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
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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
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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~~)
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ups/aee
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