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City of Centerville <br />Council Meeting Minutes <br />October 9, 2019 <br /> <br /> <br />b. Res. #19-0XX – Authorizing Interfund Loan – TIF District 1-8 <br /> <br />This items was previously tabled. <br /> <br />IX. NEW BUSINESS <br /> <br />1. T-Mobile Antenna Lease <br /> <br />Administrator Statz stated that from time to time, correspondence is received from T-Mobile <br />requesting renewal of their contract prior to the contract’s expiration. In their most recent <br />correspondence they have stated that they are merging with Sprint and will be determining the <br />necessity of the existing equipment on the City’s water tower. They have provide the City with <br />an opportunity for renewal for an amount less than the current lease rate annually. Administrator <br />Statz stated that the previous Administrator negotiated the agreement and it has been many years, <br />if ever, that a consultant was hired to represent the City in these negotiations. <br /> <br />Attorney Glaser stated that he assists the City of Lexington from time to time and they just renewed <br />their lease with T-Mobile. He also stated that they hired a consultant (Steel in the Air), received a <br />signing bonus, reaffirmed the need for the existing equipment and signed a 10 year contact for <br />more than they currently are receiving. <br /> <br />Administrator Statz stated that the existing lease with T-Mobile is through December 31, 2021 <br />unless either of us want to cancel. He stated that he would like direction on whether to engage a <br />consultant, negotiate when the time is closer to December 31, 2021 or negotiate now without hiring <br />a consultant. Attorney Glaser stated that hiring the consultant was well worth it to the City of <br />Lexington as it provided leverage during negotiations, informed them of the value of their site and <br />netted them a signing bonus along with a new 10 year lease. He stated that they felt that the <br />consultant’s fee of $2,500 was well worth it. <br /> <br />Mayor Paar stated that he felt that Steel in the Air’s consulting fee was financial feasible at the <br />current lease base rent is in excess of $27,000 annually. Administrator Statz stated that he is not <br />knowledgeable in the area of this technology to determine whether the existing equipment is <br />needed or not and its value. Attorney Glaser stated that Steel in the Air is a reputable firm, has a <br />large up to date database of leases and information that is unavailable to Staff. Council Member <br />Koski questioned the rapidly changing technology (5G) and questioned its effects on these types <br />of leases. Attorney Glaser stated that the existing equipment is not going anywhere if it is needed <br />as the City of Lexington entered into a 10 year renewal. He stated that the antennas are needed as <br />they generate the main signal and the 5G fills in spots where the signal is weak. Council Member <br />Koski questioned if T-Mobile was the only equipment on the watertower. Mark stated that their <br />equipment was only on the watertower. Attorney Glaser stated that they upgrade the equipment <br />from time to time also. Administrator Statz stated that the city cannot charge a lease fee for 5G <br />technology on streetlights, etc. Attorney Glaser offered the utilization of a firm similar to Steel in <br />the Air to the previous City Administrator and he chose not to utilize them. <br /> <br />Attorney Glaser stated that he recommended Steel in the Air because he felt that their reports <br />appeared to be very comprehensive and the League of Minnesota Cities concurred. <br />Page 13 of 16 <br /> <br /> <br />