20080603 CC SR Extension to Lease Agreement with New Cingular Wireless kAl
MEMORANDUM RANCHO PALOS VERDES
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: CAROLYNN PETRU, DEPUTY CITY MANAGER
DATE: JUNE 3, 2008
SUBJECT: EXTENSION TO LEASE AGREEMENT WITH NEW CINGULAR
WIRELESS ASSOCIATED WITH THE MONOPOLE AT CITY HALL
REVIEWED: CAROLYN LEHR, CITY MANAGER
RECOMMENDATION
Approve the First Amendment to the Lease Agreement with New Cingular Wireless PCS,
LLC to extend the term of the agreement to June 30, 2009.
DISCUSSION
Verizon Wireless owns the telecommunications monopole located at City Hall. The company
had an initial 20-year lease with the City for the area where the pole is located, as well as
support equipment space inside City Hall, which was scheduled to expire on February 28,
2008. On February 19, 2008, Council approved an amendment to the Lease Agreement with
Verizon Wireless to extend the term of the agreement to June 30, 2009. At that same
meeting, staff also informed Council that the ground lease with New Cingular Wireless
(previously known as LA Cellular and AT&T Wireless), which was allowed to co-locate on the
monopole in 1988, was scheduled to expire on August 31, 2008. Council directed staff to
bring back an amendment to the Lease Agreement with New Cingular Wireless prior to
August 31, 2008 to extend the term of the agreement to June 30, 2009. As Council will recall,
Edison also has communications facilities on the monopole and its building lease with the City
is due to expire on June 30, 2009, but can be extended once more to June 30, 2014
Staff is now presenting a Lease Amendment with New Cingular Wireless for Council's
consideration that is consistent with this prior direction to extend the current agreement
to June 30, 2009. However, staff has recently been in contact with Coastal Business
Group, Inc. a third party consultant representing New Cingular Wireless, regarding the
lease extension. Coastal Business Group has submitted a proposal to enter into a new
lease agreement with the City with an initial 10-year tern with two renewable terms of 5
years each, for a total term of 20 years (ending in 2028). Staff does not recommend
entering into a new agreement with an expiration date that is beyond June 30, 2009, as
the shorter term makes all of the existing lease agreements consistent with one another;
will allow the affected parties time to meet and confer; and allows staff time to analyze
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Extension of Lease Agreement with New Cingular Wireless
June 3, 2008
Page 2 of 2
and bring back a recommendation with alternatives to City Council regarding the future of
the monopole at City Hall.
Attachments:
First Amendment to Lease Agreement with New Cingular Wireless
Proposal from Coastal Business Group dated May 20, 2008
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FIRST AMENDMENT TO LEASE AGREEMENT
THIS FIRST AMENDMENT TO LEASE AGREEMENT ("Amendment") is
entered into and effective as of the 3rd day of June 2008, by and between the
CITY OF RANCHO PALOS VERDES ("LESSOR") and NEW CINGULAR
WIRELESS PCS, LLC ("LESSEE"), formerly known as LA Cellular and AT&T
Wireless, of 12900 Park Plaza Drive, 3rd Floor, Cerritos, California 90703.
RECITALS
A. LESSOR is the owner of that certain real property ("LESSOR'S
Property) located at 30940 Hawthorne Boulevard, in the City of
Rancho Palos Verdes, in the County of Los Angeles, California.
B. LESSOR and LESSEE are parties to that certain Building Lease
Agreement dated November 15, 1988, pursuant to which LESSEE is
leasing from LESSOR a portion of LESSOR'S Property (the
"Property"). Capitalized terms used herein but not otherwise defined
shall have the meaning ascribed to them in the Lease.
C. LESSOR and LESSEE now desire to amend the Lease on the terms
and subject to the conditions of this Amendment.
AGREEMENT
In consideration of the foregoing recitals and the mutual representation,
warranties, covenants and conditions set forth in the Lease and herein, the
parties, intending to be legally bound, agree to amend the Lease as follows:
1. With respect to Article 3 ("Term and Rent") of the Lease, a new
subsection D is hereby inserted to read in its entirety as follows:
E. The term of the Lease is hereby extended from August 31, 2008 to
June 30, 2009.
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IN WITNESS WHEREOF, the parties hereto have entered into this
Amendment to Lease as of the date set forth above.
LESSOR: LESSEE:
CITY OF RANCHO PALOS VERDES NEW CINGULAR WIRELESS
PCS, LLC
By: By:
Name: Douglas W. Stern Name:
Title: Mayor Title:
ATTEST:
By:
Name: Carla Morreale
Title: City Clerk
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Coastal Business Group, Inc.
To: Carolynn Petru,
City of Rancho Palos Verdes
From: Katelyn Frizelle
Coastal Business Group, Inc.
30940 Hawthorne Blvd.
Re: Rancho Palos Verdes, CA
90274
Lease Renewal
Date: May 20, 2008
Coastal Business Group, Inc., on behalf of New Cingular Wireless PCS, LLC, is pleased to present
a proposal to renew the lease of the premises referenced above under the following terms and
conditions:
1. Tenant: New Cingular Wireless PCS, LLC
2. Lease Type: Building space lease
3. Size: Approximately 280 sq. ft.
4. Lease Term: An initial 10-year term with 2 renewable terms of 5
years each. (20 years total)
S. Commencement Date: September 1, 2008
6. Monthly Base Rent: $2,493.35 per month; with CPI annual increases.
All other terms and conditions as per Original Lease shall remain in full force and affect
7. Expiration: This proposal to lease shall expire June 3, 2008.
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
28872 Drakes Bay • Laguna Niguel, CA • 92677
Ph: 949.215.5857 Fax: 949.215.3925
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AntoCAD Drafting September 01,2007
City Council
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Construction Design Pians Re: Letter of Authorization
Contract Administration
To Whom It May Concern:
Cost Analysis
Data Base Management Coastal Business Group,Inc.and its employees and agents are authorized
Engineering services representatives of BMS Communications,Inc-,and have been contracted
Feasibility Studies to perform real estate leasing and land-use entitlement services for BMS
Communications,Inc.
HOA Meetings
Joint Pole Solutions As an authorized representative of BMS Communications,Inc.,Coastal
! Lcase/Liceusc Agreements Business Group,Inc.,may sign,file,review land-use applications and
permits,represent at hearings,accept conditions of approval and negotiate
Maintenance Engineering leases on BMS Communications,Inc.,behalf
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j Outside Plant Engineering
I] Photo Shm; If there are any questions or comments,please contact me urunediately.
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Planning Couunission Sincerely,
Plant Contraction Mgmt.
Power&Telco Services
Ci r
Prof eet Administration ge
Director of Site A uisition
Project Management BMS Communica ns,Inc.
Regulamry 805-581-6522
Reports
Schedules
i Structural Analysis
System Design
Traffic Plans
i VVhlkout Services
Warehousing
Zoning Drawings
4133 Guardian Street a Simi Valley, CA 93063
805.526.1141 * Fax 805.526.2688
! Website:www.bmseng.com
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Xcing.uiar
raising the barradt'
c►,ts„�ar wireless
12M Park Para Drive,P Floor.
Carritm,CA 90703
911!07
RE: Letter of Authorization
To Whom It May Concern:
BMS Communications Inc.and its employees and agents are authorized representative of Cingular Wireless and
have been contracted to perform real estate Ieasing,land-use entitlements and architectural&ongirteering services
for Cingular telecommunications facilities.
As an authorized representative of Cingular Wireless,BMS Communications Inc., may sign,file,review land-use
applications and permits, represent at hearings, accept conditions of approval, and negotiate leases on Cingalar
Wireless'behalf.
If there are any questions or comments,please contact me immediately.
Sincerely,
Emily Vaughan
Ciagular Wireless
Real Estate and Construction Manager
12900 Park Plaza Drive,3rd Floor
Cerritos, CA 90703
en,ly-vaughan@chigulw.com
cingulw.com
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