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2.7. ERMUSR 03-15-2016 *-- Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Eric Volk- Water Superintendent John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: March 15, 2016 2.7 SUBJECT: Verizon Non-Exclusive Lease Agreement(Auburn Street Water Tower) BACKGROUND: We were approached by Verizon Wireless to attach their cellular antennas to our Auburn Street Water Tower. The attachments will be similar to what was attached to the Gary Street and Johnson Street Water Towers two years ago. The site will include a fenced in area with electrical equipment and a generator. On the top of the tower there will be six antennas and twelve RRUs. The lease agreement starts at$30,000 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 term being five years. This lease agreement is similar to the agreements ERMU already has in place with Verizon Wireless. ACTION REQUESTED: Staff recommends the Commission approve the Verizon Non-Exclusive Lease Agreement and the Memorandum of Tower Attachment Lease Agreement for the Auburn Street Water Tower. ATTACHMENTS: • Verizon Non-Exclusive Lease Agreement • Verizon Memorandum of Tower Attachment Lease Agreement POWERED BY ® Page 1 of 1 NATURE Reliable Public Power Provider POWERED T o S ERV E 125 Non-Exclusive Tower Attachment Lease Agreement This Tower Attachment Lease Agreement ("Lease") is executed this day of , 2016, by and between Elk River Municipal Utilities ("Lessor") and Verizon Wireless(VAW)LLC d/b/a Verizon Wireless("Lessee"). WHEREAS, Lessor owns an elevated water tank (the "Water Tower") located at 19533 Auburn Street, Elk River, Minnesota, on the property legally described on Exhibit A attached hereto(the"Property") and designated by the Lessee as MINC-MILLENNIUM; and WHEREAS, Lessor has adopted a Policy Statement Regarding the use of Lessor's Property for Communication Antennas and Towers (the "Policy Statement"), which Policy Statement provides, among other things, that priority in the location of communication facilities on Lessor's Property shall be given to Lessor, to public safety agencies, to other governmental agencies, and to private entities, in that order; and WHEREAS, Lessee desires to lease from Lessor certain designated space on the Water Tower to install, operate and maintain certain of Lessee's antennae, other equipment and related devices (collectively, the"Equipment"); and WHEREAS, Lessor desires to lease certain designated space for Lessee's Equipment on the Water Tower,provided Lessee's Equipment does not interfere with Lessor's daily operations and maintenance of the Water Tower, and provided further that Lessee will defend, indemnify and hold Lessor harmless from and against any and all damages caused by the installation, operation and maintenance of the Equipment. NOW, THEREFORE, for and in consideration of the terms and mutual promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee agree as follows. 1. Grant of Lease Lessor hereby grants to Lessee the right to install, maintain, and operate on, and to remove communication equipment from, the Water Tower, and also grants certain easements (the "Easements") over the Property for ingress, egress and utilities, during the Initial Term and any Renewal Terms, as those terms are hereinafter defined. The Easements shall be as shown on Exhibit B attached hereto. The Equipment shall be as described on Exhibit C attached hereto and shall be located as shown on Exhibit C. Neither the location nor the extent of the Easements or the Equipment shall be changed without the prior written consent of Lessor. 2. Use Lessee shall be permitted to install the Equipment on the Property and to install or improve utilities on the Property over the Easements. The Equipment, including the number, location and mounting height of all antennas, and the size and location of all other Equipment, shall be as described on Exhibit C and shall be installed only as depicted and shown on Exhibit C. Exhibits B and C may be amended by Lessee, from time to time, without amending this Lease, but only with the written approval of the Lessor, which approval may be conditioned 126 or withheld by Lessor in Lessor's sole discretion. Notwithstanding the foregoing, Lessee may make non-material modifications to Lessee's Equipment without consent, including but not limited to maintenance, repairs, like-kind or similar replacements of Equipment, provided none of the modified or replaced Equipment is larger than the Equipment approved by Lessor. If installation of the Equipment requires relocation of existing communication equipment (to include coax cable, antennae, brackets, hardware, etc.) owned by other communication carriers, Lessee shall be responsible for obtaining the consent of such carriers and all costs and labor associated with these modifications shall be the responsibility of the Lessee and shall be considered to be an integral part of this Lease. Any agreements among various communication carriers associated with these modifications shall be the responsibility of the Lessee. Lessee shall defend, indemnify and hold Lessor harmless from any claim made by such other carriers as a result of Lessee's acts or omissions. Prior to the installation of any Equipment, all installation plans, including plans for the attachment of Lessee's equipment, for the relocation of existing equipment owned by other carriers, for any modifications to the Water Tower, and for the installation of any personal property owned by the Lessee that is to be located on the Property or attached to the Water Tower, must be approved by Lessor, which approval may be conditioned or withheld by Lessor in Lessor's sole discretion. Lessor may also require proof of Lessee's ability to pay for all work to be performed on the Property, prior to the commencement of such work by Lessee or Lessee's contractors. Any personal property owned by Lessee, whether fixed or attached to the Property or the Water Tower, shall remain the exclusive property of Lessee, and the risk of loss to same will be solely Lessee's. No Equipment shall be permanently attached or welded to the Water Tower without Lessor's prior written approval. If welded attachments are approved, Lessee shall be responsible for the cost of replacing interior or exterior tank coatings that are damaged by welding. All replacement of coatings shall meet the exact specifications of the existing tank coating, be performed by contractor's approved in advance by Lessor, and be completed within thirty (30) days of the time that welding on the tank occurs. All costs associated with the new coatings, to include operational costs (i.e., draining elevated tank), shall be paid on demand by Lessee. Lessor grants Lessee limited access to the Water Tower and the Property for the purpose of installing, operating and maintaining the Equipment. Access to the Water Tower shall be limited to such access as Lessor's authorized representative shall approve, in writing, which access shall be consistent with Lessee's need to install, operate and maintain the Equipment and Lessor's need to operate and maintain the Water Tower. Lessor shall have its personnel on site at any time Lessee is accessing the Water Tower, and Lessee shall reimburse Lessor for Lessor's costs to have its personnel on site, including Lessor's on-call or overtime costs if Lessor's personnel are required to be on the site at times other than normal business hours. Lessee shall give Lessor 12 hours notice in a non-emergency situation, or 1 hour notice in an emergency situation, of its need to enter the Water Tower and Lessor shall arrange to have its personnel present. Under no circumstances shall Lessee or its employees or agents enter the Water Tower unless an employee if Lessor is present. Notwithstanding the foregoing, Lessee shall have unrestricted access to its Equipment located on the ground space at all times. 2 127 Lessee shall, prior to the installation of any Equipment on the Property, obtain all required land use approvals, building permits, and other governmental approvals required for installation and operation of the Equipment. Lessee shall also comply with all applicable governmental regulations regarding the installation and operation of the Equipment, including, without limitation, the requirements of the FCC, FAA, OSHA, and all other regulatory agencies with jurisdiction over the Equipment (collectively, the "Regulatory Requirements"). Failure of Lessee to comply with the Regulatory Requirements shall be a default, entitling Lessor to exercise the remedies hereinafter set forth including,but not limited to,termination of this Lease. Lessor agrees to cooperate with Lessee at no cost to Lessor with respect to obtaining any required zoning or other governmental approvals for the Site, the Facilities and contemplated use thereof. Furthermore, Lessee shall not allow its Equipment to interfere with the facilities of a user with a higher priority pursuant to Lessor's Policy Statement, or a user whose use of the Water Tower predates the Commencement Date of this Lease (such users being "Priority Users"). 3. Initial Term The Lease is effective upon full execution hereof. The initial term of this Lease ("Initial Term") shall be for a period of five (5) years commencing on the earlier of (i)Lessee construction start or (ii)January 1, 2017 ("Commencement Date"). Lessee may terminate the Lease for any reason or no reason prior to the Commencement Date, but agrees to reimburse Lessor pursuant to paragraph 5(c) hereof for all of Lessors costs incurred prior to such termination date. 4. Renewal Terms Subject to Lessor's right set forth in item (2) of the following paragraph, Lessee shall have the right to extend this lease four (4) times, for a period of five (5) years each (the "Renewal Terms"). The Renewal Terms shall be on the same terms and conditions as set forth in this Lease,except that rent shall be increased as provided in paragraph 5(b). This Lease shall automatically be renewed for the Renewal Terms unless: (1)Lessee notifies Lessor of Lessee's intention not to renew the Lease at least forty-five (45) days prior to the expiration of the Initial Term or the Renewal Term which is then in effect; or (2)Lessor notifies Lessee of Lessor's intention not to renew the Lease at least three hundred sixty (360) days prior to the expiration of the Renewal Term which is then in effect. • 5. Consideration (a) Initial Term. Lessee shall pay to Lessor as rental the sum of Thirty Thousand Dollars ($30,000.00) per annum ("Lease Payment"). The Lease Payment shall be increased annually commencing one (1) year from the Commencement Date of this Lease at a rate equal to four (4%) percent of the previous year's rental. The Lease Payment shall be paid annually in advance with the first such annual payment due within thirty (30) days after the Commencement Date and thereafter on each anniversary of the Commencement Date,partial years to be pro-rated. 3 128 (b) Renewal Term. In the event that Lessee elects to renew this Lease as provided in paragraph 4, the Lease Payment shall be increased each year of the Renewal Terms(commencing with the first year of the first Renewal Term)at the rate of four(4%) percent of the previous year's Lease Payment. (c) Reimbursement of Costs. In addition to the Lease Payments provided for in paragraphs 5(a) and (b) above, and any other costs of Lessee identified elsewhere in this Lease, Lessee shall reimburse Lessor for all of Lessor's costs to directly implement, administer, and enforce this Lease, with copy of detailed invoice submitted to Lessee from Lessor, including, without limitation: (i)Lessor's costs to retain a structural engineer or other consultant to review Lessee's plans for installation of the Equipment and to inspect the Equipment upon installation and annually, if determined necessary by Lessor; (ii)Lessor's costs to retain a Radio Frequency Engineer to identify or resolve any potential or actual interference issues with Lessee's Equipment at the commencement of service by Lessee and at such other times as deemed necessary by Lessor; and (iii)Lessor's legal fees and other consultant costs associated with the negotiation, administration, and enforcement of this Lease. (d) Taxes. Lessee shall reimburse Lessor for any personal property or other taxes levied against the Property or Lessor as a result of the installation and operation of Lessee's Equipment on the Property. (e) Security Deposit. To secure payment for the reimbursement of costs provided for in this Lease, Lessee shall deliver to Lessor a cash escrow in the amount of $15,000.00 prior to installing any equipment or antennas on the Property. Lessor shall hold this security until all of the work contemplated by this Lease is completed and all amounts due for reimbursement of costs pursuant to this Lease have been paid by Lessee, and shall release the security to Lessee at that time. Lessor may deduct from the security any amounts due under this Lease and unpaid 30 days after written demand by Lessor. 6. Utilities Lessee, at Lessee's expense, will arrange for separate metering for all required electrical or other utility connections to support the Equipment, and shall promptly pay all utility costs directly to the utility providers when due. 7. Water Tower Purpose Lessee recognizes that the primary function of the Water Tower is to provide water storage for Lessor and its customers. Lessee understands that it will be necessary, from time to time, for Lessor to interrupt Lessee's use of the Property for maintenance of the Water Tower. Lessor shall provide Lessee with at least ninety(90) days prior written notice for non-emergency maintenance and, if requested by Lessor, Lessee agrees to remove its Equipment from the Water Tower for such length of time as Lessor shall require to complete the maintenance (the "Maintenance Period"). If required to remove its Equipment, Lessee shall have the right to temporarily relocate its Equipment as provided below. Alternatively, Lessee may terminate this Lease upon thirty (30) days written notice to the Lessor at any time during the Maintenance 4 129 Period and neither party shall have any further rights or obligations arising hereunder, except Lessee shall have the duty to remove its Equipment as set forth herein, repairing any damage caused in the process, and the parties shall have those rights and obligations that are to survive the termination of this Lease. Lessee, at its sole cost and expense, may temporarily relocate its Equipment during a Maintenance Period to a different location on the Water Tower provided, however: (a)that the duration of such relocation shall not exceed the Maintenance Period; (b)that relocation space is available on the Water Tower at a location sufficient to meet Lessee's coverage or engineering needs and sufficient to allow the required maintenance to be performed by Lessor; (c)that the temporary location is not being used or intended to be used by Lessor; (d)that the relocation will not cause interference with any other equipment located on the Water Tower; (e)that the temporary location will not interfere with the Lessor's maintenance or use of the Water Tower; and(f)that Lessor has approved relocation to the temporary location in writing. Alternatively,Lessee,at its sole cost and expense,may use a temporary transmission site, or Cellular on Wheels ("COW"), during the Maintenance Period, provided that the location of the COW is approved in writing in advance by Lessor. The cost of painting and repairing the Water Tower shall be borne by Lessor, unless damage to the Water Tower is caused by Lessee, in which case Lessee shall repair such damage or, at Lessor's option,reimburse Lessor for Lessor's costs and expenses incurred in such repair. The cost of painting Lessee's Equipment shall be borne by Lessee, and shall be performed routinely to maintain the appearance of the Equipment and shall be the same color as the Water Tower and must have prior written approval of Lessor. Lessor will not be responsible for damage to the Lessee's equipment while Lessor is performing maintenance on the Property or the Water Tower, except to the extent such damage is caused by the gross negligence or willful misconduct of Lessor. 8. Representations and Warranties of Lessee (a) Lessee represents and warrants that its installation, operation and maintenance of the Equipment shall comply with all Regulatory Requirements. (b) Lessee shall indemnify, defend and hold Lessor harmless from any claim against Lessor related to Lessee's installation, operation and maintenance of the Equipment, including, without limitation, any claims of contractors and subcontractors and/or any claims of any person or entity for damages or injury related to the installation, operation and maintenance of its Equipment. 9. Termination Except as otherwise provided herein, this Lease may be terminated upon written notice as follows: (a) By either party upon a default of any covenant or term hereof by the other party, which default is not cured within thirty (30) days of receipt of written notice of 5 130 default (without, however, limiting any other rights available to the parties pursuant to other provisions hereof); (b) Upon thirty (30) days written notice by Lessee if Lessee is unable to obtain or maintain, through no fault of Lessee, any license, permit or other governmental approval necessary for the construction and operation of the Lessee's Equipment or business, including its ability to manage a PCS network pursuant to which the space is leased and the Equipment will be installed; or (c) By Lessor by giving Lessee twelve (12) months written notice that the Water Tower is going to be abandoned or relocated. (d) By Lessee giving twelve (12) months written notice that use of the Property is unacceptable for technical reasons, including the Property being unacceptable as part of Lessee's network design as well as signal interference. (e) By Lessor by giving Lessee: (i)twelve (12) months written notice that a Priority User needs to use the Property for a use which is incompatible with Lessee's use of the Property; or (ii)thirty (30) days written notice that Lessee's Equipment is unreasonably interfering with the Equipment of a Priority User,provided that Lessor first gives Lessee written notice of such interference and thirty (30) days within which to resolve such interference with the Priority User. Lessee may terminate this Lease other than as expressly provided above at any time, so long as Lessee pays to Lessor as liquidated damages for early termination, twelve (12) months of the then current rent for the year in which Lessee terminates. Such payment shall be made within thirty(30)days of Lessee's written notice of termination. In the event of termination of this Lease, the Lessee must remove all of its Equipment from the Water Tower and the Property within sixty (60) days and return the Water Tower and the Property to their original condition (as of the Commencement Date of this Lease), normal wear and tear excepted. Lessee shall provide Lessor, at the Commencement Date of this Lease,a letter of credit or performance bond or cash ("Security") in the amount of $10,000 to secure Lessees compliance with this requirement. The Security shall be kept current at all times that this Lease is in effect, and failure to keep the Security current shall constitute a default by Lessee. In addition to termination of this Lease, Lessor shall have all other rights and remedies available to it at law or in equity(including an action for money damages or injunctive relief) in the case of a Lessee default that remains uncured for a period of thirty (30) days after written notice to Lessee; provided however that if a non-monetary default cannot reasonably be cured within the 30-day period, this Lease may not be terminated if Lessee commences action to cure the default within the 30-day period and proceeds with due diligence to fully cure the default. 10. Liability Insurance During the Initial Term and the Renewal Terms, Lessee shall maintain, at its own expense, insurance covering claims for public liability, personal injury, death and property 6 131 damage under a policy of general liability insurance, with limits of not less than One Million Dollars ($1,000,000.00) per person and Two Million Dollars ($2,000,000.00) per occurrence, and property damage insurance of not less than Fifty Thousand Dollars ($50,000.00). Such insurance shall include both Lessee and Lessor (as an additional insured) against liabilities arising out of or in connection with Lessee's use or occupancy of the Property subject to the standard exceptions found in the Commercial General Liability Insurance Policy. Landlord shall also carry general liability and property damage insurance. 11. Environmental Compliance Lessee warrants,represents and covenants that it will not bring on to the property, and its use on the Property will not generate, any Hazardous Materials, except if approved by Lessor. This Lease may be terminated by Lessor immediately if Lessee is responsible for Hazardous Materials being on the Property. In such event Lessee shall be responsible for the removal of all such Hazardous Materials from the Property and shall be liable to Lessor for any costs incurred by Lessor to remove or clean up Hazardous Materials from the Property and shall indemnify, defend and hold harmless Lessor for any liability due to the Hazardous Materials being on the Property. Lessor represents and warrants to Lessee that it has no knowledge, having done no investigation relating thereto, of any substance, chemical or waste on or affecting Lessor's Property that is identified as hazardous, toxic or dangerous in any applicable federal, state or local law or regulation(collectively"Hazardous Materials"). 12. Interference Lessee covenants that the Equipment will not cause interference with the operation of any Priority Users. Lessee shall be responsible for curing any and all interference to the operation of equipment of Priority Users, so long as Priority Users are lawfully operating. Subsequent to the installation of the Lessee Equipment, other than Priority Users, Lessor will not permit its lessees or licensees to install new equipment on or make any alterations to the Water Tower, if such equipment or modifications cause interference with the operation of Lessee's Equipment. 13. Subrogation (a) In General. All insurance policies required under this Lease shall contain a waiver of subrogation provision under the terms of which the insurance carrier waives all of its rights to proceed against Lessor or Lessee, as the case may be. (b) Mutual Release. Lessor and Lessee each release the other and their respective representative from any claims by them or anyone claiming through or under them by way of subrogation or otherwise for damage to any person or to the Property and to the fixtures,personal property, improvements and alterations in or on the Property that are caused by or result from risks insured against under any insurance policy carried by them and/or required by this Lease. 14. Notices All notices or demands by or from Lessor to Lessee, or Lessee to Lessor, shall be in writing. Such notices or demands shall be mailed to the other party at the following address: 7 132 Lessor: Elk River Municipal Utilities Attn: General Manager 13069 Orono Pkwy P.O. Box 430 Elk River,MN 55330-0430 Lessee: Verizon Wireless(VAW)LLC d/b/a Verizon Wireless 180 Washington Valley Road Bedminster,New Jersey 07921 Attention: Network Real Estate 15. Destruction of Premises If the Property or the Water Tower are destroyed or damaged so as to hinder the effective use of Lessee's Equipment on the Water Tower in Lessee's reasonable judgment, Lessee may elect to terminate this Lease as of the date of the damage or destruction by so notifying the Lessor. In such event, all rights and obligations of the parties to each other Lessee to Lessor shall cease as of the date of the damage or destruction (other than those obligations intended to survive the termination of the Lease), and Lessee shall be entitled to a pro rata reimbursement of any rent prepaid by Lessee. In the case of such termination, Lessee shall remove its Equipment from the Property within sixty(60) days, repairing any damage caused in the process. 16. Title and Quiet Enjoyment Lessor warrants that: (i)it has the full right, power and authority to execute this Lease; and(ii) it has good and marketable title to the Property. 17. Assignment Lessee may not assign or sublet its rights under this Lease without the prior written consent of Lessor, which consent may be conditioned or withheld by Lessor, in Lessor's sole discretion. Notwithstanding the foregoing, Lessee may, without notice to or consent of Lessor, assign its rights under this Agreement in whole or in part to any entity controlling, controlled by or under common control with Lessee, any entity acquiring substantially all of the assets of Lessee,or any successor entity in a merger or consolidation involving Lessee. 18. Successors and Assigns This Lease shall run with the Property described on Exhibit A and shall be binding upon and inure to the benefit of the parties, their respective heirs, successors, personal representatives and assigns. 8 133 19. Miscellaneous (a) Each party agrees to furnish to the other, within twenty (20) days after receipt of written request, such truthful estoppel information as the other may reasonable request. (b) This Lease constitutes the entire agreement and understanding of Lessor and Lessee with respect to the subject matter hereof and supersedes all offers, negotiations and other agreements. There are no representations or understandings of any kind not set forth herein. Any amendments to said Lease must be in writing and executed by Lessor and Lessee. (c) If either Lessor or Lessee is represented by a real estate broker in this transaction, that party shall be fully responsible for any fees due such broker and shall hold the other party harmless from any claims for commission by such broker. (d) This Lease shall be construed in accordance with the laws of the state in which the Property is situated. (e) If any term of this Lease is found to be void or invalid, such validity shall not affect the remaining terms of this Lease,which shall continue in full force and effect. (f) Lessor shall cooperate, at no cost to Lessor, with Lessee's efforts to evaluate the Water Tower and to comply with governmental regulations affecting Lessee's use of the Property by providing information about the Water Tower, the Water Tower's location and prior filings made by Lessor with governmental agencies. (g) Neither this Lease, nor a memorandum of same, shall be filed in the public records without the prior written consent of Lessor. (h) This Lease may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties, it being understood that all parties need not sign the same counterpart. 9 134 IN WITNESS WHEREOF, Lessor and Lessee have executed this Non-Exclusive Tower Attachment Lease Agreement as of that date and year first above written. LESSOR: Elk River Municipal Utilities By: Its: Date: By: Its: Date: LESSEE: Verizon Wireless(VAW)LLC d/b/a Verizon Wireless By: Its: Date: 10 135 Exhibit A TOWER ATTACHMENT LEASE AGREEMENT DESCRIPTION OF THE PROPERTY: Outlot A,Hillside Estates Fourth Addition, Sherburne County,Minnesota. A-1 136 Exhibit B TOWER ATTACHMENT LEASE AGREEMENT DESCRIPTION OF EASEMENTS See attached Survey B-1 137 i ! Z g J #� i 0 . . z - cF1 G i o fZ N r o 1 t ; f 6E FJjj; iP .v.i. i lip d : .E7 :e• 6 i ! i k! ! 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'451'.�4 , EXISTING \ �\ \ BUILDING } / / / / GC //".'' \ 0�x/ II / �� }% / LESSEE S'flIGFIfY OF / i�� °j �`h ' / \ EXISTING WATER TOWER // \'' g�` ` . .. / ( 1N , $ ! \ �/ / / «<777 �' 4 5 \ , / N �,� �/ \\ / LESSEE 38'-5'% pm �¢> / \ — ir—r LAND SPACE / my LESSEE 3'WKIE CABLE \ X \ / __----- EASEMENT s9d ____'9 �� / / I 8? co 99” _. 1,-4--NORTH "s.„.... ,...1 � °ry di 1111 II EXISTING PROPERTY UNE MIN C / MILLENNIUM 141 (2) EXISTING OMNI ANTENNA *O136VERALL.3'AGLSTRUCTURE HEIGHT t2LfsSEE NOM SPACE (12) EXISTING ANTENNAS 7.0 AGt GRADE 0 T 9926'AMS31/088) NORTH /011 MING MILLENNIUM 142 DRAFTED BY AND RETURN TO: Hessian&McKasy,P.A. 3700 ROC Plaza 60 South Sixth Street Minneapolis,MN 55402 (Site Name: MIN Millennium) Space above this line for Recorder's use.) MEMORANDUM OF TOWER ATTACHMENT LEASE AGREEMENT THIS MEMORANDUM OF TOWER ATTACHMENT LEASE AGREEMENT is made this day of , 20_, between Elk River Municipal Utilities, with a mailing address at 13069 Orono Parkway, Elk River, MN 55330, hereinafter referred to as "LESSOR," and Verizon Wireless (VAW) LLC d/b/a Verizon Wireless,with its address for notice located at 180 Washington Valley Road, Bedminster,New Jersey 07921, hereinafter referred to as "LESSEE". The City of Elk River owns a water tower (the "Water Tower") located at 19533 Auburn Street, Elk River, Sherbourne County, Minnesota, on the property legally described on Exhibit A attached hereto (the "Property") and has designated LESSOR with authority to operate and control the Property. 1. LESSOR and LESSEE entered into a Non-Exclusive Tower Attachment Lease Agreement (the "Agreement") on , 20 , for an initial term of five (5) years, commencing on the Commencement Date. Lessee shall have the right to extend the Agreement four (4) times, for a period of five (5) years each. The Agreement will be automatically renewed unless Lessee notifies Lessor of Lessee's intention not to renew the Agreement at least forty-five (45) days prior to the expiration of the initial term or any renewal term which is then in effect, or Lessor notifies Lessee of Lessor's intention not to renew the Lease at least three hundred sixty (360) days prior to the expiration of the renewal term which is then in effect. 2. Pursuant to the Agreement, LESSOR leased to LESSEE a portion of the Water Tower together with certain ground space for the installation of LESSEE's equipment building and other equipment,together with certain access rights over the Property. 3. The Agreement will commence on the earlier of(i)Lessee construction start or(ii) January 1,2017. 4. The terms, covenants and provisions of the Agreement, the terms of which are hereby incorporated by reference into this Memorandum, shall extend to and be binding upon the heirs, personal representative, successors and assigns of LESSOR and LESSEE. MIN Millennium Memorandum of Tower Attachment Lease Agreement 1 143 IN WITNESS WHEREOF, hereunto and to a duplicate hereof, LESSOR and LESSEE have caused this Memorandum to be duly executed on the date written herein below. LESSOR: LESSEE: Elk River Municipal Utilities Verizon Wireless(VAW)LLC d/b/a Verizon Wireless By: By: ' Name: Phillip French Its: Its: Executive Director--Network D Date: Date: Acknowledgments on following page The remainder of this page intentionally left blank MIN Millennium Memorandum of Tower Attachment Lease Agreement 2 144 ACKNOWLEDGMENTS LESSOR ACKNOWLEDGMENT STATE OF MINNESOTA ) ) ss. COUNTY OF ) On this day of , 20 , before me, the undersigned, a Notary Public in and for the State of Minnesota, duly commissioned and sworn, personally appeared , to me known to be the of Elk River Municipal Utilities, that executed the foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of Elk River Municipal Utilities, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. Print or Type Name: Notary Public in and for the State of Minnesota My appointment expires: LESSEE ACKNOWLEDGMENT STATE OF CALIFORNIA ) )ss. COUNTY OF ) On this day of , 20 , before me, the undersigned, a Notary Public in and for the State of California, duly commissioned and sworn, personally appeared Phillip French, to me known to be the Executive Director—Network of Verizon Wireless (VAW) LLC d/b/a Verizon Wireless, that executed the foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of Verizon Wireless (VAW) LLC d/b/a Verizon Wireless, for the uses and purposes therein mentioned. IN WITNESS WHEREOF, 1 have hereunto set my hand and affixed my official seal the day and year first above written. Print or Type Name: Notary Public in and for the State of California My appointment expires: MIN Millennium Memorandum of Tower Attachment Lease Agreement 3 145 Exhibit"A" (Legal Description) Page 1 of 1 Outlot A, Hillside Estates Fourth Addition, Sherburne County,Minnesota. MIN Millennium Memorandum of Tower Attachment Lease Agreement 146