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Meeting Date:
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6/14/2023 - 7:00 PM
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Category:
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Topics For Future Discussion
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Type:
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Info
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Subject:
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Approval of Updated Term Sheet to Tower Construction and Lease Agreement between Verizon and CUSD 200
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Vision 2026:
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Operational Excellence Strategies 2 Maintain strong fiscal health of the organization.
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Background
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In March of 2015, the Board of Education approved a lease agreement with Verizon Wireless for a tower at Wheaton Warrenville South. The agreement allows Verizon to make modifications and additions to their equipment on the tower. In April of 2019, the Board of Education approved a First Amendment to the contract as Verizon had determined that they needed to update and add equipment to the tower as was allowed under the terms of the original agreement. In June 2021, the Board of Education approved a Second Amendment to Tower Lease Agreement to allow for the modifications to the tower, as proposed by Verizon.
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File Attachment:
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Summary:
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Attached to this report is a an updated Term Sheet that has been presented to CUSD 200 by Verizon. Verizon has proposed (minimal) financial changes to the existing Lease Agreement in lieu of shutting down the cell tower at the end of the current five-year agreement (December 2024). CUSD 200 has been informed that due to the upgrade of cell towers in the area to 5G, fewer cell towers are needed to support Verizon's operational needs. A change in financial terms would allow Verizon to continue operating the tower into the foreseeable future. The changes in the financial terms (again, minimal) are as follows:
1. Monthly rent will be reduced from $3,000 per month to $2,800 per month as of September 1, 2023.
2. The annual rent escalator will increase from 2% to 3% effective September 1, 2024.
3. One additional five-year renewal term has been added (moving from six to seven).
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Funding:
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N/A
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Board Policy
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4:10 Fiscal & Business Management
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Recommendation:
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**This Item Was Moved from the Consent Agenda to be Addressed at a Future Meeting**
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Approvals:
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Recommended By:
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Signed By:
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Brian O'Keeffe - Asst Superintendent Business Services
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Signed By:
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Jeff Schuler - Superintendent
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