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HomeMy WebLinkAboutItem No. 09 AT&T Cellular Rosetta Canyon ParkText File City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 17-468 Agenda Date: 1/9/2018 Status: Consent AgendaVersion: 1 File Type: ReportIn Control: City Council / Successor Agency Agenda Number: 9) Page 1 City of Lake Elsinore Printed on 1/4/2018 REPORT TO CITY COUNCIL To:Honorable Mayor and Members of the City Council From:Grant Yates, City Manager Prepared by: Grant Taylor, Community Development Director Date:January 9, 2018 Subject:AT&T Cellular Communication Site Lease Agreement Rosetta Canyon Park – 39423 Ardenwood Way Recommendation Authorize the City Manager to execute the agreement in such final form approved by the City Attorney. Background In late 2013, staff received an application from Smartlink on behalf of AT&T to install a cellular antenna structure at Rosetta Canyon Park located at 39423 Ardenwood Way. AT&T has a gap in reception coverage in this area of the City and after receiving City Council direction on March 11, 2014 staff proceeded with processing entitlements. On July 17, 2014 the Planning Commission unanimously granted approval of a Conditional Use Permit (CUP) application for the location and use of the antenna structure, a Variance to increase the height to 70 feet that exceeds the maximum 35 feet in the Park zone district, and a Minor Design Review for a clock tower, ground mounted equipment and fencing. Prior to City Council consideration of the Communication Site Lease Agreement the applicant notified the City that AT&T had suspended development of new cellular facilities. Discussion The applicant had submitted proposals for a faux eucalyptus tree and a bell tower for the antenna structure. Staff and the applicant agreed upon a clock tower with the stipulation that the City “E” Logo would be installed on the façade. The subject property is located within the Ramsgate Specific Plan and cellular facilities are permitted subject to a conditional use permit. The Park zoning district within the Specific Plan authorizes structures up to 35 feet in height so a Variance was approved for the antenna structure to be 70 feet in height. Due to the height of the structure, staff and the Planning Commission determined that the clock tower would be the most appropriate antenna structure within a public park that was reflected in the Minor Design Review Approval. Conditions of approval were set forth in Planning Commission Resolutions 2014-26 (CUP), 2014-25 (VAR) and 2014-27 (MDR). AT&T Lease at Rosetta Canyon Park January 9, 2018 Page 2 This is an opportunity for the City to provide gap coverage to its residents, obtain an ongoing revenue source and regulate the structure to be aesthetically pleasing and non- obtrusive to the general public while not impacting park activities. The antennas will be placed inside the clock tower to conceal the antennas from view. Collocation can be allowed for other carriers and reduce the potential impact that any future additional telecommunications facilities would have on this area. The equipment cabinets will be located within an approximate 1,000 square foot lease area and screened by an eight foot high block wall painted to match the adjacent Fire Station and park buildings. There will be virtually no increase in traffic in the area as AT&T technicians will visit the facility every four to six weeks for regular maintenance and no increase in the ambient noise level is anticipated. Analysis The Planning Commission approval is valid for a period of two years unless construction work is commenced or an extension of time granted. Prior to project expiration the City began construction on Rosetta Canyon Park approximately two years ago and installed the pad and electrical conduits to accommodate the cellular facility prior to expiration, therefore, the zoning entitlements had been used and are valid. Due to the location of park amenities, the actual location of the facility was moved approximately 850 feet (see attached maps) and AT&T confirmed the new location would not impact coverage. Deal points for the Communication Site Lease Agreement include: 5-year lease with four 5-year extensions (total 25 years) Rent $2,450 per month first year paid annually ($29,400) Rent to automatically increase 2.5% per year paid annually All construction costs and maintenance to be bourne by the applicant (except City will perform graffiti removal if necessary) City to retain ownership of clock tower after lease expires Tenant must install the “E” logo on the tower. Environmental Determination The project is exempt from the California Environmental Quality Act (CEQA) Guidelines (California Public Resources Code 21000 et. Seq.) and the State CEQA Guidelines (14 California Code of Regulations 14000 et. Seq.), specifically pursuant to CEQA Categorical Exemption Section 15303 (New Construction or Conversion of Small Structures) because the project consists of the construction and location of a limited number of new small facilities and structures. AT&T Lease at Rosetta Canyon Park January 9, 2018 Page 3 Fiscal Impact The costs of entitlement and the cost of construction will be bourne by the applicant. Annual revenue will start at $29,400 for the first year and increase 2.5% each year (i.e. $30,135.00 year two, $30,888.38 year three, etc.). Exhibits A – Rosetta Park AT&T Cellular Lease B – Rosetta Park Site Plan & Lease Agreement 1 @BCL@000DEE31.doc Site: Rosetta Canyon Park Address: 39423 Ardenwood Way, Lake Elsinore CA 92532 COMMUNICATION SITE LEASE AGREEMENT THIS COMMUNICATION SITE LEASE AGREEMENT (the “Lease”), made this ___ day of ______________, 2018, is entered into by and between the CITY OF LAKE ELSINORE, a California municipal corporation, (hereinafter referred to as “Landlord”) and NEW CINGULAR WIRELESS PCS, LLC, a Delaware limited liability company, (hereinafter referred to as “Tenant”). RECITALS The following Recitals are a substantive part of this Lease: A.Landlord owns certain real property legally described in Exhibit “A” attached hereto and commonly known as Rosetta Canyon Park generally located at 39423 Ardenwood Way, Lake Elsinore, CA, 92532; Assessor’s Parcel Number 347-120-050 (the “Property”). B.Tenant desires to construct and operate a wireless communications facility on a portion of the Property. C.Subject to the foregoing terms and conditions, Tenant desires to lease a portion of the Property along with any necessary easements over other portions of the Property and/or shared use of Landlord’s easements over other real property necessary for Tenant’s access and utilities to the Lease Area (as defined below) for the purpose of constructing and operating a wireless communication facility. AGREEMENT The parties agree as follows: 1.LEASE OF PREMISES. Landlord hereby leases to Tenant a portion of the Property, which portion generally consists of (i) approximately one thousand (1,000) square feet of exterior ground space (the “Lease Area”) located on the Property, which Lease Area will be improved with an eight foot (8’) perimeter wall constructed of concrete masonry units with stucco finish (the “CMU Wall”) and a seventy foot (70’) tall clock tower (the “Clock Tower”); (ii) a non-exclusive right for ingress and egress from a public right-of-way, seven (7) days a week, twenty four (24) hours a day, over the Property (the “Access Route”) for the purpose of installation, operation and maintenance of communications equipment; (iii) the right to install, maintain, replace and repair communication related wires, cables, conduits and pipes underground and along a right-of-way extending from the Verizon Wireless manhole for approximately 175 linear feet to the Lease Area (the “Underground Telco Trench”); and (iv) the right to install, maintain, replace and repair electrical power related wires, cables, conduits and pipes underground along a right-of-way extending from the Edison manhole for approximately 2 630 linear feet to the Lease Area (the “Underground Power Trench”). The Lease Area (including the CMU Wall and Clock Tower), the Access Route, the Underground Telco Trench, and the Underground Power Trench are hereinafter collectively referred to as the “Premises” and are depicted on Exhibit “B” attached hereto. In the event any public utility is unable to use either the Underground Telco Trench and/or the Underground Power Trench, Landlord hereby agrees to grant an additional right-of-way either to Tenant or to the public utility at no cost to Tenant, provided, however, that such additional right-of-way shall be approved by Landlord, which approval will not be unreasonably withheld, conditioned or delayed, and shall not unreasonably interfere with the primary purpose of the Property as a public park. 2.PERMITTED USE/ALTERATIONS AND ADDITIONS. (a)Tenant shall use the Premises exclusively for the transmission and reception of communications signals and the installation, maintenance, operation, repair and replacement of its communications fixtures which includes the CMU Wall and Clock Tower as generally depicted in Exhibit “C” along with the related equipment, cables, accessories and improvements (collectively, the “Communication Facility”) and uses incidental thereto in accordance with this Lease and in compliance with all applicable laws and for no other purpose. Before commencing any subsequent material alterations or improvements to the Premises (except for upgrades or replacements of “like-kind” equipment which is comparable in dimensions and weight, or equipment which is comparable in dimensions and weight and wholly contained within the Lease Area, Tenant shall submit plans and specifications to Landlord for Landlord's written approval, which approval shall not be unreasonably withheld, conditioned or delayed. (b)Prior to commencing any work (except for (i) routine maintenance or repairs, or (ii) responding to an emergency) related to the Communication Facility improvements or any other improvements approved by Landlord, Tenant shall endeavor to notify Landlord in writing of the expected commencement date. Landlord shall have the right thereafter to post and maintain on the Premises such notices as Landlord deems necessary to protect Landlord and the Premises from mechanics’ liens, materialmen’s liens or any other applicable liens. Tenant shall pay, when due, all claims for labor and materials furnished to or for Tenant for use in improving the Premises. Tenant shall pay, when due, all claims for labor or materials furnished to or for Tenant at or for use on the Premises, which claims are or may be secured by any mechanics’ or materialmen’s lien against the Premises or any interest therein. If Tenant, in good faith, contests the validity of any such lien, claim or demand, then Tenant shall, at its sole expense, defend itself and Landlord against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof against Landlord or the Premises. (c)Tenant’s performance under this Lease is conditioned upon Tenant obtaining, at its sole expense, all governmental licenses, permits and approvals enabling Tenant to construct and operate wireless communications facilities on the Premises. Prior to the commencement of construction of any improvements on the Premises, Tenant shall, without limitation, apply for and secure the following, and pay all costs, charges and fees associated with any permits and fees required by the City of Lake Elsinore, the County of Riverside, and any other governmental agency having jurisdiction. Landlord agrees to cooperate with Tenant’s reasonable requests for Landlord’s signatures as real property owner on permit applications, for allowing site inspections 3 by governmental agencies required in connection with reviewing permit applications, and for cooperative assistance in obtaining such necessary approvals, provided that such cooperation and assistance shall be at no expense to Landlord and upon the express understanding that the execution of this Lease does not constitute the granting of or a commitment to obtain any required land use permits, entitlements or approvals required by the City of Lake Elsinore. 3.TERM. (a)The initial term of this Lease (“Initial Term”) shall be five (5) years commencing on the date Tenant begins construction of the Communication Facility on the Premises or three (3) months from the date of full execution of this Lease, whichever occurs first (“Commencement Date”). Tenant shall promptly deliver written notice to Landlord of the Commencement Date. (b)Tenant shall have the right to extend the Initial Term of this Lease for four (4) additional terms (each a “Renewal Term”) of five (5) years each. The terms and conditions for each Renewal Term shall be the same terms and conditions as in this Lease, except that the Annual Rent shall be increased as set forth herein below. This Lease shall automatically be extended for each successive five (5) year Renewal Term unless Tenant notifies Landlord in writing of Tenant’s intention not to extend this Lease at least thirty (30) days prior to the expiration of the Initial Term or then existing Renewal Term. (c)The Initial Term, and the Renewal Term(s) are collectively referred to as the “Term.” 4.RENT. (a)Upon the Commencement Date, Tenant shall pay Landlord in advance, as annual rent, the sum of Twenty-Nine Thousand Four Hundred and No/100 Dollars ($29,400.00) per year, which is subject to annual adjustment by Landlord as provided below (the “Annual Rent”). The Annual Rent shall be due and payable from Tenant to Landlord, and Tenant shall pay such Annual Rent, in full on the Commencement Date and thereafter on each anniversary of the Commencement Date without offset, in advance. The initial Annual Rent payment will be forwarded by Tenant to Landlord within forty-five (45) days after the Commencement Date. Tenant shall make all payments to City at the following address: City of Lake Elsinore Administrative Services Department 130 South Main Street Lake Elsinore, CA 92530 (b)Throughout the Term on each anniversary of the Commencement Date, the Annual Rent shall increase by an amount equal to two and one-half percent (2.5%) of the Annual Rent paid in the immediately preceding year. By way of example, the Annual Rent due on the first anniversary of the Commencement Date shall be $30,135.00, the Annual Rent due on the second anniversary of the Commencement Date shall be $30,888.38, and so on. 4 (c)Any and all sums in addition to the Annual Rent payable by Tenant to Landlord pursuant to the provisions of this Lease or arising from Tenant’s use and occupancy of the Premises shall be deemed additional rent under this Lease and default by Tenant, after its receipt of written notice and the expiration of all applicable cure periods, in the payment of any such sums shall entitle Landlord to all the same remedies as would be applicable in the case of nonpayment of Annual Rent hereunder. (d)If Tenant fails to make any payment of Annual Rent, or other charges when due and the failure is not cured within thirty (30) days after Tenant's receipt of written notice of such failure, it would be impracticable or extremely difficult to fix the actual damage to Landlord resulting from such nonpayment and the collection efforts of Landlord necessitated thereby. Therefore, Landlord and Tenant estimate that such damage shall be ten percent (10%) of the unpaid amount, and Tenant shall pay, as additional rent, that sum, in addition to all other sums owing. In addition, Tenant shall pay to Landlord, as additional rent, a fee of $45.00 for any check presented by Tenant that is dishonored by the banking institution. 5.TERMINATION. This Lease may be terminated, without penalty or further liability, as follows: (a)by thirty (30) days’ prior written notice from the non-defaulting party, if the defaulting party remains in default under Paragraph 15 of this Lease after its receipt of written notice and the expiration of the applicable cure periods; (b)by Tenant upon written notice if, for any reason other than Tenant’s lack of reasonable diligence, Tenant is unable to obtain or maintain, any required approval(s) or the issuance of a license or permit by any agency, board, court or other governmental authority necessary for the installation and operation of the Communication Facility; or (c)by Tenant on sixty (60) days written notice for any reason, other than (a) or (b) above, or in paragraphs 19 or 20, below, so long as Tenant pays Landlord a termination fee equal to half of the Annual Rent, at the then current rate. 6.INSURANCE. Tenant shall procure and maintain for the duration of the Term insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Tenant’s operation and use of the Premises in accordance with the terms and conditions of this Section 6. The cost of such insurance shall be borne by Tenant. (a)Minimum Scope of Insurance. The insurance required to be maintained by Tenant shall provide coverage at least as broad as: i.Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001) or substantial equivalent. ii.Workers’ Compensation insurance as required by the State of California and Employer’s Liability insurance (for tenants with employees). 5 iii.Property insurance against all risks of loss to any the Communciation Facility and any and all other Tenant's other improvements or betterments at the Premises. Tenant may self insure this coverage. iv.Automobile liability insurance covering bodily injury and property damage, including owned, hired and non-owned vehicles coverage (ISO form CA 0001 [ed. 12/90] Code 1 [“any auto”]) or substantial equivalent. (b)Limits of Insurance. Tenant shall maintain limits of: i.General Liability:$2,500,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. ii.Employer’s Liability: $1,000,000 per accident for bodily injury or disease, policy limit. iii.Property Insurance: Full replacement cost with no coinsurance penalty provision. iv.Automobile: $1,000,000 combined single limit for each occurrence. (c)Self-Insurance. Tenant will have the right to Self-insure (as defined below) with respect to the coverages set forth in Section 7(a)(i)-(iv) above (“Required Insurance”), provided the following terms and conditions are met: i.Tenant shall (1) use an independent third party administrator to manage all claims; (2) maintain sufficient capital reserves, as approved annually by Ernst & Young, or any successor auditing firm; (3) assume defense obligations as required by the indemnification clause; (4) comply with applicable laws including the timely making all necessary government filings; and (5) Tenant or any parent company will maintain a minimum net worth throughout the term of this agreement of $100,000,000. However, if Tenant or any parent company does not maintain a net worth of $100,000,000 as evidenced by the AT&T Annual Report, the right to self-insure shall be revoked, and Tenant shall be required to immediately purchase commercially available insurance. The coverage afforded to Landlord shall be identical in form to the insurance required in Section 6(a) above and to the coverage contained in Insurance Services Office policy form CG 00 01, or its equivalent. Self-insurance for commercial general liability must be fronted by an insurer with an AM Best rating of at least “A-:VII; such insurer may be a captive insurer of AT&T. 6 ii.“Self-insure” with respect to Tenant means that Tenant (a) is acting as though it were the insurance company providing the Required Insurance, and (b) will pay amounts equal to the insurance proceeds which would have been payable if the Required Insurance policies had been carried by Tenant, which amounts will be treated as insurance proceeds for all purposes under this Lease. In the event of a dispute as to the amount which would have been payable if the Required Insurance had been carried, the provisions of subpart 6(a) above will control. iii.All amounts which Tenant pays or is required to pay and all claims resulting from risks for which Tenant has elected to Self-insure will be subject to the waiver of subrogation provisions of this Agreement and will not limit Tenant's waivers and indemnities set forth in this Lease. iv.In the event Tenant elects to Self-insure, the following additional conditions apply: a.Landlord shall promptly and no later than thirty (30) days after notice thereof provide Tenant with written notice of any claim, demand, lawsuit, or the like for which it seeks coverage pursuant to this Section and provide Tenant with copies of any demands, notices, summonses, or legal papers received in connection with such claim, demand, lawsuit, or the like; b.Landlord shall not settle any such claim, demand, lawsuit, or the like without the prior written consent of Tenant; and c.Landlord shall fully cooperate with Tenant in the defense of the claim, demand, lawsuit, or the like. (d)Other Insurance Provisions. The general liability policy is to contain, or be endorsed to contain, the following provisions to the effect: i.Landlord, its officers, elected and appointed officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of Tenant’s Communciation Facility and any and all other Tenant's other improvements or betterments at the Premises. Landlord’s additional insured status shall (i) be limited to bodily injury, property damage or personal and advertising injury caused, in whole or in part, by Tenant, its employees, agents or independent contractors; (ii) not extend to claims for punitive or exemplary damages arising out of the acts or omissions of Landlord, its employees, agents or independent contractors or where such coverage is prohibited by law or to claims arising out of the gross negligence of Landlord, its employees, agents or independent contractors; and, (iii) not exceed Tenant’s indemnification obligation under this Agreement, if any. 7 ii.Tenant’s required insurance coverage shall be primary insurance as respects Tenant’s operations. Any insurance or self-insurance maintained by Landlord, its officers, elected and appointed officials, employees, agents or volunteers shall be excess of Tenant’s required insurance and shall not contribute with it in this respect. iii.Tenant shall provide at least thirty (30) days’ prior written notice by mail to Landlord (10 days notice shall apply to non-payment) of cancellation of any required coverage that is not replaced. (e)Acceptability of Insurers. Except as otherwise specficied herein, insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A-:VII. (f)Verification of Coverage. Tenant shall furnish Landlord with original certificates evidencing coverage required by this Section 6. All certificates are to be received by the Landlord within thirty (30) days after the Commencement Date and annually thereafter. (f)Subrogation Waiver.Landlord and Tenant hereby waive any rights of recovery each may have against the other for any loss or damage to Landlord or Tenant, or their respective property, the Premises or its contents arising from any risk typically insured by fire, extended coverage and any other property insurance, including is Tenant elects to Self-insure. The respective insurance policies and/or Self-insurance will also conform to such waivers. Tenant’s Workers’ Compensation insurance policy shall be specifically endorsed to waive subrogation in favor of Landlord. 7.INTERFERENCE. (a)Landlord may grant, after the date of this Lease, a lease, license or any other right to any third party for the use of that portion of the Property not included in the Premises, if such use does not adversely affect or does not cause harmful interference which is measurable in accordance with then existing industry standards to Tenant’s then existing Communications Facility, and subject to further provisions hereof. Landlord will notify Tenant in writing prior to granting any third party the right to install and operate communications equipment on the Property. Provided that Tenant complies with requirements set forth in Section 2, nothing contained herein will restrict Tenant nor its successors and assigns from installing and modifying its communications equipment in a manner consistent with Exhibit “B” and in compliance with applicable Laws. (b)Landlord will not use, nor will Landlord permit its employees, tenants, licensees, invitees or agents to use, any portion of the Property in any way that (i) unreasonably interferes with the operations of Tenant or the rights of Tenant under this Lease or (ii) causes harmful interference which is measurable in accordance with then existing industry standards to Tenant’s then existing Communications Facility. To the extent possible, Landlord will cause such harmful interference to cease within seventy-two (72) hours following notice from Tenant. Notwithstanding the foregoing, Tenant acknowledges and agrees that Landlord’s Fire Department occupies other portions of the Property and operates communication equipment 8 thereon. Tenant has had the opportunity to analyze the effect of such existing uses on its current use of the Premises and Tenant acknowledges that such existing uses do not currently cause harmful interference which is measurable in accordance with then existing industry standards to Tenant’s then existing or proposed Communications Facility. Notwithstanding the foregoing and in recognition of the critical public safety mission carried out by Landlord’s Fire Department, under no circumstances shall the use of current or future communication equipment by the Fire Department constitute a harmful interference with the operations of Tenant irrespective of industry standards. In such circumstance, Tenant’s sole remedy shall be to terminate this Lease. 8.INDEMNIFICATION. (a)Tenant agrees to indemnify, defend and hold Landlord, its elected and appointed officials, officers, employees, agents and independent contractors, harmless from and against any injury, loss, damage or liability whatsoever (or any claims in respect of the foregoing), costs or expenses (including reasonable attorneys’ fees and court costs) to the extent arising out of or in connection with the negligence or willful misconduct of Tenant, its employees, contractors or agents, except to the extent attributable to the negligent or intentional act or omission of Landlord, its employees, agents or independent contractors. (b)Tenant, as a material part of the consideration rendered to Landlord in entering into this Lease, hereby waives all claims against Landlord for damages to Tenant’s Communication Facility improvements and for death of or injury to Tenant, its agents, employees, invitees or any third person in or about the Premises from any cause except for Landlord’s willful or negligent misconduct. (c)Landlord agrees to indemnify, defend and hold Tenant, its employees, contractors and agents, harmless from and against any and all injury, loss, damage or liability (or any claims in respect of the foregoing), costs or expenses (including reasonable attorneys’ fees and court costs) arising out of the willful misconduct or negligence of Landlord or its employees or agents, except to the extent attributable to the negligent or intentional act or omission of Tenant, its employees, agents or independent contractors. 9.WARRANTIES. (a)Tenant and Landlord each acknowledge and represent that it is duly organized, validly existing and in good standing and has the right, power and authority to enter into this Lease and bind itself hereto through the party set forth as signatory for the party below. (b)Landlord represents and warrants and covenants that: (i) as long as Tenant is not in default under this Lease after its receipt of written notice and the expiration of all applicable cure periods, Tenant shall have actual, quiet and peaceful use, enjoyment and possession of the Premises; and (ii) to the best of its current, actual knowledge, without investigation or inquiry, Landlord's execution and performance of this Lease will not violate any laws, ordinances, covenants or the provisions of any mortgage, lease or other agreement binding on the Landlord. 9 (c)Except as otherwise set forth herein, Landlord makes no warranty, express or implied, regarding the condition of the Property and/or the suitability of the Premises for the installation and operation of Tenant’s Communication Facility. Tenant acknowledges and agrees that the Premises are being leased in an “AS-IS” condition. 10.ENVIRONMENTAL. Landlord warrants and agrees that neither Landlord nor, to Landlord's knowledge, any third party has used, generated, stored or disposed of, or permitted the use, generation, storage or disposal of, any Hazardous Material (as defined below) on, under, about or within Landlord's Property in violation of any law or regulation. Landlord and Tenant each agree that they will not use, generate, store or dispose of any Hazardous Material on, under, about or within Landlord's Property in violation of any law or regulation. Landlord and Tenant each agree to defend and indemnify the other and the other's partners, affiliates, agents and employees against any and all losses, liabilities, claims and/or costs (including reasonable attorneys' fees and costs) arising from any breach of any warranty or agreement contained in this paragraph. “Hazardous Material” shall mean any substance, chemical or waste identified as hazardous, toxic or dangerous in any applicable federal, state or local law or regulation (including petroleum and asbestos). 11.SPECIAL CONDITION RELATED TO TECHNOLOGY IMPROVEMENTS. Tenant agrees that as equipment installed as part of this Lease needs replacement due to obsolescence or the end of its useful life (as determined by Tenant, based on its sole and absolute discretion), that Tenant shall endeavor to ensure that such replacement will be done with the least visually and environmentally impacting equipment readily available on the market. Accordingly, with respect to equipment replacement within the public view shed of the Property, Tenant shall submit plans and specification for such equipment replacement to the City for review and approval, which approval shall not be unreasonably withheld, conditioned or delayed. Tenant agrees to employ reasonable means to mitigate view and noise impacts of such equipment. 12.RIGHT TO RETAIN CMU WALL AND CLOCK TOWER. Notwithstanding Section 13 below, in contemplation of the expiration of the Term, Landlord shall have the right to request that the CMU Wall and Clock Tower (along with ancillary improvements to the Clock Tower, including but not limited to utilities improvements necessary for lighting and operation of the clocks), not be removed from the Leased Area and shall remain upon and be surrendered with the Premises as a part thereof at the expiration or sooner termination of the Term. 13.REMOVAL. Except as provided in Section 12, all portions of the Communication Facility brought onto the Property by Tenant will be and remain Tenant’s personal property and, at Tenant’s option, may be removed by Tenant at any time during the Term, provided, however, that Tenant shall repair any damage to the Property caused by such removal and restore the Premises to substantially the same condition existing prior to Tenant’s installation of such Communications Facility improvements, reasonable wear and tear and casualty damage by others excepted. Landlord covenants and agrees that no part of the Communication Facility constructed, erected or placed on the Premises by Tenant will become, or be considered as being affixed to or a part of, the Property, it being the specific intention of the Landlord that all improvements of every kind and nature constructed, erected or placed by Tenant on the Premises 10 will be and remain the property of the Tenant and may be removed by Tenant at any time during the Term. Within thirty (30) days of the expiration or ninety (90) days after any earlier termination of this Lease, Tenant will remove, at its expense, all of the Communications Facility improvements and shall surrender the Premises to Landlord in substantially the same condition as existing prior to Tenant’s installation of such Communications Facility improvements, reasonable wear and tear and casualty damage by others excepted. Landlord acknowledges that Tenant may enter into financing arrangements including promissory notes and financial and security agreements for the financing of the Communications Facility (the “Collateral”) with a third party financing entity and may in the future enter into additional financing arrangements with other financing entities. In connection therewith, Landlord (i) consents to the installation of the Collateral to the extent that the Collateral is part of the approved Communications Facility and is otherwise in compliance with the terms and conditions hereof; (ii) disclaims any interest in the Collateral, as fixtures or otherwise; and (iii) agrees that the Collateral shall be exempt from execution, foreclosure, sale, levy, attachment, or distress for any Annual Rent due or to become due and that such Collateral may be removed at any time without recourse to legal proceedings provided that the Property is returned to substantially the same condition existing prior to Tenant’s installation of such Communications Facility improvements, reasonable wear and tear and casualty damage excepted. Notwithstanding the foregoing, prior to entering into any such financing arrangements, Tenant shall endeavor to notify Landlord in writing of its intention to enter into such arrangement and shall provide Landlord with all applicable documentation reasonably requested by Landlord evidencing such arrangements. Tenant shall not enter into any financing arrangements which would impair the rights of Landlord hereunder and in no event shall such arrangements apply to the Premises or the Property. In the event that any third party financing entity forecloses on the Collateral or otherwise takes over Tenant's operation of the Communications Facility such entity shall be bound by and shall comply with all the terms and conditions of this Lease and shall execute an agreement reasonably acceptable to Landlord assuming all of the obligations of Tenant hereunder. 14.MAINTENANCE; UTILITIES. (a)Except as provided in subparagraph (c), Tenant will keep and maintain the Lease Area in good condition, subject to reasonable wear and tear and shall ensure that the Clock Tower is provided regular maintenance due to its exposure to the elements, which maintenance shall include periodic painting, repair and/or replacement of wood components. The clocks shall be regularly maintained and replaced as necessary to ensure that they are accurately keeping time. (b)Tenant will be solely responsible for and promptly pay all utilities charges for electricity, telephone service or any other utility used or consumed by Tenant on the Premises. Landlord will fully cooperate with any utility company requesting a license over, under and across the Property in order for the utility company to provide service to the Tenant. (c)In recognition of the Clock Tower’s inherent public landmark qualities and its location within a public park, Landlord shall be responsible for promptly remediating any graffiti within the Lease Area in general and the CMU Wall/Clock Tower in particular without additional cost to Tenant. 11 15.DEFAULT AND RIGHT TO CURE. (a)The following will be deemed a default by Tenant and a breach of this Lease: (i) non-payment of Annual Rent (including additional rent) (as set forth in Section 4 hereof) if such Annual Rent remains unpaid for more than thirty (30) days after Tenant's receipt of written notice of such failure to pay from Landlord; or (ii) Tenant’s failure to perform any other term or condition under this Lease within thirty (30) days after Tenant's receipt of written notice from Landlord specifying the failure. No such failure, however, will be deemed to exist if Tenant has commenced to cure such default within such period and provided that such efforts are prosecuted to completion with reasonable diligence. Delay in curing a default will be excused if due to causes beyond the reasonable control of Tenant. If Tenant remains in default beyond any applicable cure period, Landlord will have the right to exercise any and all rights and remedies available to it under law and equity. (b)The following will be deemed a default by Landlord and a breach of this Lease: (i) Landlord’s failure to provide access to the Premises as required by this Lease within twenty- four (24) hours after written notice of such failure; (ii) Landlord’s failure to cure a harmful interference problem as required by this Lease within seventy-two (72) hours after written notice of such failure; or (iii) Landlord’s failure to perform any term or condition under this Lease within thirty (30) days after receipt of written notice from Tenant specifying the failure. No such failure, however, will be deemed to exist if Landlord has commenced to cure the default within such period and provided such efforts are prosecuted to completion with reasonable diligence. Delay in curing a default will be excused if due to causes beyond the reasonable control of Landlord. If Landlord remains in default beyond any applicable cure period, Tenant will have the right to exercise any and all rights available to it under law and equity. 16.ASSIGNMENT/SUBLEASE. Tenant shall not, without Landlord’s prior, written consent, which shall not be unreasonably withheld, conditioned or delayed, assign this Lease or any interest in this Lease or any right or privilege appurtenant hereto or permit use of the Premises by any person or persons other than Tenant, its employees, agents, contractors and sub- contractors. Consent by Landlord to any assignment or subletting shall not constitute consent to any subsequent assignment or subletting. Notwithstanding the foregoing to the contrary, this Lease may be sold, assigned or transferred by Tenant without any approval or consent of Landlord to Tenant's principal, affiliates, subsidiaries of its principal or to any entity which acquires all or substantially all of Tenant's assets in the market defined by the Federal Communications Commission in which the Property is located by reason of a merger, acquisition or other business reorganization. Any assignee, sublessee or transferee shall agree for the benefit of Landlord to be bound by, assume and perform all the terms, covenants and conditions of this Lease. No change of stock ownership, partnership interest or control of Tenant or transfer upon partnership or corporate dissolution of Tenant shall constitute an assignment hereunder. Upon Landlord’s consent to an assignment or upon notification to Landlord of an assignment as permitted herein, Tenant will be relieved of all future performance, liabilities and obligations under this Lease to the extent of such assignment. 12 17.NOTICES. All notices hereunder must be in writing and shall be deemed validly given if sent by certified or registered mail, return receipt requested, or by a recognized overnight courier, postage prepaid, to be effective upon actual receipt or refusal as shown on the receipt obtained pursuant to the foregoing. Notice will be addressed to the parties at the addresses set forth below: Tenant:New Cingular Wireless PCS, LLC Attn: Network Real Estate Administration Re: Cell Site #: ___; Cell Site Name: ___ (CA) Fixed Asset #.: _____________________ 575 Morosgo Drive NE, 13F, West Tower Atlanta, GA 30324 With a copy to New Cingular Wireless PCS, LLC Attn: AT&T Legal Dept – Network Operations Re: Cell Site #: ___; Cell Site Name: ___ Fixed Asset #: ___________________ 208 S. Akard Street Dallas, TX 75202-4206 Landlord:City of Lake Elsinore Attn: City Manager 130 S. Main Street Lake Elsinore, CA 92530 Either party hereto may change the place for the giving of notice to it by written notice to the other as provided herein. 18.SEVERABILITY. If any term or condition of this Lease is found unenforceable, the remaining terms and conditions will remain binding upon the parties as though said unenforceable provision were not contained herein. 19.CONDEMNATION. In the event Landlord receives notification of any condemnation proceedings affecting the Premises, Landlord will provide notice of the proceeding to Tenant within ten (10) days. If a condemning authority takes all of the Property, this Lease will terminate as of the date the title vests in the condemning authority. If as a result of a partial condemnation of the Premises or the Property, Tenant determines, in Tenant’s sole discretion, that it is unable to use the Premises for the purposes intended hereunder, or if such condemnation may reasonably be expected to disrupt Tenant's operations at the Premises for more than forty-five (45) days, Tenant may, at Tenant’s option, to be exercised in writing within fifteen (15) business days after Tenant receives Landlord's written notice of such condemnation (or in the absence of such notice, within fifteen (15) business days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. All awards for the taking of any part of the Premises or proceeds from the sale made under the threat of the exercise of the power of eminent domain shall be the property of Landlord, provided that Tenant shall be entitled to any award for loss of or damage to Tenant’s 13 fixtures and removable personal property and reasonable moving and relocation expenses if awarded against the condemning authority. Tenant will be entitled to reimbursement for any prepaid Annual Rent. 20. CASUALTY. Landlord will provide notice to Tenant of any casualty affecting the Premises within ten (10) days of the casualty. Consistent with paragraph 6(f) of this Lease, Landlord shall not be required to repair any injury or damage, by fire or other casualty, to the property of Tenant, or to make repairs or replacements of any Communication Facility or other improvements installed on the Premises by or for Tenant. If any part of the Communication Facility or Premises is damaged by fire or other casualty so as to render the Premises unsuitable, in Tenant’s reasonable determination, then Tenant may terminate this Lease by providing written notice to the Landlord no later than thirty (30) days following Tenant's receipt of Landlord’s notice of casualty (or in the absence of such notice, within thirty (30) days after the casualty event), which termination will be effective as of the date of Tenant’s notice of termination. Upon such termination, Tenant will be entitled to collect all insurance proceeds payable to Tenant on account thereof and to be reimbursed for any prepaid Rent. 21.WASTE, NUISANCE. Tenant shall not use the Premises in any manner that may result in waste or the creation of a nuisance, and Tenant shall maintain the Premises free of any objectionable and unreasonable noises, odors or disturbances. Tenant's use as permitted hereunder shall not be deemed a nuisance or to create unreasonable noises, odors or disturbances. 22.TAXES. (a)Tenant shall pay prior to delinquency all taxes, assessments, license fees and other public charges levied, assessed or imposed or which become payable during the Term of this Lease upon any of Tenant's Communication Facility improvements and all other equipment and personal property of Tenant installed or located upon or about the Premises. Whenever possible, Tenant shall cause such property to be separately assessed. If, however, any or all of such items shall be assessed and taxed with the Landlord's real property, Tenant shall pay to Landlord such taxes as are attributable to Tenant’s Communication Facility improvements and all other equipment and personal property of Tenant located at the Premises within thirty (30) days after receipt of an invoice from Landlord advising Tenant of the taxes applicable to Tenant’s property together with a copy of the tax bill. (b)Tenant recognizes and understands that this Lease may create a possessory interest pursuant to California Revenue and Taxation Code Section 107 and as such this Lease may result in the assessment of property taxes against the Premises by the County of Riverside. Tenant shall pay, prior to delinquency, any possessory interest taxes assessed against Tenant’s interest in the Premises or Tenant's interest in the underlying realty during the Term. (c)Tenant shall pay any business tax or license fee imposed upon its operation or its interest under this Lease by any applicable governmental authority. 23.ENTRY BY LANDLORD. Tenant shall permit Landlord and Landlord’s agents to enter the Premises at all reasonable times after Tenant's receipt of written notice from Landlord (which 14 notice shall not be required in the event of an emergency) and with a representative of Tenant present (unless Tenant elects not to require the presence of such representative) for the purpose of inspecting the same, or for the purpose of posting notices of nonresponsibility for alterations, additions or repairs. Landlord acknowledges and agrees that Tenant's equipment and improvements are highly sensitive. Accordingly, it is agreed, that only authorized engineers, employees or properly authorized contractors of Tenant or persons under their direct supervision will be permitted to handle or touch Tenant's equipment and improvements. 24.HOLDING OVER. If Tenant should remain in possession of the Premises after the expiration of the removal period described in Section 13 above without executing a new agreement or unless the parties are negotiating a new lease or lease extension in good faith, then such holding over shall be construed as a tenancy from year-to-year, subject to all conditions, provisions and obligations of this Lease insofar as they are applicable to a year-to-year tenancy, except the Annual Rent shall be increased to one hundred and ten percent (110%) of the Annual Rent applicable during the year immediately preceding such expiration or earlier termination. 25.ATTORNEYS’ FEES. In the event of any legal action or proceeding between the parties, the prevailing party shall be entitled to reasonable attorneys’ fees and expenses as a part of the judgment resulting therefrom. 26.NO PRECEDENTIAL VALUE TO EITHER PARTY. The terms and conditions of this Lease are specific to this particular transaction and this Lease shall not have any precedential value to either party. 27.MISCELLANEOUS. (a)Amendment; Waiver. This Lease cannot be amended, modified or revised unless done in writing and signed by an authorized signatory of the Landlord and an authorized signatory of the Tenant. No provision may be waived except in a writing signed by both parties. (b)Short Form Lease. Either party will, at any time upon fifteen (15) days prior written notice from the other, execute, acknowledge and deliver to the other a recordable Memorandum of Lease in form reasonably acceptable to both parties. Either party may record this memorandum at any time, in its absolute discretion. (c)Successors and Assigns. The terms and conditions contained in this Lease shall bind and inure to the benefit of the parties, their respective heirs, executors, administrators, successors and assigns. (d)Entire Agreement. This Lease and the exhibits attached hereto, all being a part hereof, constitute the entire agreement of the parties hereto and will supersede all prior offers, negotiations and agreements. (e)Governing Law. This Lease will be governed by the laws of the State of California, without regard to conflicts of law. 15 (f)Interpretation. Unless otherwise specified, the following rules of construction and interpretation apply: (i) captions are for convenience and reference only and in no way define or limit the construction of the terms and conditions hereof; (ii) use of the term “including” will be interpreted to mean “including but not limited to”; (iii) whenever a party’s consent is required under this Lease, except as otherwise stated in the Lease or as same may be duplicative, such consent will not be unreasonably withheld, conditioned or delayed; (iv) exhibits are an integral part of the Lease and are incorporated by reference into this Lease; and (vi) reference to a default will take into consideration any applicable notice, grace and cure periods. (g)Estoppel. Either party will, at any time upon thirty (30) days prior written notice from the other, execute, acknowledge and deliver to the other a statement in writing (i) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying this Lease, as so modified, is in full force and effect) and the date to which the rent and other charges are paid in advance, if any, and (ii) acknowledging that there are not, to such party’s knowledge, any uncured defaults on the part of the other party hereunder, or specifying such defaults if any are claimed. Any such statement may be conclusively relied upon by any prospective purchaser or encumbrancer of the Premises. (h)No Option. The submission of this Lease for examination or consideration does not constitute a reservation of or option for the Premises. This Lease will become effective only upon the legal execution and delivery hereof by Landlord and Tenant. (i)Time is of the Essence. Time is of the essence in this Lease. (j)Relationship of Parties. The relationship of the parties hereto is that of Landlord and Tenant and it is expressly understood and agreed that Landlord is not in any way or for any purpose a partner of Tenant, or a joint venturer with Tenant in the conduct of Tenant’s business or otherwise. (k)Limitation of Liability. Except for the indemnity obligations set forth in this Lease, and otherwise notwithstanding anything to the contrary in this Lease, Tenant and Landlord each waives any claims that each may have against the other with respect to consequential, incidental or special damages, however caused, based on any theory of liability. 16 IN WITNESS WHEREOF, the undersigned have caused this Lease to be executed as of the dates set forth below. “LANDLORD” CITY OF LAKE ELSINORE, a municipal corporation Dated: By: Grant Yates, City Manager ATTEST: City CLERK By: Susan Domen, City Clerk APPROVED AS TO FORM: By: Barbara Leibold, City Attorney “TENANT” New Cingular Wireless PCS, LLC, a Delaware limited liability company By: AT&T Mobility Corporation Its: Manager Dated: By: Print Name: Its: EXHIBIT “A” PROPERTY LEGAL DESCRIPTION [Attached] EXHIBIT “B” PREMISES DEPICTIONS [Attach Sheets A-1 through A-5] �m J6.NAWIJ N ms�� Nti �N m_ J4 � � F pppO�p �l DN6Z r � 4 1 A �Z i UU Wyy x � �� ii • � S d� In 4 _ ii'333�33�3 O t 6 N r yC :w ± P � Y � � NN yA LLyyAA yy 0 .. 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