HomeMy WebLinkAbout1994-12-20; Municipal Water District; 261; US West Cellular - Use of Twin D Reservoir SiteCARLSBAl-YlUNICIPAL WATER DlSTRItF; AGENDA BILL
AB # &ii’ 1 TITLE:
12/20/94 MTG.
DEPT. CMWD
RECOMMENDED ACTION:
Approval of an Agreement Extension with
US West Cellular for use of Twin D
Reservoir Site
DEPT. HD. Rr@
CITY MGRS
Adopt Resolution No. 8gS approving an option to extend the term of said License
Agreement between Carlsbad Municipal Water District and US West Cellular of
California as assignee of GenCom, Inc., dated July 17, 1985, for an additional five (5)
years through May 30,200O.
ITEM EXPLANATION:
In 1985, the District entered into an lease agreement with a mobile telephone company
called GenCom Incorporated. This lease allowed GenCom to locate a mobile
communications facility at the Twin Tanks Reservoir site. The original agreement was
for five years with GenCom having exclusive and irrevocable right and option to renew
according to the terms of the lease. These renewals were for 5 years at a time, with an
increase in the amount of rent to be calculated based on the Consumer Price Index (not
to exceed 6 percent per annum) for each twelve month period during the 5 years, to be
I increased every sixth year at a percentage not to exceed a total of 30 percent.
On December 3, 1986, the District was informed that San Diego Cellular Inc., a wholly-
owned subsidiary of US West, purchased GenCom and had assumed the rights
granted to GenCom under the lease with the District.
On October 20, 1994, US West, as assignee to GenCom, asked to exercise its option
to extend the term of said Lease for an additional five (5) years from June 1, 1995.
FISCAL IMPACT:
In accordance with section 7 of the Lease Agreement, semi-annual rent will be
increased to $3,050, effective June 1, 1995, which is an increase of 17.3% (the
cumulative Consumer Price Index increase from 1990). This will result in an additional
annual income of $900.
EXHIBITS:
1. Resolution No. 88 8 approving an option to extend the lease agreement
between Carlsbad Municipal Water District and US West Cellular.
m
RESOLUTION NO. 888
EXHIBIT 1
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD
3 MUNICIPAL WATER DISTRICT OF CARLSBAD, CALIFORNIA,
APPROVING THE OPTION TO EXTEND THE TERM OF THE LEASE 4 AGREEMENT BETWEEN THE CARLSBAD MUNICIPAL WATER
c DISTRICT AND US WEST CELLULAR
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7
WHEREAS, the Board of Directors of the Carlsbad Municipal Water District of
Carlsbad, California entered into a lease agreement in July 1985 with a mobile
8 telephone company called GenCom that allowed GenCom to locate a mobile
9 communications facility at the Twin Tanks Reservoir site; and
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WHEREAS, the original agreement gave GenCom exclusive and irrevocable
right and option to renew the lease at five year intervals; and
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WHEREAS, a new price may be negotiated every sixth year of the agreement
based on the cumulative Consumer Price Index over the past five years, not to exceed
14 30 percent total; and
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WHEREAS, US West Cellular purchased GenCom in December 1986 and
assumed the rights granted to GenCom under the terms of the lease; and
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WHEREAS, the District was notified by US West Cellular on October 20, 1994,
that US West wishes to extend the term of the lease agreement for an additional five
l9 (5) years from June 1, 1995.
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NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the
Carfsbad Municipal Water District of Carlsbad, California, that:
22 1. The above recitations are true and correct.
23 2. The extension of the lease agreement with US West for an additional five
24 years is hereby approved; and
25 3. In accordance with Section 7 of the lease agreement, semi-annual rent
26 will be increased to $3,050.
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PASSED, APPROVED AND ADOPTED at a special meeting of the Carlsbad
Municipal Water District held on the 20th day of DECEMBER , 19 94 , by
the following vote, to wit:
AYES: Board Members Lewis, Nygaard, Kulchin, Finnila, Hall
NOES: None
ABSENT: None
ATTEST:
ALETHA L. RAUTENKRANZ, Secretary
(SEAL)