Title
Authorization to Amend License Agreement 142670 to Extend Term with Verizon Wireless (VAW) LLC for City-Owned Property Located at 37000 N. New River Road (Ordinance S-52680) - District 1
Description
Request to authorize the City Manager, or the City Manager's designee, to amend License Agreement 142670 with Verizon Wireless (VAW) LLC to extend the term for a five-year period, with two additional five-year options to extend. Further request authorization for the City Treasurer to accept all necessary funds in accordance with the terms of the License.
Report
Summary
Verizon Wireless (VAW) LLC currently licenses approximately 3,253 square feet for telecommunications equipment located at 37000 N. New River Road. The license agreement will be amended to extend the term for a five-year period, with two additional five-year options to be automatically activated upon the expiration of each preceding term, unless either party notifies the other in writing of its intention not to renew at least 60 days prior to the expiration of the term.
Base rent during the first year of the initial five-year extended term will be $4,031.75 per month, plus applicable taxes, and increase each year by three percent, which is within the range of market rents as determined by the Real Estate Division. For each option period, the base rent will be contingent upon a market reset at the beginning of the option period, and the rent will continue to increase annually by three percent throughout the duration of each five-year renewal option.
All other terms and conditions will remain the same. Use of the equipment has been reviewed and approved by the Information Technology Services Department.
Contract Term
The initial extended term of the license agreement is June 1, 2026, through May 31, 2031, with two additional five-year options to extend.
Financial Impact
Revenue during the initial year of the extended term will be $48,381, plus applicable taxes, and will increase three percent each year thereafter.
Concurrence/Previous Council Action
License Agreement 142670 (Ordinance S-41286), dated November 19, 2014.
Location
37000 N. New River Road
Assessor's Parcel Number: 201-01-004A
Council District: 1
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer and the Water Services and Finance departments.