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HomeMy WebLinkAboutL001-09 - Extension - Addendum #1 - New Cingular Wireless PCS, LLC - West Fenwick Park Cellular Phone Tower - 02/12/2008 CITY CLERK CITY OF KENT Knue South 220 4Kente 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: L001-09-2 1. Responsible Department/Division: Parks/Facilities 2. Contact Person and Title: Charlie Lindsey Telephone Extension: 5081 3. Tenant (Customer) Name: Cingular Wireless 4. Tenant (Customer) Number: 64382 Lease Agreement Cover Sheet—Page 1 of 4 5. General Ledger Account Number: P20072.56250 6. King County Tax Parcel Number: 272204-9005 (partial) 7. Address of Parcel: 3824 Reith Road, Kent 8. Type of Lease: Addendum One - Commercial Property Rental (West Fenwick Park Cellular Phone Tower) 9. Council Authorization Date: N/A 10. Mayor Signature Date: February 2, 2009 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: February 12, 2008 12. Tenant Lease Option Renewal Notification Due Date: 90 calendar days prior to the end of the term then in effect 13. Lease Termination Date: February 11, 2013 14. Lease Duration: February 12, 2008 through February 11, 2013. 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 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 oenod 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: $18,249.80/year (excludes leasehold excise tax) 16. Rent Due Date: February 12 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 - APPLICABLM 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 annual rent for any payment not paid within 5 calendar days of when due (February 12) 23. Late Interest: 2% per month on the amount outstanding if not when due (February 12) SECTION 7 — OTHER LEASE CONSIDERATIONS: Section 23 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 ADDENDUM ONE TO LEASE AGREEMENT BETWEEN THE CITY OF KENT AND NEW CINGULAR WIRELESS PCS, LLC. THIS LEASE ADDENDUM ONE is entered into on the date fully executed below by and between THE CITY OF KENT ("Landlord") and NEW CINGULAR WIRELESS PCS, LLC, a Delaware limited liability company, successor by merger to Pacific Bell Wireless Northwest, LLC, a Delaware limited liability company, with its principal office at 12555 Cingular Way, Suite 1300, Alpharetta, GA 30004 ("Tenant"), for its wireless communications facility located at 4127 Reith Road, Kent, Washington (Lake Fenwick). This Addendum One amends that certain Lease Agreement entered into between Landlord and Tenant on or about October 8, 2002 (the "Lease"). WHEREAS, pursuant to Section 2 of the Lease the initial term commenced on February 12, 2003, and expires on February 11, 2008. Section 2 further provides for three (3) 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 February 12, 2008, to February 11, 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 February 12, 2008, (the"Commencement Date") and shall end on February 11, 2013, (the "Termination Date"). 2. Annual Rent. All terms in Section 3 of the Lease regarding Annual Rent and the increases during the renewal terms and the adjustments to Market Rent shall remain in full force and effect. 3. Section 3.a. of the Lease shall be amended as follows: 3.a. Rent. (1) Tenant agrees to. pay Landlord as Annual Rent, without notice or demand, the sum of EIGHTEEN THOUSAND TWO HUNDRED FORTY-NINE AND 90/100 DOLLARS ($18,249.80), plus leasehold tax, if required by law. The Annual Rent shall be paid in advance, on or before the first day of the anniversary of the Commencement Date during the term hereof. Annual rent shall be mailed to: City of Kent, 220 Fourth Avenue South, Kent, Washington 98032, Attention: Facilities Superintendent 4. 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 BETWEEN (July 14, 2008) CITY OF KENT AND NEW CINGULAR WIRELESS PCS, LLC—LAKE FENWICK Page 1 5. Notices. Section 27 of the Lease is hereby amended to reflect Tenant's current notice addresses: New Cingular Wireless PCS, LLC Attn: Network Real Estate Administration Re:WA-645 Lake Fenwick (10032274) WA 12555 Cingular Way, Suite 1300 Alpharetta GA 30004 With a copy to (USPS Mail): With a copy to (Overnight Mail): New Cingular Wireless PCS, LLC New Cingular Wireless PCS, LLC Attn: AT&T Legal Department Attn: AT&T Legal Department Re:WA-645 Lake Fenwick (10032274) WA Re:WA-645 Lake Fenwick (10032274) WA P O Box 97061 16331 NE 72nd Way Redmond WA 98073-9761 Redmond WA 98052-7827 6. 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 New Cingular Wireless PCS, LLC By: AT&T Mobility Corporation Its: By: By: Prin a Name: E. Don MacLeod It Title: Executive Director Date: Date: t — `Z- (acknowledgements follow on next page) ADDENDUM ONE TO LEASE AGREEMENT BETWEEN (July 14, 2008) CITY OF KENT AND NEW CINGULAR WIRELESS PCS, LLC—LAKE FENWICK Page 2 - R STATE OF WASHINGTON ) SS. COUNTY OF KING ) I hereby certify that on the L day of 2001 , I know or have satisfactory evidence that GOB 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 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. NOTARY PUBLIC, in and for the State of Washington residing at c- -- = My appointment expires 2D�2— r-. STATE OF WASHINGTON ) SS. COUNTY OF KING ) I hereby certify that on the day of 1Tlnuxte l J 200) I know or have satisfactory evidence that E Don MacLeod is the person who appea ed 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 New Cingular Wireless PCS, LLC, a Delaware limited liability company, by AT&T Mobility Corporation, Its Manager, as its Executive Director, 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. Notary Public �^ State or Washington Nrapintment PUB in and for the S to of Washington BRANDI RACHELE TRADER My Appointment Expires Jan 14 r M ex es Q P\Crvil\Ftles\OpenFtles\0863\Cmgular-LakeFenwick-AddendumOne doc ADDENDUM ONE TO LEASE AGREEMENT BETWEEN (July 14, 2008) CITY OF KENT AND NEW CINGULAR WIRELESS PCS, LLC-LAKE FENWICK Page 3 REQUEST FOR MAYOR'S SIGNATURE • Please Fill in All Applicable Boxes KENT W-HINQTON Routing Information (ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT) Originator: Charlie Lindsey Phone (Originator): 5081 Date Sent: 01/09/09 Date Required: 01/15/09 Return Signed Document to: Rosalie CONTRACT TERMINATION DATE: VENDOR NAME: Cingular Wireless DATE OF COUNCIL APPROVAL: Lease Agreement Brief Explanation of Document: Lease Agreement extension for 5 years with Cingular Wireless for a cell tower at Lake Fenwick. Council approved the extensions with the original approval of the lease in 2002. Cingular pays annually. Lease extension commences 2/12/2008 and expires 2/11/2013. All Contracts Must Be Routed Through The Law Department _ (This area to be completed by the Law Department) RECEIVED J V.P.,0 Received: i1 vI s � Approval of LawI D pt.:2009 Law�e '-3 ef City of KUn Office of the NlEiyor Date Forwarded to Mayor: Shaded Areas To Be Completed By Administration Staff Received: Recommendations and Comments: Disposition: 0V vt�V��C� pY(,l�L1l c1 � OkcckL SCIn'Of't EI�T CIlY CLERK Date Returned: