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<br />______________________________________________________________________________ <br /> <br />Page 2 of 2 <br />respective agreements. Consequently, reducing Verizon’s lease agreement by the amounts <br />shown in the above table is not recommended. <br /> <br />If the Commission is interested in reducing Verizon’s lease payments, Staff recommend <br />selecting a target percent reduction. Staff would then negotiate revised lease terms with <br />Verizon to achieve that goal. For example, reducing the annual escalator from 4% to 3% would <br />result in an approximately 5% reduction in total future lease payments through the existing <br />expiration periods. Reducing the escalator from 4% to 2% would result in an approximate 10% <br />reduction. Further reductions beyond 5% would require reducing the annual payments as <br />needed to achieve the desired goal. <br /> <br />For reference, Verizon’s total current annual lease payments on all four towers are <br />approximately $170K. <br /> <br /> <br />ATTACHMENTS: <br />• Staff Memo - 2025-11 - 5.11 - Verizon Water Tower Lease Agreements <br />• Verizon’s initial offer for Johnson Street Tower, Site ID 123332 – December 4, 2025 <br />• Verizon’s revised offer for Johnson Street Tower, Site ID 123332 – December 7, 2025 <br /> <br />