HomeMy WebLinkAboutL010-09 - Other - Addendum #1 - Clearwire US LLC - 285th St Water Tank Cellular Phone Tower - 12/06/2006 CITY CLERK
CITY OF KENT
220 41h Avenue South
KEN T Kent, INA 98032
W ASH IN GTON
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: L010-09-2
1. Responsible Department/Division: Public Works
2. Contact Person and Title: Kevin Swinford
Telephone Extension: 5613
3. Tenant (Customer) Name: Clearwire Wireless Broadband
4. Tenant (Customer) Number: 128985
Lease Agreement Cover Sheet—Page 1 of 4
5. General Ledger Account Number: 41005550.56260
6. King County Tax Parcel Number: 332205-9177 (partial)
7. Address of Parcel: 12533 Southeast 286th Place, Auburn
8. Type of Lease: Addendum One - Commercial Property Rental (285th Street 3.5
Million Gallon Water Tank Cellular Phone Tower)
9. Council Authorization Date: N/A
10. Mayor Signature Date: December 6, 2006
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: June 16, 2006
12. Tenant Lease Option Renewal Notification Due Date: 90 calendar days prior
to expiration of current term
13. Lease Termination Date: June 15, 2011
14. Lease Duration: June 16, 2006 through June 15, 2011. One additional five year
option period
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 prior to the
Adjustment Date and the CPI 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 rs converted to a different standard reference base, or
otherwise revised, the adjustment set forth In this paragraph shall be made
Lease Agreement Cover Sheet-Page 2 of 4
with the use of the conversion formula published by the U.S. Bureau of
Labor Statistics.
15. Rent: $1,350.00/month (excludes leasehold excise tax)
16. Rent Due Date: 16th of the Month
17. Calculation of Rental Increase(s): Greater of 4% 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.gov/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.
Lease Agreement Cover Sheet—Page 3 of 4
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
natural gas, will be invoiced to the tenant through the central accounts receivable
system (ID 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 monthly rent for any payment not paid within 5
calendar days of when due (16th of the month)
0
23. Late Interest: 2 /o per month on the amount outstanding if not when due (16th
p 9
of the month)
SECTION 7 — OTHER LEASE CONSIDERATIONS:
Section 24 of the Lease Agreement establishes a rental rate of two times the rents
specified for any holding over period after the expiration of the lease term.
Lease Agreement Cover Sheet—Page 4 of 4
ADDENDUM ONE TO LEASE AGREEMENT BETWEEN
THE CITY OF KENT AND CLEARWIRE US LLC.
THIS ADDENDUM ONE is entered into on the date fully executed below by and
between THE CITY OF KENT("Landlord") and CLEARWIRE US LLC, a Nevada limited liability
company, with its principal office in Washington located at 5808 Lake Washington Blvd, NE,
Suite 300, Kirkland, Washington 98033 ("Tenant"), for the purpose of locating, maintaining,
replacing, removing, operating, and upgrading a wireless communications antenna on a city
owned antenna tower on 285th Street. This Addendum One amends that certain Lease
Agreement entered into between Landlord and Tenant on or about the day of
, 2006 (the "Lease").
WHEREAS, pursuant to Section 1 of the Lease, the Leased Premises provided for a
access and utility easement and was legally described in Exhibit C to the Lease Agreement.
Upon further review, the parties agree that the legal description in Exhibit C to the Lease
Agreement was inaccurate as it did not match the actual route as shown on Exhibit D to the
Lease Agreement. Tenant and Landlord desire to substitute the attached Exhibit C-1, in place
of Exhibit C, to provide for the proper legal description of the access and utility easement;
NOW THEREFORE, the Landlord and Tenant hereby agree and covenant as follows:
1. Lease Premises. The attached Exhibit C-1 shall be substituted in place of Exhibit
C that was attached to the Lease Agreement.
2. Certification. Tenant hereby certifies to Landlord that the Lease is in full force
and effect and that there are no uncured defaults on the part of the Landlord under the Lease.
3. Entire Agreement. Except as amended by this Addendum One, all provisions of
the Lease shall remain in full force and effect except as specifically modified by this Addendum
One.
IN WITNESS WHEREOF,the parties hereto have executed this Addendum One, which
shall take effect on the last date signed below.
LANDLORD: TENANT:
CITY OF KENT CLEARWIRE US LL
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By: By:
Print Nam Print Name:
Its: Its:
Date: C Date: 11 Zy OC.
David P. Schnebele
Director Network Deployment
ADDENDUM ONE TO LEASE AGREEMENT BETWEEN
CITY OF KENT AND CLEARWIRE US LLC. — Page 1 (November 15, 2006)
STATE OF WASHINGTON )
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COUNTY OF KING ) //
I hereby certify that o J. lO ay , 2006, I know or have
satisfactory evidence that is the person who appeared
b fore me, and said person ckr oLWVdged that he/she signed this Instrument, on oath stated that
11tishe Is authorized to execute the Instrument on behalf of the CITY OF KENT as Its
and such execution to be the free and voluntary act of such party for the
uses and purVoses mentioned in the foregoing Instrument.
-Notary Seal Must Appear Within This Box-
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day
and year first above written.
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I hereby certify th n they of 2006, I know or have
satisfactory evidence that �( ys.the person who appeared before
me, and said person acknowledged that he/she signed this instrument,on oath stated that he/she
�s authorized c t t instrument on behalf of CLEARWIRE US LLC. as its
�( M�^(, ind such execution to be the free and voluntary act of such
party for the os es and purp s entioned in the foregoing instrument.
-Notary Seal Must Appear Within This ox-
IN WITNESS WHEREOF, have ereunt s t my nd an ffjcial al the day and
year first above written.
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ADDENDUM ONE TO LEASE AGREEMENT BETWEEN
CITY OF KENT AND CLEARWIRE US LLC. - Page 2 (November 15, 2006)
Exhibit C-1 to Addendum One to Lease Agreement between City of Kent and
Clearwire US LLC is attached hereto.
I '
ADDENDUM ONE TO LEASE AGREEMENT BETWEEN
CITY OF KENT AND CLEARWIRE US LLC. - Page 3 (November 15, 2006)
10/30/2006 16,00 2538509078 MCMAHOILAND PAGE 01/01
CLEAR WIRE SITE
CITY OF KENT WATER TANK WA-TAC13b-C
ACCESS EASEMENT
PROPOSED ACCESS AUTTLTI'�ES EASEMENT
A 20.00 FEET WIDE EASEMENT LYING 10A0 FEET ON EACH SIDE OF THE FOLLOWING
DESCRIBED EASEMENT CENTER LINE:
COMMENCING AT THE NORTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE
SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 33,TOWNSHIP 22
NORTH,RANGE 5 EAST,WM.;
THENCE S 880 40"51"EAST ALONG THE NORTH LINE OF SAID SUBDIVISION,A DISTANCE
OF 9797 FEET; THENCE S 00"36'54"W,A DISTANCE OF 30.00 FEET TO THE TRUE POINT OF
BEGINNING OF THIS EASEMkWT CENTER LINE DESCRIPTION; THENCE CONTINUING S 00'
36'54" W,A DISTANCE OF 239.00 FEET; THENCE N 880 40'06"W,A DISTANCE OF 97.00
FEET TO A POINT HEREINAFTER REFERED TO AS POINT"A',
AND THE TERMINUS OF THIS EASEMENT CENTER LINE DESCRIPTION
AND
A 40.00 FEET WIDE EASEMENT LYING 20.00 FEET ON EACH SIDE OF THE FOLLOWING
DESCRIBED EASEMENT CENTER LINE:
BEGINNNNG AT THE HERE IN ABOVE SAID POINT"A'; THENCE N W 40'06"W,A
DISTANCE OF 20.00 FEET TO THE TERMINUS OF THIS EASEMENT CENTER LINE
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SITUATE IN THE COUNTY OF KING.STATE OF WASHINGTON.
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