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American River Messenger

Cell Tower Leases’ Sales Approved to Fund Amphitheater Seating Renovation

Jul 09, 2024 11:30AM ● By Shaunna Boyd

FAIR OAKS, CA (MPG) - Fair Oaks Recreation and Park District Board of Directors at their June 26 meeting heard from a Fair Oaks resident during public comment who was concerned about the Miller Park disc golf course, which she said poses a significant danger to other park users.

The resident said that areas where children play are too close to the disc golf course and a child was hit by a disc. She asked the board to consider relocating the disc golf course.

Board Chair Ralph Carhart asked District Administrator Mike Aho to look into ways to improve park safety and bring the issue back for board discussion at a future meeting.

Another resident asked for an update about Village construction, stating that it seemed nothing was moving forward. Carhart said they often get similar questions “because of the unfortunate delays” that have plagued this project. While it is taking longer than originally planned, Carhart said, "a lot of internal work” is happening inside the facilities.

“We’re beginning to see the light at the end of the tunnel,” Carhart said, as project completion is expected by late December or possibly early January.

Vice-Chair Delinda Tamagni said, “We feel your frustration. … We all want it to be done as soon as possible.” Many delays were caused by unanticipated issues, Tamagni said, such as utilities that had to be relocated or discovering the Community Clubhouse foundation was set on boulders. There were also significant rain delays and often long waits for Sacramento County permit approvals, Tamagni said.

Aho said the district’s website has weekly updates to keep the public informed about construction progress. He also invited residents to reach out to him directly if they want a more detailed discussion.

The board then considered a potential plan to renovate the outdoor seating area as part of the Veteran’s Memorial Amphitheatre improvements in the Village.

Originally, the district didn’t plan to include the seating as part of the project in an effort to reduce costs on an already expensive and complicated renovation. As the theatre construction nears completion, Aho said, it has become clear that updating the seating later will not be feasible. After the new theatre is finished, he said, it will be impossible to access the outdoor seating area with the large equipment necessary to do the work. Delaying the work would also end up costing the district more than if done now as part of the existing contract, he said.

The current seating renovation estimate is $777,248, which includes design, permitting, demolition, removal, grading, construction and installation.

Not enough funding is available to cover the seating renovation, Aho said, but a potential plan to sell the district’s cell tower leases, scheduled later in the agenda, could provide more than enough funds to cover the cost. The board decided to consider the cell tower item first and return to the seating plan vote.

In May, the board approved soliciting bids in the potential sale of the lease of cell towers located in Miller Park and multiple offers were received. The highest and most beneficial to the district was from Towerpoint Capital, which offered $2,055,000 for a 99-year lease, with an option to expand the lease area by up to 1,000 square feet and half of any revenue generated by the expansion would go to the district.

The sale would only be for the cell towers’ lease; the district would retain land ownership.

If approved, the district would net $1,948,250 after closing costs and fees. Aho said that some funds could cover renovation costs for the amphitheater seating and the district would be left with more than $1 million for other uses, such as revenue-generating investment options.

Because technology is always changing, Carhart said, cell towers might become obsolete so “it’s a good idea to sell them now and get that money while they can.”

“I’d like to see investments for the future,” Carhart said.

Tamagni said she had mixed feelings about the sale, because it would remove a steady revenue source as the district currently receives approximately $9,000 per month in revenue from the cell tower leases. Tamagni suggested that they delay the sale a few months to see if other funding sources could be found.

Aho said he is “always” looking for other funding and moving funds around to where they can be most effective but delaying the seating plan would cause further delays to the overall project.

The board voted 3-1 to approve the sale of the cell tower leases, with Tamagni dissenting (and Director Darren Mounts absent).

With a funding source now identified, the board returned to discussing the amphitheater seating renovation and voted unanimously to approve the plans and authorize the construction contract change.

The board then considered a cost-share agreement with the Fair Oaks Water District for waterline work at California Avenue.

In July 2021, Fair Oaks Recreation and Park District and the Fair Oaks Water District agreed to relocate public water facilities impacted by the district’s Village improvement projects. The agreement was for work not to exceed $260,000, which was to be covered by the Fair Oaks Water District. In exchange, Fair Oaks Water District would receive a future water well site in an area still to be determined at Phoenix Park.

However, the waterline work extended beyond the original scope outlined in the agreement and Fair Oaks Water District sent a bill to Fair Oaks Recreation and Park District to cover the additional cost of $106,706. Aho said they immediately rejected that bill, because additional costs had to be approved by the Fair Oaks Recreation and Park District and Fair Oaks Water District boards.

After discussion, Fair Oaks Water District and Fair Oaks Recreation and Park District agreed to a potential cost-share, with each covering $53,353, since the expanded work benefits both agencies. Because the work is part of the park’s essential infrastructure, Aho said, the cost is eligible to be covered by Measure J funds.

The board voted unanimously to approve the cost-share agreement.

The next Fair Oaks Recreation and Park District Board of Directors meeting will be at 6 p.m. July 17 at the Fair Oaks Water District, 10326 Fair Oaks Blvd.