20090616 CC SR Extension to Lease Agreements with Verizon Wireless & New Cingular Wireless 1A
MEMORANDUM RANCHO PALOS VERDES
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: CAROLYNN PETRU, DEPUTY CITY MANAGER
DATE: JUNE 16, 2009
SUBJECT: EXTENSION TO LEASE AGREEMENTS WITH VERIZON
WIRELESS AND NEW CINGULAR WIRELESS ASSOCIATE
WITH THE MONOPOLE AT CITY HALL
REVIEWED: CAROLYN LEHR, CITY MANAGER 09--
RECOMMENDATION
1) Approve the Fourth Amendment to the Lease Agreement with Verizon Wireless to
extend the term of the agreement to June 30, 2014; and, 2) 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 co-
locate 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.
Both Verizon and New Cingular have requested extensions to their respective leases for
one additional five-year period until June 30, 2014. If granted by the City, this action will
automatically extend the associated Conditional Use Permits to the same date. Staff
recommends approval of both requests for the following reasons:
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Extension of Lease Agreements with Verizon Wireless and New Cingular Wireless
June 16, 2009
Page 2 of
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
agreements associated with this facility.
2. The existing leases for Verizon and New Cingular 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 amendments both include 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 St thereafter
FISCAL IMPACT
The two leases generated approximately $70,000 in General fund revenue in FY 08-09.
Extension of the lease agreements 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:
Fourth Amendment to Lease Agreement for Verizon Wireless
Second Amendment to Lease Agreement with New Cingular Wireless
Letter from Core Communications for Verizon Wireless dated February 24, 2009
Letter from Coastal Business Group for New Cingular dated May 26, 2009
Excerpt from First Amendment to Lease Agreement with Verizon Wireless
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FOURTH AMENDMENT TO BUILDING LEASE AGREEMENT
This FOURTH AMENDMENT TO BUILDING LEASE AGREEMENT("Amendment") is
made this 16th day of June, 2009, by and between the City of Rancho Palos Verdes
("Lessor") and Los Angeles SMSA Limited Partnership, a California limited partnership dba
Verizon Wireless ("Lessee").
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 and
Addendum to Building Lease Agreement, each dated as of February 16, 1988, as amended by
that certain Second Amendment to Lease Agreement dated January 17, 1995 and that certain
Third Amendment to Lease Agreement dated February 19, 2008 (collectively, the "Lease"),
whereby Lessor leases to Lessee interior space within Lessor's existing building ("Building")
at the Property, antenna tower space adjacent to the 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 of which 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. Extension of 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 terminated 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:
Palos Verdes Fourth Amendment
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"Lessee: Los Angeles SMSA Limited Partnership,
dba Verizon Wireless
180 Washington Valley Road
Bedminster,New Jersey 07921
Attn: Network Real Estate"
4. Representations and Warranties of Lessee. Lessee hereby represents and
warrants to Lessor as of the 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 of default under the Lease.
5. Full Force and Effect. Except as specifically modified by this Amendment, all
of the terms and conditions of the 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 of this 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 of which, when executed and delivered, shall be deemed to be an original, and
all of which, taken together, shall be deemed to be one and the same instrument.
IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as of the
date and year first above written.
LESSOR:
City of Rancho Palos Verdes
APPROVED AS TO CONTENT: ATTEST:
By: By:
Larry Clark, Mayor Carla Morreale, City Clerk
Date: Date:
APPROVED AS TO FORM:
By:
Carol W. Lynch, City Attorney
Date:
Palos Verdes Fourth Amendment
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LESSEE:
Los Angeles SMSA Limited Partnership, a
California limited partnership dba Verizon Wireless
By: AirTouch Cellular, its General Partner
By:
Name: Walter L. Jones, Jr.
Title: Area Vice President Network
Date:
Palos Verdes Fourth Amendment 7-5
SECOND AMENDMENT TO BUILDING LEASE AGREEMENT
This SECOND AMENDMENT TO BUILDING LEASE AGREEMENT("Amendment") is
made this 16th 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 corner of the 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 of which 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 0 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 of the 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 of default under the Lease.
5. Full Force and Effect. Except as specifically modified by this Amendment, all
of the terms and conditions of the 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 of this 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 of which, when executed and delivered, shall be deemed to be an original, and
all of which, taken together, shall be deemed to be one and the same instrument.
IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as of the
date and year first above written.
LESSOR:
City of Rancho Palos Verdes
APPROVED AS TO CONTENT: ATTEST:
By: By:
Larry Clark, Mayor 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: AT&T Mobility Corporation
Its: Manager
By:
Name:
Title:
Date:
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7-9
COASTAL BUSINESS GROUP, INC®
Carolynn Petru,
To: City of Rancho Palos Verdes
FROM: Katelyn Frizelle
Coastal Business Group,Inc.
30940 Hawthorne Blvd.
RE: Rancho Palos Verdes,CA 90274
AT&T Lease Renewal LAC124
DATE: 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. Tenant: New Cingular Wireless PCS,LLC
2. Lease Type: Second Amendment to Lease Agreement
3. Size: Approximately 280 sq.ft.
4. Lease Term: One(1)extension term of five(5)years
5. Commencement Date:
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 i SUITE 100 ® IRVINE, CA 92618 4 PHONE: 949.336.1550 ! FAX: 949.336.6665
E-MAIL: INFO@COASTALBUSINESSGROUP.NET i WWW.COASTALBUSINESSGROUP.NET
7-10
3. With respect to Article 4 ("Use of the Property") ,
subpart C(1) is hereby deemed modified to read as follows in its
entirety:
It is understood and agreed that the LESSOR has
plans to redevelop 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 Property 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'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 signifi-
cant 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.
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