File #: ORD 2016-26    Name: MetroPCS 2nd Amendment to Lease Agreement
Type: Ordinance Status: Passed
File created: 6/2/2016 In control: City Commission
On agenda: 7/14/2016 Final action: 7/14/2016
Title: AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE SECOND AMENDMENT TO THE LEASE AGREEMENT WITH METROPCS, 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. (SECOND READING)(PUBLIC HEARING)
Indexes: Lease, Ordinance, Telecommunications
Attachments: 1. ORDINANCE 2016-26-Metro PCS Lease (Sabal Pines), 2. EXHIBIT A-Second Amendment, 3. EXHIBIT B-Legal Description, 4. EXHIBIT C-Original Agreement, 5. EXHIBIT D-First Amendment
Related files: ORD 2024-032-1

AGENDA ITEM REPORT

TITLE:

title

AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE SECOND AMENDMENT TO THE LEASE AGREEMENT WITH METROPCS, 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. (SECOND READING)(PUBLIC HEARING)

body

 

BACKGROUND:

This item was approved on First Reading at the June 23, 2016, Commission Meeting.

On August 10, 2006, the City Commission authorized the Mayor to execute the original lease agreement (“Agreement”) with MetroPCS, LLC (“Metro”) for the purpose of maintaining a communications tower and related equipment at the City’s Sabal Pines Park, 5005 NW 39th 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.

DISCUSSION:

Currently, Metro desires to amend the lease agreement a second time (“Second Amendment”) to permit it to install new infrastructure upon the communications tower and relocate the City-owned equipment to a new location higher up on the tower. The Second Amendment provides for extension of the term as well as a rent abatement of fifty percent (50%) of the monthly rent up to a maximum amount not to exceed Forty-Five Thousand, Four Hundred Fifty Dollars ($45,450.00).  The abatement shall be for the relocation and installation of the new platform for the City’s equipment and shall last until total abatement is realized in full by the tenant.

The City is committed to increasing the effectiveness of its communication equipment and maintain a revenue source by permitting Metro to relocate and install City-owned equipment on the communications tower and extend the term of the lease.

RECOMMENDATION:

Staff recommends approval.

FISCAL IMPACT:

REVENUES:                     $2,277 per month

EXPENDITURES:                     N/A

BUDGETED?                     No

NOTES:                     The revenue impact listed above represents the amount of the monthly lease payment of $4,554, less the 50% reduction due to the rent abatement.  General Fund account 01-V36220 -  Tower Leases.