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HomeMy WebLinkAbout25C - INSTALL EQUIPMENT EL SALVADOR PARKREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 4, 2010 TITLE: LEASE AGREEMENT AMENDMENT WITH TOWERCO ASSETS LLC FOR INSTALLATION OF EQUIPMENT AT EL SALVADOR PARK CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1St Reading ? Ordinance on 2"d Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute the attached lease agreement amendment with TowerCo Assets LLC for the installation of communications equipment at El Salvador Park, subject to non-substantive changes approved by the City Manager and the City Attorney. 2. Approve an appropriation adjustment recognizing $3,600 in the Capital Outlay Fund revenue account (no. 05102002 57010) and appropriate same to the Capital Outlay Fund expenditure account (no. 05113263 66220). DISCUSSION On July 4, 2004, the City Council approved a lease agreement with Sprint PCS for the installation of cellular communications equipment at El Salvador Park. The City currently receives $2,251 for this lease agreement. Sprint has assigned tower rights to TowerCo LLC and they are proposing to amend the lease agreement to allow Clear Wire LLC (Clearwire) to sublease space at this site. Clearwire will be using the existing equipment building and tower to install a dish antenna and will not be occupying any additional park property. TowerCo has agreed to pay the City an additional $300 per month for the sublease. The Clearwire sublease fee will increase by 3% annually, consistent with the base Sprint lease agreement. The sublease fee shall terminate on the date the Clearwire sublease terminates or expires and the rent thereafter shall be reduced by an amount equal to the sublease fee. 25C-1 Lease Agreement Amendment with TowerCo October 4, 2010 Page 2 FISCAL IMPACT This appropriation adjustment will recognize $3,600 in the Capital Outlay Fund revenue account (no. 05102002 57010) and appropriate same to the Capital Outlay expenditure account (no. 05113263 66220. Gerardo Mou , Executive Director Parks, Rec. and Com. Svcs. APPROVED AS TO FUNDS AND ACCOUNT: Francisco Gutierrez, Executive Director Finance and Mgt. Svcs. Agency 25C-2 AMENDMENT TO LAND LEASE AGREEMENT (GROUND) THIS AMENDMENT TO LAND LEASE AGREEMENT ("Amendment") is entered as of the latter of the signature dates below by and between the CITY OF SANTA ANA, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("Lessor") and TOWERCO ASSETS LLC, a Delaware limited liability company ("Lessee"). RECITALS A. Lessor entered into that certain Land Lease Agreement (A-2004-139) dated July 6, 2004, with Sprint P.C.S Assets, L.L.C., a Delaware limited liability company ("Sprint/Nextel") (the "Agreement), for certain real property and easements (collectively, the "Premises"), which are a portion of that certain parcel of real property located at 1825 West Civic Center Drive, Santa Ana, CA 92703 (the "Land"). B. Sprint/Nextel assigned all its right, title and interest in, to and under the Agreement to Tower Entity 4 LLC ("Tower Entity"), by that certain Assignment and Assumption of Ground Lease dated September 23, 2008 (the "Assignment"). Thereafter, Tower Entity was acquired by and merged into Lessee. C. The Assignment was recorded in the Official Records of the County of Orange, State of California, as Document No.2009000020328, on 01/16/09. B. Lessee desires to sublease space at the Premises to Clear Wireless LLC ("Clearwire"), and Lessor agrees to consent to such sublease, all in accordance with the terms and conditions as set forth below. NOW, THEREFORE, for and in consideration of the promises and mutual covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows: 1. Sublease. Pursuant to the requirements of the Agreement, Lessor hereby consents to Lessee entering into a sublease with Clearwire ("Clearwire Sublease") to allow for the co-location of Clearwire equipment in conformance with the site plan, equipment plan and antenna configuration approved by the City, attached as Exhibit A and incorporated by reference. 2. Rent. As consideration for Lessor's consent to the Clearwire Sublease, the Rent shall be increased by the sum of Three Hundred and no/100 Dollars ($300.00) per month effective as of the first day of the month following the commencement date of the Clearwire Sublease and continuing through the term of the Clearwire Sublease (the "Sublease Fee"). The Rent, as increased hereby, shall continue to increase pursuant to the terms of the Agreement. The Sublease Fee shall terminate on the date the Clearwire Sublease terminates or expires and the Rent thereafter shall be reduced by an amount equal to the Sublease Fee as of the date of such termination or expiration. 25C-3 3. Notices. Lessee's address set forth in Section 26 of the Agreement is deleted and replaced with the following: TowerCo Assets LLC 5000 Valleystone Drive Cary, NC 27519 Attn: Property Management TowerCo ID: 4. Agreement in Full Force. All terms and conditions of the Agreement not expressly modified by this First Amendment shall remain in full force and effect, and, in the event of any inconsistencies between this Amendment and the terms of the Agreement, the terms set forth in this Amendment shall govern and control. Except as expressly amended hereby, the Agreement shall remain in full force and effect as of the date thereof. 5. Counterparts. This Amendment may be executed in one or more counterparts which shall be construed together as one document. 6. Defined Terms. Unless otherwise defined, all defined terms used in this Amendment shall have the meanings ascribed to them under the Agreement. 7. Successors and Assigns. Upon full execution by Lessee and Lessor, this Amendment (i) shall be binding upon and shall inure to the benefit of each of the parties and their respective successors, assigns, receivers and trustees; and (ii) may be modified or amended only by a written agreement executed by each of the parties. 8. Non-Binding Until Fully Executed. This First Amendment is for discussion purposes only and does not constitute a formal offer by either party. This Amendment is not and will not be binding on either party until and unless it is fully executed by both parties. [SIGNATURES APPEAR ON THE FOLLOWING PAGES.] 25C-4 IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year first below written. ATTEST: LESSOR: CITY OF SANTA ANA, a charter city and municipal corporation organized and MARIA D. HUIZAR existing under the Constitution and laws of Clerk of the Council the State of California APPROVED AS TO FORM: By: Name: DAVID N. REAM JOSEPH W. FLETCHER City Attorney Its: City Manager By: Date: Laura Sheedy Assistant City Attorney LESSEE: TOWERCO ASSETS LLC, a Delaware limited liability company By: Name: Michael P. MacPherson Its: Vice President / General Manager Date: 25C-5 25C-6 _ ? / $ 'L xx ? _ o o Q v? w 3a ? L/1 N O ?i> ? 14 m y > h Q4nS.de?.'2t3?Yts _?sa;xYBg?Ct?3aasa.E R? at w F- Z •? W U /r? U L) W> Q I, ? j CO w CY) z Q - O X o U tY 2z a ; a (0 O O _ U F-- Q 2 (VIl O r V N co J O W- W O F- mM Exhibit A X lu d Q < i T k! .. E i VI A $ Hi a r oM..m tl Sa ? yy L ?ayN?3 Erypn4 s i Y F ? Z ` ? S ? 0 d p? 3 " 4J H3q? 4 i „kk Fo s s ?? r $o k6Y ?sY• ?Y pY tYY Y ? ? ?? z 0 'e YY o ? - ? t - I tilt 20 y a?a? 9y ? Y AY E Q 3 OC £= Yy 25C-7 ? F J ?? 4-J 1 .'" •? E G8 G j R i s o U (? ^1? J (pxp ? ? J a Tom n L '?33 o '? ? a 0 m 0 o > o ? g V 1 Q< F ?' 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