HomeMy WebLinkAbout2006/09/19 Item 9
COUNCIL AGENDA STATEMENT
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Item '
Meeting Date 9/19/06
ITEM TITLE:
Resolution Approving Agreement between Palomar
Communications, Inc. and City of Chula Vista for Radio Repeater and
Antenna Site Lease
SUBMITTED BY:
Director of Public Works Operations ~hr
City Manager i (4/Sths Vote: Yes_ No.1D
REVIEWED BY:
This resolution would approve a lease agreement for space on a communications tower located on
Otay Mountain for Chula Vista Transit's (CVT) radio repeater and antenna. Since 1992, CVT has
been leasing a site on Otay Mountain for its radio transmitting equipment.
RECOMMENDATION: That Council approve a Resolution approving an Agreement between
Palomar Communications, Inc. and City ofChula Vista for Radio Repeater and Antenna Site Lease
for the period September 1, 2006 - August 31, 2009 (Three-Year Lease) with annual increases based
on the Wholesale Price Index published by the U.S. Department of Labor.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable
DISCUSSION:
In 1992, the City ofChula Vista's Transit Division acquired its own radio transmitting equipment to
support its transit operations. The radio system is vital to the operations of the transit system. It links
the bus operator to dispatch during emergencies, mechanical breakdowns, accidents and on going
customer service. The radio equipment, repeater and antenna, has been located on Otay Mountain
under a lease with Palomar Communications, Inc. for the last three years.
The table below estimates the cost for the contract period using the San Diego area average inflation
rate of 3.72%. Palomar Communications did not increase their rate of $250.00 over the three years
of their previous contract. The new rate of$275.00 is 10% above the previous rate, but within the
cumulative inflation rate for the last three years.
Palomar Communications, Inc.
Fiscal Year Monthlv Rate Annualized Rate
FY07 $275.00 $3,300.00
FY08 $285.00 $3,420.00
FY09 $295.00 $3,540.00
Estimated Three-vear Cost $10,260.00
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Page 2, Item ~
Meeting Date 9/19/06
DECISION MAKER CONFLICTS:
No Property within 500 feet
Staff has reviewed the property holdings of the City Council and has found no property holdings
within 500 feet of the boundaries of the property which is the subject of this action.
FISCAL IMPACT:
The radio site lease totals $10,260 over the three-year period. This cost is contained in the Transit
operating budget, which is funded by MTS Consolidated TDA Article 4.0 funds. No General Fund
contributions support this agreement.
Attachments: Site Lease Agreement
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RESOLUTION NO. 2006-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AGREEMENT BETWEEN
P ALOMAR COMMUNICATIONS, INe. AND CITY OF CHULA
VISTA FOR RADIO REPEATER Al'ID ANTENNA SITE LEASE
WHEREAS, in 1992, the City of Chula Vista's Transit Division acquired its own
transmitting equipment to support its transit operations; and
WHEREAS, the radio equipment, repeater, and antenna has been located on Otay Mountain
under a lease with Palomar Communications, Inc. [Palomar] for the last three years; and
WHEREAS, the table below estimates the cost for the contract period using the San Diego
area average inflation rate of3.72 percent. Palomar did not increase their rate of$250.00 over the
three years of their previous contract. The new rate of$275.00 is 10 percent above the previous rate,
but within the cumulative inflation rate for the last three years.
Palomar Communications Inc.
Fiscal Year Monthlv Rate Annualized Rate
2007 $275.00 $3,300.00
2008 $285.00 $3,420.00
2009 $295.00 $3,540.00
Estimated Three-Year Cost $10,260.00
WHEREAS, staff recommends approval of an agreement between Palomar and the City for
the Radio Repeater and Antenna Site Lease for the period of September 1,2006 through August 31,
2009, with annual increases based on the Wholesale Price Index published by the U.S. Department
of Labor;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista
does hereby approve an agreement between Palomar Communications, Inc. and the City ofChula
Vista for Radio Repeater and Antenna Site Lease.
Presented by
Approved as to fonn by
Leah Browder
Deputy Director of Engineering
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J :\Attomey\RESO\AG REEMENTS\PaJomar Communications 2006.doc
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THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
Ann Moore
City Attorney
q.~~
1 . S. and
Dated: q kilo y
Site Lease Agreement between the
City of Chula Vista and
Palomar Communications, Inc.
for the installation, maintenance, operation
and removal of communications equipment
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SITE LEASE AGREEMENT
THIS LEASE, made this 1st day of September, 2006, between
Palomar Communications Inc., a California corporation, having its
principal office at 2230 Micro Place, Escondido, California, 92029
hereinafter referred to as Lessor, and City of Chula Vista
hereinafter referred to as Lessee:
1. Lessor hereby grants permission to Lessee to install,
maintain, operate and remove communications equipment ("Equipment")
on and in Lessor's property, antenna site and/or equipment room,
herein sometimes referred to as the "Premises", located at
1/4 mile S.W. of Doohouse Junction. Otav Mountain. CA
specifically, one repeater on 453.225 MHz. transmit. 458.225 MHz.
receive. 100 watts max power output.
~nd the associated
TX Yaoi antenna
to be placed at the
cables and antennas specifically, one 450 MHz.
12
ft. level.
2. TERM AND TERMINATION - This Lease shall become effective
upon installation of equipment or thirty (30) days from the afore
mentioned date,which ever shall occur first, and shall continue in
effect for a term of THREE year(s). This Lease may be terminated by
either party upon thirty (30) days advance written notice. On
termination of the Lease in accordance with any of its terms,
Lessee shall immediately remove its antennas, wires, and appliances
from Lessor's premises.
3. ATTACHMENTS TO PREMISES BY LESSEE - Lessee shall, at its
own expense, maintain any Equipment on or attached to the Premises
in a safe condition and in good repair, and in a manner reasonably
suitable to Lessor so as not to conflict with the use of the
premises by Lessor, or by any other company using the premises and
so as not to interfere with the working use of facilities thereon
or to be placed thereon.
Lessee agrees to install equipment of types and frequencies
which will not cause interference to Lessor or other existing
Lessees of Lessor's property, antenna site and/or equipment room.
In the event Lessee's equipment causes such interference, Lessee
will take all steps necessary to correct and eliminate the
interference. I f said interference cannot be eliminated within
forty-eight (48) hours after receipt of written notice from Lessor
to Lessee, Lessee shall seek regulatory authorization to
temporarily disconnect the electric power and shut down Lessee's
equipment (except for intermittent operation for the purpose of
testing, after performing maintenance, repair, modification,
replacement, or other action taken for the purpose of correcting
such interference). If such interference is not corrected within
thirty (30) days after receipt of said written notice, Lessee
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agrees to seek regulatory authorization to establish alternative
facilities and to remove its equipment from the premises. This
Lease shall then terminate without further obligation by either
party, except as may be specifically enumerated herein.
4. Lessor agrees that Lessee shall have free access to
Lessor I s property, antenna site and/or equipment room for the
purpose of installing, maintaining and operating Lessee's
equipment, and Lessor further agrees to give Lessee free ingress
and egress to the premises during the continuation of this Lease
and any renewals thereof. Lessor shall furnish Lessee with
necessary keys for the purpose of ingress and egress to the
premises. It is agreed, however, that only authorized engineers,
employees, contractors, sub-contractors, and agents of Lessee, FCC
inspectors, or persons under their direct supervision, will be
permitted to enter the premises.
5. COMPLIANCE WITH STATUTES AND REGULATIONS - Antennas, wires
and appliances of Lessee shall be erected and maintained in
accordance with the requirements and specifications of the safety
codes of the State of California, or any amendments or revisions
thereof, and in compliance with any rules or orders now in effect,
or that hereafter may be issued by the Federal Communications
Commission.
6. MAINTENANCE AND OPERATION OF PREMISES - Lessor reserves to
itself, its successors, and assigns, the right to maintain the
premises and to operate its facilities thereon in such manner as
will best enable it to fulfill its own service requirements, but in
accordance with the specifications herein mentioned. Lessor shall
not be liable to Lessee for any interruption of service of Lessee
or for interference with the operation of the equipment, wires and
appliances of Lessee arising in any manner from use of the premises
hereunder, unless due to negligence of Lessor, its employees,
agents or invitees.
7. RENTAL OF PREMISES - Lessee shall pay to Lessor for the use
of the premises described hereunder, a rental rate of
Two Hundred Seventv Five Dollars .. H___ - pe-r month,
payable in advance, commencing on the commencement date of the
lease as provided for in Paragraph 2.
8. UTILITIES - Electrical power is to be supplied and paid for
by: X Lessor or Lessee.
9. BUREAU OF LAND MANAGEMENT - All B.L.M. fees resulting from
the installation and use of the Lessee's equipment at the Premises
shall be paid by the Lessee within 30 days of being presented with
the amount of such fees. Not applicable this lease.
10. INDEMNIFICATIONS AND INSURANCE - Lessee shall indemnify
Lessor against any and all claims and demands for damages to
property and injury or death to persons, including any payments
made under any workmen's compensation law or any plan for
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employee's disability and death benefits, which may arise out of or
be caused by the installation, maintenance, presence, use or
removal of Lessee's equipment, or by any act of Lessee on or in the
vicinity of the premises described hereunder.
Lessor shall indemnify Lessee and hold Lessee harmless from
and against any and all claims, liabilities, losses and causes of
action, of whatever kind or nature, which are suffered by or
asserted against Lessee by any person, and which arise out of, or
in connection with, or are based upon, any acts or omissions of
negligence on the part of Lessor, its employees, agents or invitees
under this Lease. Lessee shall carry adequate insurance to protect
the parties hereto against any and all claims, demands, actions,
j udgrnents, costs, expenses and liabilities which may arise or
result, directly or indirectly from Lessee's use of the Premises,
except such liability as' shall arise out of the negligence of
Lessor. The amounts of such insurance against liability due to
damage ~o property shall be One Million Dollars ($1,000,000.); as
to anyone occurrence and against liability due to injury or death
of a person, One Million Dollars ($1,000,000.). Lessee shall also
carry such insurance as will protect it from all claims under any
workmen's compensation laws in effect that. may be applicable to
Lessee. All insurance required hereunder shall remain in force for
the entire life of this agreement.
Upon request, Lessee shall, so long as this Lease shall remain
in force, provide to Lessor current certificates of insurance
evidencing that such insurance is in full force and effect.
11. RIGHTS TO EQUIPMENT - Any and all machinery, equipment and
trade fixtures installed by Lessee shall remain personalty
notwithstandipg the fact that it may be affixed or attached to the
realty, and shall, during the term of this Lease or any extension
or renewal thereof, belong to and be removable for Lessee. Lessee
may,. at its election, remove said machinery, equipment and trade
fixtures on or before the expiration of the term of this Lease
provided that Lessee shall repair any damage caused by said removal
wear and tear acceptable. Any of Lessee's property remaining on the
Premises thirty (30) days after the expiration or termination of
th~s Lease, which Lessor does not require Lessee to remove, shall
b~~~me the prQperty of Lessor, free of any claim by Lessee or any
person claiming through Lessee.
12. RENTAL RATE INCREASE - The rental rate of $275.00
per month shall be reviewed annually on the anniversary date on the
beginning of the Term, and shall be adjusted as follows: The basis
for completing the adjustment is the Wholesale Price Index,
published by the United States Department of Labor, Bureau of Labor
Statistics ("Index"), which is published for the date nearest the
date of the Term ("Beginning Index"). If the Index published
nearest the anniversary adjustment date ("Extension Index") has
increased over the Beginning Index, the minimum monthly rent for
the following year shall be set by multiplying the minimum monthly
rent set forth in Paragraph 7 above by a fraction, the numerator of
which is the Extension Index and the denominator of which is the
Beginning Index. If the Index is discontinued or revised during
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this Term, such other government Index or computation with which it
is replaced shall be used in order to obtain substantially the same
result as would have been obtained if the Index had not been
discontinued or revised.
13. DEFAULT - In the event Lessee fails to comply with any of
the provisions of this Lease, including the specifications herein
mentioned, or default in any of its obligations under this Lease,
Lessor may, at its option, immediately terminate this Lease
provided Lessor has given Lessee ten (10) days written notice of
such default and Lessee has failed to cure the same within twenty
(20) days after receipt of such notice provided, however, that
where such default cannot reasonably be cured in such twenty (20)
day period, if Lessee shall proceed promptly to cure the same and
prosecute such curing with due diligence, the time for curing such
default shall be extended for such period of time as may be
necessary to complete such curing. Lessor hereby expressly waives
its Landlord's lien and any and all rights granted by or under any
present or future laws to levy or distrain for rent, in arrears, in
advance, or both upon any or all antennas, machinery, equipment and
other personal property of Lessee or any assignee or sub-tenant of
Lessee on the Premises. .
In addition, Lessor will not, except in any emergency, cure
any alleged default by Lessee until after the expiration of twenty
(20) days after Lessee's receipt of notice provided for herein and
then only if Lessee has failed, during such period, to cure such
default or perform such act.
14. ASSIGNMENT AND SUBLEASE - Lessee shall have the right to
assign this Lease or to sublet without Lessor's consent, to any
parent, subsidiary or affiliate of Lessee or to any person, firm or
corporation which shall be controlled by, under the control of, or
under common control with Lessee, or any corporation into which
Lessee may be merged or consolidated or which purchases all or
substantially all of the assets of Lessee. Lessor covenants and
agrees that it will not unreasonably withhold or delay its consent
to any other assignment of this Lease, or subletting of all or any
part of the Premises, to any other person, firm or corporation.
Notwi thstanding the foregoing, Lessee shall remain liable hereunder
just as fully as if such assignment or subletting had not been
made.
15. ATTORNEY'S FEES - In the event of any action filed in
relation to this Lease, the prevailing party shall be entitled to
recover from the other reasonable attorney's fees and other
disbursements.
16. MANNER OF GIVING NOTICE - Any notice to be given under
this Lease shall be mailed to the party to be notified at the
address set forth herein, by registered or certified mail with
postage prepaid, and shall be deemed given when so mailed.
Any demand or notice to either party may be given to the other
party by addressing the written notice to:
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Lessor:
Palomar Communications, Inc.
2230 Micro Place
Escondido, CA 92029
Lessee:
Citv of Chula Vista, Transit Div.
1800 Maxwell Rd.
Chula Vista, CA 91911
17. Lessor covenants and agrees with Lessee that upon Lessee
paying the rent and observing and performing all the terms,
covenants and conditions, on Lessee's part to be observed and
performed, Lessee may peacefully and quietly enjoy the Premises,
subject nevertheless to the terms and conditions of this Lease.
18. ENTIRE AGREEMENT, SEVERABILITY - This Lease embodies the
entire agreement between the parties. It may not be modified or
terminated except as provided herein or by other written agreement
between the parties. If any provision herein is invalid, it shall
be considered deleted from this Lease, and shall not invalidate the
remaining provisions of this Lease.
19. PARTIES' BOUND BY AGREEMENT- - Subject to the provisions
hereof, this Lease shall extend to and bind the heirs, executors,
administrators, successors and assigns of the parties hereto.
20. TOWER MARKING & LIGHTING REQUIREMENTS Lessor
acknowledges that it, and not Lessee, shall be responsible for
compliance with all tower or building marking and lighting
requirements of the Federal Aviation Administration ("FAA") or the
Federal Communications Commission ("FCC"). Lessor shall indemnify
and hold Lessee harmless from any fines, or other liabilities
caused by Lessor's failure to comply with such requirements.
Further, should Lessee be cited by either the FCC or FAA because
this site is not in compliance, and if Lessor does not cure the
conditions of noncompliance within the time frame allowed by the
citing agency, Lessee may terminate this License Agreement
immediately upon notice to Lessor.
IN WITNESS WHEREOF, the parties have executed this agreement
on the day and the year first above written.
Less~. alomar Communications, Inc.
By: -':idr..z~ A ~ __
/
Title: Dean R. Hovey, President
Lessee: Citv of Chula Vista
By:
Title:
City Attorney:
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