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Title:
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Authorization to Amend License Agreements 126578 and 141668 with Cellco Partnership, Formerly Verizon Wireless (VAW), LLC (Ordinance S-48577)
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Title
Authorization to Amend License Agreements 126578 and 141668 with Cellco Partnership, Formerly Verizon Wireless (VAW), LLC (Ordinance S-48577)
Description
Request authorization for the City Manager, or his designee, to execute amendments to License Agreements 126578 and 141668 with Cellco Partnership, successor-in-interest to Verizon Wireless (VAW), LLC (Verizon Wireless) to add antennas at the 324 W. Adams St. and 305 W. Washington St. parking garages.
Report
Summary
Verizon Wireless plans to add antennas at the parking garages located at 324 W. Adams St. and 305 W. Washington St. to expand and improve service coverage in the downtown area. The monthly license fee for each location will increase by $750 per antenna per month which is within the range of market rents as determined by the Real Estate Division.
Agreement 126578 will be amended to add three antennas at the 324 W. Adams St. parking garage. The license fee will increase to $6,803.05 per month, plus applicable taxes, beginning June 1, 2022, and will increase by three percent beginning Aug. 1, 2022, and three percent annually thereafter. All other terms and conditions will remain the same.
Agreement 141668 will be amended to add four antennas at the 305 W. Washington St. parking garage. The license fee will increase to $8,015.02 per month, plus applicable taxes, beginning June 1, 2022, and will increase by three percent beginning Nov. 1, 2022, and three percent annually thereafter. All other terms and conditions will remain the same.
Contract Term
Agreement 126578 has two years and two months remaining on current term of the contract, through July 31, 2024, with one, five-year option to extend through July 31, 2029.
Agreement 141668 has three years and five months remaining on the current term of the contract, through Oct. 31, 2025, with no options remaining.
Financial Impact
Agreement 126578 - Anticipated revenue for the first year beginning June 1, 2022, is $83,678 per year.
Agreement 141668 - Anticipated revenue for the first year beginning June 1, 2022, is $97,863 per year.
Concurrence/Previous Council Action
The City Council approved:
Verizon Wireless Adams Street Parking Garage License Agreement 126578 (Ordinance S-35981) on April 1, 2009;
Verizon Wireless Adams Street Parking Garage License Agreement 126578 - Amendment (Ordinance S-38304) on Nov. 16, 2011;
Verizon Wireless Adams Street Parking Garage License Agreement 126578 - Amendment (Ordinance S-39608) on Feb. 20, 2013;
Verizon Wireless Adams Street Parking Garage License Agreement 126578 - Amendment (Ordinance S-40188) on Sept. 4, 2013;
Verizon Wireless Adams Street Parking Garage License Agreement 126578 - Amendment (Ordinance S-45556) on April 17, 2019; and
Verizon Wireless 305 Parking Garage License Agreement 141668 - Amendment (Ordinance S-41634) on April 22, 2015.
Location
324 W. Adams and 305 W. Washington streets.
Council District: 7
Department
Responsible Department
This item is submitted by City Manager Jeffrey Barton, Deputy City Manager Karen Peters and the Public Works and Finance departments.