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: