14 - Ground & Tower Lease Agreement with New Cingular Wireless for East Water Tower

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Item No. 14 TO: City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Ground and Tower Lease Agreement with New Cingular Wireless PCS, LLC (AT&T) DATE: January 23, 2023 BACKGROUND: Many months ago, AT&T approached the city desiring to lease space on and around the city's east water tower in the 600 block of 25t" NE for the purpose of installing wireless communications equipment. The city has leased space on the tower for similar equipment to T - Mobile for several years with no issues. The utilities and IT departments have approved the colocation of AT&T's equipment at the site. STATUS OF ISSUE: After many months of wrangling, emails blocked for file size, and other delays, we have agreed on the attached lease for your review and possible approval. The essential terms are the same as in the city's lease with T -Mobile. The initial monthly rent will be $2,021.25. After the first year, there is a 3% per year escalator clause. The initial term is for 5 years with the possibility of 3 additional 5 year renewal terms. BUDGET: Revenue of $24,255.00 in the first year, escalating thereafter as set forth above. RECOMMENDATION: Approve the Ground and Tower Lease Agreement with New Cingular Wireless PCS, LLC.