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HomeMy WebLinkAboutItem 04 - Cingular Wireless PCSMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: JUNE 7, 2011 SUBJECT: FIRST AMENDMENT TO TOWER & GROUND LEASE AGREEMENT WITH NEW CINGULAR WIRELESS PCS, LLC FOR DOVE WATER TOWER RECOMMENDATION: City Council consider adopting a resolution authorizing the First Amendment to Tower /Ground Lease Agreement with NEW CINGULAR WIRELESS PCS, LLC for the co- location of antennae and installation of communications equipment at the Dove Water Tower, 1702 Sagebrush Trail, authorize the City Manager to sign said amendment, and take any necessary action. FUNDING SOURCE: The City of Grapevine will receive an annual lease payment of $36,000 from NEW CINGULAR WIRELESS PCS, LLC for the three proposed dishes on the Dove Water Tower. BACKGROUND: The City of Grapevine and Dallas SMSA Limited Partnership, a Delaware Limited Partnership entered into a Tower/Ground Lease Agreement on January 4, 1994 as the 1St provider located on the Dove Water Tower. NEW CINGULAR WIRELESS PCS, LLC is the successor to Dallas SMSA Limited Partnership. The installation of the proposed antenna is expected to add service coverage to their customers in this area of Grapevine. The main points of the amendment include: the installation of additional antennas, adjusting the annual rental rate, • permitting lessee to add, modify and/or replace equipment in order to comply with federal, state or local mandated applications, extending the term of the lease for another 20 years with a stipulated 15% increase in 5 year increments and modify the notice section 0:lagenda12011104- 19- 111AT&T -NEW CINGULAR WIRELESS 1' Amendment June 1, 2011 (3:38PM) The City Attorney and Staff have reviewed the terms of the agreement and recommend approval. 0:lagenda12011\04- 19- 111AT&T -NEW CINGULAR WIRELESS 1 "Amendment May 31, 2011 (2:16PM) aw 6 /2/2011 Bruno Rumbelow, City Manaaer Sharron Spencer, Place 2 Mike Lease, Place 3 Address: PO Box 95104 Grapevine, Texas 75099 Dear Mr. Rumbelow; I would like to thank the City of Grapevine staff and counclipersons Sharron Spencer and Mike Lease for allowing AT &T to participate in recent discussions regarding the overall AT &T network coverage plan for the City of Grapevine. This was an excellent way for us to be able to demonstrate the many different tools that are being used by AT &T to enhance the network and create a more enjoyable customer experience in your city. As we were able to explain, AT &T is constantly gathering and analyzing network data regarding the performance of the network and using this to help fine tune the system. This might include the addition and adjustment of antennas on existing sites or even the addition of new cell sites where warranted. We were also able to discuss a few of the areas in the city where customers have experienced problems and we will give those areas special attention as we continue to adjust and upgrade the system. It is my hope that everyone involved in these discussions was able to see and understand the tremendous amount of resources that AT &T is using to enhance the customer experience in Grapevine and also to convey our commitment to the city that we will continue to work diligently with our customers and the city to maintain the type of coverage that you have come to expect. Regards, 4k� Chad Archer, AT &T RAN Director Market: Central Region/North Texas Cell Site Number: DX6042 Cell Site Name: Park/Dove Fixed Asset Number: 10003473 FIRST AMENDMENT TO TOWERIGROUND LEASE AGREEMENT THIS FIRST AMENDMENT TO TOWER /GROUND LEASE AGREEMENT ( "Amendment'), dated as of the latter of the signature dates below, is by and between City of Grapevine, a Municipal Corporation, having a mailing address of 200 South Main, Grapevine, Texas 76051 ( "Lesson") and New Cingular Wireless PCS, LLC, a Delaware limited liability company, as successor in interest to Dallas SMSA Limited Partnership, a Delaware Limited Partnership, having a mailing address of 12555 Cingular Way, Suite 1300, Alpharetta, GA 30004 ( "Lessee "). WHEREAS, Lessor and Lessee's predecessor entered into a Tower /Ground Lease Agreement dated January 4, 1994, whereby Lessor leased to Lessee certain Premises, therein described, that are a portion of the Property located at 1702 Sagebrush Trail, Grapevine, Texas 76051 ( "Agreement'); and WHEREAS, Lessor and Lessee desire to amend the Agreement to allow for the installation of additional antennas, associated cables and other communications instruments; and WHEREAS, Lessor and Lessee desire to adjust the rent in conjunction with the modifications to the Agreement contained herein; and WHEREAS, Lessor and Lessee desire to amend the agreement to incorporate language that clarifies that the lease includes the 672 SF of Ground Lease area for Lessee's existing equipment building; and WHEREAS, Lessor and Lessee desire to amend the Agreement to update the notice section thereof; and WHEREAS, Lessor and Lessee desire to amend the Agreement to permit Lessee to add, modify and /or replace equipment in order to be in compliance with any current or future federal, state or local mandated application, including but not limited to emergency 911 communication services; and WHEREAS, Lessor and Lessee, in their mutual interest, wish to amend the Agreement as set forth below accordingly. NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee agree as follows: 1. Preamble That all matters stated here and above are true and correct and are hereby incorporated into the body of this document as if copied in their entirety. 2. Term The term of this Tower /Ground Lease Agreement is hereby established for a period of 20 years from the date of execution. 3. Rent. Commencing on the first day of the month following the date that Lessor approves said amendment. (the "Rent Commencement Date "), Rent shall be increased to $3,000.00 per month with an approximate 15% increase in 5 year increments on the anniversary of this Rent Commencement Date. Said rent payments shall be as follows: • June 1, 2011 through May 31, 2016 — Rent payments shall be due on the first day of the month in the amount of $3,000.00 each month. • June 1, 2016 through May 31, 2021 — Rent payments shall be due on the first day of the month in the amount of $3,450.00 each month. • June 1, 2021 through May 31, 2026 — Rent payments shall be due on the first day of the month in the amount of $3,967.50 each month. • June 1, 2026 through May 31, 2031 — Rent payments shall be due on the first day of the month in the amount of $4,562.63 each month. 4. Additional Antennas & Equipment. Lessor consents to the installation and operation of a total of 9 antennas and associated cables and equipment including but not limited to 3 RRU's, surge protection boxes and flex tubing for DC /Fiber lines. Said equipment must be approved by the Lessor's consultant engineer The equipment may only be installed after notification to and approval by the City Public Works and Development Services Staff said notification being provided to Lessor at least two (2) working days in advance of the installation date. At the Lessor's (City's) option, city personnel may be required to be present at the site during installation. 5. Notices. Section 17 of the Agreement is hereby deleted in its entirety and replaced with the following: NOTICES. All notices, requests, demands and communications hereunder will be given by first class certified or registered mail, return receipt requested, or by a nationally recognized overnight courier, postage prepaid, to be effective when properly sent and received, refused or returned undelivered. Notices will be addressed to the parties as follows. If to Lessee: New Cingular Wireless PCS, LLC Attn: Network Real Estate Administration Re: Cell Site #: DX6042; Cell Site Name: Park 1 Dove (TX) Fixed Asset No: 10003473 12555 Cingular Way, Suite 1300 Alpharetta, Georgia 30004 With the required copy of legal notice sent to Lessee at the address above, a courtesy copy may be sent to the Legal Department at the following address: 2 3 -2011 AZ/NM — 2011 Form Amendment New Cingular Wireless PCS, LLC Attn: AT &T Legal Department Re: Cell Site #: DX6042; Cell Site Name: Park / Dove (TX) Fixed Asset No: 10003473 15 East Midland Avenue Paramus, NJ 07652 A copy sent to the Legal Department is an administrative step which alone does not constitute legal notice. If to Lessor: City of Grapevine Attn: City Manager P.O. Box 95104 200 South Main Grapevine, Texas 76099 Either party hereto may change the place for the giving of notice to it by thirty (30) days prior written notice to the other as provided herein. 5. Emergency 911 Service. In the future, without the payment of additional rent and at a location mutually acceptable to Lessor and Lessee, Lessor agrees that Lessee may add, modify and /or replace equipment in order to be in compliance with any current or future federal, state or local mandated application, including but not limited to emergency 911 communication services. Said additional equipment is restricted to only that equipment necessary for 9 -1 -1 service, may not exceed the number of antennae listed above and must be approved by Lessor's consultant engineer. The equipment may only be installed after notification to and approval by City Public Works and Development Services Staff said notification being provided to Lessor at least two (2) working days in advance of the installation date. At the Lessor's (City's) option, city personnel may be required to be present at the site during installation. Lessee shall not allow any other company to co- locate on or use its facilities located on Lessor's property without express permission from Lessor. Any additional use of Lessor's facilities may require additional compensation. 6. Should lessee file for bankruptcy during the term of this lease or any extension of the lease, both parties agree that this commercial lease shall be considered an executory contract within the terms of Section 365(d)(3) and (4) of the Bankruptcy Code, 7. Other Terms and Conditions Remain. In the event of any inconsistencies between the Agreement and this Amendment, the terms of this Amendment shall control. Except as expressly set forth in this Amendment, the Agreement otherwise is unmodified and remains in full force and effect. Each reference in the Agreement to itself shall be deemed also to refer to this Amendment. 3 3 -2011 AZNM -- 2011 Form Amendment 8 Capitalized Terms. All capitalized terms used but not defined herein shall have the same meanings as defined in the Agreement. IN WITNESS WHEREOF, the parties have caused their properly authorized representatives to execute and seal this Amendment on the dates set forth below. "LESSOR" City of Grapevine, a Municipal Corporation By: Name: Title: Date: Bruno Rumbelow City Manner "LESSEE" New Cingular Wireless PCS, LLC, By: AT &T Mobility Corporation Its: Manager By: Name: Greg HollowaX Title: Area Mana er -RE &C NTX Network O s Date: 11,1111" 13.51 Ll a 9 ,. • „. 4 3 -2011 AZNM -- 2011 Form Amendment TENANT ACKNOWLEDGEMENT STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned authority, on this day personally appeared Gregory Holloway, Area Manager — RE &C, NTX Network Ops of New Cingular Wireless PCS, LLC, a Delaware limited liability company, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said New Cingular Wireless PCS, LLC, and that he executed the same as the act of such Limited Liability Company for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of , 2011. Notary Public in and for the State of Texas My Commission Expires LESSOR ACKNOWLEDGEMENT MUNICIPAL ACKNOWLEDGEMENT STATE OF TEXAS COUNTY OF TARRANT I CERTIFY that on 2011, Bruno Rumbelow [name of representative] personally came before me and acknowledged under oath that he: (a) is the CITY MANAGER [title] of CITY OF GRAPEVINE [name of municipality], the municipality named in the attached instrument, (b) was authorized to execute this instrument on behalf of the municipality on and (c) executed the instrument as the act of the municipality. Notary Public My Commission Expires: 5 3 -2011 AZ/NM -- 2011 Form .'Amendment RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, APPROVING THE FIRST AMENDMENT TO THE TOWER/GROUND LEASE AGREEMENT WITH NEW CINGULAR WIRELESS PCS, LLC, FOR THE INSTALLATION OF COMMUNICATIONS EQUIPMENT INCLUDING ANTENNAS, CABLES AND OTHER COMMUNICATION INSTRUMENTS ON THE DOVE WATER TOWER AND PROVIDING AN EFFECTIVE DATE WHEREAS, on January 4, 1994, the City of Grapevine (hereinafter referred to as "Landlord ") entered into a Tower/Ground Lease Agreement with Dallas SMSA Limited Partnership, a Delaware Limited Partnership for Communications Equipment on the Dove Water Tower; and WHEREAS, the City of Grapevine is in agreement to enter into Amendment # 1 to said Tower/Ground Lease Agreement with New Cingular Wireless PCS, LLC, successor to Dallas SMSA Limited Partnership, a Delaware Limited Partnership; and WHEREAS, Amendment # 1 to the Tower/Ground Lease Agreement for the Dove Water Tower is attached as Exhibit "A ". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated in the preamble of this resolution are true and correct and are hereby incorporated into the body of this resolution as if copied in their entirety. Section 2. That the City Manager is hereby authorized to enter into said Amendment # 1 to the Tower/Ground Lease Agreement as attached. Section 3. That all matters stated in the preamble of this resolution are true and correct and are hereby incorporated into the body of this resolution as if copied in their entirety. Section 4. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 7th day of June, 2011. APPROVED: ATTEST: APPROVED AS TO FORM: RES. NO.