Title
Consider a memorandum/resolution authorizing the approval of the Master Marketing Agreement with SQF, LLC d/b/a Verta Wireless to allow for the construction of monopole cell towers on certain City-owned parcels of land.
Body
DATE: October 8, 2026
TO: Kent Cagle, Interim City Manager
FROM: Holli Clements, City Attorney
SUBJECT: Approving a contract with SQF, LLC d/b/a Verta Wireless to allow for the construction of monopole cell towers on certain parcels of City-owned land
BACKGROUND AND FINDINGS:
On May 20, 2026, SQF, LLC d/b/a Verta Wireless contacted the City of Killeen to discuss construction of monopole cell towers on four City-owned parcels of land. Those parcels include Heritage Oaks Park (Parcel ID No. 479720), the soon-to-be Bunny Trail Park (Parcel ID No. 396578), 5500 Trimmier Road (Parcel ID No. 387509), and KFD Station No. 4 at 9200 Trimmier Road (Parcel ID No. 519872). Verta aims to enter into an agreement with the City which would allow Verta to construct and advertise cell towers to established telecommunications providers, who would in turn provide lease space on those towers to host communications equipment.
The agreement will be structured into two separate but related contracts. First, the parties would execute the Master Marketing Agreement which provides Verta with the exclusive right to advertise and develop cell towers on behalf of the City. In return, Verta will pay the City a one-time, non-refundable fee of $1,000. This agreement has a term of five years, with five automatic one-year renewal terms, allowing for a total term of ten years. This agreement does not allow Verta to develop a site without notifying and obtaining specific approval by the City Council and requires that a City-appointed Project Manager review and route any development projects. The City Manager has designated Kristina Ramirez, the Executive Director of Public Works, as the Project Manager.
Once sites are approved by the Council, the parties’ relationship regarding that site will be governed by an Option and Lease Agreement, which will be in substantially the same form as that attached as Exhibit B to the Master Marketing Agreement. Under this Agreement, Verta will lease a portion of the site and an access easement to construct and run the cell-tower site. Verta will sub-lease tower space and access to telecommunications companies. In return, Verta will pay the City a one-time, non-refundable fee of $500 and monthly rent equal to 30 percent of all sub-tenant leases. This agreement will have an initial term of five years, with nine automatic five-year renewal terms, allowing for a total term of 50 years.
This agreement would allow the City to use under-utilized space to construct cell towers. Cell towers provide significant benefits to cities by enhancing mobile communication and ensuring reliable connectivity for residents and emergency services. They improve coverage, which supports public safety and facilitates smart city initiatives, ultimately fostering a more informed and connected community. In summary, cell towers are essential components of modern urban infrastructure.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms with state and local policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
Revenue for FY 2027 will be approximately $1,000 - $1,500. Revenue in future years will likely increase with the successful sub-leasing of tower sites.
Is this a one-time or recurring revenue/expenditure?
Recurring
Is this revenue/expenditure budgeted?
No, this is a new agreement not included in the FY 27 budget planning.
If not, where will the money come from?
Revenue will be posted to the existing General Fund Tower Leases account 100-46712-100-100-000000 and will be appropriated for the upcoming fiscal years during the usual budgeting process.
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
N/A
RECOMMENDATION:
Authorize the interim City Manager, or his designee, to approve the Master Marketing Agreement with SQF, LLC d/b/a Verta Wireless to allow for the construction of monopole cell towers on certain City-owned parcels of land, and authorize the City Manager, or his designee, to execute any and all change orders within the amounts set by state and local law.
DEPARTMENTAL CLEARANCES:
Public Works
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Presentation