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Home My WebLink About04-21 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 04-21 File Number: 2020-1069 ALLTEL CORPORATION DBA VERIZON WIRELESS SECOND AMENDMENT: A RESOLUTION TO APPROVE THE SECOND AMENDMENT TO THE TOWER ATTACHMENT LEASE AGREEMENT WITH ALLTEL CORPORATION DB/A VERIZON WIRELESS TO PROVIDE FOR EQUIPMENT MODIFICATIONS, AUTHORIZE THE TRANSFER OF EQUIPMENT TO THE NEW TOWNSHIP WATER TANK, AND INCREASE THE MONTHLY RENTAL PAYMENT TO $2,400.00 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign the Second Amendment to the Tower Attachment Lease Agreement with Alltel Corporation d/b/a Verizon Wireless to provide for equipment modifications, authorize the transfer of equipment to the City's new Township water tank, and increase the monthly rental payment to $2,400.00. PASSED and APPROVED on 1/5/2021 City of Fayetteville, Arkansas 113N st MouMain street FayeaeMle, AR 72701 (479)5]5-8323 Text File File Number: 2020-1069 Agenda Date: 1/5/2021 Versional Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A 5 ALLTEL CORPORATION DBA VERIZON WIRELESS SECOND AMENDMENT: A RESOLUTION TO APPROVE THE SECOND AMENDMENT TO THE TOWER ATTACHMENT LEASE AGREEMENT WITH ALLTEL CORPORATION DIB/A VERIZON WIRELESS TO PROVIDE FOR EQUIPMENT MODIFICATIONS, AUTHORIZE THE TRANSFER OF EQUIPMENT TO THE NEW TOWNSHIP WATER TANK, AND INCREASE THE MONTHLY RENTAL PAYMENT TO $2,400.00 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, AR.KANSAS: Section l: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign the Second Amendment to the Tower Attachment Lease Agreement with Alltel Corporation d/b/a Verimn - Wireless to provide for equipment modifications, authorize the transfer of equipment to the City's new Township water tank, and increase the monthly rental payment to $2,400.00. Car a Fryeanft ArRenw Page 1 PrMreE on W12021 City of Fayetteville Staff Review Form 2020-1069 Legistar File ID 1/5/2021 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Tim Nyander 12/2/2020 WATER SEWER (720) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of the Second Amendment to the Tower Attachment Lease Agreement with Alltel Corporation d/b/a Verizon Wireless to allow for communications equipment modifications on the Township water tank and to increase their monthly rental amount to $2,400.00. Budget Impact: 5400.720.4000-6450.00 Water/Sewer Account Number Fund N/A N/A Project Number Project Title Budgeted Item? NA Current Budget Funds Obligated Current Balance $ Does item have a cost? NA Item Cost Budget Adjustment Attached? No Budget Adjustment Remaining Budget $ Purchase Order Number: Previous Ordinance or Resolution 7! Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANS ARKANSAS MEETING OF JANUARY 5, 2021 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff FROM: Tim Nyander, Utilities Director DATE: December 2, 2020 CITY COUNCIL MEMO SUBJECT: Verizon Wireless — Second Amendment to Lease Agreement for Communications Equipment on the Township Water Tank RECOMMENDATION: Staff recommends approval of the Second Amendment to the Tower Attachment Lease Agreement with Alltel Corporation d/b/a Verizon Wireless to allow for communications equipment modifications on the Township water tank and to increase their monthly rental amount to $2,400.00. BACKGROUND: The City of Fayetteville entered into a Tower Attachment Lease Agreement dated October 26, 1994 to allow Verizon to attach communications equipment on the Township water tank. That lease and its First Amendment dated October 12, 2010 detailed a monthly payment to City of Fayetteville in the amount of $500.00 with no renewal term increases. Verizon is currently requesting communications equipment modifications to update their outdated equipment on the water tank. DISCUSSION: This Second Amendment to the lease agreement will allow for Verizon to update their equipment, as well as providing agreeable terms for the transfer of their equipment from the current Township water tank to the new Township water tank to be constructed on a nearby parcel owned by the City. That tank will be constructed within the next two years. City staff also negotiated a fair market rental price from $500.00 per month to $2,400.00 per month. This Second Amendment will make the increased rental amount effective on the commencement date of this renewal term. There is no rental amount increase outlined in this amendment because the agreement expires in 2024 at the end of the current term. The City will negotiate a fair market rental amount and a 20% renewal term increase at that time. BUDGET/STAFF IMPACT: Verizon will pay the City $2,400.00 per month for their equipment on the Township water tank. Attachments: Second Amendment to Tower Attachment Lease Agreement Mailing Address: 113 W. Mountain Street www.fayetteville-argov Fayetteville. AR 72701 SECOND AMENDMENT TO TOWER ATTACHMENT LEASE AGREEMENT THIS SECOND AMENDMENT TO TOWER ATTACHMENT LEASE AGREEMENT (the "Second Amendment") is made and entered into this atkay of :S!�Ljn a( EC�A 20,,)�A, by and between THE CITY OF FAYETTEVILLE, ARKANSAS, acting through duly authorized officials of the City of Fayetteville, Arkansas ("Lessor") and ALLTEL CORPORATION d/b/a Verizon Wireless ("Lessee"). Lessor and Lessee are at times collectively referred to hereinafter as the "Parties" or individually as the "Party." WITNESSETH: WHEREAS, Lessor and Lessee entered into a Tower Attachment Lease Agreement dated October 26, 1994, as amended by that certain First Amendment to Tower Attachment Lease Agreement dated October 12, 2010 (collectively, the "Agreement"), whereby Lessee leases from Lessor certain space on Lessor's water tower and certain ground space on Lessor's Property for the construction of a structure to house Lessee's equipment. WHEREAS, the Parties desire to amend the Agreement to modify Lessee's equipment, provide for the transfer of Lessee's equipment to a new water tower, and establish the fair market value of rent for the renewal term; NOW THEREFORE, in consideration of the premises and the mutual undertakings herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Any capitalized terms used in this Amendment that are not defined herein have the meanings given those terms in the Agreement. 2. Exhibit `B-1" of the Agreement is hereby replaced and superseded by Exhibit "B-2" attached hereto and incorporated herein by reference. In the event of any discrepancies between Exhibit "13-1" and Exhibit `B-2", Exhibit `B-2" shall control. 3. Lessee acknowledges and understands that the City intends to purchase a parcel of land for installation of a new water tower (the "New Tower") and the existing water tower (the "Existing Tower") will be removed from the Property upon completion of the New Tower. Lessee agrees to remove its equipment from the Existing Tower within 25 business days after Lessee's receipt of written notice that construction of the New Towers has been completed. Lessee may install its equipment on the New Tower, provided the New Tower is fully compatible for Lessee's use, in Lessee's sole discretion, and the Parties amend this Agreement to memorialize the location of the New Tower. Lessee may also install a temporary Cell of Wheels ("COW') in a mutually agreeable location on the IN WITNESS WHEREOF, Lessor and Lessee have executed this Second Amendment effective as of the day and year first above written. LESSOR: CITY OF FAYETTEVILLE, ARKANSAS nnr„ Acting b and thr duly authorized .ERq i offs 'als t{te City f Faye eville, Arkansas Clr // Title: _ J V l (,-L11 (rl J Date:! LESSEE: ALLTEL CORPORATION D/B/A VERIZON WIRELESS By:_ Name: Title: Date: