Title
DISCUSSION AND POSSIBLE ACTION TO WAIVE THE CITY'S SHARE OF THE RENTAL REVENUE COLLECTED FROM NOVA SOUTHEASTERN UNIVERSITY’S UNIVERSITY SCHOOL (NSU) THRU VB-S1, ASSETS, LLC'S COMMUNICATION TOWER LEASE AGREEMENT.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. Currently, the City has a communication tower lease agreement with VB-S1, Assets, LLC (VB) for the communications tower located at 17189 Sheridan Street. The lease agreement requires VB to share 50% of its rental revenue with the City when adding other carriers (co-locations) to the communications tower.
2. Recently, City Administration received a letter (Attached as Exhibit #1) from NSU respectfully requesting that the City waive its requirement to collect its share of the rental revenue from NSU as normally required thru the City’s and VB’s communication tower lease agreement. The proposed radio antenna would allow NSU’s University School students to create its first student run radio station, giving students, and the community, the ability to broadcast their talents, while learning the business side of radio operations.
3. The Finance Department has estimated the City’s share of the rental revenue to be approximately $16,000 over the next five years.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: Approximately $16,000 loss of rental revenue over the next five years.
b) Amount budgeted for this item in Account No: Tower rental revenue would be deposited in Account# 172-000-5053-362031-3425-000-0000- Rental - Cell Towers Exempt
c) Source of funding for difference, if not fully budgeted: Not Applicable
d) 5 year projection of the operational cost of the project: Not Applicable
e) Detail of additional staff requirements: Not Applicable
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sour...
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