Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: October 9, 2025 Agenda Title Consideration of a motion authorizing the City Manager to sign an amendment to extend the existing Land Lease Agreement with AT&T Mobility (“AT&T”) to use and lease a portion of the City of Boulder Fire Station Number 5 telecommunication facility on the property.

Staff Contact • • •

Roberto Ramirez, Deputy City Attorney Dan Dillon, Fire Division Chief Joanna Crean, Director of Facilities & Fleet

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to authorize the City Manager to enter into an agreement with AT&T to ensure continued service at the site, avoid the risk of facility removal, and preserve future communication infrastructure planning options.

Executive Summary The purpose of this item is to authorize an amendment to extend AT&T's lease of a telecommunication facility at Boulder Fire Station Number 5 for four five (5) year terms, which is a maximum length through December 5, 2046. This lease supports the city's emergency communications infrastructure and will ensure consistent service, financial benefits, and flexibility for future upgrades. The lease extension offers a stable revenue stream for the city starting at $2,000/month with 3% annual increases. It allows AT&T to upgrade equipment as technology evolves and includes provisions to protect the city’s operational needs.

Council Action Options Option

Outcome

Approve motion language as drafted

If approved, the City Manager will sign the lease amendment, securing telecommunications services and revenue through 2051.

Define and adopt a modified motion

Council would need to define any modifications to change to lease terms; staff would then return with an amended version.

Deny the motion or take no action

The current lease would expire in 2026, potentially disrupting service and revenue.

Refer back to staff Staff would revisit the terms and return with revisions, potentially delaying infrastructure planning.

Alignment with City Plans and City Council History Sustainability, Equity, and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area Safe and Prepared Community Economic Vitality Responsibly Governed

Citywide Strategic Plan Strategy 3.2 - Strengthen emergency readiness and infrastructure resiliency. Responsibly manage city assets to ensure financial stability.

Staff Notes This lease amendment aligns with the city's commitment to maintaining a reliable communications network for public safety and emergency services as well as supports long-term revenue for the city.

Alignment with Additional City Plans • •

Boulder Valley Comprehensive Plan: Supports infrastructure efficiency and responsible land use Fire Department Strategic Plan: Ensures continuity of mission-critical communications

City Council History The original lease agreement was approved by council in December 2011. The lease extension is required to ensure continued public safety communications support.

Analysis The Fire Station 5 site has housed AT&T equipment for two decades. The proposed lease amendment extends the lease up to through 2046, increases rent to $2,000/month with 3% annual increases, and includes: • • • • •

Expansion of permitted use to meet evolving telecommunication needs AT&T right to terminate with 30 days' notice Right of first refusal if the property is sold 24/7 site access for AT&T Equipment removal and site restoration terms

Alternative options such as renegotiation or seeking new tenants introduce risk to the city’s infrastructure and revenue. The proposed amendment is the most beneficial and low-risk option.

Equity Analysis This project does not have significant equity impacts. This is because the lease pertains solely to telecommunications equipment on city property and does not directly affect service delivery or public access. Any equity implications are indirect and not measurable.

Fiscal Note Estimated Fiscal Impact Narrative: The lease amendment provides consistent revenue of $2,000/month beginning September 2025, with annual increases beginning 3/1/2026. No capital or operating costs are required of the city. Current Year Estimated Fiscal Impact: Fund(s): General Fund Department(s): Facilities & Fleet Program(s): Property Management

FY 2025 Budget

FY 2025 Estimated Impact

FY 2025 Net Change

Beginning Fund Balance

$60.8M

$0

$60.8M

Total Forecasted Revenue

$190.6M

-$.002M ($1,690)

$190.6M

Total Estimated Expenses

$210.9M

$0

$210.9M

Ending Fund Balance(s) After Reserves

$.029M

-$.002M ($1,690)

$.028M

FTE

N/A

N/A

N/A

Item

The 2025 approved budget includes $29,953 for this lease. With the new lower lease amount starting 9/1/2025, the anticipated 2025 revenue is $28,263, $1,690 less than budgeted.

Three-Year Estimated Fiscal Impact

Item

FY 2025

FY 2026

FY 2027

Total Forecasted Revenue

$28,263

$24,600

$26,099

Total Estimated Expenses

$0

$0

$0

Net Estimated Impact

$28,263

$24,600

$26,099

Climate, Resilience, and Sustainability Considerations This project does not have significant climate or sustainability impacts. This is because the lease utilizes existing infrastructure with no new construction or land disturbance, helping avoid environmental impacts from building new towers.

Community Engagement Based on the technical and administrative nature of this project, city staff determined that a formal community engagement process was not necessary. The lease extension does not alter land use, public access, or neighborhood services.

Workplan Considerations This lease amendment is not anticipated to materially impact city staff’s existing workplan. Minimal staff time is required to administer the updated lease.

Next Steps for City Council • • •

If approved, the City Manager will finalize and sign the lease amendment. Lease term and new rent structure will commence October 2025. No further council action is anticipated on this item.

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Attachments Attachment A: Original lease agreement Attachment B: Proposed Lease Amendment with Exhibits