UNITED STATES DEPARTMENT OF THE INTERIOR



UNITED STATES DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT

WASHINGTON, D.C. 20240

September 19, 2001

In Reply Refer To:

2860 (350) P

EMS TRANSMISSION 09/20/2001

Information Bulletin No. 2001-153

To: All Field Officials

From: Group Manager, Lands and Realty

Subject: Calendar Year (CY) 2002 Communication Uses Rental Schedule

Calendar Year 2002 Communication Uses Rental Schedule

The Calendar Year 2002 rental schedule for communication uses is attached as a WordPerfect document. The schedule provides rental rates by population zones for various communication uses and reflects the annual adjustment based upon the change in the Consumer Price Index, All Urban Consumers (CPI-U), up 2.8 percent from July 2000 to July 2001. Regulations in 43 CFR 2803.1-2(d)(2)(i) state that rental payments will be updated annually based on the change in the CPI-U and Ranally Metro Area (RMA) rankings.

The 2.8 percent increase should also be applied to any rental value established by other methods if, by the terms of the authorization, the annual rent is indexed to the CPI-U.

Field Offices should reproduce the schedule locally and copies made available to applicants or holders as appropriate or as requested. The schedule will also be posted on the BLM Washington Office external web page at under the Lands and Realty section.

Automated Rental Calculation Programs

1. Consumer Price Index, Urban (CPI-U) index factor.

A. Quattro Pro Spreadsheet

To update the Quattro Pro rental calculations program, insert (1.028" in cell (H65" on the (Year 1" worksheet.

2

B. Applix Spreadsheet

In the year 1 worksheet, go to the CPI-U box, and insert (1.028" in the rate column for year 2002.

Updating the CPI-U index factor creates the 2002 rent schedule and automatically calculates calendar year 2002 rents in both programs. If appropriate, adjust inventory worksheets based on the September 30, 2001, certified inventory provided by the holder.

2. Changes in the population of the community served for CY 2002.

A. Quattro Pro Spreadsheet.

Enter the appropriate population code (1-9) in cell (Year 6: F9".

B. Applix Spreadsheet.

Unlock the cells for the schedule and insert the correct population code (1-9) in the appropriate cell.

Ranally Metro Areas (RMAs)

Attachment 1-1, Listing of Cities by Population Strata (RMAs), has not changed for CY 2002.

Cellular Telephone and Personal Communication Services (PCS)

Please note that the rate column for Cellular Telephone and PCS also includes the following wireless uses:

Enhanced Specialized Mobile Radio (ESMR)

Improved Mobile Telephone Service (IMTS)

Air-to-Ground

Offshore Radio Telephone Service

Cell Site Extenders

Local Multipoint Distribution Service

The above uses may be listed as a CMRS (Commercial Mobile Radio Service) use on the license from the Federal Communication Commission (FCC). For purposes of rent determination, all of the above uses must be valued at the rent specified for the (Cellular and PCS( use.

3

Internet Service Provider (ISP) Use

For purposes of rent determination, ISP uses should be valued at the rent specified for the (Microwave( use. A customer of an internet service provider who has a communication facility on public land to receive/transmit an ISP signal, would be considered a PMRS use for rental determination purposes.

INITIAL RENTAL DETERMINATION AFTER LEASE ISSUANCE (Including Partial Year Rent)

An initial rent must (unless rent is exempt or reduced to $0) be determined and collected for new authorizations of communication uses/facilities for facility owners/managers (and tenants who choose to have their own authorizations) at time of lease issuance. Tenant use is not included in the partial year rental calculation for facility owners/managers. Initial rent (including partial year rent) for a new authorization for a communication site use is determined in the same manner as initial rent is determined for a linear right-of-way use, with one exception as noted below. That exception occurs when a communication use lease is issued between July 1 and September 30.

Initial rent for a linear use authorized between July 1 and September 30 (and extending to December 14th) would include the rent for the remainder of the current year (partial year rent) plus the entire second year. For communication uses, however, only include the second year (in addition to the current, partial year rent) in the initial rental calculation when the new authorization is issued between October 1 and December 14th. The reason for this exception is that regulations at 43 CFR 2803.1-2(d)(6) require the holders of communication use authorizations to submit an inventory of tenant use as of each September 30th for use in calculation of the next year(s rent due on January 1st.

(a) Count the initial month if the anniversary date (date lease is approved by the authorized officer) falls on the 14th day or earlier. The initial month is not counted if the anniversary date falls on the 15th day or later.

(b) The termination date for the lease must be December 31st of the last year of the lease.

(c) Initial rent due for leases issued between January 1 and September 30 will only include the current year in accordance with the following formula:

Partial Year Factor X = $

Factor Rent Rate Rent due

4

Part year factors are:

12 months 1.0000 6 months 0.5000

11 months 0.9167 5 months 0.4167

10 months 0.8333 4 months 0.3333

9 months 0.7500 3 months 0.2500

8 months 0.6667 2 months 0.1667

7 months 0.5833 1 month 0.0833

(d) Initial rent due for leases issued between October 1 and December 14th will include the current year rent due as determine in (c) above (and using the current year(s rent schedule), plus the following year(s rent for the appropriate communication use utilizing the following year(s scheduled rent rate (since the new schedule for the following year should be available for use by October 1 of each year).

(e) Example: A new lease for a facility manager is issued on October 20, 2001 and the facility serves Grand Junction, CO. Initial rent would be calculated by multiplying the part year factor for two months (0.1667) times the 2001 rate for Facility Manager for Grand Junction ($3,393.88). In addition, the entire scheduled rate for Facility Manager for calendar year 2002, using the 2002 schedule ($3,488.91), would be included in the initial rent bill. Total initial rent would equal $4,054.67. If the same lease were issued on August 29, 2001, the initial rent would only be for four months or $1131.18. The lease holder would then provide the tenant/customer use inventory as of Sept 30, 2001, and the 2002 bill would be calculated using that information.

Qualifications to Hold Communication Use Lease

Regulations at 43 CFR 2802.3 cover application content and holder qualifications. Holders of communication use leases are generally either considered Facility Owners or Facility Managers.

Facility manager means a person or entity that (1) holds a communication use right-of-way, (2) owns a communication facility on public land, (3) leases space in the facility to communication users, and (4) does not own or operate his or her own communications equipment in the facility for personal or commercial purposes.

Facility owner means a person or entity that (1) holds a communication use right-of-way, (2) owns a communication facility on public land, (3) may or may not lease space in the facility to other communication users, and (4) owns and operates his or her own communications equipment in the facility for personal or commercial purposes.

5

Both facility owners and managers own communication facilities that are authorized by the communication use lease. Significant changes in use or in the facility must be approved by the authorized officer and the lease amended to reflect the proposed changes.

Questions have been received on whether a lease holder has to be the owner of any communication facility in order to hold or to be issued a grant or lease. The answer is yes, with one exception. Holders of communication leases must always comply with the definition of either a (Facility Manager( or a (Facility Owner( as defined above. It is not in the public interest for an entity to hold only an authorization and not to actually own any of the facilities or equipment for those types of communication uses and systems provided for at 43 CFR 2800.07(a)(5). In addition, tenants and customers of either a facility owner or facility manager do not need their own authorization to collocate their equipment and/or antenna within or on existing towers or buildings. However, if a tenant/customer owns a facility (see definition), they must have their own authorization. And while not required, a tenant/customer may also hold a right-of-way grant for collocation of their communication equipment (electronic equipment/antennas - not facilities) in facilities authorized to a facility owner or manager. However, all parties holding grant and/or lease authorizations will be assessed rent for all uses associated with their authorization.

Authorization of Facilities Owned by Tenants/Customers

Regulations at 43 CFR 2801.1-1(g) states that each right-of-way grant (lease) shall .... be limited to those lands which the authorized officer determines will be occupied by the facilities authorized. (Facility( means an improvement constructed or to be constructed or used within a right-of-way pursuant to a right-of-way grant. For purposes of communication site rights-of-way, facility means the building, tower, and/or other related incidental improvements authorized under terms of the right-of-way grant.

All facilities must be authorized by a right-of-way grant (lease), even those owned by tenants and/or customers. If a tenant (a wireless carrier, for example), collocates antenna on an existing tower of a facility owner, but constructs and owns his/her own building, equipment shelter, or any type of housing to store and operate their equipment, that tenant must also have an authorization (lease or grant) from the BLM. The tenant pays full scheduled rent for their use, plus, because it leases tower space from a facility owner, that use must also be included in the inventory of tenant/customer uses submitted by the facility owner.

Authorizations Held by (Site Manager( and (User Associations(

(Site Managers( and (User Associations( may be holders of a communication use lease. See Attachment 3 for the specific requirements, benefits, and limitations associated with these types of authorizations.

6

Use Inventory Reporting Requirements

Holders of communication leases/grants must report by October 15th of each year the number and types of uses (tenants/customers) that were located in their facilities on September 30th of that same year. Holders should only report their own use(s), plus the use(s) of any individual business entities that are located within or on their facilities. Holders do not need to report the number of frequencies, channels, or FCC licenses associated with these uses, unless requested by the authorized officer. Rent is not determined by the number of frequencies or channels being utilized. In most cases, a tenant or business entity will only have one use. In rare cases, the same business entity may have two separate uses (for example two CMRS uses or one TV use and one FM radio use). Remember, only primary uses need to be reported and not the ancillary system that supports that primary use (i.e., microwave or two-way radio system that might support any of the uses listed at 43 CFR 2803(d)(1)).

Transition by Wireless Carriers from 2.5G to 3G (and beyond) Technology

Field Offices have had questions concerning the transition by wireless carriers from 2.5G technology to 3G technology, and whether this transition requires new authorizations or amendments to existing authorizations.

In recent years the wireless (cellular) uses have evolved from 1G (1st Generation Technology) to the 2.5G technology of today. In the very near future, wireless use will evolve to 3G and 4G technology. 1G consisted of analog voice transmissions (no data); 2G consisted of digital (TDMA, CDMA, GSM) transmissions, low rate data, and internet, email and fax access; 2.5G deployed new (GPRS/EDGE/\/-CDMA) digital transmission services, plus open IP service platforms and medium rate packet data services. 3G technology will continue this evolution by increasing the efficiency and performance of mobile wireless networks, especially in the areas of multi-media mass markets (data, video); multi-mode terminals; advanced, high speed data; IP based networks; and a convergence of global wireless networks.

This evolution from 1G to 3G usually takes the form of smaller and improved equipment (antennas, transmitters, receivers, etc.). This trade-out of equipment at a communication facility is generally seamless (i.e., all changes tend to be internal and not noticeable) and requires no additional authorizations or amendments to existing authorizations. In rare cases, some wireless carriers may actually retain all their old equipment (1G - analog transmission with separate frequency and FCC license) while installing new equipment for a new separate 3G cellular use that has a separate FCC license and operates at a different set of frequencies. Unless there is a need to add or modify existing tower or building structures, this new use will not require a new or amended authorization, but would be a new use for rental purposes. Therefore, continue to communicate with each of your wireless carriers to stay current of their existing technologies and corresponding siting needs, as well as, to ensure accurate and timely rental billings.

7

Customer Service Standards

It continues to be Bureau of Land Management (BLM) policy to process all minor category right-of-way applications within 30 days of receipt or of the request. If the processing of an

application and issuing the grant or lease is to take more than 60 days, the authorized officer shall inform the applicant in writing of this fact. (BLM Manual 2801.3B2b). A (request( is a complete and acceptable application (SF-299), accompanied by the appropriate processing fees. If the siting request can be accommodated at an existing communication facility, an application and approval from BLM is not necessary.

Siting requests should be approved unless there are unavoidable conflicts with the BLM(s mission, or current or planned use of the property. Denials must be in writing and include a full explanation of the reasons for not approving the siting request. (Refer to Attachment 6 of Washington Office Information Bulletin (IB) 98-23 for GSA Siting Criteria).

Please address any questions regarding the contents of this IB or information contained in the attachments to Rick Stamm at (202) 452-5185 or Bil Weigand at (208) 373-3862.

Signed by: Authenticated by:

Ray Brady Barbara J. Brown

Group Manager Policy & Records Group, WO-560

Lands and Realty Group

3 Attachments

1 - 2001 Communication Rent Schedule (1 p)

2 - Listing of Cities by Population Strata (3 pp)

3 - Q & A(s (Site Managers and User Associations)( 2 pp)

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download