HomeMy WebLinkAbout13297RESOLUTION NO. 13297
A RESOLUTION APPROVING AMENDMENT 1 TO A LEASE
AGREEMENT BETWEEN PUEBLO, A MUNICIPAL
CORPORATION AND UNITE PRIVATE NETWORKS, LLC
AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL
TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The September 14, 2015 Amendment 1 to the assigned lease agreement
(“Amendment”) between the City and Unite Private Networks, LLC regarding the use of
certain fiber and conduit, owned by the City, located at 317 North Main Street, Pueblo,
Colorado 81003, a copy of which is attached hereto, having been approved as to form by
the City Attorney, is hereby approved.
SECTION 2.
The President of the City Council is authorized to execute and deliver the
Amendment in the name of the City and the City Clerk is directed to affix the seal of the
City thereto and to attest same.
SECTION 3.
The officers and staff of the City are directed and authorized to perform any and
all acts consistent with the intent of this Resolution and the attached Amendment to
effectuate the transactions described therein.
SECTION 4.
This Resolution shall become effective immediately upon final passage and
approval.
INTRODUCED: September 14, 2015
BY: Ed Brown
City Clerk’s Office Item # M-5
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: September 14, 2015
TO: President Stephen G. Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Daniel C. Kogovsek, City Attorney
SUBJECT: A RESOLUTION APPROVING AMENDMENT 1 TO A LEASE AGREEMENT
BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND UNITE PRIVATE
NETWORKS, LLC AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL
TO EXECUTE SAME
SUMMARY:
Attached is a Resolution approving Amendment 1 to a lease agreement between the City and
Unite Private Networks, LLC (“UPN”) regarding the use of certain fiber and conduit located at 317
North Main Street, Pueblo, Colorado 81003.
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
UPN and the Pueblo Economic Development Corporation Foundation, Inc. (“Foundation”) entered
into a lease agreement (“Agreement”) on June 28, 2008 regarding the use of certain fiber and
conduit located at 317 North Main Street in downtown Pueblo. On January 14, 2014, when the
Pope Block buildings were transferred by the Foundation to the City, the Foundation also
transferred its conduit to the City and assigned the Agreement and the lease to the City. Under
Section 4 of the Agreement, the lease will terminate on June 1, 2018. Pursuant to Section 6 of
the Agreement, UPN was given the right to extend the termination date of the lease for two
additional five-year terms. Under Section 24(d) of the Agreement, UPN and the City now wish to
amend the Agreement to memorialize the change in the expiration date of the lease. The new
expiration date is June 1, 2028.
FINANCIAL IMPLICATIONS:
None. UPN will continue to pay the City fifty percent of the gross revenue from any UPN customer
using the City’s conduit.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Resolution.
STAKEHOLDER PROCESS:
Not applicable to this Resolution.
ALTERNATIVES:
If the Resolution is not approved the City is at risk of a lawsuit by UPN for breach of the lease
agreement.
RECOMMENDATION:
Approval of this Resolution.
Attachments: Amendment 1 to Lease Agreement
AMENDMENT 1 TO LEASE AGREEMENT
This Amendment 1 to Lease Agreement("Amendment") is effective this 14' day of September, 2015 by
and between Pueblo, a municipal corporation ("City")and Unite Private Networks, LLC("UPN").
RECITALS
WHEREAS, UPN and the PEDCO Foundation, Inc. previously entered into a Lease Agreement
("Agreement")dated June 25, 2008 regarding, inter alia, the use of certain fiber and conduit located 317
North Main Street, Pueblo,Colorado 81003; and
WHEREAS, on January 14, 2014 the PEDCO Foundation, Inc. sold its conduit to the City and
assigned the Agreement and the Lease to the City of Pueblo; and
WHEREAS, pursuant to Section 4 of the Agreement the Lease will terminate of June 1,2018 and
pursuant to Section 6 of the Agreement, UPN was given the right to extend the termination date of the
Lease for two additional five-year terms; and
WHEREAS, pursuant to Section 24(d)of the Agreement, UPN and the City now desire to amend
the Agreement to memorialize changes to the expiration date of the Lease.
NOW THEREFORE, in consideration of the covenants and agreements contained in this
Amendment and for other good and valuable consideration,the receipt and sufficiency of which are
acknowledged, the parties amend the Agreement as follows:
1. Section 4. Expiration of Lease will be removed in its entirety and replaced with the
following,
"The term of this Lease shall terminate on June 1, 2028 unless terminated as provided in this Lease."
2. Section 6. Option to Extend will be removed in its entirety.
3. Except as expressly modified herein by this Amendment,the Agreement shall remain in
full force and effect. Except as expressly modified herein, any obligations remaining to be performed by
the City or UPN under the Agreement are not waived but shall be fully performed in accordance with the
terms of the Agreement as it existed prior to this Amendment.
IN WITNESS WHEREOF,this Amendment 1 to the Agreement is executed and delivered as of
the date first written above.
UNITE PRIVATE NETWORKS, LLC
Signature
Name
Title
UNITE PRIVATE N�TWORKS, LLC
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Name
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Date
CITY OF PUEBLO
Stephen G. Nawrocki, President of City Council
[ SEAL]
Attest:
City Clerk
Approved as to Form
Daniel C. Kogovsek, City Attorney
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Date
C OF PU
L
ep en_G. icki, President of City Council
C.S E Amm,L
Attest:
City k
Approved as to Form
Daniel C. Kogovsek, City Attorney