HomeMy WebLinkAboutRESOLUTIONS-2009-089-R-09•
10/13/09
A RESOLUTION
} Authorizing the City Manager to Execute an
Amendment to the Lease Agreement
Between the City and Chicago SMSA Limited Partnership d/b/a
Verizon Wireless.
WHEREAS, on March 27, 1987, the City entered into an lease agreement
with Verizon Wireless for space located at 2100 Ridge Ave, Evanston, Cook County
Illinois for the purpose of installation and operation of equipment used in connection
with the provision of mobile communications services; and
2012.
WHEREAS, the term of the existing agreement expires on February 29,
• WHEREAS, Verizon Wireless desires to execute an Amendment to the
lease agreement ("Amendment") to include the addition of two (2) five (5) year renewal
terms upon the expiration of the current term as well as to permit the use of additional
space for the purpose of adding new lines and modifying the existing antenna as
described and depicted in Exhibit A attached hereto and incorporated herein; and
WHEREAS, the Amendment increases the rent paid to the City by Verizon
Wireless by twelve thousand dollars ($12,000.00) annually through the lease period
ending in 2012 and allows for a five percent (5%) increase in the base rent level per
year thereafter; and
WHEREAS, the term of the Amendment expires on February 28, 2022.
• NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: That, contingent upon Verizon Wireless obtaining a valid
City building permit, the City Manager is hereby authorized to sign, and the City Clerk
hereby authorized to attest to, the amended lease agreement marked as Exhibit A and
attached hereto and incorporated herein.
SECTION 2: That the City Manager is hereby authorized and directed to
negotiate any additional conditions of the Agreement as may be determined to be in the
best interests of the City.
SECTION 3: That this Resolution 89-R-09 shall be in full force and effect
from and after its passage and approval in the manner provided by law.
money Gre,,Ane; City Clerk
Adopted: 1eA1t hv'-' 4 , 2009
Eliz eth B. Tisdahl, Mayor
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• EXHIBIT A
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.7
Amendment to the Lease Agreement
Between the City and Verizon Wireless
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AMENDMENT TO LEASE AGREEMENT
S AMENDMENT TO THE LEASE AGREEMENT ("Amendment") is made this,,?d day
of , ' 2009, between the City of Evanston, a municipal corporation ('Landlord") and
Chicago SMSA Limited Partnership d/b/a Verizon Wireless, with its principal offices located at One
Verizon Way, Mailstop 4AW 100, Basking Ridge, New Jersey 07920 ("Tenant").
Whereas, there is now in full force and effect between the parties a Lease Agreement that is
dated March 27, 1987 ("Lease") that provides for the operation of Tenant's communications equipment
and improvements within and upon a building (`Building") and observatory tower ("Tower") located at a
common address of 2100 Ridge Avenue, Evanston, IL ("Property'); and
Whereas, pursuant to the Lease, Tenant has leased a portion of the Building to house and operate
telecommunications equipment ("Building Space") and space in the Tower to mount and operate up to six
(6) antennas (the "lower Space") as well as other space such as transmission line space and utility
connections as depicted_on Exhibit B to the Lease and known collectively as "Premises"; and
Whereas, the parties agree that Tenant shall be permitted to use an additional area of Landlord's
Property for the purpose of adding utility lines as depicted in Exhibit A-1 and modify Tenant's antenna
installation, including the addition and modification of antennas as described and depicted in Exhibit A-1
attached hereto ("Antenna Modification"); and
Whereas, Landlord.has agreed to the location of the aforementioned additional utility lines , the
installation of the utility lines, the Antenna Modification and ancillary improvements provided that
Tenant makes the installation in accordance with Exhibit A-1 and this Amendment; and
Whereas, it is now the intention of Landlord and Tenant to enter into an agreement amending the
Lease on the terms and conditions discussed below, including extending the term of the Lease.
NOW THEREFORE, for good and valuable consideration including the mutual covenants and
agreements hereinafter set forth, Landlord and Tenant agree as follows:
1. Recitals. The recitals set forth above are incorporated herein as set forth in their entirety.
2. Utility Line Space.
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a. Landlord agrees to allow Tenant to install and maintain utility lines, conduit, and
necessary ancillary equipment below the surface of the Land and in the foundation of the Building as
depicted in Exhibit A-1 to this Amendment. The aforementioned space is called the "Utility Line Space."
The Parties agree that, upon execution of this Amendment, the Utility Line Space shall be considered a
part of the Premises.
b. Landlord shall, at all times, be the sole and exclusive owner of the Utility Line Space.
Tenant shall at all times be the sole and exclusive owner of the utility lines, conduit, and necessary
ancillary equipment installed by Tenant in the Utility Line Space.
c. Prior to the commencement of any work pursuant to Paragraph 2a of this Amendment,
Tenant shall coordinate a pre -installation conference at the Building with Landlord, Tenant, and Tenant's
contractor(s) to review the location of any and all buried utilities, all installation details, and Tenant's
proposed method of procedure. Prior to commencing installation, Tenant shall contact JULIE (Joint
Utility Locating Information for Excavators), Inc. to locate any and all buried utilities. Tenant shall •
restore all existing grades, utilities, and foundational walls affected by Tenant's work in the Utility Line
Space. Tenant shall replace all plantings affected by the work in the Utility Line Space with plantings of
•
the same size and species as existed prior to the beginning of said work. Tenant agrees to provide a one-
year warranty on all plantings.
3. Modification of Tenant's Antenna Installation. Landlord agrees that Tenant may
make modifications to Tenant's antenna installation currently located on the Building provided that said
modification is in accordance with applicable law. Tenant agrees to perform a structural analysis to
demonstrate to Landlord that the Antenna Modification will be in accordance with all structural standards
set forth by authorized state and federal governmental authorities. Landlord and Tenant agree that
Tenant shall install the antennas and ancillary equipment in the location and manner depicted in Exhibit
A-1. Tenant may operate said antennas and associated equipment in the areas depicted on Exhibit A-1
attached hereto, which shall be included as a part of Tenant's Premises. The aggregate antenna
installation is described on Exhibit A-1, attached hereto and incorporated herein. Prior to the
commencement of any work pursuant to Paragraph 3 of this Amendment, Tenant agrees to perform a
structural analysis to demonstrate to Landlord that said work will be in accordance with all structural
standards set forth by authorized state and federal governmental authorities.
4. Insurance. Prior to the commencement of any work pursuant to Paragraph 2 or
Paragraph 3 of this Amendment, Tenant shall provide evidence of insurance coverage as set forth in
Paragraphs 5a, 5b, 5c, and 5d of the Lease. Landlord is to be named as an additional insured on the face
of the certificate with an insurance company of an A -minus rating or better. The policies of insurance
coverage as set forth shall not be cancelled or permitted to lapse as long as any utility lines, conduit, or
any other equipment installed by or belonging to Tenant remains on the Premises. These requirements
are in addition to and in no way relieve Tenant from any other obligations related to insurance or
otherwise contained in the Lease.
6 Paragraph 5 shall be amended to include the following term:
The Parties hereby waive and release any and all rights of action for negligence against the other
which may hereafter arise on account of damage to the Premises or to the Property, resulting from any
fire, or other casualty of the kind covered by standard fire insurance policies with extended coverage,
regardless of whether or not, or in what amounts, such insurance is now or hereafter carried by the
Parties, or either of them. These waivers and releases shall apply between the Parties and they shall also
apply to any claims under or through either Party as a result of any asserted right of subrogation. All such
policies of insurance obtained by either Party concerning the Premises or the Property shall waive the
insurer's right of subrogation against the other Party.
Paragraph 5(a) shall be amended to include the following term:
or $2,000,000.00 combined single In ut coverage for bodily injury and property damage.
Paragraph 5(d) shall be amended to include the following term:
or $2,000,000.00 combined single limit coverage / $2,000,000.00 in the aggregate
covering bodily injury and property damage.
• Paragraph 5(d) shall be amended as follows:
The policies as set forth shall not be cancelled or permitted to lapse as long as the Tenant's
equipment remains in the Building. All policies shall contain a provision that the policy will not be
•
cancelled until at least ten (10) days after the Landlord has received written notice by mail that
cancellation of such policy is contemplated.
A Certificate of Insurance will be supplied to the Landlord showing all coverage details and
confirming the "City of Evanston" as an additional insured on the general and automobile liability
insurance coverage ten (10) days before the date of installation.
5. Indemnity. Paragraph 6 of the Lease is hereby deleted in its entirety and the following is
hereby substituted therefor:
Except to the extent caused by the negligence or willful misconduct of Landlord, Tenant hereby
agrees to inderrmify, defend, and hold harmless the Landlord, its agents and employees from any and all
liabilities, claims, costs, damages, expenses, losses and attorney's fees resulting from, or attributable to,
any act or omission (constituting negligence or greater culpability) of the Tenant occurring in connection
with or arising out of the existence of this Lease. Tenant shall be responsible for any and all injury due to
damage to any person and/or property including loss of human life arising directly or indirectly from or in
connection with the installation, maintenance, or use of equipment in or on the Building or the Land in a
negligent or more culpable manner.
6. Term Extension. Paragraph 2 of the Lease shall be modified to include the addition of
two (2) five (5) year renewal terms upon the expiration of the current term:
Upon the expiration of the existing term, this Lease shall be automatically extended for two (2) additional
terms of five (5) years each at the annual rental listed in Exhibit F. If either party desires to not extend
any term of this Lease it shall give the other party written notice of its intention to not extend the term at
least one (1) year prior to the expiration of the then -current term whereupon the Lease shall be deemed
cancelled upon the expiration of the then -current term. The right to not renew would be effective only for
the subsequent extension term beginning in 2017. Landlord agrees that it may only exercise Landlord's
right not to extend the Lease for the subsequent extension term if Landlord no longer owns and controls
the Building as of the date one year prior to the termination date of the first extension term.
7. Rent Pavmeut for Remainder of Current Term. Beginning on December 1, 2009 and
continuing for each successive month of the current term of the Lease, Tenant agrees to pay Landlord
monthly rent in the amount of One Thousand Dollars ($1,000.00) to be paid on the first day of the month
("Current Term Rent"), in advance, to Landlord or to such other person, firm or place as Landlord may,
from time to time, designate in writing at least thirty (30) days in advance of any rental payment date by
notice given in accordance with Paragraph 9 below. Landlord and Tenant acknowledge and agree that
initial rental payment(s) shall not actually be sent by Tenant until thirty (30) days after full execution of
this Amendment. The parties acknowledge that the current term of the Lease shall expire on February
28, 2012. The parties agree that the final payment of Current Term Rent shall be for February 2012.
8. Extension Term Rent. Beginning on March 1, 2012, the total annual rent shall be
increased to ThirtyEight Thousand Eighty -Two Dollars ($38,082.00) to be paid in equal monthly
installments on the first day of the month, in advance, to Landlord or to such other person, firm or place
as Landlord may, from time to time, designate in writing at least thirty (30) days in advance of any rental
payment date by notice given in accordance with Paragraph 9 below. Rent shall be paid for each
subsequent year in the amount and schedule as listed in Exhibit F attached hereto. •
9. Notice. All notices hereunder must be in writing and shall be deemed validly given if
sent by certified mail, return receipt requested or by commercial courier, provided the courier's regular
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business is delivery service and provided further that it guarantees delivery to the addressee by the end of
the next business day following the courier's receipt from the sender, addressed as follows (or any other
address that the Party to be notified may have designated to the sender by like notice):
Landlord: City of Evanston
2100 Ridge Avenue
Evanston, Illinois 60204
Attn: City Manager
Tenant: Chicago SMSA Limited Partnership, d/b/a Verizon Wireless
180 Washington Valley Road
Bedminster, New Jersey 07921
Attention: Network Real Estate
Notice shall be effective upon actual receipt or refusal as shown on the receipt obtained pursuant
to the foregoing.
10. Tenant shall be permitted to record a Memorandum of the Amendment to the Lease
Agreement in the form set forth in Exhibit C-1.
11. Capitalized terms in this Amendment shall have the same meaning ascribed to them in
the Lease, unless otherwise noted in this Amendment.
12. Other than as specifically amended herein, all other terms and conditions of the Lease
shall remain in full force and effect. Where there is conflict between the terms of the Lease and this
Amendment, the terms of this Amendment shall control.
(Signatures on next page)
4
IN WITNESS WHEREOF, the parties hereto have executed this lease Amendment on the day
and year first above written.
LANDLORD:
City of Evanston, a municipal corporation
BY:w'
NAME: WA L 1)3 ki, s d
ITS: /'',/ 7-/
DATE: J��f
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TENANT:
Chicago SIYMSA Limited Partnership,
d/b/a Veriaon Wireless
By: Cellco Partnership, its general partner
A 1 0
BY: —:6A A
NAME: Bet
TITLE Area
DATE:
0
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ANTENNA LINE / PLATFORM SCHEMATIC ANT -'I
SCALE: N.T.G.
March 1, 2012 to February 28, 2013
March 1, 2013 to February 28, 2014
March 1, 2014 to February 28, 2015
March 1, 2015 to February 29, 2016
March 1, 2016 to February 28, 2017
March 1, 2017 to February 28, 2018
March 1, 2018 to February 28, 2019
March 1, 2019 to February 29, 2020
March 1, 2020 to February 28, 2021
March 1, 2021 to February 28, 2022
Rent for Extension Terms
$38,082.00
$39,986.10
$41,985 40
$44,084.67
$46,288.90
$48,603.34
$51,033.50
$53,585.18
$56,264.44
$59,077.66
0
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7
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Memorandum of Amendment to Lease Agreement
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n
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Interdepartmental !
city or
Memorandum
Evanston"
To: Honorable Mayor and Members of the City Council
Administration and Public Works Committee
From: Douglas J. Gaynor Director Parks, Forestry, Recreation and Facilities
Management
David Cook Superintendent Facilities Management Division
Subject: Cell Tower Community Survey Results for Cell Tower Lease Terms
Date: December 4, 2009
On Monday November 30, 2009 staff sent the following request for information to
41 local communities via .e-mail:
The City of Evanston is currently negotiating a cell tower lease.
We are looking to be competitive with nearby communities.
Please let me -know the following:
Does your community lease space on any of your buildings to Cell phone
providers?
If so, what is the annual rent?
How long is the lease for? •
What year was it initiated?
Is there any annual increase built in to the lease rate?
Of the 41 communities that were contacted, ten responded with the following
information.
:Cell T' � e : `, `; 2009
;2012
..
Start
Gommunrty::
Lease:
°'; . ,. Rent= "
:Rent`
Multiplier.
Duration
Date
Evanston Civ. Ctr.
1
$2,000
$38,082
5%
2X5 yrs
2012
Gurnee
12
$22,000
$23,795
3% to 4%
30
1997
Highland Park
1
$20,000
$20,604
1 %-2%
1989
Kenilworth
3
$2,839
$3,070
4%
15
1999
Lincolnwood
2
$24,223
$25,449
2.50%
35 yrs
Lincolnshire
None
Mundelein
1
$37,056
$40,080
4%
10 + 3X5
2009
Niles
6
$26,235
$28,104
3-4%%
5x5yr
varies
Northbrook
4
$37,601
$40,669
4%
5
1998
Rolling Meadows
5
$22,840
$25,722
4
3X5
2008
St Charles
2
$28,400
$30,130
3%
5
2003
While each cell site has different value to different vendors due to the
demographics and geographical distribution of the nearby population, the •
proposed terms in the amended lease agreement with Verizon for the Civic
Center Observatory Tower are well within the industry standard for this area.
For the City Council Meeting of December 14, 2009
Item #
•
L---]
J.
im
City of
Memorandum
Evanston"
To: Honorable Mayor and Members of the City Council
Administration and Public Works Committee
From: Douglas J. Gaynor Director Parks, Forestry, Recreation and Facilities
Management
David Cook Superintendent Facilities Management Division
Subject: Resolution 89-R-09 authorizing the City Manager to enter into an
amended Lease Agreement with SMBC for the Observation Tower Cell
Site in the Lorraine H. Morton Civic Center.
Date: December 4, 2009
Recommended Action: Staff recommends approval of Resolution #89-R-09 to amend
and extend the existing lease between Verizon Wireless and the City of Evanston for
the observatory space in the Lorraine H. Morton Civic Center for continued use as a cell
tower.
Fundinq Source: N/A
Summarv:
This Item was held in committee at the November 23 Administration and Public Works
(A&PW) Committee meeting to allow staff time to provide the committee with more
information indicating that the negotiated lease was consistent with local industry
standard. In an effort to provide the requested information, staff contacted 41 nearby
communities including the Northwest Municipal Conference. By December 4, staff had
received input from nine nearby communities. A copy of the survey results is attached to
this memo. These results indicate that the proposed lease agreement is well within the
industry standard for lease rates in this area. In addition to this survey, staff contacted
Ken Schmidt of Steel in the Air a consulting firm specializing in lease negotiations for
cell tower property (Resume attached)
Mr. Schmidt reviewed this proposed lease as well as each of the other current and
proposed leases for Cellular sites that the City of Evanston currently. Mr. Schm�dt's
report is attached. While each site provides different value to different cellular providers,
Mr. Schmidt believes that the proposed lease ammendment and extension is within or is
near the top of industry standards for this area.
In March of 1987 the City of Evanston entered into a 25 year lease agreement with
Chicago SMSA Limited Partnership with its general partner Ameritech Mobile Phone
For the City Council Meeting of December 14, 2009 Item #
Service of Chicago, Inc. In 2000 Ameritech, GTE, Bell Atlantic Mobile All Tell and
Primco formed Verizon Wireless and SMSA began doing business as Verizon Wireless.
Verizon Wireless is currently interested in adding an underground untility line space to
the leased building space at the north end of the property to allow them to connect their
existing communications equipment to the new fiber optic cable that was installed by
AT&T throughout the city. In June 2009, Verizon initially indicated that other
municipalities were not charging for this addition to the rental space. Staff checked with
Wilmette regarding their policy for the lease agreement. They responded that they had
entered into negotiations with Verizon regarding a underground utility line space
addition to their lease agreement. They stated that Wilmette was not charging additional
rent for this space. Never the less, Evanston City staff insisted that the space was
increasing, and therefore the city should be compensated for allowing the tenant the
use of this increased space. An additional fee of $1,000/month was agreed upon. This
amount was found to be fair by the consultant Mr. Ken Schmidt.
While ammending the existing lease to account for the additional space, Verizon
requested to re -negotiate the existing lease since it will be ending in March 2012.To
maintain parity between our other cell tower tenants and the proposed lease extension
at the Civic Center, the existing cell tower leases at the water towers were consulted.
The current lease rate for each of these cell sites is $33,941 per year in 2009. This
amount was brought forward to 2012 to a rate of $38,082.00 for a starting lease rate for
the cell tower in the Civic Center with a comparable 5% increase per year.
The proposed ammended term will renew for two 5-year extensions according to the
current terms. If notification is provided 365 days prior to the end of the current term the
terms and conditions may be renegotiated or the lease may be terminated. This lease
was prepared and reviewed by the City of Evanston Law Dept. •
Staff Recommends approval of Resolution 89-R-09
Alternatives:
Attempt to negotiate more favorable terms as directed by the committee or City Council
Attempt to market the Observation Tower Cell Site to another Cellular vendor
Eliminate the Observation Tower all together
4
Attachments:
Resolution 89-R-09
Proposed Lease agreement with attachments
Community Survey results
Ken Schmidt resume
Report from Ken Schmidt of Steel in the Air 0