Gold Creek Cellular of Montana Limited Partnership, doing business as Verizon Wireless has leased space at the Billings Regional Landfill for their cell tower and associated equipment beginning in November 16, 1987.  This lease has been amended three times since the original lease. The first three amendments updated the lessee’s equipment, extended the term of the lease, and increased the lease amount. The current lease is scheduled to expire on November 30, 2017. Gold Creek Cellular desires to continue leasing this space at the landfill. Staff has worked with Gold Creek Cellular for a fourth amendment to the lease. This fourth amendment combines the items in the original lease with the previous amendments into one document. This amendment also extends the lease to November 30, 2022 and grants the lessee the exclusive option to extend the primary term of this lease for an additional two five year periods with the same terms and conditions herein. The lessee has asked that Council also approve a Memorandum of Lease that will be recorded.

City Council may:
 

• Approve amendment number four for the cellular tower lease with Gold Creek Cellular of Montana; or
• Disapprove the amendment with Gold Creek Cellular of Montana.

The first year of this extended lease will generate $8,000 of revenue for the Solid Waste Division of the Public Works department. Commencing on December 1, 2018, the rental fee will be adjusted annually on December 1st of each year by the greater of three percent (3%) or the percent increase in the Consumer Price Index for All Urban Consumers (CPI-U): US City Average – all items (1982 – 1984 = 100) published by the Bureau of Labor Statistics of the U.S. Department of Labor (the “Index”), for the immediately preceding year.

Staff recommends that the City Council approve amendment number four and the Memorandum of Lease for the cellular tower ground lease with Gold Creek Cellular of Montana Limited Partnership doing business as Verizon Wireless.