Airport seeks retroactive OK for cellular equipment leases, proposes three five‑year extensions
Summary
The San Francisco Airport asked the Budget and Finance Committee to retroactively approve four cellular equipment leases (effective 07/01/2009) and to extend three of those leases five years; staff said total rent during the original terms was about $8 million and that, with extensions, companies would pay roughly $15.875 million.
Chair Carmen Chu and airport staff asked the Budget and Finance Committee to retroactively approve four cellular service equipment site leases and to amend three of the four leases to add five‑year extensions.
Kathy Weidner of the San Francisco Airport said the leases — with Cingular, Sprint Nextel, Verizon and T‑Mobile — had originally been approved by the Airport Commission in 2009 for five‑year terms but were not processed to the Board of Supervisors. "I apologize that it's necessary for us to request retroactive approval at this time," Weidner said, describing the omission as an administrative mistake.
Weidner told the committee the airport invites any licensed cellular provider that meets city contracting requirements to provide service at the airport rather than awarding an exclusive contract. She said total rent over the initial five‑year term for the four leases was about $8,000,000 and that, if the extensions are approved, the total amount paid to the city including the extension years would be $15,875,000.
A Budget Analyst report recommended approval. In response to a question from Chair Chu about remedies to prevent recurrence, Weidner said staff "included a check in our commission package process" so the city attorney and other offices would be alerted when an item required Board approval.
There were no public speakers on the item. The committee moved the resolution forward with recommendation without objection.
Next steps: the item will appear on the Board of Supervisors agenda (scheduled by the clerk for 12/04/2012 unless otherwise noted).
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