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CITY COUNCIL <br />STAFF REPORT <br />AGENDA ITEM 6.A. <br /> <br />STAFF ORIGINATOR: Rick DeGardner, Public Services Director <br /> <br />MEETING DATE August 25, 2025 <br /> <br />AGENDA ITEM: Consider Resolution No. 25-111, Approving First Amendment to Verizon <br />LLC Lease Agreement - Water Tower #1 <br /> <br />VOTE REQUIRED: Simple Majority <br /> <br /> <br />INTRODUCTION <br />The Council is requested to consider Resolution No. 25-111, Approving the First Amendment to <br />the Verizon Wireless Lease Agreement for Water Tower #1. <br /> <br />BACKGROUND <br />The original lease agreement with Verizon (formerly AirTouch Cellular) began in May, 2008, <br /> and expired in December, 2019. A new lease agreement was approved by the City Council on <br />September 24, 2018 via Resolution 18-126. <br /> <br />Verizon Wireless contacted the City earlier this year seeking an adjustment to the rental rates. <br />The existing lease agreement provides for a 2025 monthly lease rate of $3,861.45, with 2026 <br />increasing to $4,015.90. The proposed lease rate from Verizon Wireless begins with a monthly <br />rate of $3,430.72 commencing on January, 1, 2026. Beginning on January 1, 2027 the monthly <br />rent will increase by 2% over the monthly rent then in effect on each one-year anniversary of <br />January 1, 2027 thereafter. <br /> <br />Staff contacted other municipalities in the area that also lease water tower space and found <br />that our existing lease agreements are somewhat higher. Staff is comfortable with the <br />proposed amendment. <br /> <br />In addition, the First Amendment agreement includes a clause for the Right of First Refusal. All <br />the other terms and conditions of the 2019 Agreement will remain in full force and effect. <br /> <br />RECOMMENDATION <br />Resolution No. 25-111, Approving First Amendment to Verizon Wireless Lease Agreement for <br />Water Tower #1. <br /> <br />Page 38 of 171