HomeMy WebLinkAbout2015-11-17; Municipal Water District; 821; Adopt Resolution Authorizing the Executive Director to Execute the First Amendment to the Lease Agreement with Crown Castle GL Company LLCO� C
CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL
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AB# 821 ADOPTION OF A RESOLUTION AUTHORIZING THE DEPT. DIRECTOR
DATE 11�17�15 EXECUTIVE DIRECTOR TO EXECUTE THE FIRST GEN. COUNSEL
AMENDMENT TO THE LEASE AGREEMENT WITH CROWN
CASTLE GT COMPANY LLC FOR A CELL TOWER LOCATED AT
DEPT. PW-PEM THE TWIN D TANK SITES (6640-6650 BLACK RAIL ROAD) EXEC. DIRECTOR
RECOMMENDED ACTION:
Adopt Resolution No. 1536 authorizing the Executive Director to execute the First Amendment
to the Lease Agreement with Crown Castle GT Company LLC for a cell tower located at the Twin ❑ tank
sites (6640-6650 Black Rail Road).
ITEM EXPLANATION:
Carlsbad Municipal Water District entered into a Lease Agreement in July 1985 to lease property located
at 6640-6650 Black Rail Road for the purpose of operating a cell tower. The original Agreement's final
option expired May 31, 2015. In May 2015, city staff extended the lease with Crown Castle GT Company
LLC to Nov. 30, 2015.
AT&T Wireless currently houses its equipment on the existing Crown Castle tower, and recently obtained
a Conditional Use Permit (CUP) to move its equipment directly onto one of the existing water tanks at the
site. The City of Carlsbad's Property Management Division is in the process of negotiating a License
Agreement directly with AT&T. Once complete, AT&T will begin the process of removing its equipment
from the existing tower, allowing for Crown Castle to remove its tower completely. To permit time for
the transition, the Property Management Division has negotiated a month -to -month lease extension with
Crown Castle GT Company LLC beginning Dec. 1, 2015.
FISCAL IMPACT:
The district will receive monthly revenue according to the rent schedule below:
Period (Months)
Monthly Rent Amount
1-3
$3,630
4
$4,630
5
$5,630
6
$6,630
7 and forward
$7,260
DEPARTMENT CONTACT:
Steve Hodges 760-434-2925 steve.hodges@carlsbadca.gov
FOR SECRETARY USE.
BOARD ACTION: APPROVED
CONTINUED TO DATE SPECIFIC ❑
DENIED
❑
CONTINUED TO DATE UNKNOWN ❑
CONTINUED
❑
RETURNED TO STAFF ❑
WITHDRAWN
❑
OTHER- SEE MINUTES ❑
AMENDED
❑
REPORT RECEIVED 11
Crown Casde Lease Extension
November 17, 2a15
Page 2 of 2
ENVIRONMENTAL IMPACT:
The proposed action is exempt from the California Environmental Quality Act (CEQA) per State CEQA
guidelines 15301 — Existing Facilities. Section 15301 exempts the leasing of property involving
negligible or no expansion of use beyond that existing at the time of the agency's determination.
EXHIBITS:
1. Resolution No. 1 536 authorizing the Executive Director to execute the First Amendment
to the Lease Agreement with Crown Castle GT Company LLC for a cell tower located at the Twin
D tank sites (6640-6650 Black Rail Road).
2. Location site map identifying portion of premises to be leased.
3. First Amendment to Lease Agreement between the Carlsbad Municipal Water District and Crown
Castle GT Company LLC.
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RESOLUTION NO. 1536
A RESOLUTION OF THE BOARD OF DIRECTORS OF CARLSBAD
MUNICIPAL WATER DISTRICT (CMWD), AUTHORIZING THE
EXECUTIVE DIRECTOR TO EXECUTE THE FIRST AMENDMENT TO
THE LEASE AGREEMENT WITH CROWN CASTLE GT COMPANY LLC
FOR A CELL TOWER LOCATED AT THE TWIN ❑ TANK SITES (6640-
6650 BLACK RAIL ROAD)
WHEREAS, the City of Carlsbad entered into a Lease Agreement in July 1985 to lease
property at 6640-6650 Black Rail Road for the purpose of operating a cell tower; and
WHEREAS, the original Lease Agreement's final option expired May 31, 2015; and
WHEREAS, city staff extended the Lease Agreement with Crown Castle GT Company LLC
until Nov. 30, 2015; and
WHEREAS, city staff has negotiated the First Amendment to the Lease Agreement to
extend the Lease Agreement on a month -to -month basis for said property beginning Dec. 15t,
2015; and
WHEREAS, the First Amendment to the Lease Agreement will generate $3,630 per
month in revenue for the city over the first three months and gradually increase to $7,260 in
month seven if it has not been terminated by that time.
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of
the City of Carlsbad, California, as follows that:
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1. The above recitations are true and correct.
2. The Executive Director is hereby authorized to execute the First Amendment to
the Lease Agreement with Crown Castle GT Company LLC.
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PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the
Carlsbad Municipal Water District of the City of Carlsbad on the 17" day of November, 2015, by
the following vote to wit:
AYES: Board Members Hall, Blackburn, Packard, Wood, Schumacher.
NOES: None.
ABSENT: None.
MATT HALL, President
ATTEST:
BARBARA ENGLESON, ecretary
(SEAL) ,01tI 11fl1I/I
+•��ER Del, �•,
��ll(tip" 4/�
City Of
Caflsbad
First Amendment to Lease Agreement
THIS FIRST AMENPM ENT to the Lease Agreement ("First Amendment") is made effective
and entered into this _ /474 k day of Noe , cV- 20 15 , between the Carlsbad Municipal
Water District ("Lessor"), and Crown Castle GT Company LLC, a Delaware limited liability company
("Lessee"); (collectively, "the Parties"), to the Lease Agreement ("Lease") dated July 17, 1985 for real
property located at 6640-6650 Black Rail Road, Carlsbad, CA 92011, commonly known as the Twin
❑ Tanks site ("the Premises").
WHEREAS, on July 17, 1985, the Parties' predecessors in interest entered into the Lease for
the construction of an antenna site and related equipment and appurtenances on the Premises which
expired on May 31, 2015; and
WHEREAS, Lessee was granted a six (6) month extension to the Lease on May 12, 2015 with
an expiration date of November 30, 2015; and
WHEREAS, the Parties desire enter into this First Amendment under the following terms and
conditions,
1. Tenn. Commencing on December 1, 2015, the term of the Lease will be month to month.
2. Rent. Lessee agrees to pay Lessor monthly rent in the amount of Three Thousand Six Hundred
Thirty Dollars ($3,630) payable on the I" of each month effective December 1', 2015, Lessee
hereby agrees to pay all electrical charges as a result of the Leased Premises together with all
possessory taxes, or other taxes or charges which may arise as a result of Lessee's use and
occupation of the Leased Premises.
3. Adiustment to Rent. Commencing on March 1, 2016, Lessee agrees to pay Lessor an
additional One Thousand Dollars ($1,000) a month in rent and an additional One Thousand
Dollars ($1,000) for each month thereafter up to a maximum monthly rent of Seven Thousand
Two Hundred Sixty dollars ($7,260) thereafter.
4. Deposit. Upon execution of this Lease by Lessee, Lessee shall deposit with Lessor a
refundable deposit in the amount of Three Thousand Six Hundred Thirty Dollars ($3,630).
Such deposit may be used by Lessor to pay for the cost of removal of Lessee's equipment
and appurtenances and restore Lessee's Premises to the same condition as it was immediately
prior to the commencement of the Lease, except normal wear and tear in the event Lessee
fails to remove its property and equipment as provided by paragraph 6 below.
5. Termination_ Either party may terminate the terns of this agreement upon providing 30 days
written notice.
6. Removal of EgWpmentlPenalty Fee. Within thirty (30) days from termination of this
agreement, Lessee agrees to assemble and remove from the Premises, all of its property and
Public Works department
Property Division 1405 Oak Avenue I Carlsbad, CA 92008 1 760-434--2893 t
X
equipment, including antenna supports, and shall leave the Premises in the same condition as
it was immediately prior to the commencement of the Lease, normal wear and tear excepted.
In the event Lessee fails remove all of its equipment from the Premises within the time allowed,
Lessor may, but is not obligated to, remove and store Lessee's property and equipment until
recovered by Lessee. In the event Lessor removes and stores Lessee's property and equipment,
it shall not be liable for any damage to Lessee's property and equipment during the removal or
storage. Lessee may recover equipment from Lessor by paying Lessor a daily penalty of Three
Hundred Fifty Dollars ($350) for each day any of the Lessee's property or equipment remains
on the Premises after termination of the Agreement.
7. Disposal of Abandoned Equipment. In the event, Lessee fails to remove its property and
equipment from the Premises within 90 days from the notice of termination, Lessor may
declare the property and equipment abandoned and may, but is not required to, dispose of
equipment as it chooses. Lessee shall reimburse Lessor all costs of removal and disposal and
for the period of storage of Lessee's property and equipment in excess of the refundable
deposit.
All other terms of the Lease shall continue during this extended term as if set forth herein. By their
signatures below, the Lessor and the Lessee hereby agree to the terms of the Lease Extension as set
forth herein, effective as of the date first written above.
LESSEE
BY:
Prin d Name: My,
Title: D Dees eF ke&k 6-s Wc-
Crown Castle GT Company LLC
DATE: C cJt, cr ZZ,, 2 015
Note: Signature of Lessee must be Notarized
LESSOR
IND
Matt Hall, President
CArRLSBAD MUNICIPAL WATER DISTRICT
DATE: 11113115
APP :!gtl
O FORM
PAUL 0.EDMONSON
-g;f- Assistant City Afton"
City of Carlsbad
ACKNOWLEDGEMENT
State/Commonwealth of
County of —M Air', C cP a.
On this, the 27 day of DC1161--r , 20 , before me, the undersigned officer in and for
the above -stated jurisdiction, personally appeared Matthew D. Seal, who acknowledged him herself to be
the Director of Real Estate Manager of Crown Castle GT Company LLC, a limited liability company, and
that he/she, being authorized to do so, executed the foregoing First Amendment to Lease Agreement for
the purposes therein contained.
IN WITNESS WHEREOF, I hereunto set my hand and official seal. 7/37�_
-T_-:��7z�_
oIFFit;IAL SEAL
Notary Public
DANIEL L BRANCH
' NOTARY PUBLtC•ARIZONA
MARICOPA COUNTY
Commission Expires Sept. 25, 2Qts