STPUD Verizon Cell Lease Term Sheet_(15980180_1)Memorandum
DATE:
September 27, 2017
TO:
Shannon Cotulla, Assistant General Manager
South Tahoe Public Utility District
FROM:
Gary M. Kvistad
RE:
Term Sheet for Proposed Verizon Wireless Cell Tower Site Option and Lease Agreement
This memorandum outlines the more significant business and legal terms for an option and lease agreement with Verizon Wireless. The proposed terms are based on our review of the proposed
Verizon lease, our experience in negotiating other similar leases, the District’s requirements for such a lease and our internal discussions with District management. The term sheet
should be presented to Verizon for their consideration and then a meeting arranged to discuss these and any other significant terms. Once agreement is reached on these terms, the option
and lease agreement can be drafted.
Parties
Lessor: South Tahoe Public Utility District
Lessee: Verizon Wireless
Property
The Site shall be located on Lessor’s property located at 1275 Meadow Crest Drive, South Lake Tahoe, California.
Option Term
12 month term with right to extend term for additional 12 months
Option Payment
$1,000 per 12 month term, payable within 30 days
Signing Bonus
$10,000 upon execution of the Option/Lease Agreement
Option Investigation
Optionee has right to investigate the site and perform testing. If option is not exercised, Site is to be restored to its prior existing condition.
Optionee and its consultants, contractors and agents to maintain insurance acceptable to the Optionor.
Optionee access is through a security gate. Optionee or its consultants, contractors and agents are required to call for access. The District’s property is operated and staffed 24/7.
Site
35’ x 45’ – 1,575 square feet with designated route for access and utilities
Lease Term
5 year initial term with right to extend for 4 extended terms of 5 years each, after which the Lease terminates. The parties may negotiate a new lease prior to termination.
Lease Term
5 year initial term with right to extend for 4 extended terms of 5 years each, after which the Lease terminates. The parties may negotiate a new lease prior to termination.
Lease Payment
$42,000 per year payable $3,500 per month in advance with a 10% late fee.
Lease payment Adjustment
3% per year
Rental Documentation
No such requirement as a precondition to Lessee’s obligations as Lessor is a public agency
Use
Constructing, maintaining, repairing and operating a communications facility including a security fence
Approvals
Lessee is responsible for securing all regulatory approvals. Lessor will provide reasonable cooperation at Lessee’s expense.
Access
Lessee access is through a security gate. Lessee or it contractors are required to call for access. The District’s property is operated and staffed 24/7.
Partial access is over a paved road and then onto unpaved road. The unpaved road cannot be paved and Lessee will be responsible for snow removal.
Lessor has right to relocate access route as long as Lessee is given similar access route.
Maintenance
Lessee to maintain the Site and its facilities in good condition and repair.
Utilities
Lessee is required to bring in its own utilities to the Site.
Indemnification
Lessee to indemnify, defend and hold harmless Lessor from Lessee’s acts and omissions except for lessor’s gross negligence or willful misconduct.
Insurance
Lessee and its contractors and agents to maintain the following insurance during the term:
1. Commercial General Liability - $2,000,000
2. Automobile Liability - $2,000,000
3. Worker’s Compensation – Statutory
4. Pollution Liability - $3,000,000
Endorsements – additional insured, waiver if subrogation, notice re termination/cancellation.
Radio frequency interference
No interference with Lessor’s existing or future radio frequencies given the public health and safety issues of providing water and wastewater services to the public 24/7.
District antenna
The Lessor shall have the right to install an antenna on the Lessee’s facilities at no cost to Lessee.
Environmental Issues
Lessee responsible for doing its own due diligence of the Site and accepts the Site “as is.” Lessee responsible for all environmental contamination.
Relocation of Site
Lessor may require Lessee, at lessee’s expense, to relocate the Site once during the term if Lessor determines it needs the Site for its own operations.
Subleasing
Lessee may sublease a portion of the Site or space on Lessee’s facilities upon lessor’s reasonable approval and payment of 50% revenue share.
Assignment
Lessee may assign lease to its principle, affiliates and subsidiaries upon notice to Lessor and subject to Lessor’s reasonable approval.
Taxes
Lessee pays all taxes associated with the Site and its facilities. Lessor is a tax exempt public agency.
Sale of the Property
Lessor may sell or transfer the Property at any time subject to the lease. No right of first refusal.
Removal at end of the term
Lessee shall remove all improvements on the Site and access route prior to the end of the term and restore the site and access route to their prior existing condition.