HomeMy WebLinkAbout25L - INSTALLATION OF EQUIPMENT-ADAMS PARKREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 7, 2010
TITLE:
LEASE AGREEMENT AMENDMENT
WITH TOWERCO ASSETS LLC FOR
INSTALLATION OF EQUIPMENT AT
ADAMS PARK
41, tla?
CIT ANAGER
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 Adams 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 June 6, 2004 City Council approved a lease agreement with Sprint PCS for the installation of
cellular communications equipment at Adams Park. The City currently receives a $2,251 monthly
lease on this 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 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.
25L-1
AyIENDMENT 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-2004-138)
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 2302 South Raitt, Santa Ana, CA 92704 (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. 2009000121 5098, on March 16, 2009.
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
tenns 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:
I. 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 in amount
equal to the Sublease Fee as of the date of such termination or expiration.
CA2941
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 terns 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.1
C A21)41
IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and
year first below written.
ATTEST:
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORM:
JOSEPH W. FLETCHER
City Attorney
BY
Laura Sheedy
Assistant City Attorney
CA-1441
LESSOR:
CITY OF SANTA ANA, a charter city and
municipal corporation organized and
existing under the Constitution and laws of
the State of California
By:
Name: DAVID N. REAM
Its: City Manager
Date:
LESSEE:
TOWERCO ASSETS LLC, a Delaware
limited liability company
By:
Name: Michael P. MacPherson
Its: Vice President / General Manager
Date: P' ? Ar?
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REQUEST FOR APPROPRIATION AP - TSTMENT
Appropriation Adjustment No:
")0/ 1 -,5c
Date: September 7, 2010
Department: Recreation Community Services
TYPE OF ADJUSTMENT
Transfer of Funds (No Council Action Required)
a Transfer of Funds (Council Action Required)
Counc?'
,at # - Description Amount
o6220 Improvements Other Than Bldgs. 3,600
Total 3,600
25L-10
From: Capital Outlay Fund