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Council presents $2,500/month counterproposal to AT&T for water-tower lease
Summary
Councilmember Joyce Gvesrude moved to present AT&T with a counterproposal that raises the starting monthly rent to $2,500, adds a 3% annual escalator, a 20-year term with automatic renewals, a single-tenant restriction and a clause making AT&T pay relocation costs during tower maintenance.
Councilmember Joyce Gvesrude moved and Councilmember Kevin House seconded a motion to present a counterproposal to AT&T on the city—s water-tower lease, which the council approved.
The counterproposal calls for a starting rent of $2,500.00 per month (revising an earlier $1,930.00 figure), a 3% annual compounding escalator, and a 20-year lease structure broken into an initial five-year term with three automatic five-year renewals. The measure also seeks a strict single-tenant clause to prohibit third-party subleasing or co-location and adds a temporary relocation clause that would make AT&T fully responsible for engineering, deployment and labor costs if its equipment must be moved to a mobile "Cell on Wheels" during city maintenance of the tower. The motion was made by Councilmember Joyce Gvesrude and seconded by Councilmember Kevin House and "motion carried" per the minutes.
Council discussed the counterproposal as a way to better reflect the site's "premium status and existing contract value" and to ensure municipal utility funds keep pace with inflation; the council directed that the proposal be transmitted to AT&T for response or negotiation. The minutes do not specify a recorded vote tally or whether AT&T has responded to the city—s earlier proposal.
