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�� <br />�iI�EN��HILLS <br />MEMORANDUM <br />DATE: June 11, 2012 <br />TO: Honorable Mayor and Councilmembers <br />FROM: Jill Hutmacher, Community Development Director �� <br />SUBJECT: Agreement with SEH for Review of Proposed Telecommunications Upgrade <br />Requested Action <br />Approve agreement with SEH for development of a master lease agreement and review of <br />AT&T's proposed long-term evolution (LTE) upgrade project at the Cummings Park water <br />tawer. <br />Back�round <br />AT&T currently leases space at the Cutninings Park water tower and has installed three antennas <br />at 130 feet (the top of the tower), three antennas at 80 feet, and an equipment shelter on the <br />ground. As part of AT&T's LTE upgrade project (related to 4G wireless communications <br />technology), AT&T proposes to replace all six antennas and add three additional antennas at the <br />80-foot level. Upgraded and new cables, mounts, and other equipment will also be required. <br />The existing lease with AT&T was approved in 1989 and terminates in 2014. A lease <br />amendment was approved in 2002 allowing AT&T to install an additional three antennas <br />(included in the total number of antennas described above) for an annual lease increase of <br />$4,860. AT&T's current total annual lease payment is $18,576 with an increase equal to the <br />increase in the Consumer Price Index (CPI) every five years. <br />Because the existing lease terminates in less than two years, the City has notified AT&T that it <br />prefers to negotiate a renewed lease agreement, as opposed to an additional lease amendment, at <br />this time. The City has requested and has received an escrow payment of $10,000 for legal and <br />engineering costs related to the lease renewal and review of the LTE upgrade project. <br />City of Arden Hills <br />City Council Meeting June 11, 2012 <br />Page 1 of 2 <br />