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Home My WebLink AboutF-3 - Request from Success Bradcasting Company for Lease Extension Through 1983TO: MAYOR AND CITY COUNCIL September 10, 1968 FROM: City Manager SUBJECT: REQUEST FROM SUCCESS BROADCASTING COMPANY FOR LEASE EXTENSION THROUGH 1983 RECOMMENDATION: It is recommended that the City Council direct the City Attorney to prepare a new lease agreement with Success Broadcasting Company that will embody the following conditions: 1. That the new lease period extend through January 31, 1982; PrQ-1;f-nf 1gk5(, r,,xtu.Js fo �)C,V -Nn 14`11, 2� That if at any time the City Council determines that it is necessary to utilize a portion of the property being occupied by Success Broadcasting Company for any City purposes, that it may, by giving Success Broad- casting Company one year's written notice, cause them to relocate or move their existing facilities from the City property at their expense; 3. That the City reserves the right to terminate this lease agreement by giving Success Broadcasting Company one year's prior written notice if the City should sell or otherwise dispose of subject property; 4, That any additional future expansion of the existing tower and trans- mitter °facilities be subject to prior City Council approval; 5. That Success Broadcasting Company shall maintain in good repair the Cyclone fence which encloses that portion of the reservoir property being used by Success Broadcasting Company as well as those other facilities under their ownership; 6� In consideration of this lease agreement, Success Broadcasting Company shall pay the City the sum of $1,800.00 per year, or $150.00 per month, This amount will be subject to adjustment equal to the change in the Consumer Price Index for the Los Angeles -Long Beach Region. The dates of adjustment will be at five-year intervals and will be subject to adjust- ment as of January 31, 1973 and January 31, 1978. Payments of all con- sideration shall be made quarterly in advance with the first quarterly payment being due and payable on or before the first day of each subse- quent January, April and July; 7, Should any other use of the City property be proposed by Success Broad- casting Company other than those uses envisioned at the present time by Newport Beach Cablevision, such uses will be subject to prior City Council approval 8. In no event will the lease between the City and Success Broadcasting Company be cancelled by either party before Novembe 30, 1971 (as pro- -- V id e for in the existing lease agreement) ;MCo ��c y 9� Any assignment or transfer of this lease agreement shall take place only with prior Council approval, 10. The guy wires supporting the existing KOCM tower at the rear of subject property be relocated to a higher elevation on a vertical pole, in order to provide sufficient protection and vehicular access in the vicinity of the lower guy wires, said relocation to be subject to the approval of the Public Works Department; September 10, 1968 Page 2 Subject: Success Broadcasting Company Lease Extension 11, That if and when the City installs any landscaping in the parkway in con- junction with sidewalk and other improvements in front of the City prop- erty, that Success Broadcasting Company agree to maintain these landscape improvements. DISCUSSION: At the August 26 Council Meeting, the City received a request from Success Broadcasting Company (KOCM-FM radio) to have their lease with the City of Newport Beach for the City property located at 16th and Monrovia amended or renegotiated to provide for a fifteen year extension from this date through 1983. The reason for Success Broadcasting Company's request to have the lease extension made at this time is twofold; first, they are interested in receiving some assurance from the City that their radio tower will be allowed to remain to serve the station operations for years to come; and, secondly, they have received a conditional agreement from the Newport Beach Cablevision Company for the partial use of their tower and transmitter building for the CATV system now being installed in the City, Newport Beach Cablevision, before making a sizeable capital investment at any particular location, would also like some assurance that the installation of headend equipment and TV antennas will not have to be relocated in a relatively short period of time. Newport Beach Cablevision has con- cluded that the KOCM radio tower would provide the most optimum location for their facilities to best provide CATV service in Newport Beach and would like reasonable assurance that they will be able to have this location available to them between now and the end of their fran- chise period in January, 1982. The City entered into an original lease agreement with Success Broadcasting Company in December, 1961. This lease was extended in August, 1966 until November 30, 1971. The existing lease includes a clause giving the City the option to terminate the lease on November 30, 1971 if the City deems this is necessary for other City purposes, At the present time, the City receives $600.00 per year in revenue, from Success Broadcasting Company, or $50,00 per month. Effective December 1, 1968 and through the balance of the existing lease period, the City is scheduled to receive $750.00 per year, or $62.50 per month. The existing lease also contains a provision requiring the licensee (Success Broad- casting Company) to pay the City 25% of all revenue derived from other uses of the tower by any party other than the licensee (i<e , Newport Beach Cablevision)° The staff has investigated the feasibility of renegotiating the existing lease for a period similar to that requested by Success Broadcasting Company subject to the conditions outlined in the recommendations above, and we see no reason not to allow this lease to be rewritten to provide for a new lease period through January 31, 1982 subject to the imposition of these conditions. This will provide the City with additional revenue and at the same time, through a one-year termination clause and the other recommended conditions, provide the City with sufficient controls to utilize the property as it deems necessary during the lease period, In addition, the City will continue to enjoy a good working relationship with both Success Broadcasting Company and Newport Beach Cablevision and provide an appropriate public service to these firms rendering communications services to the resi- dents of Newport Beach. HARVE'Y La HURLBURT HLH/JPD:ldg 5 R i MAM10 ICOCM 103.1 IN - OMANGE COIJNIT MUSIC - NEWIPOMI CEINTEI2 ....................._................................................................................. August 21, 1968 Mayor Doreen Marshall and Council Members Newport Beach City Hall 3300 Newport Blvd. Newport Beach, California Honorable Mayor and Council Members: Re: Request for Amendment of Existing Lease between City of Newport Beach and Success Broadcasting Company Success Broadcasting Company (KOCM Radio) wishes to request, at this time, that our lease with the City of Newport Beach for the City property located at 16th and Monrovia in Newport Beach be amended in order to provide for a 15 year extension from this date through 1983. We have received a conditional agreement from Newport Cable - vision for the partial use of our tower and transmitter building .to better serve CATV customers in Newport Beach. With today's economy, both Success Broadcasting Company and Newport Cablevision would like the assurance of a lease period covering at least the length of the Newport Cablevision fran- chise period with the City. We wish further to request that the City staff be authorized to negotiate an appropriate lease agreement reflecting the best interests of the City for Council consideration, at an early date. We wish to assure the City that our tower will not interfere with the existing or future active water lines located on the subject property. Favorable consideration of this request will be appreciated. Sincerely, SUCCESS BROADCASTING COMPANY GaryBurri11, 'd Press ent GWB: lr ••................................................................................................••. SUCCESS BROADCASTING COMPANY • NO. 57 FASHION ISLAND • NEWPORT CENTER, NEWPORT BEACH, CALIF. 92660 (714) 644-2727 Meet the People... such sound ideas he was promoted to first vice-president in charge of cam- paigning. A year, ago January he embarked upon twelve months of intensive fund raising. Some form of payroll plan had been attempted in the past but Bur - rill really set it in gear. All the major corporations throughout the Harbor FUND Area were contacted with heavy concentration placed upon medium sized companys who employ 15 or more people. Executives from m a n y of the large corporations were recruited to assist in selling the Fund's program RAISING to organizations of similar size. CRAMPThe system proved &o successful, Costa Mesa achieved 143 percent of its goal, increasing past collections by 43 percent. This is believed to have set a national record for United Fund and Community C h e s t g r o u p s throughout the country. "Charity should begin in your own community," says Gary Burrill; immediate past first vice-president of the Costa Mesa United Fund, "rather than seeking outside aid to help those around us who need assistance." " Burrill moved into the Harbor Area less than four years ago, but it was not long before someone became aware of his views and his abundant energy, and appointed him to the board of directors of the local organiza- tion. He also was placed on the public relations committee. x-_ a,opla�, a By Christmas the campaigning had slowed down and Gary grabbed a plane for Europe where he spent three weeks relaxing and skiing in the Swiss Alps. Burrill, a n at i v e of California and a product of Huntington Park schools, was a business major at the University of',S•outhern California. For five years aftew finishing college he worked in the administrative send of the circulation department of the Los Angeles Times. Phil Davie, who married Burrill's cousin, was responsible for the 33-year-old businessman moving to Newport Beach. Davis always had wanted to own a broadcasting station and when he heard KOCM was for sale he talk- ed Burrill into going in with him on the purchase. Burrill knew nothing about that type of operation, but it sounded interesting and he could be closer to the water. Two y e a r s earlier he h ad purchased a Lido 14 and learned to sail. The sport held a great appeal for him and still does. As a bachelor he has a lot of time which can be donated to civic af- fairs and is active with several organizations in the area. He is the finance coordinator of the Orange County. American Field Service, a member of the beautification committee of the Citizens H a r b o r Area Re- search Team which is a part of the Newport Chamber of Commerce, a mem- ber of the 552 Club of Hoag Hospital, past vice-president of the Costa Mesa North Rotary Club and on the board of directors of the Volunteer Service Bureau of Newport Beach. This enthusiatic, brown -eyed young man is currently busy helping to get things ready for KOCM to move into their new facilities in Newport Center next summer. —Christine McCabe