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HomeMy WebLinkAbout09/06/2016 06E Property Lease Agreement with Ellensburg Telephone Company dba Fairpoint Communications xs • � ,may s. n. 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, Page 1 of 7 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 Page 2 of 7 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. Page 3 of 7 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 Page 4 of 7 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: Page 7 of 7