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2.3 ERMUSR 07-08-2025______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Mark Hanson – General Manager MEETING DATE: July 8, 2025 AGENDA ITEM NUMBER: 2.3 SUBJECT: Water Tower Attachment – Lease Amendment (Verizon) ACTION REQUESTED: Approve Amendment to Verizon’s Water Tower Attachment Lease Agreement, Auburn Tower BACKGROUND: On October 5, 2016, ERMU executed a non-exclusive tower attachment lease agreement for our Auburn Street Water Tower with Cellco Partnership, doing business as Verizon Wireless. This agreement allows Verizon to attach a specific number of cellular antennas to our water tower and house the related system equipment at the base of the tower. DISCUSSION: Verizon has contacted ERMU for approval to replace the original antennas and equipment and add additional antennas and equipment at this location. ERMU has negotiated that the original agreement terms be applied to both the replacement and additional antennas and equipment. The payment terms for the replaced antennas and equipment will remain the same as the original agreement. The lease payment for the additional antennas and equipment will be six percent (6%) of the annual lease payment required in the original agreement, prorated for the first year. ATTACHMENTS: • Amendment to Verizon’s Water Tower Attachment Lease Agreement, Auburn Tower 36 1 MIN Millennium (MDG# 5000045762) – First Amendment 235681v1 CORE/0762186.3625/200064107.2 First Amendment to Non-Exclusive Tower Attachment Lease Agreement This First Amendment to Non-Exclusive Tower Attachment Lease Agreement (“First Amendment”) is executed this ____ day of _________________, 2025 by and between Elk River Municipal Utilities (“Lessor”) and Cellco Partnership d/b/a Verizon Wireless (“Lessee”). WHEREAS, Lessor and Lessee entered into a Non-Exclusive Tower Attachment Lease Agreement on October 5, 2016 (the “Lease”); and WHEREAS, the Lease allows the Lessee to install, maintain and operate a telecommunications facility on Lessor’s property located at 19533 Auburn Street in the City of Elk River (the “Property”); and WHEREAS, Lessee has requested that the Lease be amended to allow Lessee, or its authorized agents, to make the following modifications to Lessee’s existing telecommunications facility on the Property: • Replacement of existing antennas and other equipment, including cabling and mounting apparatus; • Installation of three (3) additional antennas; and WHEREAS, Lessor agrees to amend the Lease, subject to the terms and conditions of this First Amendment. 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. Additional Attachments In addition to replacing the existing six (6) antennas, Lessee may install up to three (3) new antennas and other equipment (collectively, the “New Antennas”) as shown on the attached Amended Exhibit C. 2. Additional Rent (a) As consideration for Lessee's modification of its equipment, commencing on September 1, 2025, Lessee shall pay an additional Lease Payment for the remainder of the current lease year (from September 1, 2025 to December 31, 2025) in the amount of Two Thousand Five Hundred Sixty-Two and No/100 Dollars ($2,562.00). Lessee agrees and acknowledges that the increase to the current Lease Payment equals 6% of the 2025 calendar year Lease Payment, prorated for the remainder of the calendar year. Such increased payment shall become part of the Lease Payment due under Section 5(a) of the 37 2 MIN Millennium (MDG# 5000045762) – First Amendment 235681v1 CORE/0762186.3625/200064107.2 Lease, and commencing January 1, 2026, and on each January 1 thereafter during the remaining term of the Lease, shall increase at the same rate and in the same manner as provided in said Section. (b) Lessee acknowledges and agrees that it may not commence work on its equipment modifications prior to September 1, 2025. 3. Deposit Lessee shall reimburse Lessor for all of Lessor’s costs to consider, prepare, and administer this First Amendment, as provided in Section 5(c) of the Lease. In order to secure this reimbursement obligation, Lessee shall submit a cash Deposit (“Deposit”) to Lessor in the amount of Fifteen Thousand and 00/100 Dollars ($15,000) prior to installing any New Antennas on the water tower. The Deposit shall be held by Lessor and applied to Lessor’s reimbursable costs (including engineering fees and other third party costs incurred by Lessor in connection with Lessee's installation of the New Antennas). Lessor shall provide Lessee with an invoice together with reasonable supporting documentation specifying the reimbursable costs that were deducted from the Deposit, and return any portion of the Deposit remaining after reimbursement of such costs within thirty (30) days of accessing such Deposit. Lessee shall further be liable to Lessor for reimbursable costs incurred by Lessor in connection with Lessee's installation of the New Antennas to the extent such costs exceed the amount of the Deposit. Such additional amount will be paid within thirty (30) days following receipt of an invoice together with reasonable supporting documentation evidencing such costs. 4. Notices Lessee's notice address under Section 14 of the Lease is deleted in its entirety and replaced with the following: Cellco Partnership d/b/a Verizon Wireless Attention: Network Real Estate 180 Washington Valley Road Bedminster, New Jersey 07920 With a copy to: Basking Ridge Mail Hub Attn: Legal Intake One Verizon Way Basking Ridge, New Jersey 07920 5. New Exhibit C 38 3 MIN Millennium (MDG# 5000045762) – First Amendment 235681v1 CORE/0762186.3625/200064107.2 The Lease is hereby amended to substitute the attached “Amended Exhibit C” in place of the existing Exhibit C to the Lease. No new equipment shall be brought to the Property or installed until Amended Exhibit C, attached to this First Amendment, is approved in writing by Lessor. All of Lessee’s equipment, new and existing, shall at all times be located entirely within the leased area identified in the Lease. 6. Compliance with Lease Except as specifically modified by this First Amendment, the Lease shall remain in effect pursuant to its terms, and Lessee shall strictly follow the requirements of, and obtain approvals required by, the Lease, and shall fully comply with the Lease in all other respects. Lessee shall reimburse Lessor for all of Lessor’s costs to consider, prepare and administer this First Amendment as provided in Section 5(c) of the Lease. 7. Authority Each of the parties represents and warrants that it has the right, power, legal capacity and authority to enter into and perform its respective obligations under this First Amendment. 8. Future Amendments Neither this First Amendment nor the Lease may be modified in any other way except in writing approved and signed by both parties. [SIGNATURE PAGE FOLLOWS] 39 4 MIN Millennium (MDG# 5000045762) – First Amendment 235681v1 CORE/0762186.3625/200064107.2 IN WITNESS WHEREOF, Lessor and Lessee have executed this First Amendment to Non-Exclusive Tower Attachment Lease Agreement as of the date and year first above written. LESSOR: ELK RIVER MUNICIPAL UTILITIES By: Printed Name: Its: Chair Date: By: Printed Name: Its: General Manager Date: LESSEE: CELLCO PARTNERSHIP D/B/A VERIZON WIRELESS By: Printed Name: Its: Date: 40 Amended Exhibit C See Attached 41 42 43