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AGENDA ITEM <br />Prepared By: RJO Reviewed By: A.Carlson Approved By: <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />1. Purpose: To approve Amendment No. 3 to the Site Lease Agreement between the City and Cellco <br />Partnership d/b/a Verizon Wireless. This amendment extends the agreement for up to three additional <br />five-year terms beginning on January 1, 2022. <br /> <br />2. Background: The City and Verizon originally entered into a Site Lease Agreement July 9, 2001. <br />The original agreement was amended in 2005 and again in 2019. The amendments involved leasing <br />additional ground space and other operational matters. Amendment No. 3 to the Site Lease Agreement <br />extends the original lease which is expiring on December 31, 2021 for up to 15 more years. <br /> <br />In Addition to extending the lease, the amendment changes two other matters. The first is the annual <br />inflator that rent increases have been calculated on. The original lease included an inflator of 5%. Based <br />on historical inflation rates the tenant felt that a reduction in the inflator was warranted. Based on a <br />survey or current leases between cities and communication companies performed by the Finance <br />Department in 2018, an inflator of 3% is standard. The annual rent effective on January 1, 2022 is <br />$46,890.76. <br /> <br />The other change involves the tenant’s rights related to major maintenance to the tower that would <br />interrupt the tenant’s use of the premises or operation of the equipment. Campbell Knutson has been <br />involved in the negotiation of the contract. City staff is also comfortable with the contracts terms. <br /> <br />3. Staff Recommendation: Staff recommends approving Amendment 3 to the Site Lease Agreement <br />with Cellco Partnership d/b/a Verizon Wireless. <br /> <br />COUNCIL ACTION REQUESTED <br />Motion to approve Amendment No. 3 to the Site Lease Agreement with Cellco Partnership. d/b/a Verizon <br />Wireless. <br /> <br /> <br />Exhibits <br />A. Amendment No. 3 <br />B. Original Contract (including Amendments 2 and 3) <br /> <br /> <br /> <br />Item No.: 8 Date: May 10, 2021 <br />Item Description: Verizon Tower Lease Extension <br />Presenter: Ronald Olson <br />Finance Director <br />Agenda <br />Section: <br />Consent Agenda