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Page 1 of 2 <br /> <br />AGENDA ITEM – 1A <br /> <br />MEMORANDUM <br /> DATE: November 23, 2020 <br /> <br />TO: Honorable Mayor and City Councilmembers <br /> Dave Perrault, City Administrator <br /> <br />FROM: Todd Blomstrom, Public Works Director/City Engineer <br /> <br />SUBJECT: AT&T Request to Renegotiate Cummings Park Site Use Lease Agreement <br /> <br /> Budgeted Amount: Actual Amount: Funding Source: <br /> $47,595.00 $47,595.00 General Fund <br /> <br /> <br /> <br />Council Should Consider <br /> <br />City Council direction is requested regarding a request from AT&T to renegotiate the terms and <br />conditions of the existing Cummings Park North Water Tower Site Use Lease Agreement between <br />the City and AT&T. <br /> <br />Background/Discussion <br /> <br />The City of Arden Hills entered into a Site Use Lease Agreement with AT&T (New Cingular <br />Wireless PCS, LLC) on April 2014 for cell antenna equipment located at the City’s North Water <br />Tower at Cummings Park. The agreement established an annual lease rate of $33,000, with an <br />annual adjustment of 4 percent. The lease agreement was amended on July 2015 to provide <br />additional ground lease space to house an emergency power generator. The amendment added <br />$4,800 to the annual lease rate, with a 4 percent annual adjustment. A copy of the lease agreement <br />and amendment are provided in Attachment C. <br />The 4 percent annual adjustment to the lease rates described above result in a current 2020 site lease <br />rate of $47,595 for AT&T installations at the North Water Tower site. The lease is in the second 5- <br />year renewal term and is eligible for four more 5-year extensions through the year 2044. <br />AT&T has contacted the City to request renegotiation of the current lease at the North Water Tower <br />as summarized in the letter provided in Attachment A. AT&T requests the following changes to the <br />terms of the lease agreement. <br />