HomeMy WebLinkAboutItem 4.03 Shannon Lease of CommG~~~ OF Dp~~rG
1`~~,~lz
04L/FOR~~~~
STAFF REPORT CITY C L E R K
DUBLIN CITY COUNCIL File # ^®ODD -3^OD
DATE: November 17, 2009
TO: Honorable Mayor and City Councilmembers
FROM: Joni Pattillo, City Manager
SUBJEC Approval of Second Amendment To PCS Site Agreement For Lease of
Communications Site (Shannon Park 11600 Shannon Avenue)
Prepared By: Paul S. Rankin, Administrative Services Director.
EXECUTIVE SUMMARY:
The City has a lease agreement with a telecommunications firm for a small site adjacent to
Shannon Center. In exchange for the City's consent to a transfer of the lease from Sprint to
Global Signal, Global Signal has offered to increase the rent by $100 per month and make a
one-time payment of $6,000.
FINANCIAL IMPACT:
The City will receive an additional $6,700 in Fiscal Year 2009-2010 in exchange for the
execution of the lease amendment. On going rental payments will be $1,200 more per year
through the term of the lease including the extension periods which expire June 30, 2022.
RECOMMENDATION:
Adopt the resolution Approving the Second Amendment to the PCS Site Agreement (Shannon
Park 11600 Shannon Avenue).
~~~-.
Submitted By:
Administrative Services Director
DESCRIPTION:
!~
Reviewed
Assistant City Manager
The City Council approved on November 6, 2001, a Site Agreement under which the City
leased a small portion of land adjacent to Shannon Center to Sprint PCS. Under a separate
site improvement agreement Sprint constructed a facility at this site. On February 3, 2004 the
City Council adopted Resolution 19-04, which accepted the Improvements as being complete
and also adopted the first amendment to the Site Agreement. The amendment to the
agreement was to more precisely define the location of the facility constructed by Sprint as well
as easements provided. The amendment did not change other terms of the lease.
Page 1 of 2 ITEM NO. ,~,
Sprint developed the location for the purpose of installing and operating a personal
communications service system facility. In addition to an antenna structure there is a 230
square foot accessory structure that contains equipment including a battery back up and air
conditioning. The City is not responsible for the provision of any utilities to the site.
The original term of the Agreement was five years and with an automatic renewal for three
additional terms of five years. Beginning July 1, 2002 the City received monthly rent of $1,000
per month. The Agreement provides that each July 1St the rent is increased by the percentage
change that occurred in the Consumer Price Index (CPI) during the preceding twelve months.
However, in no event shall the rent resulting from the annual CPI adjustment increase by less
than 3%. The current rent is $1,235.85 per month based on previous adjustments.
The entity which originally owned the lease has undergone corporate restructuring, which has
resulted in a different company having certain rights under the lease. The interest in the original
lease is now held by STC Five LLC, a Delaware limited liability company.
In the proposed second amendment to the lease (Exhibit A to Attachment 1), the City consents
to a sublease to Global Signal Acquisitions III, LLC. Upon execution of the agreement the City
will receive an additional $100 per month in rent. Provided the amendment is approved by the
City Council the base monthly rent beginning December 1, 2009 will be $1,335.85 and it will be
adjusted by a minimum of 3% on July 1, 2010. In addition the City will receive aone-time
payment of $6,000. All other aspects of the lease agreement remain unchanged. The City
Attorney has conducted the discussions with Global Signal representatives and reviewed the
amendment to the lease.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS: 1. Resolution Approving the Second Amendment to the PCS Site
Agreement (Shannon Park 11600 Shannon Avenue)
Page 2 of 2
I~~n
RESOLUTION NO. XX - 09
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING THE SECOND AMENDMENT TO THE PCS SITE AGREEMENT
(Shannon Park 11600 Shannon Avenue)
WHEREAS, on November 6, 2001 the City Council authorized a lease of a small site adjacent
to Shannon Community Center for a telecommunications facility; and
WHEREAS, on February 3, 2004 the City Council adopted Resolution 19-04, which accepted
the Improvements as being complete and also adopted the first amendment to the Site Agreement;
and
WHEREAS, the ownership of the telecommunications site and interest in the lease has been
transferred by the original developer of the site; and
WHEREAS, the current Lessee has requested the amendment of the lease to reflect the
sublease to Global Signal Acquisitions III LLC; and
WHEREAS, in consideration of the amendment the City of Dublin will receive aone-time
payment of $6,000 and an on-going increase in the monthly rent of $100 for the term of the
agreement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
approve the Second Amendment to the PCS Site Agreement attached hereto as Exhibit A and
by reference made a part hereof.
BE IT FURTHER RESOLVED that the City Manager shall be authorized to execute the
amendment on behalf of the City of Dublin.
PASSED, APPROVED AND ADOPTED this 17th day of November, 2009, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Mayor
City Clerk
I-~err~ ~ ~-} .3 ~ ~ { I~ ~ 01
ATTACHMENT 1
a o~ l0
SECUNI3 AMEIYDIt+iENT T4
PCS SITE AGIftEEI1+;lEl"+~l'I"
THIS SECQI+ID AMETIDMENT Tt~ PCS SITE AGREEMENT (the "Second
Amendment'°) is antered into this day of , 2(109, by and between THE
CITY OF DUBLIN, a municipal c~orparatian, with a xnailing address of I ISO(1 Shannon Avenue,
Dublin, Caul=Qrnia {hereinafter referred tca as "Lessor" csr "C~wner'~ ar-d S~'C FT`VE LLC, a
Delaware linnited liability company, by and through its Attorney In Fact, Global Signal
Acquisitions III LLC, a Delawaxe limited liability company, with its principal offices located at
X000 Corlxsrate Drive, Canonsburg, p'ennsylvania 15317 (hereinafter referred to a5 "Lessee" ox
"ssLP»).
Itb',CITALS
1~r'IIE~A.S, Lessor and Sprint Spectrum L:P., a Delaware limited partnership ("original
Lessee") entered into a PCS Site Agreement dated November 6, 2401 (the "origir-al
Agreement"} whereby Original Lessee leased certain real property, together with access and
utility easements, lr~cated in Alameda County, California from Lessor {the "Site"}, all located
within certain real prr~perty owned by Lessor ("Lessor's Prt~perty'~; and
~J'I-IEREAS, the t,~riginal agreement was amended by that certain undated First
Azxnendrnent to FCS Site Agreement dated February 6, 20E14 {hereinafter the Original Agreement
and all subsequent amendments are collectively referred to as the "Agreement"}; and
WHEREAS, 5TC Five LLC is currently the Lessee under the Agreement as successor in
interest to the Qriginal Lessee; and
WHEREAS, Lessor and Lessee desire to amend the Agreement on the terms az~d
conditions contained herein.
I*tQW 'I EiEItEFt)R,E, fcrr ~~ and valuable consideration, the receipt and su#Ticiency of
which are acknowledged, Lessor and Lessee agree as follows:
Site Name: L3uk~lin I
Baseness Unit #: R8Qa~9
Exhibit A
3~-In
1. Reci#als: Defined Terms. The panics acknowledge the accuracy of the faregt~ing
recitals. Any capitalized terms not defined herein shall have the meanings ascribed to them in
the Agreement,
2. Consent tt~ Global S~~r~al Sublease. The parties ackntawledge that pursuant to a
sublease, {the "Sublease"), Lessee will sublease i#s entire interest in the Agreernerrt to Global
Signal ,~lcquisitians III LLC {"GSA") aril G~~. will then lease back. to Lessee (andlor one or
more of its affiliates} a portion of the Site {collectively, the "Lease and Lease Back
Transactions"). In considera#ion far the Rent Adjustixient and Paymen# reflected in sections 3
anti 4 of this Amendment, Lessor hereby consents tQ the Lease and Lease Back Transactions and
further acknowledges that it will require no additional payixxents under the Agreement for the
Lease and Lease Back Trar,saction~ t-r otherwise in cc3nnectian with the above coriserits.
3. Rent Adjustmebt. Effective tipotl full execu#ian caf this Seccand. Amendment, the
monthly rent shall increase by an amount equal to Clne Hundred Dollars and 011 DU Dollars
{$l OC1.Obinnonth~. Following such increase, the man#hly ren# shall ct~n#inue tt~ adjust. purs~uan# to
the terms of the Lease. Upon full execution, the parties agree the Base Rent tine monthly will be
~1,335.gS, and, on July 1, ~.QIt7, the Base Rent would be adjusted rzpward a rninimurn of 3'°fo
purs~iarit to the tterm.s a£ subdivisirin {b~ of section 3 c-fthue Agreement;
4. ~or~deration. In considerraatian for a~neridirig the A.grceuient, Lessee will pay
Lessor Six Thousand and 4t3l100 Dollars {$b,(l~{l.(}0) within sixty days of full execution of this
Second Amendment.
5. Ratification.
{a) Lessor and Lessee agree that Lessee is the current Lessee under the
Agreerm~ent, the Agreement is in full farce and effect, as it may have been previously mended
and as amended herein, and the Agreement contains the entire agreement between Lesser and
Lessee with respect to the Site.
{b~ Lessor and Lessee agree that any and all actions ter inactions that have
occurred or should have occurred prior #o the date of this Seeantl Amendment arse approved and
s~~ N~~. a~~~~~ ~
r~~~ E.i+~a ~: ssQ~~
Exhibit A
~~-a
ratified by the parties and. the parties agree that rio breaches or clef~iults exist as ~ofthe date of this
Seeand Amendnz~ent,
(c) Lessor represents and v~rarrants that Lessor is duly authorized and has the
full pt~wer, right and authority to enter into this Second Amea~drnent ar~d tta perform all of its
oblgatiaris under the .Agreement ~ amended.
N+~tices. Lessee's notice address as stated in S~ton 6 of the Agreement is
amended as follows:
LESSEE'S PRIMARY C~INTA,CT STC Five LLC
c/o Crown Castle USA Inc.
£. Blare J~awk, General. Counsel
Attn:. Real Estate l'~epartment
2QDQ C~arporate Drive
Canonsburg, FA 1531
7. Remainder of Agent Un~cted. 'I"he bailac3-ce of the Agreement is hereby
amended to reflect the purpose of this Second Amendment. The parties hereto ac~nvwleclge that
except as expressly m~adified hereby, the Agreement remains unmodified. and in full farce and
effect. In the event of any conflict or inconsistency between the terms of this Second
Amendment and the Agreements the terms cif this Second Amendment sha11 control. Unless
atherwi:se expressly defined herein, tie ternn,s in this Second Amendment shall have the same
n~earYings assigned to such terms in the ,Agreement. This Second Amendment may be executed
simultarx;ausly ar in counterpaxks, each of which. shall be deemed. an original, but all of which
together shall constitute cane and the same agreement,
[Signature pages follow]
Site ~1ame: I~ubEin
P1luiness Unit d: 8844901
Exhibit A
5 ~~ b
This Second ,Amendment is executed by Lessor as of the date fiat written alcove.
LES1sU~t:
CITY CF I}[3BI,Tt~I, a municipal corporation.
~~:
Feint IrTarne:
Title:
~ssee Execution Fage Follows]
Sir Name: DubEirt
~#usinrss tJrru!!: 8811499
Exhibit A
~ ~{-' to
This Second Amendment is executed by Lessee as of the date first written above.
LESSEE:
S"I'G FIVE LLG, a Delaware limited iia'bility
company
By: Global Sigtral Acquisitions III LLC, a
Delaware 1'rmited liability company
Its; Attorney In Fact
By: ~ ,t.~,.,~.~
Print Name: ~ ~ .~, r~~%~....
Title: ,G .+~f~ ~-e:,c1
13I0274.1
s~~G ~a~~; ~~i~~
Husincss Unit #; R$b499
Exhibit A