CARLSBAD MUNICIPAL WATER DISTRICT- AGENDA BILL

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1 CARLSBAD MUNICIPAL WATER DISTRICT- AGENDA BILL -1-4 AB# 821 DATE 11/17/15 DEPT. PW-PEM ADOPTION OF A RESOLUTION 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 ( BLACK RAIL ROAD) DEPT. DIRECTOR. GEN. COUNSEL EXEC. DIRECTOR RECOMMENDED ACTION: Adopt Resolution No 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 ( Black Rail Road). ITEM EXPLANATION: Carlsbad Municipal Water District entered into a Lease Agreement in July 1985 to lease property located at Black Rail Road for the purpose of operating a cell tower. The original Agreement's final option expired May 31, In May 2015, city staff extended the lease with Crown Castle GT Company LLC to Nov. 30, 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, 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 FOR SECRETARY USE. BOARD ACTION: APPROVED D CONTINUED TO DATE SPECIFIC D DENIED D CONTINUED TO DATE UNKNOWN D CONTINUED D RETURNED TO STAFF D WITHDRAWN D OTHER- SEE MINUTES D AMENDED D REPORT RECEIVED D 1

2 Crown Castle Lease Extension November 17, 2015 Page2of2 ENVIRONMENTAL IMPACT: The proposed action is exempt from the California Environmental Quality Act (CEQA) per State CEQA guidelines Existing Facilities. Section exempts the leasing of property involving negligible or no expansion of use beyond that existing at the time ofthe agency's determination. EXHIBITS: 1. Resolution No 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 ( 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. 2

3 1 RESOLUTION NO 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 D TANK SITES { BLACK RAIL ROAD) WHEREAS, the City of Carlsbad entered into a Lease Agreement in July 1985 to lease property at 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. Pt, 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: 1. The above recitations are true and correct II II 2. The Executive Director is hereby authorized to execute the First Amendment to the Lease Agreement with Crown Castle GT Company LLC. 3

4 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Carlsbad Municipal Water District of the City of Carlsbad on the day of 2015, by the following vote, to wit: AYES: NOES: ABSENT: MATI HALL, PRESIDENT ATIEST: BARBARA ENGLESON, SECRETARY (SEAL)

5 LOCATION MAP ~ Aviara Community Park - -..,r'"": I I-_/\_ I I PACIFIC OCEAN 2

6 ~bit-3 ~City of Carlsbad First Amendment to Lease Agreement THIS FIRST AMENPMENT to the Lea~e Agreement ("First Amendment") is made effective and entered into this day of _ 20, 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 Black Rail Road, Carlsbad, CA 92011, commonly known as the Twin D 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, 20 15; and WHEREAS, Lessee was granted a six (6) month extension to the Lease on May 12,2015 with an expiration date ofnovember 30, 2015; and WHEREAS, the Parties desire enter into this First Amendment under the following terms and conditions, 1. Term. 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 ofthree Thousand Six Hundred Thirty Dollars ($3,630) payable on the 1 51 of each month effective December 1st, 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. Adjustment 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 ofthree 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 terms of this agreement upon providing 30 days written notice. 6. Removal of Equipment/Penalty 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 I 405 Oak Avenue I Carlsbad, CA I t

7 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 LESSOR BY BY:~~----~~~------~----- Prin ed Name: Mer\-\~t."-' t:>. s~""\ Title: D;c~cto..- af: ~c.\ G5t~~L. EXECUTIVE DIRECTOR Crown Castle GT Company LLC CA-RLSBAD MUNICIPAL WATER DISTRICT DATE: Oc.+«>bc.r 2] 1. 0 \ 5 Note: Signature of Lessee must be Notarized DATE: TO FORM

8 ACKNOWLEDGEMENT State/Commonwealth of County of M. "-v- c crp"' Ar: Z.o~o... On this, the?_ 7 day of Dc..tt>b tj, 20 I.e), 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. OFFICIAL SEAL DANIEL L BRANCH NOTARY PUBLIC-ARIZONA MARICOPA COUNTY commission Expires Sept. 25, 2016 ~~ Notary Public

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