and Facilities with Vertical Bridge S3 Assets, LLC, for the installation of antenna equipment for the County’s emergency radio system. OBJECTIVE: An Amendment is required to allow the County to install additional equipment on a leased communications tower related to the county’s emergency radio system. CONSIDERATIONS: On May 1, 1997, the County entered into an Agreement with Sprint-Florida Incorporated, predecessor to the current owner, Vertical Bridge S3 Assets, LLC. The purpose of the Agreement was to allow the County to install communications equipment for the County’s emergency radio system. The tower is located on Loop Road. The Lease was later amended by First Amendment to Standard Agreement for Central Office Space Lease and License ("First Amendment") in October 2001 to modify the County’s leased space, reduce the rental rate, and extend the lease term. The attached Second Amendment to Agreement for the Provision of Telecommunications Services and Facilities authorizes the County to occupy additional tower capacity to upgrade the existing antenna system to improve radio system coverage along the eastern portion of US 41 and vicinity. The Amendment revises the rent from $1,437.10 to $2,487.10 per month and replaces the original Exhibit "A" identifying the County’s new equipment. The rent for the added linear footage (10') is based on the landlord's current fair market value while the exiting linear footage (30') is based on the 1997 rent that includes annual five percent increases (Fact Sheet for rent clarification attached). If the Lease is extended as allowed in the First Amendment, the Lease will continue until May 1, 2026. FISCAL IMPACT: The monthly rent of $2,487.10 shall be withdrawn from Intergovernmental Radio Communication Program fund 188-140480. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board action. - JAB RECOMMENDATION: To approve and authorize the Chairman to execute the Second Amendment to Agreement for the Provision of Telecommunications Services and Facilities wit h Vertical Bridge S3 Assets, LLC. Prepared By: Michael Dowling, Sr. Property Management Specialist, Facilities Management Division ATTACHMENT(S) 1. Vertical Bridge Amendment Final CAO Approved 11-14-18 (PDF) 2. Vertical Bridge - Sprint Original Lease (PDF) 3. Vertical Bridge - Sprint First Amendment (PDF) 4. Vertical Bridge Tower Fact Sheet (DOCX) 16.C.5 Packet Pg. 1712 12/11/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.5 Doc ID: 7229 Item Summary: Recommendation to approve a Second Amendment to Agreement for the Provision of Telecommunication Services and Facilities with Vertical Bridge S3 Assets, LLC, for the installation of antenna equipment for the County’s emergency radio system. Meeting Date: 12/11/2018 Prepared by: Title: Property Management Specialist, Senior – Facilities Management Name: Michael Dowling 11/09/2018 2:48 PM Submitted by: Title: Deputy Department Head – Public Utilities Department Name: Dan Rodriguez 11/09/2018 2:48 PM Approved By: Review: Facilities Management Toni Mott Additional Reviewer Completed 11/09/2018 5:17 PM Information Technology John Daly Additional Reviewer Completed 11/13/2018 10:29 AM Public Utilities Department Dan Rodriguez Additional Reviewer Completed 11/14/2018 11:25 AM Public Utilities Department Sarah Hamilton Level 1 Division Reviewer Completed 11/14/2018 6:03 PM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 11/15/2018 7:25 AM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 11/15/2018 11:20 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 11/15/2018 2:33 PM County Attorney's Office Emily Pepin CAO Preview Completed 11/15/2018 3:30 PM Office of Management and Budget Laura Wells Additional Reviewer Completed 11/16/2018 9:16 AM Budget and Management Office Ed Finn Additional Reviewer Completed 11/16/2018 9:43 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 11/16/2018 11:17 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 11/27/2018 9:55 AM Board of County Commissioners MaryJo Brock Meeting Pending 12/11/2018 9:00 AM 16.C.5 Packet Pg. 1713 16.C.5.aPacket Pg. 1714Attachment: Vertical Bridge Amendment Final CAO Approved 11-14-18 (7229 : Second Amendment to Agreement with Vertical Bridge S3 16.C.5.aPacket Pg. 1715Attachment: Vertical Bridge Amendment Final CAO Approved 11-14-18 (7229 : Second Amendment to Agreement with Vertical Bridge S3 16.C.5.aPacket Pg. 1716Attachment: Vertical Bridge Amendment Final CAO Approved 11-14-18 (7229 : Second Amendment to Agreement with Vertical Bridge S3 16.C.5.aPacket Pg. 1717Attachment: Vertical Bridge Amendment Final CAO Approved 11-14-18 (7229 : Second Amendment to Agreement with Vertical Bridge S3 16.C.5.aPacket Pg. 1718Attachment: Vertical Bridge Amendment Final CAO Approved 11-14-18 (7229 : Second Amendment to Agreement with Vertical Bridge S3 16.C.5.aPacket Pg. 1719Attachment: Vertical Bridge Amendment Final CAO Approved 11-14-18 (7229 : Second Amendment to Agreement with Vertical Bridge S3 16.C.5.aPacket Pg. 1720Attachment: Vertical Bridge Amendment Final CAO Approved 11-14-18 (7229 : Second Amendment to Agreement with Vertical Bridge S3 16.C.5.aPacket Pg. 1721Attachment: Vertical Bridge Amendment Final CAO Approved 11-14-18 (7229 : Second Amendment to Agreement with Vertical Bridge S3 16.C.5.aPacket Pg. 1722Attachment: Vertical Bridge Amendment Final CAO Approved 11-14-18 (7229 : Second Amendment to Agreement with Vertical Bridge S3 16.C.5.aPacket Pg. 1723Attachment: Vertical Bridge Amendment Final CAO Approved 11-14-18 (7229 : Second Amendment to Agreement with Vertical Bridge S3 16.C.5.b Packet Pg. 1724 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1725 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1726 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1727 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1728 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1729 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1730 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1731 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1732 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1733 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1734 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1735 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1736 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1737 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1738 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1739 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1740 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1741 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1742 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1743 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1744 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1745 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1746 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1747 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1748 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1749 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1750 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1751 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1752 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1753 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1754 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1755 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1756 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1757 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1758 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1759 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1760 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.b Packet Pg. 1761 Attachment: Vertical Bridge - Sprint Original Lease (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.c Packet Pg. 1762 Attachment: Vertical Bridge - Sprint First Amendment (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) 16.C.5.c Packet Pg. 1763 Attachment: Vertical Bridge - Sprint First Amendment (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC) FACT SHEET Vertical Bridge Tower Lease started: May 1, 1997 Lease expires: May 2, 2026 Currently:  Two omni/whip antennae - Current: 15’ long  Includes interior space in equipment shelter and utilities  Rent is currently $1,437.10  Current rental rate is $47.9033 per linear foot  Monthly rate is based on a 2001 Amendment which added a five percent increase to the annual rent and revised the rent from $570 to $627 per month, or $20.90 per foot, due to a change in equipment.  30’ of antennae x $47.9033 per linear foot (based on original Lease and Amendment) = $1,437.099 or $1,437.10 monthly rent Proposed:  Two omni/whip antennae – 20’ each  Increase in rent is $105 per linear foot. This figured is based on current Fair Market Rent.  5’ increase per antennae x 2 antennae = 10’ x $105 rent increase = $1,050 increase per month Rent methodology: Typically, tower rents are not clear-cut and fluctuate from tower-to-tower. Rents are based on the owner of the tower, the actual location of the tower, the location of the tenant’s equipment on the tower, the size of space occupied within the equipment shelter, the inclusion of utilities and/or use of owner’s generator, and length of lease term. John Daly, Radio Communications Manager, IT, feels that the $105 is fair market rent. This location is not only vital to the emergency radio system, but there are no other towers in the area to support the County’s equipment for coverage. The County is not paying utilities and has free use of the landlord’s generator at this location. Based on the new rental rates, if the County were to negotiate a new lease at this location, the rent for 40’ of antenna would be $4,200 per month. By amending the lease, the County saves money. 16.C.5.d Packet Pg. 1764 Attachment: Vertical Bridge Tower Fact Sheet (7229 : Second Amendment to Agreement with Vertical Bridge S3 Assets, LLC)