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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 Signal •e V weilie • V MI6 ' ' "�, 6 Name —C-Wirzad en-VISPi Titl121 ' 15' ' l 'c", Date CITY OF PUEBLO Stephen G. Nawrocki, President of City Council [ SEAL] Attest: City Clerk Approved as to Form Daniel C. Kogovsek, City Attorney py. iy . oi..5 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