City of San Antonio - File #: 14-1304

• File #: 14-1304
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 6/19/2014
• Posting Language: An Ordinance approving amendments to two Standard Tower Lease Agreements between the City of San Antonio and San Antonio MTA, L.P., d/b/a Verizon Wireless, for wireless towers located at Fire Station 43 and O.P. Schnabel sites. [Ben Gorzell, Chief Financial Officer; Hugh Miller, Director, Information Technology Services]

Date	Ver.	Action By	Action	Result
6/19/2014	1	City Council A Session	adopted	Pass

DEPARTMENT: Information Technology Services


DEPARTMENT HEAD: Hugh Miller


COUNCIL DISTRICTS IMPACTED: City Wide


SUBJECT:

San Antonio MTA, L.P., d/b/a Verizon Wireless, Tower Lease Amendments



SUMMARY:

An Ordinance approving amendments to two Standard Tower Lease Agreements between the City of San Antonio and San Antonio MTA, L.P., d/b/a Verizon Wireless, for wireless towers located at Fire Station 43 and O.P. Schnabel sites.


BACKGROUND INFORMATION:


In accordance with Chapter 37 of the City Code, San Antonio MTA, L.P., d/b/a Verizon Wireless ("Lessee") submitted an application to undertake network upgrades to telecommunications facilities collocated on two wireless towers located on City owned property. The network upgrades triggered an opportunity to update the rental provisions of the tower leases in order to bring them into compliance with current market conditions. City Staff has reviewed the applications including engineering design drawings and technical specifications of the equipment to be collocated on the towers. Based on these drawings and specifications there is currently no regulatory or technical compliance issue with the Lessee's proposed installations.

The City and Lessee have successfully negotiated lease amendments for the two sites. Under the lease amendments, Lessee will be free to make future network upgrades simply by providing notice of the proposed upgrades and complying with city regulations for obtaining a work permit from the Development Services Department without reopening the lease agreement to renegotiation. City regulations require an application processing fee of $3,500 to cover compliance review of the engineering and technical design documents. In exchange, Lessee has agreed to increase annual rent to $40,000 and to an annual 3% escalation factor for each lease. The revised annual rent of $40,000 for the Fire Station 43 tower lease reflects an annual increase of $29,300 compare...