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4H- Modification to Verizon Wireless LeaseCITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Modification to Verizon Wireless Lease SUBMITTED BY: Donna Kaluzniak, Uti li ty Director DATE: March 14 , 20 14 STRATEGIC PLAN LINK: N/A AGENDA IT EM ff 4H APRIL 14,20 14 BACKGROUND: Verizon Wire less CUJTently has a lease with the City of Atl antic Beach to rent anten na space on and near our e leva ted water tank at Water Plant No. I (469 11 111 St.). Vetizon wou ld like to enlarge their emergency ge nerator, requiring a larger concrete pad and an additional l5 square fee t of area at the plant. Based on past practice per information fi·om other ut il ities , Veri zo n agreed to in crease t heir rent by $692.04/year. In addi tion , Verizon requested to extend their lease for three additional 5-yea r increments at the cuiTent rent rates. Staff advised Verizon that they wou ld not be in terested in extending the lease wi th out a cos t increase, and negotiated a $6,000/year increase in the amount of the re nt. Vcrizon ha s agreed to th e total rent increaseof$6,692.04 per year. Staff also had Verizon up grade their insurance to be consistent with current rcqu1rements, which they have done. BUDGET: Verizon's cunent rent is$ I 8,232.36 per year, with an ann ual increase of 4%. The addit iona l rent would in crea se their paymen t to $24,924.40 with an annua l increase of3%. Over the 21-year period of the lease, this wi ll mean increased revenues of $213,938. RECOMMENDATION: Approve the Amendment to the Veri zon Wireless Site Lease an d authorize th e City Manager to sign the lease documents. ATTACHMENTS: I . 2. 3. Third Amendment to PCS Site Lease Ame nded Short Form Lease In surance Certifi cate Lessee Site Name: Mayport Road Site ID: I 00402 Third Amendment to PCS Site Lease AGENDA ITEM# 4H APRIL 14,2014 This Third Amendment to PCS Site Lease (this "Third Amendment") is made this_ day of , 2014 (the "Effective Date"), between City of Atlantic Beach, ("Owner") and Verizon Wireless Personal Communications LP d/b/a Verizon Wireless, ("Lessee"). Owner and Lessee are at times collectively referred to hereinafter as the "Parties" or individually as the "Party''. WHEREAS, Owner and Lessee's predecessor in interest, PCS PrimeCo, LP, a Delaware limited partnership, entered into a PCS Site Lease dated November 9, 1995, as amended by that certain First Amendment to PCS Site Lease, dated February 24, 2011, as amended by that certain Second Amendment to PCS Site Lease, dated August 31, 2012, (collectively, the "Lease") for the lease of a portion of certain real property and a communications facility (the "Site"), located at 469 11th Street, Atlantic Beach, Duval County, Florida; WHEREAS, Owner and Lessee desire to modify the Lease as set forth below. NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree to be legally bound to this Third Amendment as follows: 1. All capitalized terms in this Third Amendment, not otherwise defined herein, shall have the meaning ascribed to them in the Lease. 2. Owner and Lessee agree and acknowledge that the Lease shall be amended and modified to reflect that Lessee's lease area of Real property shall be a total 21 0' sq ft. References in the Lease as to any other total square feet shall be henceforth deleted. Lessee's 210' sq. ft. lease area of Real property shall be comprised of the following, in addition to Lessee's access for ingress, egress, and utilities thereto: 16' 8" x 8' ( 13 3. 3 3 sq ft.) lease area for pad and cabinets, 3' x 3' (9 sq ft.) lease area for portion of generator on slab, 3' x 4' (12 sq ft.) lease area for portion of generator on slab, 3 '9" x 4' (15 sq ft.) lease area for portion of generator on slab, and 4' x 1 0' ( 40 sq ft.) lease area for LP tank on slab. 3. Exhibit A-1 to the Agreement is hereby amended and modified with Exhibit A-2 accordingly. In the event of any inconsistency or discrepancy between the Lease and Exhibit A-2 attached hereto, Exhibit A-2 attached hereto shall control. 4. Rent. In consideration of Owner's approval of Lessee's modifications to its equipment, the current annual rent shall be increased by $6,692.04, partial years to be prorated, which increase shall commence based upon the date Lessee commences construction on the Real property. In the event the date Lessee commences construction on the Real property falls between the 1st and 15th of the month, the rent increase shall commence on the 1st of that month and if the date construction commences falls between the 16th and 31st of the month, then the rent increase shall commence on the 1st day of the following Lessee Site Name: Mayport Road Site ID: 100402 AGENDA ITEM# 4H APRIL 14,2014 month (either, the "Commencement Date"). The parties agree to memorialize the Commencement Date in writing. Effective as of the date Lessee's next annual rent payment is due, the rent shall escalate at a rate of three percent (3%) per year, and shall continue to escalate at this same rate each year thereafter. Within 30 days after a written acknowledgement confirming the Commencement Date has been received by Lessee, Lessee will pay Owner the rent increase for the remainder of the current lease year. By way of illustration of the preceding sentence, if the Commencement Date is January 1 and the written acknowledgement confirming the Commencement Date is dated January 14, Lessee shall send to the Owner the rent increase payment by February 13. 5. Extension Periods. Section 4 of the Lease, titled Extension, is hereby amended and modified to reflect that there shall be three (3) additional Extensions Periods beyond that currently set forth in the Lease 6. All remaining provisions of the Agreement shall remain in full force and effect as to all other terms and conditions, and shall remain binding on the Parties hereto. 7. The Agreement and this Third Amendment contain all agreements, promises or understandings between Owner and Lessee and no verbal or oral agreements, promises or understandings shall be binding upon either the Owner or Lessee in any dispute, controversy or proceeding at law, and any addition, variation or modification to the Agreement and this Third Amendment shall be void and ineffective unless made in writing and signed by the Parties. In the event any provision of the Agreement and this Third Amendment is found to be invalid or unenforceable, such a finding shall not affect the validity and enforceability of the remaining provisions of the Agreement and this Third Amendment. (Signature Page to Follow) 2 Lessee Site Name: Mayport Road Site ID: 100402 AGENDA ITEM# 4H APRIL 14,2014 IN WITNESS WHEREOF, the Parties have set forth their hand and seal as of the date indicated above. Witnesses: By: ________ _ Name: ________ _ By: _____________ __ Name: -------- By: ________ _ Name: By: ________ _ Name: -------- 3 Owner: City of Atlantic Beach By: ___________ _ Name: ___________ _ Title: -------------Date:, ___________ __ Lessee: Verizon Wireless Personal Communications LP d/b/a Verizon Wireless By: ___________ _ Name: Apama Khurjekar Title: Area Vice President Network Date: ------------- Lessee Site Name: Mayport Road Site ID: I 00402 After Recording Return To: Rogers Lewis Jackson Mann & Quinn, LLC P.O. Box 11803 Columbia, S.C. 29211 Attn: Jessica Crowson State of Florida County of Duval ) ) ) Amended Short Form Lease AGENDA ITEM# 4H APRIL 14, 2014 This Amended Short Form Lease ("Memorandum") is made this __ day of _______ , 2014, between City of Atlantic Beach, a municipality of the State of Florida ("Owner") and Verizon Wireless Personal Communications LP d/b/a Verizon Wireless, ("Lessee"). Owner and Lessee are at times collectively referred to hereinafter as the "Parties" or individually as the "Party". WHEREAS, Owner and Lessee's predecessor in interest, PCS PrimeCo, LP, a Delaware limited partnership, entered into a PCS Site Lease dated November 9, 1995, as amended by that certain First Amendment to PCS Site Lease, dated February 24, 2011, as amended by that certain Second Amendment to PCS Site Lease, dated August 31, 2012, (collectively, the "Lease") for the lease of a portion of certain real property and a communications facility (the "Site"), located at 469 11th Street, Atlantic Beach, Duval County, Florida; and WHEREAS, Lessee's leasehold interest to the Site was previously recorded in that certain Short Form Lease, dated October 2, 1995 and recorded July 15, 1996 in Book 8391, Page 201, in the public records of Duval County, Florida. WHEREAS, the parties entered into a Third Amendment to PCS Site Lease ("Third Amendment") to document modifications to Lessee's lease area of Real property the Site; and WHEREAS, this Memorandum is not intended to supersede, replace, or release Lessee's rights under any prior recorded Memorandum; 1. The Property leased by Owner to Lessee pursuant to the Lease, as amended, is further described on Exhibit 1 attached hereto. The Lease includes the non-exclusive appurtenant rights for ingress and egress, and utility purposes over, under or along an existing right of way extending from the nearest public right of way. 1 AGENDA ITEM# 4H APRIL 14, 2014 2. The initial term of the Lease is five (5) years and commenced on or about November 9, 1995. As amended by the Third Amendment, the Lease will automatically renew for seven (7) additional terms of five (5) years each, unless earlier terminated as provided in the Lease. 3. The terms, covenants and provisions of the Lease and Third Amendment of which this is a Memorandum, shall extend to and be binding upon the respective executors, administrators, heirs, successors and assigns of Owner and Lessee. IN WITNESS WHEREOF, the Parties have set forth their hand and seal as ofthe date indicated above. Witnesses: By: ________ _ Name: ________ _ By: ----------- Name: -------- By: ________ _ Name: By: ----------Name: -------- 2 Owner: City of Atlantic Beach By: ___________ _ Name: ___________ _ Title: --------------Date: ____________ __ Lessee: Verizon Wireless Personal Communications LP d/b/a Verizon Wireless By: ___________ _ Name: Apama Khurjekar Title: Area Vice President Network Date: ____________ __ State of Florida County of Hillsborough ) ) ) Acknowledgement AGENDA ITEM# 4H APRIL 14, 2014 I, , a Notary Public for said County and State, do hereby certify that [NAME] to me personally known, who, being by me duly sworn, did say that s/he is [TITLE] of City of Atlantic Beach, and that s/he, being authorized to do so, executed the foregoing instrument on its behalf. Sworn to and subscribed before me this __ day of _________ , 201_. Notary Public State ofNorth Carolina County of Mecklenburg ) ) ) Acknowledgement I, , a Notary Public for County and State of Nmih Carolina, do hereby certify that Aparna Khurjekar, to me personally known, who, being by me duly sworn, did say that she is Area Vice President Network ofVerizon Wireless Personal Communications LP d/b/a Verizon Wireless, and that she, being authorized to do so, executed the foregoing instrument on its behalf. Sworn to and subscribed before me this __ day of _________ , 201_. Notary Public My Commission Expires: ______ _ 3 Exhibit "1" Legal Description of Property: AGENDA ITEM# 4H APRIL 14, 2014 Portion of Government Lot 5, Section 17, Township 2 South, Range 29 East, Duval County, Florida a/k/a 469 11th Street, Atlantic Beach, Florida [See Attached Site Plan] 4 Lessee Site Name: Mayport Road Site ID: I 00402 Exhibit A-2 (See attached drawing) 4 AGENDA ITEM# 4H APRIL 14, 2014 AGENDA ITEM# 4H APRIL 14, 2014 ~ I DATE(MM/DDIYYYY} AC:~Rc;,9 CERTIFICATE OF LIABILITY INSURANCE '-.----03/06/2014 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to .. ... the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the Q) !E certificate holder in lieu of such endorsement(s). c PRODUCER CONTACT Q) Aon Risk Services Northeast, NAME: :!:! Inc. PHONE (866) 283-7122 j /ffc. No.l: (800) 363-0105 ... New York NY office (NC. No. Ext): Q) 1::1 199 water Street E·MAIL 0 New York NY 10038-3551 USA ADDRESS: J: INSURER(S} AFFORDING COVERAGE NAIC# INSURED INSURER A: National union Fire Ins Co of Pittsburgh 19445 verizon wireless and its subsidiaries INSURER B: And Affiliated companies c/o verizon Lease Administration INSURER C: 7701 E. Telecom Parkway Mail Code: FLTDSB1W INSURER D: Temple Terrace FL 33637 USA INSURER E: INSURER F: COVERAGES CERTIFICATE NIIMBER' 570053062912 1"\I:VI,:)IVI .. NIIMRI=R• THJS_IS TO CERTIFY THAT THE POLICIES OF INSII~ ~Nr.~ LISTED BELOW HAVE_ BE~N_I::'S!,!~D _T_9THE INSURED !'Jfo.M!'D_A~_C2_VE _F_9_~!f:!~ POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. Limits shown are as l1r-w: TYPE OF INSURANCE fit§'~ 'WJ{) POLICY NUMBER ,~!.!\:1:.\'-t: ~~"!"'-':E'!'!" LIMITS A _:_ GENERAL LIABILITY I~U!14b!ol!ol I Ub/ jU/ LUl.j IUb/ jU/ LU.l'l EACH n<e<CIIRRF"'<eF $2,000,000 ::J CLAIMS-MADE 0 OCCUR : ~~~~~~~E~~~~~r~ncel $2,000,000 -' MED EXP (Any one person) $10,000 -PERSONAL & ADV INJURY $2,000,000 N -;;; ~'L AGGREGATE LIMIT APPLIES PER: GENERAL nuu~oun • o $L,UOO,OOO N <D DPRO-D PRODUCTS -COMP/OP AGG $2,000,000 0 POLICY JECT LOG ('") "' OTHER: 0 0 r-- i ~~~~~~~~~~INGLE LIMIT "' AUTOMOBILE LIABILITY .. -ANYAUTO BODILY INJURY (Per person) 0 z -ALL OWNED -SCHEDULED BODILY INJURY (Per accident} .f! -AUTOS -AUTOS <II HIRED AUTOS NON-OWNED ~p~~=!~::;gAMAGE <.> -AUTOS I;: -t Q) UMBRELLA LIAB H OCCUR EACH r.F u -CLAIMS-MADE EXCESS LIAB nuu~ou~•o IDEO I JKtltNiiUN ~~~L~:ESRS" LIABILITY' •v• I AND lmTuTE I ~~~H- ANY PROPRIETOR I PARTNER I EXECUTIVE D E.L. EACH ACCIDENT OFFICER/MEMBER EXCLUDED? N/A ~MX~:~~~~~in NH) E.L. , EMPLOYEE , desenb~ ~n~O'PI OOOAT>n• belOW E.L. LICYLIMIT = II 1 uo~• n•r, >vel OF ) I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space Is required) II Re: Site Name and Address : 100402 Mayport Rd WT -469 11th Street, Atlantic Beach, FL 32233, ouval county Location code: 131031-GEN -contract# 33054. city of Atlantic Beach, FL is included as additional insured under the policy as required by written contract. CERTIFI HOLDER CANCELLATION .~ SHOULD ANY OF THE ABOVE DESCRIBED POUCIES BE CANCELLED BEFORE THE ~ EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. city of Atlantic Beach, FL AUTHORIZED REPRESENTATIVE I Attn: Donna Kaluzniak, Uti 1 ity Director 902 Assisi Lane ~~9'~~~~ Atlantic Beach FL 32233 USA ©1988·2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) The ACORD name and logo are registered marks of ACORD