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. . . . Minutes of the Arden Hills Regular Council Meeting, 4-10-89 ,Page 7 CELLULAR ONE (Cont'd) In addition, Filla advised the Council should determine the amount of base rent and addition rent, as stated in Section 4 and the amount of reimbursement for costs as stated in Section 16(e). He noted the Agreement continues to be contingent upon the receipt of an access easement from Control Data. Filla advised that Cellular One indicated they are willing to accept the insertion of a paragraph which would specify the rental adjustments would be made gradually over a five year period, at the rate of no greater than 4% per year instead of no increase for 5 years and then a 20% increase. He stated the proposal is more beneficial to the City and had been negotiated by the Clerk Administrator. Bryan Rogers, Cellular One, provided Councilmembers with a projected 15 year rental income per municipalities. Rogers and Council discussed and agreed to the following amendments to the proposed agreement: -Reasonable Expenses: The Telephone Company agrees to pay $1,000.00 to the City to cover expenses, such as legal, engineering and other administrative costs, incurred in reviewing the proposed Lease Agreement, and $200.00 per occasion toward any subsequent reviews. -Emergency Access: The Telephone Company will be required to notify the Public Works Supervisor or Ramsey County Sheriffs Department prior to entering the tower for emergency situations; the Public Works Supervisor will provide a key for access. -Annual Rental Adjustments: The Telephone Company agrees to pay an annual increased rental amount during the entire term of the lease, based on the cost of living index during the previous year, which shall not exceed four percent of the of the previous years' rent. Council discussed the monthly base rent; it was suggested the amount be set at $600.00 per month for the base rent and an additional fee of $25.00 per month for each microwave antenna installed, up to a maximum of two. Filla noted the Agreement provides three portable telephones for use by the City for a period of one year. He explained the telephones are provided by Cellular One and the City would for pay for time the phones are in use and a monthly rental fee for the equipment at the government rate. Filla stated Council may determine whether or not to utilize this option. Rogers expressed opposition to the proposed $600.00 per month base rent; he stated a precedent would be set in his dealings with other communities in the area. Council concurred that the Agreement offers the tenant 60 days to cure defaults and, if necessary, the Telephone Company could request an extension. Rogers stated this request, relative to the curing of defaults, may be deleted. Mahowald moved, seconded by Growe, that Council authorize the Mayor and Clerk Administrator to execute the proposed Water Tower Lease Agreement with Cellular One, contingent upon the following amendments to the Agreement: 1. The base rental fee be $600.00 per month and an additional $25.00 per month, per microwave antenna installed, up to a maximum of two microwave antenna. Councilmember Hansen stated she did not favor the motion; she preferred either a set fee of $600.00 including two microwave antennas or as proposed to be compatible with similar neighboring cities. Filla and Berger advised they had contacted other communities and determined the $600.00 rental fee was reasonable.