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HomeMy WebLinkAboutL011-09 - Extension - #1 - Qwest Wireless, LLC - Blue Boy Tank - Lease Renewal Agreement - 07/01/2003 • CITY CLERK CITY OF KENT 0 220 4`" Avenue South KENT Kent, WA 98032 WASHINGTON Fax 253-856-6725 PHONE: 253-856-5725 Lease Agreement Cover Sheet Instructions This document is to be used in lieu of the Contract Cover Sheet SECTION 1 — CONTRACT PROCESSING AND TENANT SET-UP: All lease agreements must be signed by the Mayor or his/her designee and approved by the City Council. Lease amendments, extensions, renewals, and assignments may or may not require Council approval (contact the Law Department), but they must be signed by the Mayor. The City Clerk's Office will perform the following tasks associated with all lease agreements and amendments: • Assign a sequential lease agreement number based on starting with 001 and preceded with "L", e.g. L001. • Scan the Lease Agreement Cover Sheet, Lease Agreement (or Amendment) and, if any, related supporting documentation into the document imaging system. • Provide notification via e-mail to the Contact Person (Question 2), Law and Customer Services. The Lease Agreement Cover Sheet is to be completed for each existing and active and all subsequent lease agreements, lease amendments and assignments of lease. There is recognition that certain existing and active agreements and amendments may not incorporate new policies, e.g. commencement of the lease on the 1st of the month or year. Those agreements and amendments will be addressed through subsequent agreements and/or amendments, if any. Contract Number: L011-09-2 1. Responsible Department/Division: Public Works 2. Contact Person and Title: Kevin Swinford Telephone Extension: 5613 3. Tenant (Customer) Name: Qwest Wireless, LLC (now Sprint United Management Company) 4. Tenant (Customer) Number: 69680 Lease Agreement Cover Sheet—Page 1 of 4 5. General Ledger ccount Number: 41005550.5626f 6. King County Tax Parcel Number: 172205-9184 (partial) 7. Address of Parcel: 11228 Southeast 2361h Place, Kent 8. Type of Lease: Lease Renewal - Commercial Property Rental ("Blue Boy" Cellular Phone Tower) 9. Council Authorization Date: N/A 10. Mayor Signature Date: December 22, 2003 SECTION 2 - LEASE DURATION AND IMPORTANT DATES: All lease agreements and amendments must reflect the lease start date, lease termination date and the duration of the lease. The lease agreement may also authorize the tenant to request an extension of the lease term, i.e. either "month to month" or for a defined period of time. The tenant must provide advanced written notice of the intent to exercise this lease option. A date certain lease start date must be established in the lease agreement and must be the first of the month. Commencement of certain leases may be predicated on certain actions by the tenant, e.g. installation of cellular tower equipment. In such instances, a reasonable fixed future date must be established in the lease agreement. 11. Lease Start Date: July 1, 2003 12. Tenant Lease Option Renewal Notification Due Date: 90 calendar days prior to expiration of current term 13. Lease Termination Date: June 30, 2008 14. Lease Duration: July 1, 2003 through June 30, 2008. Two remaining additional five year option periods SECTION 3 - RENT DETERMINATION AND DUE DATE: Lease agreement must include provisions establishing the stated rent and, if over one year in length, modification of stated rent. Typically, rental increases are based on changes in the Consumer Price Index. Example of possible contract language: Effective as of each anniversary of the Commencement date (the "Adjustment Date") by an amount equal to the greater of four (4) percent or the percentage increase in the CPI two 2 months nor to the P 9 ( ) P Adjustment Date and the CP1 for the month 12 months prior to the Adjustment Date. "CPI" means the Consumer Price Index - All Urban Consumers, (Seattle-Tacoma-Bremerton, WA), All Items, base period 1982-84=100, Not Seasonally Adjusted, issued by the U.S. Bureau of Labor Statistics. If the CPI is converted to a different standard reference base, or otherwise revised, the adjustment set forth in this paragraph shall be made with the use of the conversion formula published by the U.S. Bureau of Labor Statistics. Lease Agreement Cover Sheet-Page 2 of 4 15. Rent: $15,315.3Pear (excludes leasehold excise tal 16. Rent Due Date: July 1 17. Calculation of Rental Increase(s): Greater of 5% or the percentage increase in the CPI for the month 12 months prior to the adjustment date. "CPI" means the Consumer Price Index for All Urban Customers, U.S. City Average, All Items, issued by the Bureau of Labor Statistics for the United States Department of Labor (1982-84 = 100). SECTION 4 — LEASEHOLD EXCISE TAX: Leasehold excise tax applies to the possession and use of publicly owned real property by a private sector individual, business or other organization. This tax is calculated based on 12.84 percent of the contract rent amount. See also Department of Revenue Leasehold Excise Tax Frequently Asked Questions and Answers (http://dor.wa.ggov/docs/Pubs/IndustSpecific/Leasehold.pdf). Contact the Customer Services Financial Analyst (LIDs/Receivables) or the Audit Manager regarding questions in this area. 18. Is this lease subject to leasehold excise taxes? ® YES (go to Question 19) ❑ NO, reason: 19. Are leasehold excise taxes for this tenant centrally assessed, i.e. directly collected from the tenant by the Washington State Department of Revenue? YES (attach written verification received directly from DOR or indirectly through the tenant, e.g. DOR notification letter) ❑ NO (go to Question 20) 20. Does Lease Rent include Leasehold Excise Tax? (Leasehold taxes must be broken out on the invoice and coded: Business unit.32500.0303) ❑ YES Calculate the leasehold excise tax (Stated Rent divided by 1.1284) ❑ NO Calculate the leasehold excise tax (Stated Rent times .1284) SECTION 5 — APPLICABLITY OF UTLITIES: The Lease agreement must include provisions establishing responsibility for payment of utilities, including but not limited to electricity, natural gas, water, sewer, storm drainage, and garbage collection and disposal services. In certain instances, the utility service may not be applicable, e.g. septic system, or may not be provided by the City, e.g. Highline Water District service area. In all instances, City utilities will be billed through the Customer Services utility billing system. Other utilities paid by the City on behalf of the tenant, e.g. electricity or Lease Agreement Cover Sheet—Page 3 of 4 natural gas, will be invoiced to the tenant through thetntral accounts receivable system (JD Edwards). Electricity or natural gas charges may be established based on actual consumption, e.g. usage of a meter or by a reasonable amount established through appropriate financial analysis. Separate meters for measurement should not be established on City-owned or leased properties. The dollar amount of electric and natural gas charges must be included in the lease agreement (amendment) and should be subject to future modification based on appropriate methodologies, e.g. change in rate, etc. Contact Finance Customer Services for questions in this area, as well as ensuring that City accounts are transferred into the name of the tenant. 21. Applicability of Utilities — Check all that utilities that are affected and indicate provider (e.g. City of Kent), Account Number or basis of exclusion. ❑ Does Not Apply ❑ Water: No services ❑ Sewer: No services ® Drainage: Paid by City ❑ Garbage: No services ® Electricity/Natural Gas: Puget Sound Energy Ensure that Finance Customer Services is properly notified to ensure City utility account, if any, is recorded into the name of the tenant if so established in the Agreement. Ensure all other applicable charges are properly invoiced to the tenant. SECTION 6 — MONETARY PENALTIES AND LATE INTEREST CHARGES: Lease agreement should contain provisions establishing penalties and must contain provisions establishing late interest charges. Late interest (also referred to as "finance charges") should be consistent with Chapter 3.10 of the Kent City Code, i.e. currently 1% of the amount of the unpaid balance or $2.00, whichever is greater, if not paid within 30 days from the due date. 22. Monetary Penalties: 5% of the late payment not paid within 20 calendar days of when due (July 1) 23. Late Interest: 2% per month on the amount outstanding if not when due (July 1) SECTION 7 — OTHER LEASE CONSIDERATIONS: Section 24 of the Lease Agreement establishes a rental rate of two times the rents specified (prorated on a monthly basis) for any holding over period after the expiration of the lease term. Lease Agreement Cover Sheet—Page 4 of 4 LEASE RENEWAL AGREEMENT BETWEEN THE CITY OF KENT AND QWEST WIRELESS, L.L.C. THIS LEASE RENEWAL AGREEMENT is entered into on the date fully executed below by and between the CITY OF KENT ("Landlord") and QWEST WIRELESS,L.L.C. (formerly known as U.S. West Wireless, LLC.), a Delaware limited liability company, ("Tenant"). WHEREAS,the Landlord and the Tenant desire to renew the Lease Agreement executed on July 20, 1998, as follows; NOW THEREFORE,the Landlord and Tenant hereby agree and covenant as follows: 1. This Lease Renewal Agreement shall commence on July 1, 2003, (the "Commencement Date"), and terminate sixty (60) months later. Upon expiration of the Lease Renewal Agreement,the terms,covenants,and conditions of the Lease Agreement shall terminate, unless specifically stated to survive termination. 2. Tenant shall pay Landlord as annual rent for the Premises the sum of Fifteen Thousand Three Hundred Fifteen Dollars and 38/100($15,315.38)('Base Rent"). Tenant shall pay Landlord Base Rent for the first year on the Commencement Date of this Lease Renewal. Tenant shall pay Landlord Base Rent annually in advance on each anniversary of the Lease Renewal Commencement Date. Base Rent shall be increased annually as described in the original Lease Agreement. 3. All provisions of the existing Lease Agreement remain in full force and effect except as specifically modified by this Lease Renewal Agreement. IN WITNESS WHEREOF,the parties hereto have executed this Lease Renewal Agreement on the last date signed below. LANDLORD: TENANT: CITY OF KENT QWEST WIRELESS, L.L.C. (formerly known as U.S. West Wireless, L.L.C.)n By: BY dle?. X41 14 Its: Its: r,ro r aefA5 Date: — Date: ls-//S o LEASE RENEWAL AGREEMENT BETWEEN CITY OF KENT AND QWEST WIRELESS,L.L C —Page 1 (Blue Boy Tank Lease) S w STATE OF WASHINGTON ) ss. COUNTY OF KING ) I he y c fy that on day of ,2003,I know or have satisfactory evidence that 4�tats the person who appeared before me,and said person acknowledged that he/she signe is ins ent on oath stated that he/she is authorized to execute the instrument on behalf of the CITY OF NT as its and such execution to be the free and voluntary act of such party for the uses and purposes n ntioned in the foregoing instrument. -Notary Seal Must Appear Within This Box- SS WHEREOF,I have hereunto set my hand and official seal the day and year first a�p1t ''•••,, Y %still '7 •�NOTA 1 N:� tebB A at t� t N1 T�12 4R© NOTARY PUB IC,inandfort a State of Washington '•.,tip G .•,. `� l residin a C2� • � YAS� g � My appointor t expires STATE OF WASHINGTON ) : ss. COUNTY OF KING ) I hereby certify that on the day of h EtEY►7g�r-P-- ,2003,1 know or have satisfactory evidence that hIV I'b B. U_7liEp_j V L j is the person who appeared before me,and said person acknowledged that he/she signed this instrument,on oath stated that he/she is authorized to execute the instrument on behalf of the QWEST WIRELESS, LLC. as its 5r. lji i'Tbt2 , and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. -Notary Seal Must Appear Within 77usBox- IN %t 4WSS WHEREOF,I have hereunto set my hand and official seal the day and year first abQ? �OTAq�9Ns v' '•9 CH 19 2 0� ���� NOTARY PUBLIC,in and for the State of Washington � 9 0 : residing at &C9F.JM I t]I} q 6a2 DS '%#Jol 00.%% My appointment expires 3-19-O l P 1CmIau eslDeadFaesw3zsv.eas Re aing�Ldw LEASE RENEWAL AGREEMENT BETWEEN CITY OF KENT AND QWEST WIRELESS,L L.C.-Page 2 (Blue Boy Tank Lease) p v ,J v u cCT`or e ride the light Qwest. SENT VIA CERTIFIED MAIL March 31, 2003 Facilities Manager City of Kent 220 Fourth Avenue South Kent, WA 98032 RE: Option and Site Lease Agreement dated July 20, 1998, by and between the City of Kent, Washington, and Qwest Wireless, L.L.0 (the Agreement"), Site No. SEA151 In accordance with Section 2 of the Agreement, notice is hereby given to renew the lease for the property located at 11228 SE 2361h Place, Kent, Washington, through and including June 30, 2008 All other terms and conditions of the lease shall remain in full force and effect If you have any questions or concerns, please contact Maggie Lambert at Equrs Corporation by phone at(866) 488-1955 or via facsimile at (866) 488-1965 Sincerely, Qp/� jWJt(/D obv " 1 541— Shirley Sattler Real Estate Manager/Wireless cc Heather Kesten Real Estate Market Manager City Clerk City of Kent 220 Fourth Avenue South Kent, WA 98032