HomeMy WebLinkAboutL010-09 - Other - Addendum #2 - Clearwire US LLC - 285th St Water Tank Cellular Phone Tower - 07/27/2007 CITY CLERK
CITY OF KENT
��4400 220 4"Avenue South
,KcNT Kent, WA98032
WA5HINGTON
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 i — 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 "U', 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: L010-09-3
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 2861h Place, Auburn
8. Type of Lease: Addendum Two - Commercial Property Rental (285th Street 3.5
Million Gallon Water Tank Cellular Phone Tower)
9. Council Authorization Date: N/A
10. Mayor Signature Date: July 27, 2007
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 Adwsted, 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
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: 165t 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.pd ). 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 (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 monthly rent for any payment not paid within 5
calendar days of when due (16th of the month)
23. Late Interest: 2% per month on the amount outstanding if not when due (16th
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
SrteNumber WA-TAC136
Site Name Kent Lattice Tower
ADDENDUM TWO TO LEASE AGREEMENT BETWEEN
THE CITY OF KENT AND CLEARWIRE US LLC.
THIS ADDENDUM TWO 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 4400 Carillon Point, Kirkland,
Washington 98033 ("Tenant"). This Addendum Two amends that certain Lease Agreement,
entered into between Landlord and Tenant on or about April 20, 2006, and Addendum One
entered into between Landlord and Tenant on or about December 6, 2006 (the "Lease").
WHEREAS, pursuant to Section 1 of the Lease, the Leased Premises provided for an
access and utility easement and was legally described in Exhibit C-1 to Addendum One to the
Lease Agreement. Upon further review, the parties agree that the legal description in Exhibit C-
1 to Addendum One 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-2, in place of Exhibit C-1, 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-2 shall be substituted in place of Exhibit
C-1 that was attached to the Addendum One 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 Two, all provisions of
the Lease shall remain in full force and effect except as specifically modified by this Addendum
Two.
IN WITNESS WHEREOF,the parties hereto have executed this Addendum Two, which
shall take effect on the last date signed below.
LANDLORD: TENANT:
CITY OF KENT CLEARWIRE US LLC
By: By: Z14c, 4
Print Na e: _ Print Name: ERICIAW
It5� A ;c I Its: OI OR OF RF ENGINEERI
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Date: 77-7 o Date: 7 f o9
ADDENDUM TWO TO LEASE AGREEMENT BETWEEN
CITY OF KENT AND CLEARWIRE US LLC. - Page 1 (June 19, 2007)
SrteNumber WA-TAC136
Site Name Kent Lattice Tower
STATE OF WASHINGTON )
ss.
COUNTY OF KING )
I hereby certify thapn the �,. day of 1" Q. , 2007, I know or have
satisfactory evidence that I t (,' ' 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 CITY OF KENT as Its
" ✓v-r"- , and such execution to be the free and voluntary act of such party for the
uses ar{ I purposes mentioned In the foregoing instrument.
-Notary Seal Must Appear Within This Box-
IN WITNESSVHEREOF, I have hereunto set my hand and official seal the day
and year.flrskaliove`written.
a NOTARY PUBLIC, In and for,
he State of Washington
residing at i(
My appointment expires
STATE OF WASHINGTON )
ss.
COUNTY OF KING
I hereby certify that on th day of V Its , 2007, I know or have
satisfactory evidence that F L_ i the person who appeared before
me, and said person acknowledged that he/she signed this instrument,on oath stated that he/she
15_ aut orized to xecute the instrument on behalf of CLEARWIRE US LLC, as Its
Ji ,—c+1 Ef t� , and such execution to be the free and voluntary act of such
party for the uses and p4irposes m ntioned 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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ADDENDUM TWO TO LEASE AGREEMENT BETWEEN
CITY OF KENT AND CLEARWIRE US LLC. - Page 2 (June 19, 2007)
clear
July 2, 2007
City of Kent(Public Works)
Attn: Kevin Swinford
220 Fourth Avenue S.
Kent, WA 98032-5838
Dear Kevin, `
two 1�T�
Enclosed,please find three partially executed `second addendums' for Clearwire site
WA-TAC136. Please return one fully executed addendum tome at the address below.
Thanks for all of your help with this,
Please don't hesitate to contact me if you have any questions or concerns.
Ellen Bacho
Bacho Consulting LLC for Clearwire
4616 25 h Avenue NE#750
Seattle, WA 98105
T: 206 779-5968
F: 206 283-2680
E: ebacho@bachoconsulting.com