AGENDA ITEM REPORT
TITLE:
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AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE SECOND AMENDMENT TO THE LEASE AGREEMENT WITH CELLCO PARTNERSHIP D/B/A VERIZON WIRELESS, WHICH PROVIDES FOR THE MODIFICATION OF EQUIPMENT ON THE CITY’S TELECOMMUNICATION TOWER AT LAKESIDE PARK. (FIRST READING)
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BACKGROUND:
The City owns the telecommunications tower (“Tower”) within the City’s Lakeside Park, located at 5555 Regency Lakes Boulevard, Coconut Creek, Florida 33073, and leases space to several tenants via lease agreements.
On February 16, 2016, the City Commission authorized the Mayor to execute the original lease agreement (“Agreement”) with Verizon Wireless Personal Communications LP d/b/a Verizon Wireless, the predecessor-in-interest to Cellco Partnership d/b/a Verizon Wireless (hereinafter “Verizon”) for the purpose of maintaining communications equipment on the Tower and related ground equipment at the City’s Tower at Lakeside Park.
On December 8, 2022, the City approved the First Amendment to the lease agreement authorizing Verizon to reconfigure and install new equipment on the Tower in exchange for an increase in rent, and an additional option to renew the term of the agreement from two (2) to three (3) additional five (5) year renewal options at the end of the original ten (10) year term in exchange for other assurances, as stated therein.
DISCUSSION:
The City and Verizon desire to amend the Agreement a second time to modify the equipment on the Tower, which will not substantially increase the loading factor on the Tower and modify its equipment within the existing leased space without an increase in rent for modifications contemplated by this Second Amendment, as Verizon never installed the modifications contemplated by the First Amendment, and these Second Amendment modifications serve as a replacement for those uncompleted modifications from the First Amendment.
The City is committed to increasing the effectiveness of its communication equipment and maintain a revenue source by permitting Verizon to modify the equipment on the communications tower.
RECOMMENDATION:
Staff recommends approval of this ordinance.
FISCAL IMPACT:
REVENUES: N/A
EXPENDITURES: N/A
BUDGETED? No
NOTES: The modifications are within the existing leased space, therefore, there is no increase to the rent.