City of Alexandria, Virginia
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MEMORANDUM
DATE: FEBRUARY 5, 2020
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Lease Amendment with Verizon Wireless to Upgrade Equipment on the Roof of the City Owned Building Located at 4480 King Street for Public Hearing on February 22.
BODY
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ISSUE: Consideration of a lease amendment for the modification and installation of updated antenna and equipment on the roof at the North Hampton Drive and King Street side of the City-owned building located at 4480 King Street.
RECOMMENDATION: That City Council (1) schedule for public hearing on February 22, 2020 the proposed lease amendment (Attachment 1) between the City of Alexandria and Verizon Wireless to modify and install updated antennas and equipment located on the roof of 4480 King Street, and (2) after the public hearing approve this proposed license amendment.
BACKGROUND: The City currently has a lease agreement with Cellco Partnership, also doing business as Verizon Wireless to lease space on the roof at the North Hampton Drive and King Street side of the City-owned building, located at 4480 King 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 Second Amendment between the City and Verizon includes the initial lease terms and a modification of antennas and equipment resulting in a rent increase. Both parties have the right to terminate the lease upon the annual anniversary of the commencement date of the lease provided that three (3) months’ written notice is given prior to the current term ending. 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.
FISCAL IMPACT: The City has received $21,848 in rental income in FY 2020 to date. This amendment generates an additional rent payment of $200 per month. There is a two percent escalation each year thereafter and an additional 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. Draft Second Lease Amendment between Verizon Wireless and City of Alexandria
2. Original Lease
3. First Lease Amendment
STAFF:
Laura Triggs, Deputy City Manager
Jeremy McPike, Director, General Services
Alfred Coleman, Deputy Director, General Services
Donna Poillucci, Deputy Director, General Services