5.3 ERMUSR 06-03-2025 - Laserfiche WebLink

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______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Mark Hanson – General Manager MEETING DATE: June 3, 2025 AGENDA ITEM NUMBER: 5.3 SUBJECT: AT&T Water Tower Attachment Lease Agreement ACTION REQUESTED: Approve the AT&T Water Tower Attachment Lease Agreement BACKGROUND/DISCUSSION: AT&T has requested to attach their cellular antennas to our Freeport Street water tower. The attachments will be similar to what has been attached to our other water towers by other companies. This will be AT&T’s first water tower lease agreement with ERMU. On top of the tower there will be nine antennas, nine radios, and two junction boxes. The site will include a fenced-in area with electrical equipment housed in a shelter and a back-up generator. This agreement rate was originally negotiated at $41,300 for the first year, with a 4% increase every year after that. The initial term is five years with an option to renew the lease four more times, with each renewal term being an additional five years. Prior to negotiations of the agreement terms, staff discovered a mistake in the first-year rate calculation. The first-year rate should have been $51,400, which aligns with the only other agreement contemplating nine (9) antennas, the others have six (6) antennas. Staff offered a slightly discounted rate of $48,500 due to the original error. AT&T has not yet accepted the $48,500 rate, but staff has requested their acceptance prior to the commission meeting. Staff recommends the Commission proceed with one of the following two options: 1) Approve the agreement with a first-year rate of $48,500 2) Direct staff to continue negotiations with AT&T ATTACHMENTS: • AT&T Water Tower Attachment Lease Agreement 174