Title
Enter License Agreements with Wireless Providers (Ordinance S-44811)
Description
Request to authorize the City Manager, or his designee, to enter into License Agreements with Sprint, Verizon, T-Mobile and AT&T for macro cellular antenna sites at Phoenix Sky Harbor International Airport. The estimated aggregate revenue to the City is approximately $4,749,088, not including annual adjustments.
Report
Summary
Sprint, Verizon, T-Mobile and AT&T (collectively "the Providers") each have License Agreements at Phoenix Sky Harbor International Airport for macro cellular antenna sites. The Agreements are currently month-to-month; the Providers wish to enter into new License Agreements for existing and new antenna sites, to extend the term, and to set a new annual base fee. The macro cellular antenna sites provide cellular service to customers of the Providers, including the traveling public, airline personnel, airport operations personnel, and Airport tenants and business partners.
Contract Term
The initial term will be two years, with two one-year options to extend, which may be exercised at the sole discretion of the Aviation Director.
Financial Impact
The License fee for the first year of the Agreement is $75,000 per site. The fee will be increased three percent per year beginning one year after the Licenses are executed. Estimated annual revenue to the City is approximately $1,074,772 in year one and approximately $1,224,772 in year two and extension years, not including annual adjustments. The estimated aggregate revenue to the City is approximately $4,749,088, not including annual adjustments.
Concurrence/Previous Council Action
This item was recommended for approval by the Downtown, Aviation, Economy and Innovation Subcommittee on June 6, 2018 by a vote of 4-0.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.