Loading...
HomeMy WebLinkAbout09/06/2016 06F Radio Site Sublease Agreement with New Cingular Wireless PCS, LLC ,.„ . s. n. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 6.F. For Meeting of: September 6, 2016 ITEM TITLE: Resolution authorizing a radio site sublease agreement with New Cingular Wireless PCS, LLC, a Delaware limited liability company for the purpose of leasing available space on the City's Look Out Point radio communications site SUBMITTED BY: Wayne Wantland, Information Technology Services, 575 -6048 SUMMARY EXPLANATION: During the thirty years that the City has had the radio transmission site on Look Out Point we have subleased a portion of the unused space to a cellular company, currently named New Cingular Wireless (previously AT &T Wireless). Because of the change of the Master Lease with Fairpoint Communications we need to update the sublease. The agreement is mutually beneficial for the City and New Cingular Wireless. Once this agreement is executed, they will be making enhancements to the site that will directly benefit the City. The term of the lease is five years with three five -year renewal options. The monthly rent is $1,121 with an annual 4% inflator beginning in year two. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Public Safety if if APPROVED FOR SUBMITTAL: fr City Manager STAFF RECOMMENDATION: Adopt resolution. BOARD /COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D New Cingular Sublease Resdution 8/17/2016 Resolution D angular Sublease Agreement 8/30/2016 Contract RESOLUTION NO. R -2016- A RESOLUTION Authorizing the City Manager to enter into a Radio Site Sublease Agreement with New Cingular Wireless PCS, LLC, a Delaware limited liability company for the purpose of leasing available space on the City's Look Out Point radio communications site. WHEREAS, New Cingular Wireless, formerly AT &T Wireless, and the City have had a long term relationship in sharing the existing Look Out Point radio site; and WHEREAS, by doing so has been beneficial to both the City and New Cingular Wireless; and WHEREAS, upon entering into this agreement New Cingular Wireless will make improvements to the radio site infrastructure that benefits the City's radio communications; and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: That the City Manager is authorized to enter into a Radio Site Sublease Agreement with New Cingular Wireless PCS, LLC, a Delaware limited liability company for the purpose of leasing available space on the City's Look Out Point radio communications site ADOPTED BY THE CITY COUNCIL this 6th day of September, 2016. ATTEST: Kathy Coffey, Mayor Sonya Claar Tee, City Clerk wry s . 1r a ITV O YAKI ' N ' CITY OF YAKIMA LOOKOUT POINT COMMUNICATION SITE SITE SUBLEASE AGREEMENT THIS SITE SUBLEASE AGREEMENT ( "sublease ") is entered into this 6 day of September, 2016 between the City of Yakima, a municipal corporation ( "Sublessor "), and New Cingular Wireless PCS, LLC, a Delaware limited liability company ( "Sublessee "). WHEREAS, Sublessor possesses the right to use and sublease a portion of the property described in the attached Exhibit A located at Lookout Point Communication Site {the "Site ") pursuant to a prior Lease Agreement dated June 19,1986, entered into with Pacific Northwest Bell, a Telephone Company, as Lessor, which lease was subsequently renewed by separate "Lease Agreement for Look Out Point Communications Site," executed on September 6, 2016, by and between Sublessor and Ellensburg Telephone Company, d /b /a FairPoint Communications, a Washington corporation ( "FairPoint ") (hereafter the "Master Agreement ") and attached hereto as Exhibit B; WHEREAS, Sublessor and Sublessee are parties to that certain Site Sublease Agreement dated September 16, 1989, as amended by that certain First Amendment to City of Yakima Lookout Point Communications Site Sublease Agreement dated February 1, 2008 (collectively, the "Original Sublease ") by which Sublessee subleases a portion of the Site as a location for Sublessee's wireless communications facility; and WHEREAS, Sublessor and Sublessee desire to enter into this Sublease to replace the Original Sublease and by which will permit Sublessee to make certain improvements to its communications facility at the Site as further described herein, including replacing the existing communications tower. NOW, THEREFORE, for good and valuable consideration, the parties agree as follows: 1. Premises: Subject to the following terms and conditions, Sublessor leases to Sublessee use of a portion of the real property (the "Property ") described in Exhibit A attached hereto. Sublessee's use of the Property shall be limited to those portions of the Site described and depicted in Exhibit C attached hereto, together with easements for access and utilities as provided herein, which portions consists of a 250 square foot area as a location for an equipment shelter, space on the Tower (as defined below), and sufficient space extending from the equipment shelter to the Tower and from the Tower to the nearest utility connections on the Property (collectively, the "Premises "). 2. Use: The Premises may be used by Sublessee for the transmission and reception of wireless communication signals in any and all frequencies, the construction and maintenance of related facilities, towers, antennas, or buildings and for related activities in the conduct of their business as a commercial wireless communications provider. Sublessor agrees to cooperate with Sublessee in obtaining, at Sublessee's expense, all licenses and permits required for Sublessee's use of the Premises ( "Governmental Approvals "). Sublessee's use of the Property shall be limited to use as a wireless communications facility, only. 3. Term: The initial term of this Sublease shall be five (5) years, commencing upon the first of the month after this Sublease is signed by both parties (the "Term Commencement Date "). The Initial Term will terminate on the last day of the month in which the fifth (5 annual anniversary of the Term Commencement Date occurs. Sublessee shall have the right to extend this Sublease for three (3) additional five (5) year term(s) (each five (5) year term shall be defined as an "Extension Term "), upon the same terms and conditions as set forth herein. This Sublease shall automatically be renewed for each successive Extension Term unless Sublessee notifies Sublessor of Sublessee's intention not to renew this Sublease at least sixty (60) days prior to the expiration of the Initial Term or then - existing Extension Term, or Sublessor exercises their right to terminate the Sublease pursuant to paragraph 7. 4. Rent: Commencing on the Term Commencement Date (the "Rent Commencement Date "), Sublessee will pay the Sublessor a monthly rental payment of One Thousand One Hundred Twenty One and No /100 Dollars ($1,121.00) ( "Rent ") at Yakima City Treasurer, 129 N. 2nd Street, Yakima, WA 98901, on or before the fifth (5 day of each month. In a partial month occurring after the Rent Commencement Date, Rent will be prorated. a. In year two (2) of the Initial Term, and each year thereafter, including throughout any Extension Terms, the monthly Rent will increase by Four percent (4 %) over the Rent paid during the previous year. b. If this Sublease is terminated at a time other than the first day of a month, Rent shall be prorated as of the date of termination, unless such termination is due to failure to make the rent payment or default by the Sublessee of the provisions of this Sublease. 5. Interference: a. Sublessee shall not use any portion of the Property in any way that interferes with the operations of Sublessor's use of the Property, so long as Sublessor does not operate within Sublessee's licensed frequencies. Such interference by Sublessee shall be deemed a material breach by Sublessee and Sublessee shall have the responsibility to terminate said interference immediately after receipt of notice from Sublessor. In the event any such interference does not cease promptly, and such interference is caused by Sublessee, Sublessor has the right to (i) demand that Sublessee immediately cease using the interfering equipment, or (ii) terminate this Sublease immediate and require cessation of all operations on the Premises by Sublessor and the immediate removal of all of Sublessee's property on the Premises. b. Sublessor shall not use any portion of the Site, nor shall Sublessor permit its Sublessees, licensees, invitees or agents to use any portion of the Site, in any way that interferes with the operations of Sublessee. Such interference shall be deemed a material breach by Sublessor if such interferences is not cured within 72 hours after notice from Sublessee. In such event, Sublessee shall be limited in its action against Sublessor to bringing an action to enjoin such interference or terminate this Sublease upon notice to Sublessor. Sublessor shall not in any event be responsible for lost profits, lost revenues, loss of goodwill or consequential damages to Sublessee. c. It will be presumed that existing equipment on Site will not interfere with new equipment. It will be the duty of the party installing new equipment to ensure the new equipment does not interfere with any existing equipment that is on Site and operational. 6. Improvements; Utilities; Access: a. Tower: Sublessee shall erect a Tower ( "Tower ") on the Premises as described in Exhibit C. Title to the Tower shall immediately belong to the Sublessor upon completion of construction and the execution of a mutually agreeable Bill of Sale. Upon the execution of the Bill of Sale, Sublessor shall immediately be responsibility for maintenance of the Tower. In compensation for the Tower, the Sublessor will pay the Sublessee the amount of One Hundred Thirteen Thousand Seven Hundred Dollars ($113,700) in the form of the monthly Rent offset as described in Paragraph 4 until paid in full. b. Existing Tower: A tower is currently located on the Premises ( "Existing Tower "). At the time Sublessee completes construction of the Tower described in (a) above, and the facilities of Sublessor and Sublessee are installed thereon, the Existing Tower shall be dismantled at Sublessee's expense. Sublessee shall use commercially reasonable efforts to dismantle the Existing Tower without any significant damage and in a manner that will allow the Existing Tower to be reused by the Sublessor. Ownership of the Existing Tower will remain with the Sublessor, and Sublessor shall accept the dismantled Existing Tower from Sublessee in its as -is condition and with all faults. c. Communications Facilities: Sublessee shall also have the right to install and maintain on the Site, at its own expense; improvements, personal property, transmitting and receiving antennas and an associated equipment shelter (collectively, the "Communications Facilities "). The Communications Facilities shall remain the exclusive property of Sublessee, and Sublessee shall have the right to remove the Communications Facilities during the term and shall remove the same following any termination of this Sublease. Sublessee hereby grants Sublessor the right to use a portion of the equipment shelter selected by Sublessee, at no charge, during the life of this Sublease, subject to the terms herein. d. If this Sublease terminates for any reason the Tower shall remain the Property upon termination and Sublessor shall be responsible for paying to Sublessee any portion of the One Hundred Thirteen Thousand Seven Hundred Dollars ($113,700) purchase price not yet paid or credited to Sublessee. e. Sublessee shall pay for all changes it may make to the to accommodate its Communications Facilities. If any of the Sublessor's existing facilities are moved or damaged in construction of the Sublessee's improvements, they shall be replaced or repaired at the Sublessor's discretion, and at the Sublessee's expense. Sublessee shall be required to obtain Sublessor's approval before making changes other than specified herein. f. Sublessee shall have the right to make any modifications within the equipment shelter or any like for like exchanges of equipment on the Tower without Sublessor's consent. Sublessee shall also have the right to install utilities, at Sublessee's expense, and to improve the present utilities on the Premises (including, but not limited to the installation of emergency power generators). Sublessee shall have the right to permanently place utilities underground within the Property in order to service the Premises and the Communications Facilities. Sublessee shall separately meter charges for the consumption of electricity for power and /or lighting associated with its use and shall promptly pay all costs associated therewith. g. Sublessor shall provide Sublessee ingress, egress, and access suitable for vehicle travel between the Premises and Lookout Point Road at no additional charge. The breach of this provision will not result in any liability to Sublessor for lost profits, lost revenues, lost goodwill or any consequential damages. 7. Termination: Except as otherwise provided herein, this Sublease may be terminated, without any penalty or further liability, on sixty (60) days written notice as follows: (a) by either party upon a default of any covenant or term hereof by the other party, which default is not cured within sixty (60) days of receipt of written notice of default (without, however, limiting any other rights available to the parties pursuant to any other provision hereof); (b) by Sublessee if it is unable to obtain or maintain any license, permit or other Governmental Approval necessary to the construction and /or operation of the Communications Facilities or Sublessee's business; (c) by Sublessee if the Premises are or become unacceptable under Sublessee's design or engineering specifications for its Communications Facilities or the communications system to which the Communications Facilities belong; or (d) by Sublessor if Sublessor determines that it is in the best interest of the City of Yakima in meeting their primary mission of providing emergency communications to terminate this Sublease. Should Part (d) be exercised, the Sublessor will provide one hundred - eighty (180) days written notice unless emergency circumstance require otherwise, or such longer period of time as is mutually agreed by Sublessee and Sublessor to find an alternate location. 8. Taxes: Sublessee shall pay before delinquency any personal property taxes assessed on, or any portion of such taxes attributable to the Communications Facilities. Sublessee shall pay to Sublessor, within sixty days' notice from Sublessor, any increase in real property taxes levied against the Premises which is directly attributable to Sublessee's use of the Premises and the Sublessor agrees to furnish proof of such increase to Sublessee. Sublessee shall pay before delinquency all other taxes and assessments including but not limited to the leasehold excise tax (RCW 82.29A) which may be assessed against Sublessor or Sublessee as a result of Sublessee's use of the Premises. 9. Insurance: (a) During the Term, Sublessee will carry, at its own cost and expense, the following insurance: (i) workers' compensation insurance as required by law; and (ii) commercial general liability (CGL) insurance with respect to its activities on the Property, such insurance to afford protection of up to Three Million Dollars ($3,000,000) per occurrence and Six Million Dollars ($6,000,000) general aggregate, based on Insurance Services Office (ISO) Form CG 00 01 or a substitute form providing substantially equivalent coverage. Sublessee's CGL insurance shall contain a provision including Sublessor as an additional insured. Such additional insured coverage: (i) shall be limited to bodily injury, property damage or personal and advertising injury caused, in whole or in part, by Sublessee, its employees, agents or independent contractors; (ii) shall not extend to claims for punitive or exemplary damages arising out of the acts or omissions of Sublessor, its employees, agents or independent contractors or where such coverage is prohibited by law or to claims arising out of the gross negligence of Sublessor, its employees, agents or independent contractors; and (iii) shall not exceed Sublessee's indemnification obligation under this Agreement, if any. (b) Notwithstanding the foregoing, Sublessee shall have the right to self- insure the coverages required in subsection (a). In the event Sublessee elects to self- insure its obligation to include Sublessor as an additional insured, the following provisions shall apply (in addition to those set forth in subsection (a)): (i) Sublessor shall promptly and no later than thirty (30) days after notice thereof provide Sublessee with written notice of any claim, demand, lawsuit, or the like for which it seeks coverage pursuant to this Section and provide Sublessee with copies of any demands, notices, summonses, or legal papers received in connection with such claim, demand, lawsuit, or the like; (ii) Sublessor shall not settle any such claim, demand, lawsuit, or the like without the prior written consent of Sublessee; and (iii) Sublessor shall fully cooperate with Sublessee in the defense of the claim, demand, lawsuit, or the like. (c) Neither party shall be liable to the other (or to the other's successors or assigns) for any loss or damage caused by fire that is not the result of the negligence or willful act of that party or any of the risks enumerated in a standard "All Risk" insurance policy not the result of the negligence or willful act of that party, and, in the event of such insured loss, neither party's insurance company shall have a subrogated claim against the other. 10. Destruction of Premises: If the Premises or the Communications Facilities are destroyed or damaged so as, in Sublessee's judgment to hinder the effective use of the Communications Facilities, Sublessee may elect to terminate this Sublease as of the date of the damage or destruction by so notifying Sublessor not more than 45 days following the date of damage. In such event, all rights and obligations of the parties shall cease as of the date of the damage or destruction and Sublessee shall be entitled to the reimbursement of rent paid for that month by Sublessee. 11. Condemnation: If a condemning authority takes all of the Property, or a portion sufficient, in Sublessee's determination, to render the Premises unsuitable for the use which Sublessee was then making of the Premises, this Sublease shall terminate as of the date the title vests in the condemning authority. The parties shall be entitled to share in the condemnation proceeds in proportion to the values of their respective interests in the Premises. Sale of all or part of the Premises to a purchaser with the power of eminent domain in the face of the exercise of the power, shall be treated as a taking by condemnation. 12. Hold Harmless: Sublessee agrees to defend indemnity and to hold Sublessor and FairPoint harmless from any and all loss, cost, liability, or damage (including reasonable attorney's fees) arising by reason of the willful misconduct or negligence of Sublessee, except for claims arising from the negligence or willful misconduct of Sublessor or FairPoint, or their respective agents and independent contractors. 13. Notices: All requests demands and other communications hereunder shall be in writing and shall be deemed given if personally delivered or mailed, certified mail, return receipt requested, or sent by overnight carrier to the following: If to Sublessor, to: City of Yakima Attn: Information Technology Services Manager 129 N. 2 nd Street Yakima, WA 98901 If to Sublessee, to: With Copy to: New Cingular Wireless PCS, LLC New Cingular Wireless PCS, LLC Attn: Network Real Estate Administration Attn: Legal Department Re: Cell Site # YA01 Re: Cell Site # YA01 Cell Site Name: Selah Cell Site Name: Selah Fixed Asset #: 10098221 Fixed Asset #: 10098221 575 Morosgo Drive NE 208 S. Akard Street Atlanta, GA 30324 Dallas, Texas 75202 -4206 15. Warranties, Title, and Quiet Enjoyment: Sublessor warrants that (a) it has full right, power and authority to execute this Sublease subject to the terms of the Master Agreement; (b) the Property constitutes a legal lot that may be subleased without the need for any subdivision or platting approval or other third party approval; (c) Sublessor's execution and performance of this Sublease will not violate any laws, ordinances, covenants, or the provisions of any other agreement binding on the Sublessor; (d) the legal description of the Property contained in Exhibit A is accurate; (e) the Property is not and will not be encumbered by any liens, restrictions, mortgages, covenants, conditions, easements, leases, or any other agreements of record or not of record which would adversely affect Sublessee's use and enjoyment of the Premises under this Sublease; (f) Sublessor grants to Sublessee sole, actual, quiet and peaceful use, enjoyment, and possession of the Premises without hindrance or ejection by any persons or entities lawfully claiming superior interest in the Property; (g) to the best of Sublessor's knowledge, neither FairPoint nor Sublessor is, or with the giving of notice, or passage of time (or both), will be in default under any of the terms or conditions of the Master Agreement; (h) that during the Term, Sublessor will not terminate, materially modify, amend or assign the Master Agreement in a manner which adversely affects the rights or obligations of Sublessee without the prior written consent of Sublessee; and (i) Sublessor shall timely perform and comply with all the terms and conditions of the Master Agreement, and not do anything nor permit anything that would result in a default under or cause the Master Agreement to be terminated. 16. Assignment: Sublessee may assign or sublet this Sublease upon notice to Sublessor. Any sublease that is entered into by Sublessee shall be subject to the provisions of this Sublease and the Master Agreement. Additionally, Sublessee may, upon notice to Sublessor, mortgage or grant a security interest in this sublease and the Communications Facilities, and may assign this Sublease and Communications Facilities to any such mortgagees or holders of security interests including their successors or assigns (here after collectively referred to as "Mortgagees "). In such event, Sublessor shall execute such consent to leasehold financing as may reasonably be required by Mortgagees. Sublessor agrees to notify Sublessee and Sublessee's Mortgagee's simultaneously of any default by Sublessee and to give Mortgagees the same right to cure any default by Sublessee except that the cure period for any Mortgagees shall not be less than ten(1O) days after receipt of the default notice. 17. The Master Agreement: Sublessee acknowledges that all rights of Sublessor to offer to sublease a portion of the Property are derived from the Master Agreement between Sublessor and Pacific Northwest Bell, dated June 19, 1986, and as subsequently renewed pursuant to the "Lease Agreement for Look Out Point Communications Site," dated September 6, 2016 by and between the City of Yakima and Ellensburg Telephone Company, d /b /a FairPoint Communications, a Washington corporation. No good -faith act or omission by Sublessor reasonably required of Sublessor under the Master Agreement shall be deemed a breach by Sublessor of this Sublease. In the event of termination of the Master Agreement for any reason this Sublease shall terminate, and Sublessee shall have no cause of action on account of said termination, unless such termination is the result of Sublessor's breach of Section 14 herein. 18. Successors and Assigns: This Sublease shall be binding upon and inure to the benefit of the parties, their respective successors, personal representatives, and assigns. 19. Work on the Tower: Each of the parties to this Sublease and their employees and agents assume the risk of working on the Tower equipment and the Premises associated with the Sublease. Further, to the extent permitted under applicable law, each of the parties agrees to indemnify, defend and hold harmless the other Party from any injury incurred while working on the Tower equipment and Premises unless the injury is caused by neglect or an willful misconduct of the other party or the other party's agent or employee. This paragraph has full force and effect irrespective of who owns the Tower equipment or Premises. 20. Restoration of Premises upon Abandonment or Termination: All rights hereunder shall cease and terminate if and when use of the Property for purposes herein shall have been abandoned, and two year's non -use thereof shall be conclusive evidence, of such abandonment. Upon abandonment or termination of Sublease by expiration or breach or otherwise, Sublessee shall restore the Property to a condition reasonably satisfactory to Sublessor; and further provided that the Property need not be restored to a better condition than that existing at the commencement of this Sublease. Sublessee shall have a reasonable amount of time after any such termination to remove any of its Communication Facility located on the Property, and if it does not do so, all remaining property shall become the property of Sublessor. 21. Liens for Labor or Material: Sublessee shall keep the Property free and clear of mechanic's liens and any and all other liens for labor and materials caused to be used on the Property by Sublessee. 22. Termination of Original Agreement. Sublessor and Sublessee hereby agree that notwithstanding anything agreed to the contrary, beginning as of the Term Commencement Date, the Original Agreement shall terminate and be of no further force and effect. 23. Miscellaneous: a. The substantially prevailing party in any litigation arising hereunder shall be entitled to its reasonable attorney's fees and court costs, including appeals, if any. b. This Sublease constitutes the entire agreement and understanding of the parties, and supersedes all offers, negotiations and other agreements. There are no representations or understandings of any kind not set forth herein. Any amendments to this Sublease must be in writing and executed by both parties. c. If either party is represented by a real estate broker in this transaction, that party shall be fully responsible for any fee due such broker, and shall hold the other party harmless from any claims for commission by such broker. d. Sublessor agrees to cooperate with Sublessee in executing any documents (including a Memorandum of Sublease) necessary to protect Sublessee's rights hereunder or Sublessee's use of Premises. e. This Sublease shall be construed in accordance with the law of the state Washington. Venue shall be in Yakima County, Washington. f. If any term of this Sublease is found to be void or invalid, such invalidity shall not affect the remaining terms of this sublease, which shall continue in full force and effect. DATED as the date first set forth above. SUBLESSOR: City of Yakima SUBLESSEE: New Cingular Wireless PCS, LLC, a Delaware limited liability company By: AT &T Mobility Corporation Its: Manager Signature Signature Cliff Moore Name Name City Manager Title Title EXHIBIT A LEGAL DESCRIPTION To the Site Sublease Agreement dated this 6 th day of September, 2016 by and between the City of Yakima, as Sublessor, and New Cingular Wireless PCS, LLC, a Delaware limited liability company as Sublessee. The Premises are legally described as follows: That portion of Section 11, Township 13 North, Range 18 East, w.M., Yakima County, Washington, described as follows: Commencing at the southeast corner of said Section 11: thence north 35' 47" west along the east line of said section 2647.78 feet: thence south 89 15' 35" west 573.75 feet; thence north 58 21' 54" west 769.7 feet; thence north 31 57' 06" 165.00 feet to the true point of beginning; thence north 31 57' 06" east 75.00 feet; thence north 58 02' 54" west 50.00 feet; thence south 31 57' 06" west 75 feet; thence south 58 02' 54" east 50.00 feet to the said point of beginning. Including an access road suitable for vehicular travel between the leased premises and Lookout Point Road. EXHIBIT B MASTER AGREEMENT To the Site Sublease Agreement dated this 6 th day of September, 2016 by and between the City of Yakima, as Sublessor, and New Cingular Wireless PCS, LLC, a Delaware limited liability company as Sublessee. EXHIBIT C THE PREMISES to the Site Sublease Agreement dated this day of August, 2016 by and between the City of Yakima, as the Sublessor, and New Cingular Wireless PCS, LLC, a Delaware limited liability company, as Sublessee. The location of the Premises available for use by the Sublessee within the property is more particularly described or depicted as follows: The highlighted areas of the Premises indicated in this drawing. Total use of the Tower by the Sublessee shall be limited to no more than 3/10 of the total tower height. d rx*. rr *sm r = K: (kSK:ssxa[1 [: ',: zasyxa l"'.iEk s:. , J ' SES 041444"44 i r ' ' ''''' :' ,,,, ; ,,,,,,,,.,, ALI , L,4 SS r bT.�$ ,.# ... ASSES t'[2a" 9 #�1tt7ci�,. Gil 7. p Ts .. r & :. .' ...:p,�i:i•t .. # �ry ti ry { ■ rs d prtm 441444 0 S CM Sid444 S SE i q fi x.+ v 01 - 44 T., state* 04 ,I PIS F2 X