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File #: 14-1110   
Type: Miscellaneous Item
In control: City Council A Session
On agenda: 8/7/2014
Posting Language: An Ordinance authorizing a lease agreement with San Antonio MTA, L.P. d/b/a Verizon Wireless, a Delaware corporation, for a new wireless tower at the San Antonio International Airport with an annual revenue of $50,000.00. [Ed Belmares, Assistant City Manager; Frank Miller, Director, Aviation]
Indexes: Aviation Contract
Attachments: 1. DCD_Form_(Signed), 2. signed lease agreement, 3. Draft Ordinance, 4. Ordinance 2014-08-07-0540
DEPARTMENT: Aviation Department


DEPARTMENT HEAD: Frank Miller


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

Wireless Tower Agreement with Verizon, Inc. for the San Antonio International Airport


SUMMARY:

An Ordinance authorizing a lease agreement with San Antonio MTA, L.P. d/b/a Verizon Wireless (Verizon) at the San Antonio International Airport to allow Verizon to design and install a wireless tower on the long term parking garage. The lease agreement will generate an annual rental rate of $50,000.00 subject to a 3% annual escalation rate.


BACKGROUND INFORMATION:

Wireless towers house the physical infrastructure required to support the cellular networks for communications firms. Generally, one firm will build the tower and rent part of the network to the other communications firms.

The current tower at the San Antonio International Airport was built by AT&T in the 1990's. With the construction of the Consolidated Rental Car Facility (CONRAC), the current tower must be decommissioned and a new tower constructed at another location. Verizon would like to design and construct the new tower on the top of the long term parking garage to support Verizon and up to two other telecommunications providers. There will be no costs to the City for the design or construction of the project. Verizon will pay the City $50,000.00 subject to an annual escalation rate of 3%. In the event additional telecommunications providers collocate on the tower, each provider will pay the City an additional $50,000.00 per year, of which the City will keep 80% and pay Verizon the remaining 20% for constructing and managing the tower.

The Aviation Department and ITSD have reviewed the lease agreement and support the relocation and lease agreement.


ISSUE:

Approval of this action is consistent with the City's policy to lease City-owned property to generate revenue.


ALTERNATIVES:

City Council could elect not to support the lea...

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