extension to lease agreements with new cingular wireless

palosverdes.com

extension to lease agreements with new cingular wireless

MEMORANDUM

RANCHO PALOS VERDES

TO:

FROM:

DATE:

SUBJECT:

REVIEWED:

HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

CAROLYNN PETRU, DEPUTY CITY MANAGE~

JUNE 30, 2009

EXTENSION TO LEASE AGREEMENTS WITH NEW CINGULAR

WIRELESS ASSOCIATED WITH TH: ~ONOPOLEAT CITY HALL

CAROLYN lEHR, CITY MANAGER~

RECOMMENDATION

Approve the Second Amendment to the Lease Agreement with New Cingular Wireless to

extend the term of the agreement to June 30,2014.

DISCUSSION

Verizon Wireless owns the telecommunications monopole located at City Hall. In

February 1998, the City entered into a 20-year lease agreement with Verizon Wireless

(then PacTel Cellular) for the area where the pole is located, as well as space inside the

two-story City Hall building for its support equipment. In November 1988, the City

entered into a similar 20-year lease with New Cingular Wireless (then L.A. Cellular) to colocate

on the monopole and to install an equipment building behind the two-story City

Hall building. Southern California Edison co-located on the tower in 1994 and has

leased equipment space inside the City Hall building.

In 2008, at the end of the initial 20 year terms, the Council extended both Verizon's and

New Cingular's leases to June 30, 2009, in order to be contemporaneous with Edison's

lease, which was due to expire on the same date. However, Edison had one remaining

option to extend its original lease for an additional five years, which it exercised in

January this year, thereby extending its lease to June 30, 2014.

On June 16, 2009, City Council granted a lease extension to Verizon Wireless for one

additional five-year period until June 30,2014. New Cingular Wireless has submitted a

similar request to extend its lease to the same date. If granted by the City, this action will

automatically extend the associated Conditional Use Permits to the same date. Staff

recommends approval of the request for the following reasons:

1. All three leases associated with the monopole at City Hall will have the same

expiration date; thereby simplifying tracking and management of the lease

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Extension of lease Agreement with New Cingular Wireless

June 30, 2009

Page 2 of 2

agreements associated with this facility.

2. The existing lease with New Cingular Wireless acknowledge the potential

redevelopment of the City's property for the construction of a new Civic Center

and include provisions to relocation of the monopole to accommodate that

redevelopment, if necessary (see attached).

3. The proposed amendment includes a provision that would allow either party to

terminate the lease during the lease extension term by providing written notice at

least ninety (90) days prior to July 1, 2010 or any July 1 5t thereafter

FISCAL IMPACT

The current lease generates approximately $35,000 in General fund revenue in FY 08­

09. Extension of the lease agreement for an additional five years will keep this revenue

source intact during that period of time. The annual lease rate is adjusted each year by a

formula based on the Consumer Price Index (CPI).

Attachments:

Second Amendment to Lease Agreement with New Cingular Wireless

Letter from Coastal Business Group for New Cingular dated May 26, 2009

Excerpt from November 15, 1988 Building Lease Agreement with L.A. Cellular (now New

Cingular Wireless)

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SECOND AMENDMENT TO BUlLDINGLEASE AGREEMENT

This SECOND AMENDMENT TO BUlLDING LEASE AGREEMENT ("Amendment") is

made this 30 th day of June, 2009, by and between the City of Rancho Palos Verdes

("Lessor") and New Cingular Wireless PCS, LCC ("Lessee"), formerly known as LA

Cellular and AT&T Wireless.

RECITALS

WHEREAS, Lessor is the owner of that certain real property located at 30940

Hawthorne Boulevard, Rancho Palos Verdes, California (the "Property"); and

WHEREAS, Lessor and Lessee are parties to that certain Building Lease Agreement

dated as of November 15, 1988, as amended by that certain First Amendment to Lease

Agreement dated June 3, 2008 (collectively, the "Lease"), whereby Lessor leases to Lessee

space on the Property for a 280 square foot free-standing building (the "Building"), antenna

tower space at the northwest comer ofthe Lessor's two-story building, and utility connections

between Lessee's equipment and antennas for the construction, operation, and maintenance of

a communications facility, all as more particularly set forth therein; and

WHEREAS, Lessor and Lessee desire to amend the Lease to (i) further extend the

term thereof, (ii) provide for the automatic extension of the Lease term and (iii) modify

certain other provisions of the Lease, as more specifically set forth below.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing recitals, and the covenants and

conditions contained herein, and for other good and valuable consideration, the receipt and

sufficiency ofwhich are hereby acknowledged, Lessor and Lessee hereby agree as follows:

1. Defined Terms. Any capitalized terms used in this Amendment that are not

defined herein shall have the meanings given those terms in the Lease.

2. Term. Lessor and Lessee acknowledge and agree that the Lease's current

extension term will expire on June 30, 2009 (the "Current Extension Term"). Upon the

expiration of the Current Extension Term, the Lease shall automatically be extended for one (1)

additional extension term of five (5) years (the "Additional Extension Term") upon the same

terms and conditions as amended herein. The Lessor may terminate the Lease by giving written

notice thereof to Lessee at least ninety (90) days prior to July 1, 2010 or any July 1st thereafter

during the Additional Extension Term.

3. Notices. Lessee's notice address listed in the Lease is hereby deleted in its

entirety and the following is substituted in lieu thereof:

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"Lessee:

New Cingular Wireless PCS, LCC

dba AT&T Mobile

5405 Windward Parkway

P.O. Box 1630

Alpharetta, GA 30009

Attn: AT&T Network Real Estate Administration"

4. Representations and Warranties of Lessee. Lessee hereby represents and

warrants to Lessor as ofthe date hereof that: (a) Lessee is not in default under the Lease, and (b)

Lessee has not committed any act or omission that, after notice or the passage of time, or both,

would constitute a default or event ofdefault under the Lease.

5. Full Force and Effect. Except as specifically modified by this Amendment, all

ofthe terms and conditions ofthe Lease shall remain in full force and effect. The Lease is hereby

ratified and affirmed by Lessor and Lessee and remains in full force and effect as modified

hereby.

6. Conflict. In the event of a conflict between any term or provision of the Lease

and this Amendment, the terms and provisions ofthis Amendment shall control. All captions are

for reference purposes only and shall not be used in the construction or interpretation of this

Amendment.

7. Counterparts. This Amendment may be executed in any number of

counterparts, each ofwhich, when executed and delivered, shall be deemed to be an original, and

all ofwhich, taken together, shall be deemed to be one and the same instrument.

IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as ofthe

date and year first above written.

LESSOR:

City ofRancho Palos Verdes

APPROVED AS TO CONTENT:

ATTEST:

By:

Larry Clark, Mayor

By:

Carla Morreale, City Clerk

Date:

Date:

APPROVED AS TO FORM:

By:

Carol W. Lynch, City Attorney

Date:

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LESSEE:

New Cingular Wireless PCS, LCC, a

Delaware limited liability company

By:

Its:

AT&T Mobility Corporation

Manager

By:

Name: -----------

Title: -----------

Date:

_

_

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COASTAL BUSINESS GROUP, INC.

To:

FROM:

RE:

DATE:

Carolynn Petru,

City of Rancho Palos Verdes

Katelyn Frizelle

Coastal Business Group, Inc.

30940 Hawthorne Blvd.

Rancho Palos Verdes, CA 90274

AT&T Lease Renewal LAC124

May 26, 2009

Coastal Business Group, Inc., on behalf of New Cingular Wireless PCS, LLC, is pleased to present a proposal

offer to lease the premises referenced above under the following terms and conditions:

1.

2.

3.

Tenant:

Lease Type:

Size:

New Cingular Wireless PCS, LLC

Second Amendment to Lease Agreement

Approximately 280 sq. ft.

4.

Lease Term:

5. Commencement Date:

One (1) extension term of five (5) years

July 1, 2009

All other terms and conditions as per Original Lease shall remain in full force and effect

6. Expiration: This proposal to lease shall expire June 30, 2009.

It is expressly understood and agreed by all parties that this letter is only a summary of certain terms

and conditions being discussed between the parties hereto with respect to the proposed lease of the

demised premises. In no event shall this letter be considered as a binding contract enforceable

against either party. All terms and conditions proposed herein subject to Lessor's review and

approval of Lessee's credit and execution of a formal lease agreement. This letter is not a warranty

or representation by Lessor or Lessee that acceptance of this proposal will guarantee the execution of

a lease agreement of the demised premise. Thank you for your consideration. If you have any

questions or require any additional information, please contact my office.

Sincerely,

Katelyn S. Frizelle

on behalf of New Cingular Wireless PCS, LLC

AGREED AND ACCEPTED

City of Rancho Palos Verdes

16460 BAKE PARKWAY It SUITE 100" IRVINE, CA 92618. PHONE: 949.336.1550. FAX: 949.336.6665

E-MAIL: INFO@COASTALBUSINESSGROUP.NET • WWW.COASTALBUSINESSGROUP.NET

8-6


to complete construction within 18 months following the

commencement date of this Lese shall, at LESSOR's election

exercised by notice, terminate this Lese. All work shall be

performed in a good and workmanlike manner, shall SUbstantially

comply with plans and specifications submitted to LESSOR as

required by this Lease, and shall comply with all applicable

governmental permits, laws, ordinances, and regulations.

E. with the consent of Los Angeles SMSA Limited

Partnership, LESSEE will co-locate on PacTel's eighty foot (80')

tall unguyed utility pole with required antennae. Any additional

construction (or the erection of any additional antennae) by

LESSEE will require the prior written approval of LESSOR, which

r-;

approval will not be unreasonably withheld or delayed.

(1) As a co-tenant on the antennae pole it -;:-l

understood and agreed that the LESSOR has plans to redevel~; \

LESSOR's Property, and in connection therewith, LESSOR may

construct a new civic Center at LESSOR's Property. In the event

a new Civic Center is constructed at LESSOR's Property, LESSEE

agrees that LESSOR may require LESSEE to relocate the Prgperty to

other locations on LESSOR's Property. Such relocation shall

inclUde relocation of the easements for access to LESSEE's

antenna, relocation of the equipment used by LESSEE in connection

with operation of the antenna, and relocation of the antenna

itself. LESSEE has advised LESSOR that any location of the

antenna on LESSOr's Property is equally suitable for LESSEE I S

purposes as the existing location of the antenna, so long as

LESSEE continues to have reasonable access to the antenna and

related equipment and so long as the antenna continues to have

the same elevation above sea level, and LESSEE has acknowledged

and agreed that LESSOR has a significant interest in minimizing

the impact of the antenna on the aesthetics of LESSOR's Property.

Therefore, LESSEE has agreed that LESSOR shall have complete and

absolute discretion as to the determination of the new locations

for the Property, inclUding the antenna, in the event of such

redevelopment of LESSOR's Property; provided, however, LESSOR

agrees that LESSEE shall continue to have reasonable access to

the antenna and related equipment and that the antenna shall

continue to have the same elevation above sea level. LESSEE also

agrees that it shall cause such relocation to be accomplished

within sixty (60) days after LESSEE receives written notice from

LESSOR to cause such relocation. LESSOR agrees that it shall

cooperate with LESSEE so that any relocation may be accomplished

without interruption of LESSEE's telephone service to the pUblic.

LESSEE further agrees that any and all costs attributable to such

relocation shall be borne and paid for by LESSEE.

Notwithstanding the foregoing, LESSOR agrees that in the event

LESSOR .requires LESSEE to relocate its antenna as provided

hereunder, LESSEE shall have the option of terminating this Lease

by providing LESSOR with written notice of its election to do so

prior to the date LESSOR requires LESSEE to complete the

relocation of the Property.

With respect to this paragraph it shall not be unreasonable

for LESSOR to refuse to consent to new construction or the

erection of an additional antenna on the Property if LESSOR

\ e~termines that such new construction or additional antenna shafi \

~ve a negative impact upon the aesthetics of LESSOR's propert~

(2) LESSOR and LESSEE have discussed at length the

LESSOR's interest in making LESSEE's cellular telephone service

available to the public While at the same time preserving the

aesthetics of the civic Center area. Therefore, LESSEE agrees

that it shall cooperate at LESSEE's sole cost and expense with

any reasonable requests by LESSOR to camouflage LESSEE's antenna

in the initial installation thereof on the Property, to the end

that its impact on the aesthetics of the Civic Center shall be

minimized. LESSEE and LESSOR also agree that after the first

five (5) years of the term, LESSEE's conditional use permit may

be reviewed annually by LESSOR for the purpose of determining

L."".~t~~)

~~~~

ups/aee

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