DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute License Agreement With American Tower Corporation (ATC Sequoia, LLC) For Use Of Randolph Radio Site For 800 Megahertz Radio Equipment
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RESOLUTION
body
WHEREAS, the Dakota County Board of Commissioners authorized the County Administrator to execute a no cost license agreement with Verizon Wireless on December 19, 2006 (Resolution No. 06-575) for an initial term of five years, with an option for Dakota County to renew for an additional three terms of five years each; and
WHEREAS, Verizon Wireless has transferred ownership of said tower to American Tower Corporation d/b/a ATC Sequoia, LLC; and
WHEREAS, by Resolution No. 23-506 (November 14, 2023), the Dakota County Board of Commissioners authorized the County Manager to execute a first amendment to the no cost license agreement with ATC Sequoia, LLC for the remaining term expiring January 31, 2027; and
WHEREAS, ATC Sequoia, LLC has requested a new five-year license beginning February 1, 2027, for the co-location of 800 MHz radio equipment at the Randolph site to include monthly license fees and an annual escalator of 3%; and
WHEREAS, operating costs for the 800 MHz radio services are reimbursed annually by subscriber fees from 800 MHz users; and
WHEREAS, in the future, the license agreement will automatically renew upon expiration for the current term and for up to three subsequent five-year renewal terms, under the same terms and conditions, unless terminated by one or both parties.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the County Manager or designee to execute a license agreement with American Tower Corporation (ATC Sequoia, LLC), at a cost of $18,000 for the first year, adjusted annually by 3% with a 180-day notice of termination clause for either party, subject to approval as to form by the County Attorney’s Office.
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BACKGROUND
Dakota County’s 800 MHz subsystem is supported by ten radio sites located throughout the county. To maximize efficiency and reduce infrastructure costs, Dakota County partnered with several cities and the Minnesota Department of Transportation (MnDOT) to place equipment on existing water tanks and towers. Of the ten sites, six are city-owned and two are owned by MnDOT as part of the statewide 800 MHz radio network. Agreements are in place for the County’s continued use of these eight sites. The remaining two sites-Welch Tower and Randolph Tower (formerly Verizon Tower)-operate under leases with private tower owners.
Since 2006, Dakota County has operated on a no-cost license agreement for tower space at the Randolph Tower. However, vertical real estate has become increasingly valuable in the telecommunications industry. As a result, ATC Sequoia LLC is no longer willing to provide tower space at no charge.
RECOMMENDATION
recommendation
Staff recommends the Board authorize the Deputy County Manager too execute a new license agreement with American Tower Corporation (ATC Sequoia, LLC).
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FINANCIAL AND STAFFING IMPACTS
The 2027 contract cost of $18,000 is included in the 2027 Office of Risk Management Budget and is funded by levy. The contract cost is part of the radio services operational budget which is a net zero program reimbursed annually by subscriber fees from 800 MHz users. Each year would be funded and reimbursed for a net zero cost to the County.
|
Fund |
Department |
Program |
Funding Source |
Recommended Budget |
|
General Fund |
Office of Risk Management |
800 MHz Operations-Space Rent |
800 MHz Radio Subscriber Fees |
$45,053 |
PREVIOUS BOARD ACTION
06-575; 12/19/06
23-506;11/14/23
ATTACHMENTS
Attachment: License Agreement
CONTACTS
Department Director: Jenny Groskopf
Author: Jenny Groskopf