Title
Approving a Replacement Water Tower License Agreement between the City of Pflugerville and Cellco Partnership D/B/A Verizon Wireless and authorizing the City Manager to execute said agreement.
Summary
In June of 2005, the City of Pflugerville entered into an agreement with Verizon Wireless to lease space on the city’s Falcon Pointe water tower to mount equipment in support of their wireless network. The initial term of the agreement was for five (5) years with up to four (4) additional five (5) year terms unless the City were to terminate the agreement at least 6 months prior to the end of the current five-year term.
Upon review of current lease contracts, city staff recognized an opportunity to renegotiate the agreement with Verizon to ensure the City was receiving a fair market rate. If allowed to renew, the current lease would extend another five (5) years at a rate of $17,337.98 per year ($1,444.83/month). However, upon renegotiation of a new ten (10) year deal, the City will now receive $37,200 per year ($3,100/month) with a 3% annual increase, in addition to a one-time $10,000 fee to offset the City’s costs for legal and consulting fees incurred during negotiation. When comparing the City's potential revenue over the next 10 years, the new lease will generate $436,456 as compared to $186,383 under the current agreement.
Prior City Council Action
February 17, 2004, Resolution authorizing city manager to enter into a lease agreement with Dallas MTA, L.P. d/b/a Verizon Wireless regarding the installation of antenna panels on the Falcon Pointe elevated storage tank.
Deadline for City Council Action
January 26, 2021
Funding Expected: Revenue X Expenditure __ N/A __
Budgeted Item: Yes __ No __ N/A X
Amount: $436,456.31 (initial 10 year term)
1295 Form Required? Yes X No __
Legal Review Required: N/A __ Required X Date Completed: January 14, 2021
Supporting documents attached:
Water Tower License Agreement w/ Verizon Wireless
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