HomeMy WebLinkAboutAgenda Report - August 21, 2013 C-16AGENDA ITEM C'o 16
CITY OF LODI
COUNCIL COMMUNICATION
' TM
AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Amendment to
Lease Agreement with T -Mobile West, LLC, for Ground Space Lease at
1331 South Ham Lane
MEETING DATE: August 21, 2013
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute amendment to
lease agreement with T -Mobile West, LLC, for ground space lease
at 1331 South Ham Lane.
BACKGROUND INFORMATION: The original term of this lease was for 10 years, commencing on
July 1, 1999 and ending on June 30, 2009. The lease also granted
the tenant an option to extend for one additional five-year period.
This option period commenced on July 1, 2009 and is set to expire June 30, 2014. The amendment to
this agreement would allow for two additional and successive five-year option periods to extend the
contract. The option periods would allow for automatic extensions of the contract through June 30, 2024.
Subsequent extensions will be by mutual consent of the tenant and the City. The City currently receives
monthly rent in the amount of $756.29. The lease allows for a yearly rent escalator of 3 percent.
FISCAL IMPACT: The two additional five-year extension periods would collect approximately
$119,724 in revenue to the General Fund.
FUNDING AVAILABLE: Not applicable.
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fold FVVVV ly Qmdelin
Public Works Director
Prepared by Rebecca Areida-Yadav, Management Analyst
FWS/RAY/pmf
Bartlam, CitylGlffnager
K:\WP\PROPERTY\MSC\CTMobileAmendment.doc 8/12/2013
Market: Sacramento
Site Number. SCO7246A
Site Name: City of Ludi
FIRST AMENDNIENT TO LEASE AGREEMENT
(Ground Space at 1331 S. Hain Lane)
THIS FIRST AMENDMENT TO LEASE AGREEMENT (this "first Amendment") is
entered on the day of "2013, by and between the City of
Lodi, a municipal corporation ("Landlord"), and T -Mobile West LLC, a Delaware limited
liability company, formerly known as T -Mobile West Corporation, as successor -in -interest to
TMO CA/NV LLC, formerly known as Pacific Bell Wireless, LLC, successor in interest to
Pacific Bell Mobile Services ("Tenant").
WHEREAS, Landlord and Tenant are parties to that certain Lease Agreement dated
August 18, 1999 (referred to herein as the "Lease"), whereby Landlord leased to Tenant certain
ground space therein described (the "Premises"), located on property commonly known as 1331
S. Ham, City of Lodi, County of San Joaquin, State of California, APN 031-040-50 (the
"Property"), formerly known as 1145 S. Hain Lane, Lodi, San Joaquin County, Assessor's
Parcel Number 031-040-21.
WHEREAS, Landlord and Tenant'. desire to amend the Lease to: (i) extend the Terni of
the Lease and (ii) update Tenant's notice address.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, Landlord and Tenant hereby agree as follows:
1. Section 2, Term. Section 2 of the Lease entitled, "Term" is hereby deleted in its
entirety and replaced in full follows:
"a. The Term of this Lease ("'Cerin") shall be ten (10) years commencing
on July 1, 1999 (the "Commencement Date") and ending on June 30, 2009.
b. Tenant is hereby granted options to extend the Term of this Lease on
the same terms and conditions as set forth herein for tip to three (3) additional and
successive five (5) year periods each (each an "Option Period"). This Lease shall
automatically be extended for each Option Period unless Tenant notifies Landlord
in writing of Tenant's intention not to extend this Lease at least ninety (90) days
prior to the expiration of the then current Option Period. Subsequent extensions
other than as set forth above will be by mutual consent of Tenant and Landlord
tinder the same terms and conditions; provided, however, that if Tenant and
Landlord fail to agree to subsequent extensions, then this Lease shall continue in
force upon the same terms and conditions for a further period of one (1) year and
for like annual periods thereafter, until and unless terminated by either party by
giving to the other written notice of its intention to so terminate at least one (1)
year in advance prior to the date of lease expiration,"
Markel: Sacramento
Sita Number. SCO2223A
SiteNmne: City of Lodi
2. Section 24, Notices. Section 24 of the Lease entitled, "Notices" is hereby
amended to delete the notice address for Tenant in its entirety and replace it in full with the
following:
"T -Mobile USA, Inc.
12920 SE 381" Street
Bellevue, WA 98006
Attn: Lease Compliance / SC07246A"
3. Signature Authority. The persons who have executed this First Amendment
represent and warrant that they are duly authorized to execute this First Amendment in their
individual or representative capacity as indicated.
4. Miscellaneous. Unless otherwise defined herein, capitalized terms shall have the
meanings ascribed to them in the Lease. In case of any inconsistency between the terms and
conditions contained in the Lease and the terms and conditions contained in this First
Amendment, the terms and conditions herein shall control. The Lease remains in fitll force acid
effect as amended hereby.
IN WITNESS WHEREOF, the parties have executed this First Amendment as of the
day, month and year of last execution as set forth below.
Landlord: City of Lodi
Name: Konradt Bartl am
Title: City Manager
Date:
ATTEST:
Randi Johl-Olson
City Clerk
APPROVED AS TO FORM:
D. Stephen SchwAbAger
City Attorney �2 n
2
Teuaut: - ile West LLC
By:
Name:��u�x.�J+�IJG�G
Title: ILt'wAl— Aze-&
Date: S'A 13
T-Mob
0 egalJlpprpyl
Kevi Brinkley
RESOLUTION NO. 2013-153
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING AND AUTHORIZING CITY MANAGER TO
EXECUTE AMENDMENT TO LEASE AGREEMENT
WITH T -MOBILE WEST, LLC, FOR GROUND SPACE
LEASE AT 1331 SOUTH HAM LANE
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WHEREAS, the original term of the lease between T -Mobile West, LLC, for
ground space at 1331 South Ham Lane was for a ten-year period, commencing on
July 1, 1999 and ending on June 30, 2009; and
WHEREAS, the option for a five-year lease extension was exercised, extending
the lease to June 30, 2014; and
WHEREAS, the amendment to this agreement provides for two additional and
successive five-year option periods and will allow for automatic extensions of the
contract through June 30, 2024; and
WHEREAS, the City currently receives monthly rent in the amount of $756.29
and the lease allows for a yearly rent escalator of 3 percent.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve an amendment to the lease agreement with T -Mobile West, LLC, for ground
space at 1331 South Ham Lane; and
BE IT FURTHER RESOLVED that the City Council does hereby authorize the
City Manager to execute the amendment.
Dated: August 21, 2013
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I hereby certify that Resolution No. 2013-153 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held August 21, 2013, by the
following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, Katzakian, Mounce, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — No�&OHL-OLSON
City Clerk
2013-153