Item 13 - Amendment to Cell Tower Lease at Jerome Park

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Amendment to Cell Tower Lease at Jerome Park October 7, 2025 Page 2 extensions. This is stated in Section 2 Compensation of said agreement: "If any Existing Lease is amended or modified after the Effective Date, where such modification results in the co- location of additional equipment or the inclusion of additional wireless providers at any existing site, Consultant shall receive twenty percent (20%) of the incremental lease revenue over the life of the lease attributable to such modification." On February 20, 2007, City Council approved a cell tower lease agreement with Royal Street Communications, LLC for a communications tower at Jerome Park. The lease was later assigned by Royal Street Communications to T-Mobile West, LLC. In January 2023, T-Mobile West, LLC notified the City of its intent to upgrade the equipment installed on the Jerome Park tower. The lease agreement allows upgrades provided that the equipment, cables, or antennas remain within the original physical parameters of the premises. Staff determined that the proposed upgrades (Exhibit 1) would exceed those parameters, and as a result, the City denied T-Mobile West, LLC's request. The proposed upgraded equipment footprint is about 10.7% larger than the existing. To allow for the upgrades, the City negotiated with T-Mobile West, LLC to increase the lease amount by a proportionate amount from $44,880 to $49,690 annually, an increase of$4,800 per year. The increase will become effective on the first day of the month following the date upon which a building permit for the improvements is issued by the City and will be subject to an annual rent escalation of 4%. The City will receive 80% of all revenues received from this amended cell tower lease agreement and ATS Communications will receive the remaining 20% as established under the terms and conditions of the City's agreement with ATS Communications, for the life of the lease through February 2032. Staff recommends approval of the amendment to the lease agreement with T-Mobile West, LLC (Exhibit 2). The amendment authorizes the proposed equipment upgrades and establishes the corresponding payment increase. Revenues from the lease will continue to be allocated exclusively to the maintenance and capital improvements of City Parks. ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT The revenues received from this amendment will be deposited into the following account for the specified years.