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HomeMy WebLinkAboutCC AG PKT 2009-01-26 #HAGENDA STAFF REPORT DATE: January 26, 2009 T0: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Jill R. Ingram, Assistant to the City Manager SUBJECT: REQUEST BY TIME WARNER CABLE TO SUBLEASE CELL TOWER SPACE SUMMARY OF REQUEST: That the City Council receive and file the attached request from Time Warner Cable for consent to sublease tower space. BACKGROUND: The City Council approved a Communication Site Lease Agreement between the City of Seal Beach and Comcast Cablevision (now Time Warner Cable) on September 1, 1998, for the operation of communication facilities located west of the Seal Beach Police Department parking lot area. Section 10 of the Communication Site Lease Agreement requires the cable television operator to obtain the City's written consent prior to subleasing equipment space on the cell tower, and per terms of the agreement, the City cannot unreasonably withhold consent. The City Attorney has reviewed the attached request from Time Warner to sublease tower space, and has approved the consent as to form, as per Section 10 of the Communication Site Lease Agreement. FINANCIAL IMPACT: There is no financial impact. RECOMMENDATION: That the Ciry Council receive and file the attached request from Time Warner Cable for consent to sublease tower space. SUBMITTED BY: NOTED AND APPROVED: 7iLYY1 4~°~ . Ingram, David Carmany, City Manager Assistant to the City Manager Attachments: A. Copy of Request for Consent to Sublease B. Copy of Communication Site Lease Agreement (dated September 1, 1998) Agenda Item ~"~ 330 h Com:n<oul Bhd. ~a 230 Fl SqunOo CA 902A3 td ll0bflJ000 Fi\ SIOS+1-i]b6 Business Services ~~T(ME WARNER CABLE September 26, 2003 City of Seal Beach 211 8th Street Seal Beach, CA 90740 Attn: City Manager RE: Consent to Sublease Communication Site Lease Agreement dated September 1, 1998 beM•een City of Seal Beach and Time Warner Cable, as successor in interest to Comcast Cablevision of Seal Beach, lnc. Dear City Manager Per Section 10 of the above-referenced lease, Time Wamer Cable is requesting your consent to sublease tower space to Voicestream Wireless Corporation. The site is located at 1778 Adolfo Lopez Drive, Seal Beach, CA. Time Warner Cable and Voicestream have reached terms that are acceptable to both parties relating to this sublease. Please provide the City's consent by signing below on both copies. Please mail one back to us in the envelope provided and retain one for your records. If neither consent nor objection is received by October 29, 2008, Time Warner Cable will consider consent given. If you have any questions, please contact Paul Robinson at 310-563-5811. Thank you for your prompt attention to this matter. Sincer , Paul Robin osF~n %~~ Vice President Sales, Business Services CONSENT: City of Seal Beach Name Z~aUtd N• Carmun~l ~ dll'1QD121 Title: 3925012_I.DOC C~p~ COMMUNICATION SITE LEASE AGREEMENT This Communication Site Lease Agreement (this "Lease") is entered into a°fective as of this first day of September, 1998 (the "Effective Date") by and between the City of Seal Beach, public body corporate and politic (the "Landlord") and Comcast Cablevision of Sea7• Beach, Inc., a Delaware corporation (the "Tenant"). RECITALS A. Landlord is the owner of that certain property located in the City of Seal Beach, County of Orange, State of California described on Exhibit "A" attached hereto and incorporated herein by this reference (the "Premises"). B. Tenant is in the communications business and desires to lease the Premises from the Landlord on the terms and conditicrs set forth herein. Operative Provisions In consideration of the mutual covenants contained in this Lease, and of the recitals which are incorporated herein by this reference, the parties hereto agree as follows: 1. Leased Premises. The Landlord leases to the Tenant and the Tenant leases from the Landlord the Premises. This Lease shall commence on September 1, 1998, (the "Commencement Date") and shall end on the date which is one (1) year from the Commencement Date (the "Initial Term"). Upon the expiration of the Initial Term and upon each anniversary thereafter, this Lease shall be automatically extended for successive terms of one (1) year each (the "Successive Term(s)"), unless not less than 12o days prior to the expiration of the Initial Term or any Successive Term, the Tenant delivers to the Landlord writ[en notice of the Tenant's election not to renew this Lease for a Successive Term. 2. Rental. Tenant shall pay Landlord as rent for the Premises each year during the term of this Lease the sum of Fifteen Thousand Dollars (the "Base Rent"). Tenant shall pay the Base Rent annually, in advance, on the Commencement Date and on each anniversary of the Commencement Date. The Base Rent shall be increased each year as described below. Tenant's obligation to pay the Base Rent shall be a separate and independent covenant and shall not be reduced by counterclaim or offset. The Base Rent shall be increased annually effective as of each anniversary of the Commencement Date by an amount equal to the percentage increase in the CPI for the month twelve months prior to the adjustment date. "CPI" means the Consumer Price Index for All Urban Consumers for the Lcs Angeles area, issued by 980317 57296-00003 hjw 399093fi.5 0 the Bureau of Labor Statistics for the United States Department of Labor (1997 equal 100). 3. Use of Premises. The Tenant shall use the Premises for the operation of communication facilities in connection with Tenant's cable television business and for no other purpose. The Tenant shall not construct any improvements on the Premises without the Landlord's written consent, which consent shall not be unreasonably withheld. 4. Access to Property. r^or the Term of this Lease, Tenant shall have 24 hour access to the Premises. 5. Dompliance With Laws. The Tenant shall, at the Tenant's expense, comply with all present and future federal, state, local, and city laws, ordinances, rules, regulations, and policies in connection with the use, operation, maintenance and construction of the Tenant's facilities on the Premises. 6. Maintenance. Tenant shall maintain the Premises and all improvements, equipment, structures and other property on the Premises in good workinc order and condition. Tenant shall keep the Premises free and clear of all trash, debris and graffiti. Indemnification. Insurance and Exculpation. a. Indemnification of the Landlcrd. The Tenant shall indemnify, defend and hold the Landlord and any successor to the Premises, their respective present, future and former council members, officers, employees, attorneys and agents and their respective predecessors, successors, assigns, heirs, executors, and administrators of each of the foregoing from and against any and all losses, claims, demands, costs, expenses, liens, fines, penalties, liabilities, judgments and damages resulting directly or indirectly from or related to the use of the Premises. b. Exculpation of the Landlord. The Landlord shall not be liable to the Tenant for any damage to the Tenant or the Tenant's, customers, employees, invitees, patrons, and successors in interest, except to the extent caused by the negligence of the Landlord. The Tenant on behalf of the Tenant and the Tenant's successors in interest, hereby waives all claims against the Landlord for personal injury and property damages, except to the extent caused by the negligence of the Landlord. 8. Insurance. The Tenant shall obtain and maintain a broad form commercial general liability insurance policy providing coverage for at least Five Million Dollars ($5,000,000) as the combined single limit for each occurrence of bodily injury, personal injury and property 3amage. The policy shall provide blanket contractual liability insurance for all written contracts, and shall include coverage for operations liability, 38031] S]296-00001 h7r 199093fi.5 0 - 2 independent contractors liability, property damage from explosion., collapse or damage to underground utilities. In addition to the foregoing, the Tenant shall also maintain Workers' Comaensation Insurance at statutory liability limits. All policies, with exception of the workers' compensation policy, shall name the Landlord as an additional insured on a certificate of insurance in a form approved by the Landlord which approval shall not be unreasonably withheld, and shall require at least thirty (30) days prior written notice of any intention not to renew the policy or to cancel, replace or reduce the coverage of such policy. 9. Condition of Premises. The Tenant hereby accepts the Premises in an "as is" condition with all faults and without any representation or warranty by the Landlord as to the condition of the Premises. 10. Assignment gad Subletting. The Tenant shall not assign this Lease in whole or in part without the Landlord's prior written consent, which consent shall not be unreasonably withheld. 11. EstoApel Certificate. The Tenant hereby agrees to provide, within ten days of a written request by the• Landlord, a statement in writing certifying that the Lease is unmodified and in full force and effect (or setting forth the terms of such modification) and if no default has occurred under the Lease, that the Landlord is not in default under the terms of the Lease, and any other matters reasonably requested by the Landlord. 12. Hazardous Substance Indemnification. The Tenant hereby represents and warrants that the Tenant will not generate or store any "hazardous substance" on the Premises. For purposes hereunder the term "hazardous substance" as used herein, means any substance, material or other thing regulated by or pursuant to any federal, state or local statute or ordinance by reason of its potential for harm to human health or the environment because of its flammability, toxicity, reactivity or corrosiveness. The Tenant agrees to indemnify, defend and hold the Landlord harmless against any release of such hazardous substance and any claim, damage, loss or liability resulting therefrom including all reasonable attorneys fees, costs and fines incurred as a result thereof. 13. Mechanic's Liens. Tenant shall keep the Premises free from any liens arising out of any work performed, material furnished or obligation incurred by or for Tenant or for any person or entity claiming through or under Tenant. In the event that Tenant shall not, within ten (10) days following the imposition of any such lien, cause the same to be released of record by payment or posting of a property bond, Landlord shall have, in addition to any other remedies provided herein and at law or equity, the right, but not the obligation, to cause such 98031] 5]296-00001 h]v 1990936.5 0 - 3 - lien to be released by such means as Landlord deems proper, including payment of the claim giving rise to such lien. All such sums paid and all expenses incurred by Landlord in connection therewith shall be due an3 payable to Landlord by Tenant on demand. 14. Events of Default. Tenant's performance of each of Tenan*_'s obligations under this Lease is a condition as well as a covenant. Tenant's right to continue in possession of the Premises is conditioned upon such performance. Tenant shall be in material default under this Lease: (a) If Tenant abandons the Premises; (b) If Tenant fails to pay rent or any other charge when due; (c) If Tenant fai material non-monetary obligations of thirty (30) days after written provided that if more than thirty complete such performance, Tenant Tenant commences such performance thereafter diligently pursues its Ls to perform any of Tenant's under this Lease for a period notice from the Landlord; (30) days are required to shall not be in default if within the thirty (30) days and completion. (d) If the Tenant makes a general assignment for the benefit of creditors, files a petition for adjudication of bankruptcy or for reorganization, or if a trustee or receiver is appointed to take possession of substantially all of the Tenant's assets. 15. Landlord Rights and Remedies. In addition to any other rights and remedies available to Landlord in law or equity, Landlord shall have the following rights and remedies in the event of a default by Tenant that is not cured by Tenant within the applicable grace period described herein: a. The rights and remedies provided by California Civil Code Section 1951.2 to recover from Tenant upon termination of the Lease: (1) the worth at the time of award of the unpaid rent which had been earned at the time of termination; (2) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; (3) subject to Subdivision (c) of California Civil Code Section 1951.2, the worth at the time of award of the amount by which the unpaid rent for the balance of the Term after 9B0317 67796-00001 h]v 1490936.5 0 4 - the time of award exceeds the amount of rental loss that Tenant proves could be reasonably avoided; and (4) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in the ordinary course of things would likely result therefrom, including, but not limited to, any attorneys' fees, broker's fees commissions or finder's fees, any costs for repairs, clean-up, refurbishing, removal (including the repair of any damage caused by such removal) and storage (or disposal) of Tenant's personal property, equipment, fixtures, and anything else that Tenant is required to remove but does not remove, and any cost for alterations, additions, renovations (and any other costs and expenses) incurred by Landlord in regaining possession of and reletting (or attempting to relet) the Premises. The "worth at the time of award" of the amounts referred to herein shall be computed by allowing interest at the prime rate. b. The rights and remedies provided by California Civil Code Section 1951.4, which allows Landlord to continue this Lease, including the right to recover rent and any other additional monetary charges as they become due, for as long as Landlord elects to exercise its remedies described in this subsection "b" and Landlord does not terminate this Lease or a sublease of the Premises at such time as Tenant is in default, Landlord shall not unreasonably withhold its consent to such assignment or sublease. Acts of maintenance or preservation, efforts to relet the Premises or the appointment of a receiver upon Landlord's initiative to protect its interest under this Lease shall not constitute a termination of Tenant's right to possession. 16. Voluntary Termination. This Lease may be voluntarily terminated (i) by the Tenant if the Tenant is unable, following the exercise of the Tenant's best efforts, to obtain or maintain any license, permit, or other governmental approval necessary for the operation of the Tenant's business, (ii) by the Tenant upon written notice to the Landlord in the event of a material default of the Landlord which remains uncured for thirty (30) days following the Landlord's receipt of such written notice, or (iii) by the Landlord if the Landlord determines in the Landlord's reasonable discretion that the Tenant's facilities are being operated in a manner threatening to the health, safety, or general welfare of the residents of the City of Seal Seach. Upon termination of this Lease, the Tenant shall, within thirty (30) days of the date of termination, repair any damage to the Premises and shall restore the Premises to the condition of the Premises prior to the Commencement Date. Any improvements remaining on the Premises at end of such thirty (30) day period shall, at the election of the Landlord (i) become the 980]17 57396-00003 O7w 139093fi.5 0 ~ 5 - property of the Landlord, or (ii) be removed by the Landlord at the Tenant's cost and expense. 17. Condemnation. Zn the event the Premises is condemned by eminent domain, this Lease shall automatically terminate as of the date the Premises is condemned. In the event of a taking under the power of condemnation, the Landlord shall receive the full amount of any condemnation award and the Tenant shall not be entitled to any award. The Tenant hereby expressly waives any right to claim any damages for condemnation, from the Landlord provided, however, the Tenant shall be entitled to recover from any condemning authority other than the Landlord such condemnation damages as may be separately recoverable by the Tenant. 18. First Refusal. Zn the event that the Landlord at any time during the term of this Lease determines to sell the Premises, or any larger parcel of property in which the Premises is an undivided part, the Landlord shall endeavor to give notice thereof to the Tenant and shall endeavor to give the Tenant the right and opportunity to purchase the property underlying the Premises or such larger parcel, on terms substantially the same as the Landlord intends to offer the property, or such other parcel, which term shall be specified in the notice, to any other person, provided, however, if the Tenant has not agreed to purchase the property or such parcel on those terms within thirty (30) days of receipt of such notice, or has failed to respond to the Landlord within such period, then the Landlord shall be free to sell the property or such other parcel on the terms specified in the notice to any other person. Notwithstanding the foregoing, in the event the Landlord fails to provide the Tenant with notice of a right and opportunity to purchase the property, or such larger parcel, such failure shall not be actionable or result in any damages to the Landlord. 19. Other Communication Facilities. Notwithstanding any other provision in this Lease, the Landlord shall be able to lease the Premises to any other communications company provided such complementary leases do rot unreasonably interfere with Tenant's use of the Premises. 20. Taxes. Tenant shall be responsible for the payment of any and all taxes, including without limitation, real property, franchise, utility and possessory interest taxes assessed against the Premises, Tenant or Landlord pursuant to this Lease. Tenant hereby acknowledges receipt of notice of the potential levy of possessory interest taxes pursuant to Section 107.6 of the California Revenue and Taxation Code which requires that municipalities must disclose to parties with which such municipalities contract, the possibility of an assessment of a possessory interest tax with respect to such contract. 21. Attorne s' Fe s and Costs. In the event any party is required to bring suit or other legal proceeding to enforce or 98031] 5]a 96-00001 5]v 1990936.9 ] _ 6 - interpret the terms and scope of this Lease, it is agreed that the prevailing party shall be entitled to recover from the non- prevailing party reasonable attorneys' fees, expenses, expert fees, and costa of suit incurred therein. 22. Binding Nature. This Lease, and all of the terms and provisions hereof, shall be binding upon and inure to the benefit of the parties and their respective partners, directors, officers, employees, agents, affiliates, successors and assigns. 23. Construction. The language in all parts of this Lease shall be in all cases construed simply according to its fair meaning, as though all parties have had equal input in the drafting of the same, and not strictly for or against any party. Whenever the context requires, all words used in the singular will be construed to have been used in the plural, and vis-a- versa. The captions of the sections of this Lease are for convenience only and shall not affect the construction or interpretation of any of the provisions hereof. 24. Partial Invalidity. Should any portion, word, clause, phrase, sentence, section or paragraph of this Lease be declared void or unenforceable, such portion shall be considered independent and severable from the remainder, the validity of which shall remain unaffected. 25. Integration/Amendment. This Lease embodies the entire agreement of the parties hereto who have executed it and supersedes any and all other agreements, understandings, negotiations, or discussions, either oral or in writing, expressed or implied, between the parties to this Lease with respect to the contents hereof. The parties to this Lease each acknowledge that no representations, inducements, promises, agreements, warranties, oral or otherwise have been made to them, or anyone acting on their behalf, which are not embodied in this Lease; that they have not executed this Lease in reliance of any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Lease; and no representation, inducement, promise, agreement or warranty not contained in this Agreement, including, but not limited to, any purported supplements, modifications, waivers or termination of this Lease, shall be valid or binding, unless executed in writing by the parties to this Lease. This Lease may be amended, and any provisions hereof waived, but only in writing signed by the party against whom such amendment or waiver is sought to be enforced. 26. Compliance With Terms. Failure to insist upon compliance with any term, covenant or condition contained in this Lease shall not be deemed a waiver of that term, covenant or condition, nor shall any waiver or relinquishment of any right or power contained in this Lease at any one time or more times be deemed a waiver or relinquishment of any right or power at any time or other time or times. Execution in counterpart of this Lease may be executed in a number of counterparts each of which 960317 67396-00071 hiv 1990936.5 0 7 - shall be deemed an original, but all of which shall constitute one ar_d the same instrument. This Lease shall not become effective unless and until it is fully executed. 27. Governing Law and Jurisdic ion. This Lease shall be interpreted under the laws of the State of California, both as to interpretation and performance. This Lease is being entered into in the City of Seal Beach, California and the Superior Court for the State of California, County of Orange, shall have exclusive jurisdiction in any action, suit, arbitration or other proceeding arising out of or with respect to the subject matter of this Lease, and any cause of action arising out of this Lease shall be deemed to have arisen from a transaction in the City of Seal Beach, California. 28. Notices. Any notice or other communication given hereunder ('Notice") shall be in writing and personally delivered or sent by United States Registered or Certified Mail or sent by a nationally recognized courier service such as Federal Express, addressed to the applicable party at the addresses set forth below. Delivery of any Notice shall be deemed made on the date of its actual delivery, or the date indicated in the return receipt or courier's records as of the date of its delivery or first attempted delivery if sent by mail or courier. Any party may change its address for notice purposes by giving notice to the other parties. Landlord: The City of Seal Beach 211 8th Street Seal Beach, California 90740 Attention: City Manager Tenant: Comcast Cablevision of Seal Beach, Inc. 1830 E. Warner Avenue Santa Ana, California 92705 with a copy to: Comcast Corporation 1500 Market Street, East Tower Philadelphia, Pennsylvania 19102 Attention: General Counsel In witness whereof, the parties hereto have executed this Lease as of the date first referenced above. (Signatures Follow) 980337 57296-00001 h]v 1990936 5 0 ~ 8 - LANDLORD: CITY OF SEAL BEACH, public body corporate and politic TENANT: 99031] 5]296-00001 h7v 1490936 5 0 - 9 COMCAST CABLEVISION OF SEAL BEACH, INC., a Delaware t. s a~ o~ A•I~TACHMEN"C "A" I i