Title
Resolution to Approve Revision to License Agreement with New Par, d/b/a Verizon Wireless, to Erect and use Telecommunications Equipment on the Manchester Water Tower Site
Memorandum
On October 15, 2007, City Council approved a License Agreement with New Par, a Delaware partnership d/b/a Verizon Wireless By: Verizon Wireless (VAW) LLC, its general partner (“Verizon”), to install antennae and related facilities on the Manchester Water Tower site. The Agreement approved at the time required an annual fee starting at $23,289.69 for the remainder of the first year, beginning upon execution of the agreement and running through June 30, 2008, increasing to $32,288.10 on July 1, 2008, then escalating at the rate of 4% per year starting July 1, 2009, and every July 1 thereafter. After the initial term, which ends June 30, 2012, the license agreement provides for options to renew for four additional five-year terms.
At the time, Verizon anticipated starting work in October of 2007. However, because some remaining issues between Verizon and City staff regarding design and construction were not resolved in time for the work to be done before cold weather precluded the painting that is required, Verizon has delayed the date for work to start until March of 2008. Neither the CIty nor Verizon executed the License Agreement as approved in October of 2007. Verizon has asked that the start date be changed from October 1, 2007, to March 1, 2008, and has asked for a commensurate reduction in the pro rated amount of the license fee for the period ending June 30, 2008, from $23,289.69 to $10,348.75, a reduction of $12,940.94. Verizon also has asked for 45 days to make the first payment instead of 30 days. No other changes are requested.
As background, Verizon is the fifth provider to locate equipment on the Manchester Water Tower site. Its antennae and related facilities will be located on the water tower, with an equipment shelter at the base of the water tower. B...
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