City of Alexandria, Virginia
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MEMORANDUM
DATE: DECEMBER 16, 2017
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Public Hearing and Consideration of a Lease Amendment with Verizon Wireless to Upgrade Equipment on the Torpedo Factory, the City Owned Building Located at 105 N. Union Street.
BODY
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ISSUE: Consideration of the modification and installation of updated antenna and equipment on the roof of the Torpedo Factory Art Center, located at 105 N. Union Street.
RECOMMENDATION: That City Council authorizes the lease amendment between the City of Alexandria and Verizon Wireless to modify and install updated antennas and equipment located on the roof of 105 N. Union Street.
BACKGROUND: The City currently has a lease agreement with Cellco Partnership, also doing business as Verizon Wireless to lease space on the roof of the Torpedo Factory Art Center, located at 105 N. Union Street for cellular antennas and equipment. Cellco approached the City regarding their interest in modifying this cell site. Currently, the lease allows Verizon to change out equipment on a one for one basis. Verizon has requested the replacement of two existing antennas with a different model of antenna which requires an amendment to the existing lease.
DISCUSSION: The draft lease amendment between the City and Verizon includes the initial lease terms and a renewal for four (4) five-year terms unless terminated by either party. Both parties have the right to terminate the lease upon the annual anniversary of the commencement date of the lease provided that one year’s notice is given. This lease is beneficial to the City and the public, as wireless coverage for users in the area will improve while the City increases its lease revenue. Verizon Wireless has completed the City’s approval process for Radio and Television Reception or Transmission Structures (Planning and Zoning case #ADM2017-00046).
FISCAL IMPACT: The City will receive $26,226 annually in rent with a three percent escalation each year thereafter and an additional three percent rent increase if there are future changes to the cellular equipment outside of the original model as set forth in the existing lease that remains in effect.
ATTACHMENTS:
1. First Lease Amendment between Verizon Wireless and City of Alexandria
2. Original Lease
STAFF:
Laura Triggs, Deputy City Manager
Jeremy McPike, Director, General Services
Alfred Coleman, Deputy Director, General Services
Donna Poillucci, Deputy Director, General Services