AGENDA ITEM REPORT
TITLE:
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AN ORDINANCE AUTHORIZING THE MAYOR, OR DESIGNEE, TO EXECUTE A LEASE AGREEMENT WITH CELLCO PARTNERSHIP D/B/A VERIZON WIRELESS TO LEASE GROUND SPACE AND TOWER SPACE ON THE CITY'S TELECOMMUNICATIONS TOWER AT THE GOVERNMENT CENTER. (FIRST READING)
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BACKGROUND:
The City owns a telecommunications tower (“Tower”) located at the Government Center, 4800 West Copans Road, Coconut Creek, Florida, and leases space on the tower and adjacent City-owned property to various telecommunications providers pursuant to lease agreements.
Since May 13, 2004, Verizon Wireless, through its predecessor-in-interest, Verizon Wireless Personal Communications, LP d/b/a Verizon Wireless, has leased space on the City's Tower, together with a portion of the adjacent City-owned property, for the construction, maintenance, and operation of a communications facility. Cellco Partnership d/b/a Verizon Wireless is the current tenant under the existing lease agreement.
DISCUSSION:
The proposed lease agreement will replace the existing agreement and continue Verizon's lease of space on the City's Tower, together with a portion of the adjacent City-owned property, for the construction, maintenance, and operation of its communications facility.
The proposed agreement provides for an initial annual rent of $69,135.48, with annual rent increases of three percent (3%). The initial lease term is ten (10) years and includes three (3) successive five (5)-year renewal options. The City is committed to increasing the effectiveness of its communication equipment and maintaining a revenue source.
RECOMMENDATION:
Staff recommends approval of this ordinance.
FISCAL IMPACT:
REVENUES: $69,135.48
EXPENDITURES: $0
BUDGETED? No
NOTES: Account Number 01-V36220, Tower Leases.