HomeMy WebLinkAboutL003-09 - Extension - Addendum #1 - T-Mobile West Corporation - Riverbend Driving Range Cellular Phone Tower - 07/17/2008 CITY CLERK
CITY OF KENT
220 4"Avenue South
KENT Kent, WA 98032
w.s"]""°" 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 Vt of the month or
year. Those agreements and amendments will be addressed through subsequent
agreements and/or amendments, if any.
Contract Number: L003-09-2
1. Responsible Department/Division: Parks/Facilities
2. Contact Person and Title: Charlie Lindsey
Telephone Extension: 5081
3. Tenant (Customer) Name: T-Mobile USA, Inc
4. Tenant (Customer) Number: 54412
Lease Agreement Cover Sheet—Page 1 of 4
5. General Ledger Account Number: P20072
6. King County Tax Parcel Number: 232204-9011 (partial)
7. Address of Parcel: 2020 West Meeker Street, Kent
8. Type of Lease: Addendum One - Commercial Property Rental (Riverbend Driving
Range Cellular Phone Tower)
9. Council Authorization Date: N/A
10. Mayor Signature Date: September 18, 2008
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 17, 2008
12. Tenant Lease Option Renewal Notification Due Date: 90 calendar days prior
the end of the term
13. Lease Termination Date: July 16, 2013
14. Lease Duration: July 17, 2008 through July 16, 2013. One additional remaining
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 Renod
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
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: $1,520.82/month (excludes leasehold excise tax)
16. Rent Due Date: 17th 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 10/c 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 (17th of the month)
23. Late Interest: 2% per month on the amount outstanding if not when due (17th
of the month)
SECTION 7 — OTHER LEASE CONSIDERATIONS:
Section 24 o t f he 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 T-MOBILE WEST CORPORATION
THIS LEASE ADDENDUM ONE is entered into on the date fully executed below
by and between THE CITY OF KENT ("Landlord") and T-MOBILE WEST
CORPORATION, as successor in interest to Voicestream PCS III Corporation,a
Delaware corporation ("Tenant"), to lease a certain portion of Landlord's property
legally described in Exhibit B to the Lease Agreement. This Addendum One amends
that certain Lease Agreement entered into between Landlord and Tenant on or about
the July 2, 2003 (the "Lease").
WHEREAS, pursuant to Section 2 of the Lease the initial term commenced on
July 17, 2003, and expired on July 16, 2008. Section 2 provides for two (2) extension
terms of five (5) years each. Tenant and Landlord desire to extend the term of the
Lease for the first extension term which will run from July 17, 2008, to July 16, 2013;
NOW THEREFORE, the Landlord and Tenant hereby agree and covenant as
follows:
1. Lease Term. The term of the Lease extension shall be for a term of five
(5) years and shall commence on July 17, 2008 (the"Commencement Date") and shall
end on July 16, 2013 (the "Termination Date").
2. Rent. Section 3.a. of the Lease shall be amended as follows:
3.a. Tenant agrees to pay Landlord as Monthly Rent, without notice or
demand, the sum of ONE THOUSAND FIVE HUNDRED TWENTY DOLLARS AND 82/100
($1,520.82), plus leasehold tax, if required by law, at a rate established by the State of
Washington, currently 12.84%, commencing on the Commencement Date.
Subsequently, the Rent shall be paid in advance, on or before the first day of the month
during the term hereof. Rent shall be mailed to: City of Kent, 220 Fourth Avenue
South, Kent, Washington 98032, Attention: Facilities Superintendent.
3. 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.
ADDENDUM ONE TO LEASE AGREEMENT- Page 1
(Between City of Kent and T-Mobile West Corporation (June 16, 2008)
@ Riverbend Golf Course)
4. 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 T-MOBILE WEST CORPORATION
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Date: 9-/l -oj' Date: Cl Il at
STATE OF WASHINGTON )
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I hereby certify that on the dayA
, 2008, I know or
have satisfactory evidence that 5 / 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 Al af— , 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 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'1� NOTARY PUt5 in and for the State of Washington
residing at
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ADDENDUM ONE TO LEASE AGREEMENT- Page 2
(Between City of Kent and T-Mobile West Corporation (June 16, 2008)
@ Riverbend Golf Course)
STATE OF WASHINGTON )
. ss.
COUNTY OF KING
I hereby certify that ofi th ay f , 2008, I know or have
satisfactory evidence that is the person who appeared
before me, and said person acknowI ged that he/she signed this instrument, on oath
stated that he/she is authorized to execute the instru e n ,beh If of T-MOBILE
WEST CORPORATION, a Delaware corporation, as it t ,
and such execution to be the free and voluntary act of such party for the es bnd
purposes 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 first0aviamritten.
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ADDENDUM ONE TO LEASE AGREEMENT - Page 3
(Between City of Kent and T-Mobile West Corporation (June 16, 2008)
@ Riverbend Golf Course)
REQUEST FOR MAYOR'S SIGNATURE
KE • T Please Fill in All Applicable Boxes
N
WASHINGTON
Routing Information (ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT)
Ori inator: Charlie Lindsey Phone (Originator): 5081
Date Sent: 9/15/2008 Date Required: 9/19/2008
Return Signed Document to: Rosalie CONTRACT TERMINATION DATE: 7/17/2013
VENDOR NAME: T-Mobile West Corp. DATE OF COUNCIL APPROVAL: N/A
Brief Explanation of Document: This is Addendum One for the Cell Tower that is at Riverbend
Golf. It will terminate in July of 2013. The money from this is applied to the light pole
replacement in the parks.
Ali Contracts Must Be Routed Through The Law Department
RECEIVED
(This area to be completed by the Law Department) SEP 15 208
Received:
City of Kent
�� Office of the Mayor
Approval of Law Dept.: i�� 1
Law Dept. Comments: �� ��, l,J�� C� �` l In' -_ / cva
R E `�� 1 eca� ►k cs�r, � Tta+'
SFr I L—
Date Forwarded to Mayor: SCENT LAW DEPT
Shaded Areas To Be Completed By Administration Staff
Received:
Recommendations and Comments:
F
Disposition: 01
Date Returned: