AGENDA ITEM REPORT
TITLE:
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AN ORDINANCE AUTHORIZING THE MAYOR, OR DESIGNEE, TO EXECUTE THE THIRD AMENDMENT TO THE LEASE AGREEMENT WITH METROPCS FLORIDA, LLC, WHICH PROVIDES FOR THE CONTINUED LEASING OF CITY LAND FOR A COMMUNICATIONS TOWER AND A MODIFICATION TO THE LOCATION OF EQUIPMENT ON THE TOWER AT SABAL PINES PARK. (FIRST READING)
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BACKGROUND:
On August 10, 2006, the City Commission authorized the Mayor to execute the original lease agreement (“Agreement”) with MetroPCS Florida, LLC (“Metro”) for the purpose of maintaining a communications tower and related equipment at the City’s Sabal Pines Park, 5005 NW 39 Avenue, Coconut Creek, Florida. The Agreement provides for a term of ten (10) years from the effective date with two (2) automatic five (5) year renewals (unless Metro advises the City of its intent not to renew at least six (6) months prior to the end of the current term). On February 12, 2015, the City Commission authorized the Mayor to execute the First Amendment to the lease agreement (“First Amendment”), which permitted Metro to modify and increase the equipment on the communication tower in exchange for increased rent payments to the City. On July 14, 2016, the City Commission authorized the Mayor to execute the Second Amendment to the lease (“Second Amendment”), which permitted Metro to install new infrastructure upon the communications tower, relocate the City-owned equipment to a new location higher up on the tower, and provided for an extension of the term.
DISCUSSION:
Currently, Metro desires to amend the lease agreement a third time (“Third Amendment”) to modify the equipment on the tower, which will not increase the loading factor on the tower, and add a generator for emergency power located within Metro’s existing ground space. Since the modifications are within the existing leased space, there is no increase to the rent. The Third Amendment also clarifies the non-exclusive easement area, the Tenant’s lease space on the tower at one hundred fifteen feet (115 ft.) above ground level, the non-exclusive utility easement, and changes the Agreement’s term to automatically terminate at the end of the last renewal term (i.e. twenty-five (25) years from the commencement date of August 10, 2006).
The City is committed to increasing the effectiveness of its communication equipment and maintain a revenue source by permitting Metro to modify the equipment on the communications tower and install an emergency generator.
RECOMMENDATION:
Staff recommends approval of this ordinance.
FISCAL IMPACT:
REVENUES: N/A
EXPENDITURES: N/A
BUDGETED? No
NOTES: The modifications are within existing leased space; therefore, there is no increase to the rent.