HomeMy WebLinkAbout09/06/2016 06E Property Lease Agreement with Ellensburg Telephone Company dba Fairpoint Communications xs •
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.E.
For Meeting of: September 6, 2016
ITEM TITLE: Resolution authorizing a property lease agreement with Ellensburg
Telephone Company, d /b /a Fairpoint Communications, for the City's
primary radio transmission site on Look Out Point
SUBMITTED BY: Wayne Wantland, Information Technology Services, 575 -6048
SUMMARY EXPLANATION:
For thirty years the City has leased property on Look Out Point for our primary radio transmission
site. Because of the change of ownership and the need to update the language and terms of the
lease we are proposing to enter into a new agreement with a term of twenty years with a five -year
renewal option. This is a critical link in our public safety communications systems.
The first year expense is $3,300 with a 4% annual inflator. Previously, the City had been paying
$3,168 per year. It is in the best interest of the City to enter into this agreement because the site
provides a critical link in the public safety communication system.
ITEM BUDGETED: Yes
STRATEGIC PRIORITY: Public Safety
APPROVED FOR
SUBMITTAL: 11 City Manager
STAFF RECOMMENDATION:
Adopt resolution.
BOARD /COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
D Fairpoint Lease Resolution 811712016 Resolution
D Lease Agreement 8 ;30/2016 Contract
RESOLUTION NO. R -2016-
A RESOLUTION Authorizing the City Manager to enter into a property lease
agreement with Ellensburg Telephone Company, d /b /a Fairpoint
Communications, a Washington Corporation, for the City's primary
radio transmission site on Look Out Point.
WHEREAS, the city requires a radio site for transmission equipment in support of
city operations, primarily public safety; and
WHEREAS, Ellensburg Telephone owns property on Look Out Point that meets
the needs of the City's radio communications; and
WHEREAS, Ellensburg Telephone is willing to lease a portion of their property
for this purpose; and
WHEREAS, the City Council deems it to be in the best interest of the City of
Yakima to enter into said lease, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
That the City Manager is authorized to enter into a property lease agreement with
Ellensburg Telephone Company, d /b /a Fairpoint Communications, a Washington
Corporation, for the City's primary radio transmission site on Look Out Point.
ADOPTED BY THE CITY COUNCIL this 6 day of September, 2016.
ATTEST: Kathy Coffey, Mayor
Sonya Claar Tee, City Clerk
LEASE AGREEMENT FOR LOOKOUT POINT COMMUNICATIONS
SITE
Ellensburg Telephone Company, d /b /a FairPoint Communications, a Washington corporation,
hereinafter called Lessor, being the owner of the property described below, does hereby lease
to the City of Yakima, Washington, a municipal corporation, hereinafter called the City or
Lessee, the following described real property situate in Yakima County, Washington, legally
described as follows:
That portion of the Southeast Quarter, of the Northeast Quarter, of Section 11, Township 13
North, Range 18 East, W.M., Yakima County) Washington, described asfollows:
Commencing at the southeast corner of said section 11, as shown on a record survey, filed
under auditors file number 2752846,and recorded in book 39 of surveys, at page 90, records of
Yakima County Auditor; thence north 0° 35' 47" west along the east line of said section
2647.78feet, thence south 89° 15' 35" west 573.75 feet; thence north 58° 02' 54" west769.70
feet; thence north 310 57' 06" east 165.00feettothe true point of beginning; thence north 31°
57' 06" east 75.O0feet; thence north 58° 02' 54" west70.00feet; thence south 31° 57' 06" west
75.O0feet, thence 58°02'54" east 70.00feettothe said true point of beginning.
Including an access road suitable for vehicular travel between the leased premises
and Lookout Point Road.
In consideration of and according to the following provisions, terms and conditions:
Term -- Renewal -- Termination
This agreement shall become effective on the date of its execution by both parties (the
"Effective Date "), and shall remain effective for a term of twenty (20) years thereafter;
provided, the City shall have the option to renew this agreement and extend the term of the lease
for an additional five (5)years, to be exercised by the City giving notice to the Lessor, no less
than six (6) months prior to the expiration of the original twenty (20) year term, of the City§
exercise of this option; provided, further, the City may terminate this agreement and lease by
giving notice to the Lessor of such termination no less than one (1)year prior to any annual
anniversary of the execution of this lease agreement.
Rent
At the execution of this agreement, as annual rent for the first twelve months of the term
of this lease the City shall pay the Lessor the amount of Three Thousand, Three Hundred
dollar($3,300.00) plus the prorated amount of rent for the period beginning on April 16,
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2016 to the Effective Date. Thereafter, the City shall pay, upon invoicing;, an annual rent in
the amount of the previous year's rent plus four percent (4 %).
Use and Improvement of Premises
The City shall use the leased premises as a communications site only. The City will
install and maintain communications equipment and a building to house the equipment,
along with an antenna tower, and a chain link fence around the perimeter of the leased
premises, all for the purpose of servicing the City's communication system and other
communications systems.
The erection of structures, and the installation of communications equipment and other
improvements, will be done at the City's sole expense and at such times as the City
determines. From time to time, the City may alter, add to or otherwise modify the
structures, equipment and other improvements to be erected or installed on the property.
Conditions of Premises -- Maintenance
The City accepts the premises in their current condition. The City shall maintain the
premises and any improvements thereto in good condition and shall not erect any
structures or otherwise use the premises except in conformance with applicable laws.
Utilities
Lessor shall make no charge to the City on account of the installation of the utilities presently
serving the premises. However, the City shall pay the service charges for those utilities and
the City shall pay the installation and service charges for any other utilities installed at the
direction or request at the City to serve the premises.
Improvements as Trade Fixtures
The building and all structures and the communication equipment constructed and installed
on the leased premises by the City or at City expense during the term of the tenancy
shall be deemed by the parties to constitute trade fixtures, and the City may remove them
from the premises at the expiration or other termination of this agreement to the extent that
such removal does not result in substantial and permanent damage to the premises.
Subletting
The City shall not assign or sublet this agreement or the leased premises without prior written
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consent of the Lessor; provided, it is intended that structures and equipment related to
communications systems owned by and /or serving third parties may be erected and installed
on the leased premises, and the prohibition of this paragraph shall not be construed to
prohibit the City from collecting a fee from third parties for permitting such installations and
connections.
Default -- Notice of Termination
In the event of non - payment of rent or other default by the City in complying with this
agreement or other requirements imposed by law, the Lessor may terminate this
agreement and lease by notifying the City of the default and that the agreement and
lease will be terminated thirty (30) days from the date of the receipt by the City of such
notice unless the City cures the default within that thirty (30)day period.
The City shall have thirty (30) days from its receipt of the notice to pay delinquent rent or
otherwise cure the default described in the notice, and in the event the City does so, the
agreement and lease shall not terminate.
Indemnification
Lessee agrees to defend, indemnity and to hold Lessor harmless from any and all claims arising
out of the performance of this Lease Agreement, except for claims arising from the negligence or
intentional acts of Lessor, or its respective agents and independent contractors. Lessor agrees to
defend, indemnity and to hold Lessee harmless from any and all claims arising out of the
performance of this Lease Agreement, except for claims arising from the negligence or intentional
acts of Lessee, or its respective agents and independent contractors.
Restoration of Premises upon Abandonment or Termination
All rights hereunder shall cease and terminate if and when use of parcel for such purposes
shall have been abandoned, and two years non -use thereof shall be conclusive evidence of
such abandonment. Upon abandonment or termination of lease by expiration or breach of any
of the above conditions, Lessee shall restore said parcel to a condition satisfactory to Lessor;
provided, the premises need not be restored to a better condition than that existing at the
commencement of this lease. Lessee shall have a reasonable amount of time after any such
termination to remove any of its facilities located on said parcel, and if it does not do so,
Lessor shall have the election of removing such facilities and charging Lessee for the costs
of such removal of retaining such facilities in full satisfaction of Lessee's obligation to remove the
same.
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Property Taxes
Lessor shall pay any and all real property taxes and assessments or otherwise of every
kind and description which may be levied against the leased premises during the term of this
lease or any extension thereof. In the event the Yakima County Assessor's Office increases the
assessment on the land or improvements due to the communication facility described in this
lease being located on the property, the City of Yakima hereby agrees to pay the increase in
property taxes attributable solely to their communication facility. Lessor and Lessee further
agree that any reimbursement due either party will be made within thirty (30) days after receipt
of demand for such reimbursement.
Liens for Labor or Material
Lessee shall keep said leased premises free and clear of mechanic's liens and any and all
other liens for labor and materials caused to be used on said leased premises by Lessee.
Notice
Any notice to be given pursuant to this agreement shall be in writing and shall be delivered
either by certified mail, with a return receipt requested, or by personal service of a copy of the
notice, with delivery to be made as follows:
To the City: To Lessor:
City of Yakima Ellensburg Telephone Company
Attn: Information Technology Manager d /b /a FairPoint Communications
129 N. 2nd Street Attn: Operations Manager
Yakima, WA 98901 305 N. Ruby Street
Ellensburg, WA 98926
With copy to:
FairPoint Communications, Inc.
Attn: Legal Department
521 E. Morehead Street, Suite 500
Charlotte, NC 28202
Successor Bound
This agreement shall inure to the benefit of and shall be binding on successors, of
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whatever nature of the parties hereto, and on the successors of Lessor in
ownership of the leased property. In the event Lessor sells the leased property to a
third party, that sale shall be subject to the interests of the City created and existing
pursuant to this lease agreement.
IN WITNESS THEREOF, the parties have executed this agreement on the day of
, 2016.
CITY OF YAKIMA ELLENSBURG TELEPHONE COMPANY
d /b /a FAIRPOINT COMMUNICATION
By: By:
Bpi•
Jeff Cutter, Interim City Manager
By: C ' -.
ATTEST:
By:
Sonya Claar Tee, City Clerk
Page 5 of 7
ATTESTATION FOLLOWS:
STATE OF NORTH CAROLINA )
) ss.
County of //_
OP
On this /5 day of Il _ _ _ , . 2016, before me personally appeared
Ia.-I -6_ _ ,/ , to me known to be the _vim
of th- corporation that executed the within and foregoing instrument, and acknowledged said
instrument to be the free and voluntary act and deed of said corporation, for the uses and
purposes therein mentioned, and on oath stated that they were authorized to execute said
instrument on behalf of said corporation.
In Witness Whereof I have hereunto set my hand and affixed my official seal the day and year
first above written.
Ac/ C"..
NO ARY PUBLIC in and for the State of North
t't I arolina, residing
U
m ,D V 8Lt G = My commission expires• yz ,,F, a a aoa- l
%Is 8.6100
Page 6 of 7
STATE OF WASHINGTON )
) ss.
County of Yakima )
On this day of . 2016, before me personally appeared JEFF
CUTTER, to me known to be the Interim City Manager of the City of Yakima, the municipal
corporation that executed the within and foregoing instrument, and acknowledged said instrument
to be the free and voluntary act and deed of said municipal corporation, for the uses and purposes
therein mentioned, and on oath stated that he was authorized to execute said instrument on behalf
of said corporation.
In Witness Whereof I have hereunto set my hand and affixed my official seal the day and year
first above written.
NOTARY PUBLIC in and for the State of
Washington, residing at:
My commission expires:
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