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______________________________________________________________________________ <br /> <br />Page 1 of 2 <br /> <br /> <br /> <br /> <br /> <br />UTILITIES COMMISSION MEETING <br /> <br />TO: <br />ERMU Commission <br />FROM: <br />Mark Hanson - General Manager <br />MEETING DATE: <br />December 18, 2025 <br />AGENDA ITEM NUMBER: <br />3.1 <br />SUBJECT: <br />Verizon Water Tower Lease Agreements <br />ACTION REQUESTED: <br />None <br /> <br />BACKGROUND: <br />At the November 2025 commission meeting, staff reviewed Verizon’s request to amend their <br />current leases (attached). After discussion, the Commission directed staff to decline the offers. <br /> <br />DISCUSSION: <br />After the Commission’s decision, Verizon submitted a revised offer for the Johnson Tower. Staff <br />expects to receive similar offers for the other two towers. As before, the lump sum offer is <br />contingent upon granting a perpetual easement on the property (no end date). <br />Tower Current Lease <br />Terms Expires Future <br />Payments <br />Lump Sum <br />Offer <br />New Lease <br />Terms Expires Future <br />Payments <br />1st Offer $30,000/year <br />4% / year 2039 $798,603 $745,000 $30,000/year <br />3% / year 2056 $1,427,262 <br />2nd Offer $30,000/year <br />4% / year 2039 $798,603 $800,000 $38,200/year <br />3% / year 2059 $2,054,269 <br /> <br />Additionally, although the longer proposed terms may seem promising, nothing in the current <br />offers prevent Verizon from seeking future lease reductions. <br />Similar to last month’s report, the table below lists the reduction in revenue if the proposed <br />lease terms were used throughout the remainder of the current lease periods. <br /> <br /> <br /> <br />Each of our four water towers has antennas attached from two cellular carriers with Verizon on <br />all four towers. Staff’s goal is to negotiate consistent lease terms across all carriers for their <br />Tower Expires Existing Lease <br />Future Payments <br />Proposed Lease <br />Future Payments <br />Reduction <br />in Revenue <br />Percent <br />Reduction <br />1st Offer 2039 $798,603 $468,534 $330,069 41.3% <br />2nd Offer 2039 $798,603 $587,241 $211,362 26.5%