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Home My WebLink AboutCity Council Committees - Operations - 09/17/2013 • KEN T WASH NOTON Operations Committee Agenda Councilmembers: Dennis Higgins * Jamie Perry * Les Thomas, Chair September 17, 2013 4:00 p.m. Item Description Action Speaker Time Pace 1. Approval of Minutes YES 1 dated September 3, 2013. 2. Approval of Check Summary YES Report 8/16/2013through 8/31/2013. 3. Renewal of New Cingular Wireless Cell YES K. Hanson 5 3 Site Lease at Lake Fenwick Park-Authorize Unless otherwise noted, the Operations Committee meets at 4:00 p.m. on the first and third Tuesday of each month. Council Chambers East, Kent City Hall, 220 4th Avenue South, Kent, 98032-5895. Dates and times are subject to change. For information please contact Satwinder Kaur at (253) 856-5705. Any person requiring a disability accommodation should contact the City Clerk's Office at (253) 856- 5725 in advance. For TDD relay service call the Washington Telecommunications Relay Service at 1-800-833-6388. This page intentionally left blank 1 1 KENT WASHINGTON OPERATIONS COMMITTEE MINUTES September 3, 2013 Committee Members Present: Les Thomas, Chair, Dennis Higgins and Jamie Perry. The meeting was called to order by L. Thomas at 4:04 p.m. 1. APPROVAL OF MINUTES DATED AUGUST 20, 2013. D. Higgins moved to approve the Operations Committee minutes dated August 20, 2013. L. Thomas seconded the motion, which passed 3-0. 2. APPROVAL OF CHECK SUMMARY REPORTS DATED 8/1/2013 THROUGH 8/15/2013. D. Higgins moved to approve the check summary reports dated 8/1/2013 through 8/15/2013. L. Thomas seconded the motion and it passed 3-0. 3. KARRAS CONSULTING SERVICES - AUTHORIZE. L. Patterson presented the contract for Karras Consulting Services to assist with the recruitment of Finance Director as B. Nachlinger is retiring at the end of January 2014. Human Resources plans on utilizing this company to find the highest quality applicant to fill this position. J. Perry moved to forward the item to the full Council for discussion for the Council meeting on September 17, 2013. D. Higgins seconded the motion, which passed 3-0. 4. JULY 2013 FINANCIAL PACKET- INFORMATION ONLY. B. Nachlinger presented the Financial Summary Report through July. Ending fund balance is estimated to end the year at $7,979,397. The building permits and plan check fees are above budget by about 14%. Sales Tax is expected to end the year about $200,000 above budget. The expenditures are expected to be 2.9% below the budget. The meeting was adjourned at 4:24 p.m. by L. Thomas. won rt�� Satwinder Kaur Operations Committee Secretary z z This page intentionally left blank 3 3 ECONOMIC & COMMUNITY DEVELOPMENT Ben Wolters, Director PLANNING DIVISION • Fred Satterstrom, AICP, Director KEN T Charlene Anderson, AICP, Manager WASH IN GTO N Phone: 253-856-5454 Fax: 253-856-6454 Address: 220 Fourth Avenue S. Kent, WA 98032-5895 DATE: September 17, 2013 TO: Operations Committee FROM: Kurt Hanson SUBJECT: Renewal of New Cingular Wireless Cell Site Lease at Lake Fenwick Park MOTION: I move to recommend Council authorize the Mayor to sign a five (5) year lease extension with New Cingular Wireless. SUMMARY: Since October 8, 2002, the City has leased land to New Cingular Wireless for a cell tower at Lake Fenwick Park. In 2002, Council approved two renewal options of the lease with its original approval of the lease. The current lease extension includes a rent increase to $28,800.00, with annual rent increases of 3% or the percentage increase in the CPI over the CPI for the month 12 months prior to the adjustment date, and the addition of three additional renewal options. Annual rent at the end of each term will be adjusted to Market Rent. Tenant will be allowed to improve the Premises upon notice to the City without requiring consent, provided improvements are only constructed within the Premises and necessary permits are issued. Tenant is required to provide a copy of plans within 60 days of completion of any improvements. BUDGET IMPACT: Yes 4 4 ADDENDUM TWO TO LEASE AGREEMENT BETWEEN THE CITY OF KENT AND NEW CINGULAR WIRELESS PCS, LLC. THIS LEASE ADDENDUM TWO 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, d/b/a AT&T Mobility, successor-in- interest to Pacific Bell Wireless Northwest, LLC, with its principal address of 575 Morosgo Drive NE, Suite 13-F, West Tower, Atlanta, GA 30324 ("Tenant"), for its wireless communications facility located at 4127 Reith Road, Kent, Washington ("Lake Fenwick"). This Addendum Two amends that certain Lease Agreement entered into between Landlord and Tenant on or about October 8, 2002, together with Addendum One to Lease Agreement, with an effective date of February 2, 2009 (collectively, the "Lease"). RECITALS 1. Pursuant to Section 2 of the Lease the initial term commenced on February 12, 2003, and expired on February 11, 2008. 2. Section 2 provided for three (3) extension terms of five (5) years each. .Tenant exercised its first extension option in Addendum One, which extended the Lease term through February 11, 2013. 3. Tenant and Landlord desire to extend the term of the Lease forthe second extension term which will run retroactively from February 12, 2013, to February 11, 2018. AGREEMENT Landlord and Tenant hereby agree and covenant as follows: 1. Term and Option to Renew. Section 2 of the lease shall be amended to read as follows: The second Lease extension term shall be for a term of five (5) years and shall commence on February 12, 2013, (the "Commencement Date") and shall end on February 11, 2018, (the "Termination Date"). Additionally, so long as Tenant is not in default of this Lease, Tenant shall have the option to renew this Lease for three (3) additional five (5) year periods, in addition to its one remaining extension option, subject to the adjustment of Annual Rent as described in Section 3. Should Tenant exercise its option to renew this Lease, that option must be exercised in writing and delivered to Landlord at least ninety (90) days before the end of the term then in effect. ADDENDUM TWO TO LEASE AGREEMENT BETWEEN CITY OF KENT AND NEW CINGULAR WIRELESS PCS, LLC LAKE FENWICK — Page 1 5 5 2. 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, except as provided below: a. Section 3.a. of the Lease shall be amended as follows: Tenant agrees to pay Landlord as Annual Rent, without notice or demand, the sum of Twenty-Eight Thousand, Eight Hundred and No/100 DOLLARS ($28,800.00), 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. b. Section 3.d. of the Lease shall be amended as follows: The Annual Rent during years two (2) through five (5) of each five (5) year term shall be increased effective as of each anniversary of the Commencement Date by an amount equal to the greater of three percent (3%) or the percentage increase in the CPI over the CPI for the month 12 months prior to the adjustment date. "CPI" means the Consumer Price Index for All Urban Consumers, U S City Average, All Items, issued by the Bureau of Labor Statistics for the United States Department of Labor (1982-84 = 100). If the CPI is converted to a different standard reference base or otherwise revised, the adjustment set forth in this paragraph shall be made with the use of the conversion formula published by the Bureau of Labor Statistics. 3. Tenant Improvements, Plans Bonds. All terms in Section 5 of the Lease regarding Tenant Improvements shall remain in full force and effect, except as provided below: a. Section 5.a.1. of the Lease shall be amended as follows: Tenant may improve the Premises by constructing wireless communications antennas on an existing Puget Sound Energy pole, and constructing related wireless communications ground equipment, support structures and cables. Tenant is required, as part of this Lease, to complete all the items listed in Exhibit D. Tenant is responsible to provide all labor, materials, and equipment for the items listed in Exhibit D. Prior to commencing construction on any improvements, Tenant shall provide Landlord with forty-eight (48) hours' notice. Consent by Landlord is not required, provided improvements are only constructed within the Premises, and that all necessary permits have been properly issued. Tenant shall provide Landlord with a copy of all plans and specifications drawn to scale for all improvements no later than sixty (60) days after construction of improvements is complete. The waiver of consent does not apply to the City of Kent acting as a governmental entity issuing permits and other approvals for the work Tenant is requesting to perform, whose schedule is governed by applicable law. ADDENDUM TWO TO LEASE AGREEMENT BETWEEN CITY OF KENT AND NEW CINGULAR WIRELESS PCS, LLC LAKE FENWICK — Page 2 6 6 b. Section 5.a.4. of the Lease shall be amended as follows: Improvements or modifications are subject to the conditions set forth in section a.(I), (2) and (3) above. 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. 5. General Terms & Conditions. (a) 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. (b) In case of any inconsistencies between the terms and conditions contained in the Lease and the terms and conditions contained in this Addendum Two, the terms and conditions herein will control. (c) This Addendum Two may be executed in duplicate counterparts, each of which will be deemed an original. (d) Each of the parties represents and warrants that it has the right, power, legal capacity and authority to enter into and perform its respective obligations under 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 NEW CINGULAR WIRELESS PCS, LLC A Delaware limited liability company By: AT&T Mobility Corporation Its: MM By: By: Print Name: Print Namperf Roper Its: Its: ngMeering- PNW Date: Date: i ADDENDUM TWO TO LEASE AGREEMENT BETWEEN CITY OF KENT AND NEW CINGULAR WIRELESS PCS, LLC LAKE FENWICK — Page 3 7 7 STATE OF WASHINGTON ) ss. COUNTY OF KING ) I hereby certify that on the day of 2013, I know or have satisfactory evidence that 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 My appointment expires i ADDENDUM TWO TO LEASE AGREEMENT BETWEEN CITY OF KENT AND NEW CINGULAR WIRELESS PCS, LLC LAKE FENWICK — Page 4 8 8 STATE OF OREGON ) ss. COUNTY OF WASHINGTON) I hereby certify that on the I Z day of��A�LA Cn/J�' 2013, I know or have satisfactory evidence that 2s%i L-)DPA, is the person who appeared before me, and said person acknowledged that he sh igned this instrument, on oath stated that he/ 7e is authorized to execute the instrument on behalf of AT&T Mobility Corporation, Manager of NEW CINGULAR WIRELESS PCS, LLC, a Delaware limited liability company, as its ArmB Ma-o-IAA,e — , and such execution to be the free and voluntary act of such party for th47uses 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 writt n. &a n OFFICIAL SEAL .KATHERINE E ETZEL NOTARY PUBLIC-OREGON— 1 °lArI✓1 ze'` COMMISSION NO 475698 TARY PUBLIC, in and for the State of Oregon MY COMMISSION EXPIRES FEBRUMY14,2l) iding at -TC 1ow,At My appointment expires Zj !4-1/7 P:\Civil\Flies\Open Files\0863-CellTowerLeases\Cingular\Cingular-LakeFenwick-AddendumTwo.doc 1 ADDENDUM TWO TO LEASE AGREEMENT BETWEEN CITY OF KENT AND NEW CINGULAR WIRELESS PCS, LLC LAKE FENWICK - Page 5