R00-091RESOLUTION NO. RO0-¢/
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA, CONSENTING
TO A SUBLEASE AGREEMENT FROM SPRINT
SPECTRUM LP (SPRINT) TO METRICOM,
AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE SAID CONSENT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, pursuant to the terms of a lease by and between Sprint
Spectrum and the City of Boynton Beach, executed in August 1996, the City must
consent to a sublease by Sprint Spectrum LP; and
WHEREAS, the City Commission of the City of Boynton Beach, Florida, upon
recommendation of staff, hereby consents to a sublease agreement from Spring
Spectrum LP (Spring) to Metricom and authorizes and directs the Mayor and City
Clerk to execute said Consent; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section 1. The City Commission of the City of Boynton Beach, Florida
does hereby consent to a sublease agreement from Spring Spectrum LP (Spring) to
Metricom and authorizes and directs the Mayor and City Clerk to execute said
Consent, which is attached hereto as Exhibit "A".
Section2. This Resolution shall become effective immediately upon
passage.
PASSED AND ADOPTED this ~r day of July, 2000.
:r\consent-Sp~int-M~rocim062200
of
Bo nton Be ch
1 O0 E. Boynton Beach Boul~ard
P.O. Box 310
Boynton Beach, Florida 33425-0~ 10
(561) 742-6050
FAX: (561) 742.6054
IV-CONSENT AGENDA
ITEM C.3
3une 13, 2000
Douglas P. Fulcher
Sprint Sites USA
East Region
1357 Hembree Road
Suite 250
Roswell, GA 30076
Re: proposed sublease from Sprint Spectrum LP (Sprint) to Metricom with
respect to that certain Lease by and between Sprint Spectrum and the City of
Boynton 8each (''Lessor") made as of August, 1996 -3600 Miner Road, 8oynton
Beach, FL
Dear Mr. Fulcher:
You asked us to consent to a sublease ("Sublease") to Metricom a part of the
property leased to Spdnt under the original August 1996 Lease Agreement
(Lease). Under the Lease, Sprint must seek our consent to enter into a
Sublease. This document is intended to give Sprint and Metricom that consent.
Pursuant to section 10 of the Lease, the City hereby gives its consent with the
following conditions:
1. The Subleased property to Metricom shall only be used for such uses as are
permitted under the Lease.
Notwithstanding this consent, the Sublease to Metricom will be subject and
subordinate to the Lease and if the Lease is terminated for any reason, the
Sublease thereunder, will likewise terminate.
3. Sprint will remain the Lessee under the Lease and responsible for the
payment of rent under the Lease and compliance with all other terms and
"An Equal O~portunitylAffirmative Action/ADA Ern~loyer"
COUNTY OF ,_
The foregoing instrument was acknowledged before me this day of ,
2000, by , as the Mayor of The City of Boynton Beach, Florida, a
municipal corporation, on behalf of said munidpality, who is personally krlown to me or
who has produced as identification,
Witness
Nota~ Public
TENANT
Metdcom
S-rATE OF FLORIDA
COUNTY OF
By:
Name:
T~e:
The foregoing instrument was acknowledged before me this d~
2000, by , as the Mayor of The City of Boynton Bea(
municipal corporation, on behalf of said municipality, who is personally
who has produced as identification.
of ,
Florida, a
town to me or
S:ca/Agmnts Sprint Consent agreement
Notary Public
provisions of-the Lease, including but not limited to, insurance and
indemnificaUon.
4. Hetricom shall also comply with insurance and indemnification
forth in the Lease.
5. Sprint and Metricom shall comply with all ~ld~utes, laws, ordin~
regulations and lawful orders of the United States of America, .c
Florida, Qb/.of Boynton Beach, Palm Beach Counb/, and any otl
authority which may be applicable.
)rovisions set
1ces, rules,
tare of
let public
6. All other terms and conditions of the Lease not revised by this
remain unchanged and in full force and effect.
Signed, sealed and delivered
In the presence of: -.
Witness
LESSOR:
THE CITY OF BOYN'
R~rida~u.n~/al (
onsent shall
)N BEACH
STATE OF FLORZDA
COUNTY OF PALM BEACH
The forego~gjnstrument was acknowledged before me this~5
2000, by ~ t. ~tk,.~., as the Mayor of The City of Boynton Bea~
municipal~orporation, on bef~lf of said municipality, who is personally
who has produced as identification.
Signed, sealed and delivered
In the presence of:
Witness
STATE OF FLORZDA
Notary Public
Con
TENANT
Spdnt Spectrum
By:
Name:
Tfde:
/of '~,
I, Rofida, a
1own tO me or
rbara M. Madden
mis,fire ~ CC 760467
pims July t9. 2082
BONDEDTHRU
;- ~ *' C:ZTY OF BOYNTON BEACH
TO:
FROM:
RE:
MEMORANDUM
Wilfred Hawkins, Support Services Manager,/'~
N cho as I. Igwe, Assistant City Att°rneyi'. ~,~
Telecommunication agreements with SpriC)tSp~m' Bell~uth and
Metricom
DATE: .luly 11, 2000
Pursuant to your request, I have revmewed the above referenced agn
the following:
Agreement with Sprint Spectrum:
in August of 1996, the Oty and Sprint entered into a telecon
agreement. Section 5.02 of the lease agreement provides Sprint
the lease for four additional five-year terms. Section 10 provides
shall not be sold, subleased, assigned or transferred without the wdU
City. Such consent "shall not be unreasonably withheld."
The initial annual rent under the agreement was $12,500. The agreer
annual rent for each renewal term will be increased by an amoun
cumulative percentage increase of the consumer price index (CPI).
I understand that the Commission approved the Sprints request b
condition that the Qb/be permitted access to the company's financial
the three agreements referenced above were considered simull
Commission, it appears that there may have been a mix up in
contents of all three documents. In reviewing the Commission's
2000, the record shows that the Commission while considering the
sublease were under the impression that Metricom and Sprint wil
percent of their gross revenue. Thus, the Commission voted tc
sublease to include the audit request to ensure that the Oty is rece
under the agreement. While secUon ,~.1 of Metdcom agreement prov
shall pay to the City on annual basis an amount equal to one pero
revenue, there is no such provision in our agreement with Sprint.
As indicated above, the agreement with Sprint provides for an annua
based on the CPI and specifically calls for City's written consent f
~ements and offer
munication lease
option to extend
at the agreement
en consent of the
~ent provides that
based upon the
sublease with a
'ecords. Because
aneously by the
~e provisions and
~inutes of .luly 5,
pdnt's request for
pay the City one
modify Sprints
ving its fair share
des that Metricom
~nt of its adjusted
increment on rent
)r sublease which
"shall not be unreasonably withheld". As ! indicated to you earlier, Sprint was adamant
in giving any additional consideration (compensation) for getting our consent to
sublease, stressing that there is no provision for it in the original agreement. As !
advised you earlier, there is a landlord tenant case (not in our jL risdiction and not
related telecommunication towers) which found it unreasonable For a landlord to
withhold consent to an assignment or sublease in exchan(e for additional
compensation. ]:n' light of the foregoing, the Commission may War~ t to reconsider its
decision to approve Sprint Spectrum's requestto sublease with condit on of audits.
Agreement with BellSouth:
!n Februa~ of 1995, the City entered into a five-year lease agreeme ~: with BellSouth.
Section 4.1 of the agreement provides BellSouth with the option to extend it for four
additional five-year te ,~ns. The initial annual rent was $12,000, to be~ adjusted annually
using the cons~ner price index. Section 16 of the agreement provides ~hat it sha not
be sold, subleaSed, assigned or transferred without the written col~sent of the City.
Such consent "not to be unreasonably withheld."
BellSouth proposes to increase the annual rent to $15,000. This pro ~osal is acceptable
to the finance dept. Whi!e there is no requirement for addiUonal c)nsideration under
the sublease proviston of the agreement, BellSouth proposes to offer the City additional
$2,000 for its consent to ~sublease in this matter. The same casel; ~w analyzed under
Sprint. Spectrum is applicable here as well. ! hope that this summ; ~ry would help the
Commission in disposiUon of this matter.
CC: .]ames Cherof, City Attorney
S:ca/OW Mgr. Analysis of Tetecomm agmts