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Amherst County Service Authority tables Littleton Lane cellular lease pending final terms
Summary
The board discussed a draft cellular lease for the Littleton Lane storage tank, including a proposed increase in rent and a 3% annual escalation, and voted to table action until a finalized agreement with precise numbers is available.
The Amherst County Service Authority on Jan. 6 discussed a draft cellular lease agreement for the Littleton Lane storage tank but voted to table the item until the board receives final numbers. Mr. Castillo told the board the draft reflected a rental increase (transcript contains inconsistent numeric references) and an annual escalation that would move from 1.5% to 3%. He said he was still negotiating and expected a definitive number after a scheduled meeting with the provider.
Board members and counsel reviewed insurance coverage and standard lease terms and a board member suggested the board act only when a complete document is available. A motion to table the lease until the next meeting passed by voice vote.
Why it matters: Cellular leases are a potential revenue source for the authority and the final rental and escalation provisions will determine the revenue stream and insurance obligations associated with attachment to the authority's tank assets.
Next steps: Staff will continue negotiations, obtain a finalized draft with firm rental amounts and insurance provisions, and bring the completed agreement back to the board for consideration.
