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Date: June 10, 2024 Item: 8 <br />Presenter: Maggie Jin, Finance Director <br />Section: Consent Agenda <br /> <br />Title: Cellular Tower Lease Extension - New Cingular Wireless <br /> <br /> <br />1.Purpose: <br />To approve First Amendment to the Site Lease Agreement between the City of Orono and New <br />Cingular Wireless PCS, LLC. This amendment renews the agreement for an initial five year term <br />and allows an automatic renewal for up to five additional five-year terms. The amendment <br />includes an increase to the size of the site for the purpose of adding a generator. <br />2.Background: <br />The City and New Cingular Wireless originally entered into a Site Lease Agreement on July 12, <br />2005. The original lease is set to expire December 31, 2024. The amendment extends the lease for <br />a five year term and allows an automatic renewal for up to five additional five-year terms (30 years <br />total). The amendment also includes an increase to the size of the premise leased. <br /> <br />The extension of the lease will continue to follow the original agreement with an inflator the <br />greater of 5% or CPI percentage. The increase of the site will add an additional $200.00 per month <br />for rent, and follow the inflator of the original agreement. The annual rent effective on January 1, <br />2025 is approximately $58,710.53, assuming CPI is lower than 5%. <br /> <br /> <br />3.Staff Recommendation: <br />Staff and Campbell Knutson has reviewed the lease amendment. City staff feels the terms are <br />agreeable. Staff recommends approving First Amendment to the Site Lease Agreement with New <br />Cingular Wireless PCS, LLC. <br />AGENDA ITEM <br /> <br /> <br /> <br /> <br /> <br />COUNCIL ACTION REQUESTED <br />Motion to approve First Amendment to the Site Lease Agreement with New Cingular Wireless PCS, <br />LLC. <br />Exhibits <br />A. First Amendment to Site Lease Agreement <br />B. Original Contract 2005 <br />34