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Item 3.9 Verizon Wireless Antenna Site Use Agreement Amendment No 2 Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Administration City Administrator/Finance Director Flaherty September 22, 2025 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Attorney Kendall 3.9 – Lease Amendment STRATEGIC VISION MEETS: THE CITY OF OTSEGO: X Is a strong organization that is committed to leading the community through innovative communication. Has proactively expanded infrastructure to responsibly provide core services. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff are recommending that the City Council approve an amendment to a site lease agreement. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: In August 2001, the City entered into a Site Lease Agreement for communications equipment to be installed upon Water Tower #1. The lease was entered into with Verizon Wireless and commenced in September 2001. Lease Amendment No. 1 was approved in December 2008 to account for additional ground space to accommodate an emergency generator. The lease provides quarterly lease payments payable to the City and expiration of the lease will be in August 2026. The City was approached with an opportunity to amend the lease before the expiration. The amendment will commence at the expiration of the current lease (September 2026) and will be extended for an initial term of five years and allows up to four additional and successive five-year terms. The amendment also includes a new monthly rent amount, which will continue to increase each year by an annual amount of 4.00%. All other terms and conditions in the original agreement will remain in force and effect. The amendment has been reviewed by the City Attorney’s office who has provided an opinion to proceed with consideration of approval by the City Council. The Administrative Subcommittee reviewed the proposed lease amendment at their September 10, 2025, meeting and provided a recommendation for consideration of approval by the City Council. SUPPORTING DOCUMENTS ATTACHED: • Amendment No. 2 to Antenna Site Use Agreement • Memorandum of Amendment No. 2 to Antenna Site Use Agreement POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve Amendment No. 2 to Antenna Site Use Agreement between the City of Otsego and Cellco Partnership, d/b/a Verizon Wireless. BUDGET INFORMATION FUNDING: BUDGETED: Fund 601 – Water Utility Yes, revenues for site lease agreements are budgeted annually within this fund. 1 Communications Company Site ID: MIN PARSON/5000095505 AMENDMENT NO. 2 TO ANTENNA SITE USE AGREEMENT This Amendment No. 2 to Antenna Site Use Agreement (“Amendment”) is made as of the last signature date hereof (the “Amendment Effective Date”), by and between City of Otsego, a Minnesota municipal corporation (“City”), and Cellco Partnership, a Delaware general partnership d/b/a Verizon Wireless, with its principal address of One Verizon Way, Mail Stop 4AW100, Basking Ridge, New Jersey 07920 (“Communications Company”). City and Communications Company are at times collectively referred to hereinafter as the "Parties" or individually as the "Party”. RECITALS WHEREAS, City and Communications Company’s predecessor-in-interest are party to that certain Antenna Site Use Agreement dated August 9, 2001, as amended by that Amendment No. 1 to Antenna Site Use Agreement dated December 29, 2008 (together, the “Agreement”), pursuant to which Communications Company has leased certain space on City’s water tower and property located at 16000 Block of 70th St NE, Otsego, Wright County, Minnesota and as further described therein; WHEREAS, the Agreement is set to expire on August 31, 2026; and WHEREAS, City and Communications Company desire to amend the Agreement to extend the term and modify certain provisions of the Agreement as set forth herein. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants herein set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Communications Company hereby agree as follows: 1. Capitalized terms not defined herein shall have the same meanings ascribed to such terms in the Agreement. 2. Extension Terms. Commencing on September 1, 2026 (the “New Commencement Date”), the Agreement shall be extended for an initial term of five (5) years (the “Initial Term”). Thereafter, the Agreement shall be extended for four (4) additional extension terms of five (5) years each (each, an “Additional Extension Term”). The Agreement shall automatically be extended for each Additional Extension Term unless Communications Company notifies City in writing of Communications Company’s intention not to renew at least ninety (90) days prior to the expiration of the then-current term. During each Additional Extension Term, all terms and conditions of the Agreement shall remain in full force and effect, except as modified herein. 3. Site Use Fee. The Site Use Fee from the New Commencement Date to December 31, 2026 shall be Thirteen Thousand One Hundred Forty Six and 72/100 Dollars ($13,146.72) to be paid as one lump sum payment to City. Thereafter, commencing on January 1, 2027 (the “Rent Increase Date”), the annual Site Use Fee shall be Forty One Thousand Seventeen and 80/100 Dollars ($41,017.80), to be paid in four quarterly installments per year, i.e., January 1, April 1, July 1, and October 1 to City. 2 Communications Company Site ID: MIN PARSON/5000095505 4. Rent Increase. Commencing on the first annual anniversary of the Rent Increase Date, and on each anniversary thereafter during the Initial Term and each Additional Extension Term, the annual rent shall increase by an amount equal to four percent (4%) of the annual rent payable for the preceding lease year. 5. Notice. As of the Amendment Effective Date, Communications Company’s notice address shall be the following: COMMUNICATIONS Cellco Partnership COMPANY: d/b/a Verizon Wireless 180 Washington Valley Road Bedminster, New Jersey 07921 Attention: Network Real Estate With a copy to: Basking Ridge Mail Hub Attention: Legal Intake One Verizon Way Basking Ridge, NJ 07920 6. In the event of any inconsistencies between this Amendment and the Agreement, the provisions of this Amendment shall prevail. Except as modified herein, all of the terms and conditions of the Agreement remain in full force and effect. [Signatures on the following page.] 3 Communications Company Site ID: MIN PARSON/5000095505 IN WITNESS WHEREOF, the Parties have set forth their hand and seal as of the Amendment Effective Date. CITY City of Otsego, a Minnesota municipal corporation By: ________________________________________ Name: _____________________________________ Title: ______________________________________ Date: ______________________________________ COMMUNICATIONS COMPANY Cellco Partnership d/b/a Verizon Wireless By: _______________________________________ Name: ____________________________________ Title: _____________________________________ Date: ______________________________________ 1 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Ginsberg Jacobs LLC 300 South Wacker Drive, Suite 2750 Chicago Illinois 60606 Attention: Frank J. Boucek, Esq. STATE OF MINNESOTA ) ) COUNTY OF WRIGHT ) Communications Company Site ID: MIN Parson/5000095505 ______________________________________________________________________________ (Space above this line for Recorder’s use) MEMORANDUM OF AMENDMENT NO.2 TO ANTENNA SITE USE AGREEMENT This Memorandum of Amendment No. 2 to Antenna Site Use Agreement (“Memorandum”) is made this ___ day of ______, 2025, by and between City of Otsego, a Minnesota municipal corporation (“City”) and Cellco Partnership, a Delaware general partnership d/b/a Verizon Wireless (“Communications Company”). City and Communications Company are collectively referred to as the “Parties”. 1. City and Communications Company, entered into that Antenna Site Use Agreement dated August 9, 2001, as amended by that Amendment No. 1 to Site Use Agreement dated December 29, 2008 (together, the “Agreement”), pursuant to which Communications Company has leased certain space on City’s water tower and property located at 16000 Block of 70th St NE, Otsego, Wright County, Minnesota, and as more particularly described in the Agreement, and attached in Exhibit “A” hereto. 2. The Parties have entered into an Amendment No. 2 to Antenna Site Use Agreement dated ______________ (the “Second Amendment”). The Second Amendment memorialized that on September 1, 2026, Communications Company shall have the right to extend the term of the Agreement for five (5) additional extension terms of five (5) years (each, an “Additional Extension Term”). The Agreement shall automatically be extended for each Additional Extension Term unless Communications Company notifies City in writing of Communications Company’s intention not to renew at least ninety (90) days prior to the 2 expiration of the then-current term. During each extension term, all terms and conditions of the Agreement shall remain in full force and effect. 3. The terms, covenants and provisions of this Second Amendment, which are hereby incorporated by reference into this Memorandum, shall extend to and be binding upon the respective executors, administrators, heirs, successors and assigns of the Parties. Except as specifically amended therein, the Agreement remains unmodified and in full force and effect. In the event of any inconsistencies between this Memorandum and the Agreement, the Agreement shall control. [Signatures appear on the following page.] 3 IN WITNESS WHEREOF, the Parties hereto have set their hands and affixed their respective seals the day and year first above written. CITY City of Otsego, a Minnesota municipal corporation By: ___ Name: ____________________________ Its: _______________________________ Date: ____ COMMUNICATIONS COMPANY Cellco Partnership d/b/a Verizon Wireless By: ___ Name: ____________________________ Its: _______________________________ Date: ____ 4 STATE OF __________________ ) ) CITY ACKNOWLEDGMENT COUNTY OF ________________ ) I, ___________________, do hereby certify that _____________________________ personally came before me this day and acknowledged that he/she is the _____________________________ of City of Otsego, a Minnesota municipal corporation, and he/she, being authorized to do so, executed the foregoing Memorandum of Amendment No. 2 to Antenna Site Use Agreement as his/her own act and deed on behalf of said general partnership. He/she is personally known to me or has produced ____________________________________ as identification. WITNESS my hand and official Notarial Seal, this day of , 20__. ___________________________________ Notary Public My Commission Expires: ______________________ STATE OF __________________ ) ) COMMUNICATIONS COMPANY ACKNOWLEDGMENT COUNTY OF ________________ ) I, ___________________, do hereby certify that _____________________________ personally came before me this day and acknowledged that he/she is the _____________________________ of Cellco Partnership, a Delaware general partnership d/b/a Verizon Wireless, and he/she, being authorized to do so, executed the foregoing Memorandum of Amendment No. 2 to Antenna Site Use Agreement as his/her own act and deed on behalf of said general partnership. He/she is personally known to me or has produced ____________________________________ as identification. WITNESS my hand and official Notarial Seal, this day of , 20__. ___________________________________ Notary Public My Commission Expires: ______________________ 5 Exhibit “A” Legal Description of Property