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HomeMy WebLinkAboutItem 5j - Lease Amendment with PTI US Towers II LLC for Telecommunication at Santa Rosa Park Item 5j Department: Administration Cost Center: 1001 For Agenda of: 5/19/2026 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Natalie Harnett, Policy and Project Manager SUBJECT: LEASE AMENDMENT WITH PTI US TOWERS II, LLC FOR TELECOMMUNICATIONS FACILITY LEASE AT SANTA ROSA PARK RECOMMENDATION 1. Approve a Draft Resolution (Attachment A) authorizing the Second Amendment to the Lease Agreement between the City of San Luis Obispo and PTI US TOWERS II, LLC, to extend the lease for telecommunications facilities at Santa Rosa Park for an additional 20-year term. 2. Authorize the Finance Director to implement any necessary budget adjustments to reflect the amended lease terms. POLICY CONTEXT The City’s Financial Management Manual (Section 475-C) allows for long-term leases of City property on a case-by-case basis and provides guidance for leases that support significant City goals, plans, or policies and offer measurable community benefits. The policy emphasizes that the overarching principle is to pursue an approach that best achieves the City’s objectives given the circumstances. The original lease for this property was executed in accordance with all City policies and procedures. The recommendation follows Council direction from a Closed Session discussion regarding price and terms for the associated property and lease and is in alignment with the applicable guidance from the City’s Financial Management Manual. In addition, Council approval of the lease is required by Resolution No. 10052 (2009), which states that “no sale or lease of real property nor any sale of personal property of a value in excess of one thousand dollars ($1,000.00) nor any lease of personal property for a period exceeding three (3) years shall be authorized by the Council except by resolution passed by affirmative vote of three-fifths (3/5) of all members of the Council.” Page 143 of 415 Item 5j DISCUSSION Background The City of San Luis Obispo currently holds five cellular communication site leases executed between 2003 and 2017. These leases provide locations for wireless service infrastructure, including antennas, towers, and related transmitting equipme nt. A ground lease is the legal agreement that authorizes a wireless provider or tower company to use City-owned land for these purposes in exchange for rent. A ground lease at Santa Rosa Park was executed on February 3, 2003 (Attachment A), between the City of San Luis Obispo and Pacific Bell Wireless (d/b/a Cingular Wireless) for space to install two light pole “towers”, among other improvements . In June 2003, there was a First Amendment to the Lease Agreement (Attachment B) which made changes to include additional improvements to the park. T‑Mobile became the sole owner of Pacific Bell Wireless, LLC in January 2005. In November 2015, PTI entered into an agreement with T‑Mobile to acquire ownership and management rights to hundreds of T‑Mobile tower sites in the U.S., including this location. As a result, PTI is now the entity that operates the tower and serves as the tower ground lessee. The lease covers approximately 1,200 square feet of land which now includes two light standards that support wireless communication equipment and two shared buildings that house cell equipment and storage for the City’s skate program. In lieu of rent payments through 2008, Cingular funded the construction of new light standards, two small buildings, site lighting, and landscaping improvements, all of which are now owned by the City. The site currently hosts three wireless carriers: New Cingular Wireless (AT&T), Verizon, and T‑Mobile, which use the tower infrastructure to provide service to the surrounding area. AT&T holds a separate direct ground lease with the City expiring in 2031, while Verizon and T‑Mobile are subtenants of PTI. The original 2003 lease agreement (Attachment A) included an initial five ‑year term followed by three successive five‑year renewal periods, for a total potential term of 20 years. PTI has exercised all three of the initial five -year renewal options, and the lease expired in March 2023. PTI has expressed interest in further extending the lease and has continued providing rent payment through 2026. No formal notice of lease termination has been issued, as the City was actively working through the logistics of the lease extension. The City Council met in closed session on November 18, 2025, to discuss the lease and provide direction on price and terms for a potential lease extension. Although the original lease term expired in 2023, the parties agreed to proceed by amendment rather than a new agreement because the majority of the existing terms remain acceptable and continue to govern the relationship. Staff therefore recommend approval of Attachment D, which amends the existing lease to add four successive five- year renewal options along with the following key changes: Page 144 of 415 Item 5j Section 3. Term: The amendment adds four (4) additional successive five-year Renewal Terms beyond the current term. Each Renewal Term will automatically extend unless the Lessee provides at least sixty (60) days’ written notice of its intent not to renew. The first additional Renewal Term will commence retroactively on April 1, 2023, following the expiration of the current term on March 30, 2023. Public Purpose Termination Provision: Under the original agreement, PTI held a unilateral right to terminate the lease for convenience with 60 days’ notice, while the City had no comparable option. This amendment adds a new termination right, providing the City greater flexibility should the Premises be required for public purposes. During any Renewal Term, the City may terminate the lease with two (2) years’ prior written notice. The parties will negotiate in good faith to identify a potential relocation site on City property; however, if a mutually acceptable relocation site cannot be reached, or if the Lessee is unwilling or unable to relocate, the lease will automatically terminate at the end of the two -year notice period. This provision establishes a clear off -ramp for the City and enhances long-term control of the property. Section 4. Rent: Effective retroactively to April 1, 2026, annual rent will increase to $45,000, escalated annually by Consumer Price Index (CPI) or 3 percent (3%), whichever is greater. Note: Section 22.E.1 includes an “additional annual rent” clause requiring the Lessee to pay the City additional rent for each subtenant. With two current subtenants, the City will receive a total of $90,000 annually. One-Time Payment: Upon full execution of the Second Amendment, the Lessee will pay the City a one-time payment of $25,000. Standard Provisions: The amendment includes standard legal provisions affirming that the remainder of the lease remains in effect, California law governs, the City has authority to enter into the agreement, and the Lessee may update and record accurate property descriptions at its expense. Previous Council or Advisory Body Action On November 18, 2025, the City Council met in closed session pursuant to Government Code section 54956.8 to provide direction to its real property negotiators regarding the lease of telecommunications facilities at Santa Rosa Park. The proposed Lease Amendment is the result of those negotiations and is now presented for Council consideration in open session. Public Engagement Notice of this agenda item was provided through the meeting's posted agenda. The public may submit comments in writing before the meeting or share their input during the public meeting. Page 145 of 415 Item 5j CONCURRENCE The Parks and Recreation department, IT, and Finance were consulted at the onset of lease negotiations and concur with the recommendation. The City Attorney’s Office has supported the lease negotiations and has reviewed and approved the lease as to form. ENVIRONMENTAL REVIEW This action is not considered a “project” under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060(c)(3) because it involves an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment. Additionally, the proposed lease amendment is categorically exempt from CEQA under CEQA Guidelines Section 15301 (Class 1 - Existing Facilities), which applies to the operation, permitting, and leasing of existing public or private facilities involving negligible or no expansion of existing use. The amendment would extend the term of an existing telecommunications lease at an established facility at Santa Rosa Park and does not authorize any new construction or expansion of the existing use. FISCAL IMPACT Budgeted: Yes Budget Year: 2025-26 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A N/A N/A N/A State Federal Fees Other: Total N/A N/A N/A N/A There is no direct fiscal impact associated with this request beyond staff time required for negotiation. Cell tower leases provide a source of passive revenue for the City. The increased rent will be backdated to April 2026 and reflects an approximate 12 percent year over year increase from 2025, resulting in an estimated additional $10,000 in annual revenue from what was originally budgeted. In addition, the City will receive a one-time payment of $25,000. Page 146 of 415 Item 5j ALTERNATIVES Modify terms of the Second Amendment to the lease. Council could choose to change the proposed terms, in which case staff would return to PTI to determine if the revised terms are acceptable. Do not amend the lease. Under this alternative, Council could direct staff to issue notice to terminate the existing agreement and provide direction on whether to seek a new tower operator. The telecommunications infrastructure is already in place, and discontinuing the lease could disrupt services to the community. While the City could issue an RFP for a new tower operator, the process is uncertain, would require significant staff resources, and may not result in terms more favorable than those currently proposed. ATTACHMENTS A – Resolution Approving First Amendment to Lease Agreement B – April 2003 Lease Agreement with Cingular Wireless C – June 2003 First Amendment to Lease Agreement D – Second Amendment to Lease Agreement (Exhibit A to Resolution) Page 147 of 415 Page 148 of 415 R ______ RESOLUTION NO. _____ (2026 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE SECOND AMENDMENT WITH PTI US TOWERS II, LLC FOR TELECOMMUNICATIONS FACILITIES AT SANTA ROSA PARK WHEREAS, the City entered into a lease agreement with Pacific Bell Wireless, LLC (d/b/a Cingular Wireless) on April 1, 2003, for an initial five-year term with options to extend for three additional five-year terms; and WHEREAS, a First Amendment to the agreement was executed in June 2003 to revise the Improvements associated with the site; and WHEREAS, T‑Mobile became the sole owner of Pacific Bell Wireless, LLC in 2005 and later transferred ownership and management rights for this tower site to PTI US Towers II, LLC (PTI) through a 2015 agreement, resulting in PTI now serving as the operator of the tower and ground lessee; and WHEREAS, PTI has exercised all three initial five-year renewal options, and the current lease term expired in March 2023; and WHEREAS, PTI has expressed interest in further extending the lease, and while the lease has technically expired, PTI has continued providing rent payments through 2026; and WHEREAS, the City Council met in closed session on November 18, 2025, to discuss options for the Santa Rosa Park telecommunications site and determine negotiating parameters for the lease extension, and staff subsequently negotiated a lease amendment within the parameters established by Council; and WHEREAS, the Financial Management Manual (Section 475 -C) authorizes long- term leases of City property on a case-by-case basis when they support City goals, plans, or policies and provide measurable community benefits. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council has determined, based on the circumstances at the time, that approval of Second Lease Amendment is in the best interest of the City and ensures continued reliable telecommunications service to the community. SECTION 2. The City Council hereby approves the Second Amendment to the Lease Agreement with PTI US Towers II, LLC, substantially in the form attached hereto as Exhibit A, and authorizes the City Manager or designee to execute the amendment and any related documents necessary to effectuate the lease extension. Page 149 of 415 Resolution No. _____ (2026 Series) Page 2 R ______ SECTION 3. The City Manager or designee is authorized to take all actions necessary to implement this Resolution, inclu ding recording the lease amendment and updating financial records to reflect the updated annual rent. SECTION 4. This Resolution shall take effect immediately upon adoption. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 20 26. ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 150 of 415 TELECOMMUNICATIONS FACILITY LEASE AT SANTA ROSA PARK This Lease is made and entered into this // day of ?-~a-k , 2003, by a n d between the CITY OF SAN LUIS OBISPO, a mW1icipal corporation and charter ct (herei nafter referred to as "Lessor"), and PACIFIC BELL WIRELESS, LLC, a Nevada limited liability company d/b/a CINGULAR WIRELESS (hereinafter referred to as "Lessee"). RECITALS This Lease is made a nd e ntered into with respect to the following facts: A. Lessor is the owner of the prope11Y described in Exhibit A, located at I 90 Santa Rosa Street, San Luis Obispo, Cal ifornia, commonly known as Santa Rosa Park. B. Lessee has requested permission to construct a wireless communications facility to be located at Santa Rosa Park and Lessee is willing to construct and dedicate certain public improvements to Lessor. Lessor is willing to lease a portion of Santa Rosa Park to Lessee upon the terms and conditions hereinafter set forth. C. Lessee warrants that the facility will not interfere with the Department of Parks and Recreation's operations or the public's use of the park. D . This Lease is conditioned upon Lessee obtaining all governmental permits and approval s enabling L essee to construct and operate wireless communications facili ties on the Premises, as defined below. E. Lessor and Lessee have heretofore entered into a Memorandum of Understanding dated April 16, 2002 concerning Santa Rosa Park. NOW THEREFORE, the parties hereto agree as follows: 1. Premises. Lessor is the owner of a parcel of land located in the City of San Luis Obispo, County of San Luis Obispo, State of California, located at 190 Santa R osa Street, San Luis Obispo, California, 93401, commonly known as Santa Rosa P ark. The land is more particularly described in Exhibit A, attached hereto . Lessor hereby agrees to lease to Lessee and Lessee hereby agrees to lease from Lessor approximately one thousand two hundred ( 1,200) square feet of the land and all access and Telecommunicatio11s Facility Lease at Santa Rosa Park Page I of 27 Page 151 of 415 .: ·, . • utility casements described in Ex hibit B attac hed hereto, and by this referenc e made a part hereo f (he reinafter r eferred to as the "Premises"). This lease is s ubject to th e tenns, covenants and conditions hereinafter set forth and Lessee covenants, as a material part of the consideration for th is Lea se, to keep and pcrfom1 each and every tem1, covenant and condition of said Lease. During the term of this Lease, Lessor also grants to Lessee an irrevocab le, nonexclusive right of ingress and egress, seven d ays a week, twenty-fo ur (24) hours a day, and the right to install and maintain underground uti lity wires and cables and conduits and pipes (I) from the Premises to the neare st public r igh t-of-way, and (2) from the radio equipment to the an tennas. 2. Improvements. A. lessee shall d esign and perform, construct or erect or cause to be constructed or e rected al it s sole cost the followi ng improvements as shown on Exhibi t "B" (herei nafter "Park Improvement s"): I) Remove a portion of the central parking lot and reconfi gure the layout of th e re maining parking tot to re sult in no net loss of parking spaces. 2) Install turf and irrigation syste ms where the asphalt was removed . 3) Relocate the soil.ball field right field fen ce from the cast to the west of the newly turfed area. 4) Replace a nd re locate the r ight fi e ld light pole to the west side of the newly turfed area with two light poles tha t a lso serve as cellular antennas. 5) Construct a building for c ellul ar equipment on the north side of the soil.ball field . 6) Construct a building located on the east side of the basketball cou rt for communication s equipment a nd stora ge fo r the skate and blading pro gram ("radio/utility building"), including th e fo ll owing for the Lessee's Fire Department: a) fib er and phone service access in two dedicated conduits (2 inch) from Ha thway Street to th e radio/utili ty building; b) space and install ati on for a two floor-t o-ceiling "st3Jldard racks" (each one be ing 19 inches wide by 84 inches ta ll); c) area Te lecom11umicario11s Facility l ease al Santa Rosa Park Page 2 of27 Page 152 of 415 separation, for security purposes only, for the two racks mentioned above (chain link fence with a locking gate is suggested); d) one 20 amp electrical service, backed-up for by emergency generator to the secure area (this may be a shared system); e) climate control for the secured area; I) access to the sec ure area 24- hours a day, 365 days a year; g) space for 6 antenna on the light pole s ite, with appropriate conduit runs to the radio/utility building; h) assurance that only FCC licensed radio systems a re to be insta lled in the radio/utility building. 7) Upgrade the lighting on the multi-use court and skate orea . 8) Make other minor improvements as necessary to complete the Park Improveme nts project. Lessee shall also erect on the Premises commun ications facilities, which include, but are not limited to, equipment shelters, radio frequency transmitting and receiving equipment, batteries, utility lines, transmission lines, radio frequency transmitting and receiving antennas, and supporting structures and improvements (h ereinafter "Lessee's Facilities") as shown on Exhib it "B". Titc plan s for the Park Improvements and Lessee's Facilities (landscaping, irrigati on, fencing, bu ilding, concrete, and all related improvements) as shown on Exhibit "B" shall have the prior written approval of Lessor in its municipal capacity (not in its capacity as la ndlord). L essee shall dedicate the Park Improvements to Lessor upon completion thereof. B. The Park Improvements shall be performed by Lessee under the authority, direction, supervision and approval of Lessor. Lessee sha ll submit construction plans to the City's Direc tor of Parks and Recreation for approval prior to submilling the application and plans to the Community Development Department for building permit processing and approval. C. Lessee acknowledges and understands that the improvement is a public construction project subject lo the competitive bidding requirement contained in California Public Contracts Code Section 20162 and the prevailing wage requirement contained in California Labor Code Section t 771. Te/ecommunicatio11s Fac ility lease at Santa Rosa Park Page J o/17 Page 153 of 415 D. Lessee shall provide a Perfonnance Bond to Lessor to guarantee completi on of the Park Improvements in the amount of Two Hundred Twenty-seven Thousand Eighty -three Do llars ($227 ,083). Bond shall be provided prior to the issuing of the building pennit. 3. Tenn. The initial tenn of this Lease shall be for five (5) years {"Initial Tenn") commencing with the issuance of a City building pem1 it to constn1ct the Lessee 's Facilit ies and Park Improvements, or April I , 2003, whichever is earlier ("Commencement Da te"). This Lease shall au tomati call y be renewed on the same tenns and conditions , for three (3) additi onal tc nns (each a "Renewal Tenn") of five (5) years each, unless Lessee notifies Lessor of its intention not lo ren ew, at least s ixty (60) days prior to th e e xpiration of the Initia l Tenn or any Rene wal Tenn. 4. Rent. Rent shall be paid annua lly in advance as follows: A . Lessee shall pay to Lessor as annual re nt on or before the Commencement Date of the Lease the sum of Twenty Thousand Do llars ($20,000.00) ("Annual Rent") and Additional Rent per tenant without deducti on, setoff, notice or d emand, provided, however, th at Lessor shall waive the Annual Rent and any Additiona l Annual Rent (n s de fined in Section 22.E.) in consid erati on for the Park Impro vements conslructed by Lessee at it s, and its s ublease tena nt's sole cos t. Lessor 's waiver of Lessee's obligation to make Annual Rent and a ny Additional Annual Rent payments shall commence on the Commencement Date and shall continue until the total cost of the Pa rk Improvements has been credited against s uch Rent payments. B. Annuall y thereafter, Lessee shall pay to Lessor as Annua l Rent for th at lease year without deduction, setoff, n otice, or demand the previous year's Annual Rent multiplied by the CPI Adjuster, or multiplied by three percent (3%), whichever is greater. C. The CPI Adjuster means a percent, which is calculated by d ividing the Unit ed S tates Consumer Price Index (All Urban Consumers) published by the Bureau of Labor Statistics of th e U.S. Depanment of l.abor three (3) months prior to the adj ustment date by th e base Index number publi shed three (3) mont hs pri or to the Co mmenceme nt Date, or previou s adjustment date, as applicab le. If th e In dex is changed so that the ba se In dex number di ffers from that in effect when the first extended Telecommunlcatlons Facility Lease ar Santa Rosa Park l'age 4 of27 Page 154 of 415 term com men ce d, the Ind ex shall be converted in accordance with the conversion factor publi shed by the Bureau of Labor Statistics. If th e Index is discontin ue d or revised during an extended tem1, suc h othe r government index or computat ion with which it is replaced sha ll be used in order to obtai n substantially th e same res ult as would be obtained if th e Index had no t bee n discontinued or revise d. D. If Lessee fails to pay th e Annua l Rent wi thin th irty (30) days aficr such rent is due, Lessee sha ll pay a late fee of one and one ha lf percent ( 1.5%) per month. This late charge docs not establish a grace period. Lessor and Lessee agree that th e charge is presumed to be th e da mages sus tai ned by Lessor for Lesse e's late payment of rent and that it is impracticable or difficult to fi x the ac tu al dama ges . E. Pro vid ed in Exhibit D is a sample schedul e of lease payments to the City, assum ing th e va lue of improvements set forth in Section 2(A) of Two Hundred Twenty-seven Thousand Eighty-thr ee Dollars ($227,083.) Minimum lease payme nts increa se three percent 3% as se t forth in Section 4(D) and are scheduled for the full twenty (20) ye ar teml. 5. Use. A. Lessee shall use th e Premises for th e so le purpose of constructing, maintaining, securing and operating wirele ss communications facilities (including but no t limited to cell ul ar, PCS, paging, and broad band) including the construction of equipment buildings and installation of required antennas and related commun ications equipment upon the new sports lighting poles all as liste d, dep ic te d, and described in the "Lessee's Facilities" which is attached hereto as Exhibit "B" and hereby in corporated by reference. Any other use of the Premi ses or use of equipment not described in Exhibit "B," is not authorized and shall constitute a breac h of this Lease . 0. Lessee must obtain all discretionary permit s and app ro vals re qui red by Lessor in its municipal ca pacity. In stallation of a new wire less tclcco mmuni cAt io n or mod ification of an e~i s ting in stallation shall require use permit approval and architectural review. The applicant shall s ubmit application materials and fees as required by th e Community Development Department. Wireless communications faciliti es shall not be construct ed, installed or modifi ed pri or to obtain ing a City building Telecomm1mications Facility I.ease at Santa Rosa Park Page5 o/27 Page 155 of 415 pcnn it. It sha ll be the responsibility of the owner/operator of a te lecommunications facility to provide the C ity with a notice of intent to modify site equi pmen t in an y way. Lessor shall reasonably cooperate (at no expense lo Lessor) with Lessee in connection with Le ssee's e fforts to obtai n a ll such permits and approvals; provided, however , Lessor shall not be obligated to a ppl y for an y pennits or approvals with Lessee. Construction of Lessee's Facilities and the Park Improvements shall be at Lessee's sole expense. Further, Le ssee s hall mainta in the Lessee's Facilities !Tee from hazards or risk to the public health, safety and welfare. C. At all times throughout the tcnn of thi s Lease, Lessee's use of the Premises shall be in confom1ancc with, and s ubj ect to all conditions of, any and all discretionary pcnnits in effect. D. Lessor agrees that Le ssee's ability to use the Premises 1s dependent upon Lessee's obtaining all necessary certificates, pcm1ils and/or oth er approvals which may be required from Lessor in its munic ipal or regulatory capaci ty and fr om any fed era l, slate or other local authority. Le ssor agrees to cooperate with Lessee as to Lessee's obtaining such certificates, pennits or other approvals. In the event Lessee is unable to obtai n any ne cessary certificate, pcm1it or other a pproval in order to operate or conslrucl lhe Park Improvements or Le ssee's Facilities, Lessee may tenninate lh is Lease as provided here in, upon thirty (30) days prior written notice. 6. Interferen ce. A. Lessee warrants that its construction, repair and opcralion of Lessee's Facilities w ill not interfere with Lessor's fire, police, public works and ot her public safety or city department communication broadcasts or frequencies. All operations by Lessee shall be in compl iance wi th all Fed eral Communications Commi ssion requirement s and a ll applicable Jaws . B. If Lessor suspe cts or has r eason to believe that Lessee's use o f the Pre mises creates radio or television interference for nearby residents or inte rfere nce with Lessor's com m un ication systems, and if Lessee (i) docs n ot proceed diligently to elimin ate su ch interference, or (ii) provid e evidence that Lessee and the sublease tenant a re not the source of such interference, wit hin ten (10) Te leco mmunications Fa ciUty Lease at San ta Rosu Park /'age 6of 27 \ Page 156 of 415 business days after notice from Lessor to do so, Lessor may immediately termi nate this Lease by gi,~ng notice to Lessee. C. Lessee shall provide Lessor with a contact person who shall be available twenty- four (24) hours a day to rece ive reports of any interfe rence \vith Lessor's frequencies. In th e event tha t there is in terference with Lessor's publ ic safo ty frequen cies, Lessee s hall immedi ately cease th e operations creating the interference when directed to do so by th e City's Fire Ch ief and/or Police Chief un til s uch time that the interfe rence can be eliminated to the sa tisfaction of the City 's Fire Ch ief and/or Police Chief. Lessee's fai lu re to immediately cease such operations shall be consid ered a material breach of thi s I.ease notw ith stand ing Paragraph 6.B. above. 7. Radio Frequency Emission Exposure. A. No wireless te lecommunica tion facility shall be s iled or operated in suc h a manner th at it violates any condition of its Federal Communication Commission's (FCC) permit or licen se. To that end no facility or co mbinati on of faci liti es shall produce at any time power densities in any inhab it ed area that exceed the FCC's Maximum Pe rm issible Exposure (MPE) limits for electric and magnetic fie ld strength and powe r density for transmi tt ers or any more restrictive legally enforceable and appli cable standard subsequently adopted or promu lga ted by the city, count y, th e stat e of California, or th e federal governme nt. For purposes of radio frequenc y emissions, com pliance with FCC exposure lim it ations sha ll consti tu te a conclusive presumption that there is no hazard or risk to the pub lic hea lth, safety or we lfare. B. Initial compliance with this requirement shall be demonstrated for any facility within three hu ndred (300) feet of resid ential uses or sensiti ve receptors such as schools, churches, hos pit als, etc. and all broadcas t radio and te levision facili ti es, regardless of adjace nt la nd uses, through submi ssion , at th e time of application for the necessary perm it or en titlement, ca lculati ons spec ifyi ng MPE levels in the inhabited area where the leve ls produced are projected to be highest. If the se calculated levels exceed eighty percent (80%) of the MPE limits, th e applicant sha ll hire n qualifie d electrica l engineer li censed by th e State or Ca li fornia to measure exposure le\•els at th e loca ti on aft er the Telecommunications Facility lease 111 Santa Rosa Park Page 7of17 Page 157 of 415 facility is in operation. A report of these measurements and the engineer's findings wi th respect lo compliance with MPE limits shall be submil1cd to the Community Development Director. Lessee's Facilities shall not commence nonnal operations until it complies with, or has been modified to comply with this standard. Proof of compliance shall be a ce rtification provided by the engineer who prepared the original r eport. In order 10 assure the objectivity of the analysis, the City may require, at the <tpplicant's expense, independent verification of the re s ult s of the analysis. C. Every wi reless telecommunication faci li ty within three hundred (300) feet of an inhabite d area and all broadcast radio and television facili ties shall demonstrate continued compliance with its FCC permi t or li cense and MPE limits. Every fiv e (5) years a report listing each tran smitter and antenna present at the faci lity and the effective radiated power radiated sha ll be submillcd to the Community Development Director. If either the equipment or effective radiated power has increased, calculations specifying exposure levels in th e inhabiled areas where th e level s are projected lo be highest shall b e prepared. Calculations shall also be prepared every lime the adopted MPE limits change. If ca lculated levels in either of these cases exceed e ighty (80%) of the MPE limits, the operator of the fa ci lity shall hire a qua lified e lectrical engin ee r licensed by the State of Cali fo rnia to measure the ac tu al exposure levels produced. A report of these calculations, required measurement s, if any, and the engineer's findings with respect to compliance with the current MPE limits sha ll be submillcd to the Community Development Direc tor within five (5) yea rs of facility npproval and every fi ve (5) years thereafter. In the case of a change in the limits, the required report shall be submitted within ninety (90) days of the date the change becomes effective. D. Failure to supply the required reports or to remain in continued compliance with any FCC license, permit or MPE limit s shall be considered a material breach of this Lease. 8. Visual Mitigation. Lessee wi ll use a variety of visual mitigation strategics for all of its fac ili tie s, as determined necessary by the Community Development Director and as requ ired through the Architectural Review process, wi th the goal of achieving a l 00% stealth in sta llation. Facilities shall be creatively designed to minimi ze the visual impact to the greatest extent possible by means of placement, Te/ecom111un lcalio11s Fa cility Leose al Santa Rosa Park Page 80/27 Page 158 of 415 screening, and ca mouflage. The applicant shall use the smallest and least visible antennas possible to accomplish the coverage objectives. Each install ation shall be designed to b lend inlo its surroundings so that the antenna(s) and equi pment are not apparent to the casual observer. The light poles in which antenna s are located shall not exceed fourteen (14) inche s in diameter. No more than one carrier s ha ll install antenn as in any given light pole. Ground mounted support equipment shall be und ergrounded or otherwise screened from view so as to be effectively unnoticeable. All connections and conduits between the base of the antenna(s) and support equipment shall be undergrounded. Electrical and te lephone service to the support equipment shall be undergrounded. 9. ~. Each facility s hall be operated in a manner that minimizes any possible disrnplion c aused by noise to people working and living in the vicinity. At no time s hall equipment noi se from any source exceed an exterior noise level of 55 dB at the property li ne or within 20 feel of such equipment, whichever is less. This requirement may be modi fi ed al the discretion of the Community Development Di re ctor where typi c al ambient n oise levels exceed 55 dB. Outdoor noise producing constructi on activities shall take place only on weekdays between the hours o f 8:00 am and 5 :00 pm unless a different sc hedule is a pproved as part of th e use pcm1it. Any fac il ity util izing temporary backup generators shall be requ ired to meet or exceed Air Pollution Control Distri c t Standards. All generators shall be fitted with approved a ir poll ution control devices. Projects that propose lo include backup ge nerators shall require review and approval from the Air Poll ution Control D istrict . P roject plans shall indicate loc ation, size, horsepower and type of fue l used for any proposed ge nerator. Generators shall only be operated during p ower outages an d for testing and ma intenance purposes. Testi ng and maintenance sha ll only take place on weekdays between the hours of t 0 :00 am and noo n. I 0. Nondi scrimjnJ!li!m . Subject lo ap plicable laws, rnle s, and regulations, Lessee shall nol d isc riminate against any person or group on the basis of age, sex, sexual orientation, AIDS , AIDS related condition, marital s latus, race, religion, creed, ancestry, national origin, disa bility, or ha ndicap. 11. Subsurface Restrictions. The parties agree that this Lease covers only the s urface of the Premises and only so much of the subsurface as is r easonably necessary for Lessee's u se of the Premi ses Tcleco1111111111icatio11s Facility I.ease at Santa Rosa Park /'age 9o/27 Page 159 of 415 as permitted in this Lease (including, without limitation, (i) the foundation for Lessee's monopole ante nna stnicturc and building, and (ii) cables, conduits and pipe s within the Premises to connect Lessee's communications equipment within suc h building to the antennas to be constrnc ted and maintained by Les see within th e Premises). 12. Liens. Lessee sha ll keep the premises free of mechanic's, material supplier's or other liens for any work done, labor perfom1ed or materials furnished therein by or for Lessee, and Lessee shall defend, indemnify and hold Lessor, its officials, employees and agents harmless from and against all claims, liens, demands, causes of action, liability, los s, cost and expense (including reasonable attorney's fees) of whatever kind for any such work done, labor perfonmed or materials furnished. 13. No Utilities. Lessor shall not provide any utilities to the Premises. Lessee shall be permitted to install utility lines, meters for electricity, and shall arrnnge and pay for the installation and use of all utilities of whatsoever kind to the Premises . 14 . Mamtenance. A. Lessee shall, al Lessee's sole cost and to the satisfaction of Lessor, maintain Lessee's Faci litie s and all related improvements (except the Park Improvements as shown on Exhibit "B") in good condition, free from rodents, weeds, noxious plants and wild growth, in substanti al repair, in a safe and san itary condition, and in compliance with all applicable laws and regulations and shall promptly repair any damage caused by Lessee. If Lessee fails to maintain the Les see 's Facilities as required herein, Lessor may notify Le ssee of said failure. If Lessee fails to correct the si tuation within thirty (30) days aficr notice or such long er period as may be established by Lessor, Lessor may make the nec essary correction and lhc cost thereof, including but not limited to lhc cost of administration, and labor, malerials, equipmen t, shall be paid by Lessee within thirty (30) days aficr recei pt of a stalement of said cost from Lessor. If said slatemcnt is not timel y paid, Lessor may, at its option, choose any remedy avai labl e herein or by law, including the tenmination of this Lea se. Lessee hereby waives to the ex tent pcrm.itt ed by law any right to make repairs at the expense of Lessor or to vacate th e Premises in lieu thereof as may be provided by law. Tclecom1111111ica1ions Facility I.ease al Santa Rosa Park Page /Oo/17 Page 160 of 415 B. Lessor s hall have no duty to ma intain or repair Lessee's Facilities or any of Lessee's improvements, incl uding th e light pol es on the Premises. 15. Taxe s. Les see acknowledges that thi s Lease may create a possess ory interest subject to property taxation and that Lessee may b e liable for payment of taxes levied on s uch interest. Lessee shall promptly pay, prior to delinqu ency, all ta xes, assessments and other governmental fee s that may be lawfully levied against the Premises and any improvements or personal property located on the Premises and on any posscssory interest created by thi s Lease, and provide proof of payment to Lessor on dema nd . 16. Insura nce . Concurrent with the execution of th is Lease, Le ssee sha ll procure and maintain, at its cost, during the initial and any exte nded or Renewal Term of this Lease from an insurer admilled in California o r having a minimum rating of or equivalent to A: VTI 111 Best's /11S11ra11 ce Guide: A. Comprehensive General Liability insurance with a combined single limit of al least Five Million Dollars ($5,000,000) for each occurrence. Le ssor, its officials, employees and agents sha ll be covered as additi ona l insureds w ith respect to liability arising from activiti es performed by or on behalf of Lessee. Said insurance shall be primary insurance with respect to Lessor and shall contain a cross liability endorsement . B. "Alt Risk" property insurance in an amount s ufficient to cover the full replacement value of Lessee's personal property, improvements and equipment on the Premises. C. Upon the execution of th is Lease, Le ssee shall de liver to Lessor certificates of in surance with original endorsements evidencing th e coverage required by thi s Lease. The certificates and endorse me nts shall be signed by a person authorized by the ins urer to bind coverage on its behalf. D . Said insurance shall contain an e ndorseme nt requiring thirty (30) days prior written notice from in surer to Lessor before cancell ation or change of coverage. E . Said insurance may provide for such deductibles or se lf-insured retention as may be acceptable to the City's Ri sk Manager or d csignee. In the event such insurance docs provide for deductibles or self-insured retention, Lessee agrees that it will fully protect Les sor its officials and e mployees in the same manner as these interests would have been protected had a policy of commercial Te/ecommunkations Facility Lease at Santa Rosa Park Page JI a/27 Page 161 of 415 insurance been in effect. With respect to damage to property, Lessor and Le ssee hereby waive all rights of s ubrogat ion, on~ against the other, but on ly to the exten t th at coll ectible commerc ial insurance is available for said damage. F . The procuring of in surance s hall not be constnied as a limitation on Lessor's liability or as fu ll performance on Lessee's part o f the indemnilicalion provision of this Lease. Lessee understands and agrees that, notwiths tanding any insurance, Le ssee's obli gation to defend and indemnify Lessor, its o ffi c ia ls and e mployees hereu nder is for th e full amount o f any damage, loss cost or expense. G. Any modification or waiver of th ese in surance require ments shall only be made wi th the wr itten approval of the Lessor's Risk Manager or designee. 17 . Removal o flmprovemcnts. On the expirat ion or sooner term in ation of this Lease, Lessee at Lessee's sole cos t shall ha ve th e right to remove Lessee's Fac ilities (w ith the cxccpli on o f the Park Improveme nts as shown on Ex hibit B, consisting of the equi pment buildings and sports lighting po les) erected on the Premises by Le ssee by giving notice of it s intention to do so lo Le ssor and by re mo vi ng same within forty-five (45) days a fter expiration or sooner termination of this Lease. Lessor may trea t any suc h buildings or improvements as abandoned if Le ssee fails to timely remo ve them and, in such event, (a) Lessor shall be deemed owner of them without accounting to Lessee , o r (b) Lessor may cause their removal at Lessee's cost, wi th the e xceptio n of the underground conduits wh ich may be abandoned in place by Lessee. 18 . Relocation. Lessee agrees that nothing contained in thi s Lease shall crea te any right in Lessee for any rel ocati on payment or assistance pursuant to the provisions of Title l , Division 7, Chap te r 16 of the California Government Code from Les sor on account of the expiration or sooner termination o f this Lease. 19. Not ic e . Any notice req ui red hereunder sha ll be in writing and p ersonally deli vered or depos ited in the U.S. Postal Service, registered or certified, r eturn receipt, postage pre paid, to the address of the respec ti ve parties set forth be lo w: Telecomm1111icolio11s Faciliry l ease al Santa Rosa Park Page 12 o/27 Page 162 of 415 LESSOR: Parks and Recreatio n Direc tor City of San Luis Ob ispo LESSEE: Cingu lar Wireless Ma il code GAN02 1341 Ni pomo Street San Lu is Obispo, CA 93401 Attn: Network Rea l Esta te Administration 6100 Atlan tic Blvd. Norcross, GA 3007 1 With a copy concurren lly to: Cingul ar Wire less Attn: Lega l Department 2521 Miche ll e Drive, 2oc1 Floor Tustin, CA 92780 Noti ce shall be deemed effective on the date shown on the return receipt or on the da te personal delivery is made, whichever first occurs. If delivery is refused, the date of deposit o f the copy in the mail sha ll be deemed the date of no tice. Change of address sha ll be given as pro vided herein for notices. 20. Ha1,;irdous Materials and Waste. A. Lessee shall comply with all applicable laws regarding th e use, storage and disposal of hawrdous materials on the Premises. Lessee sha ll comply with California Heallh and Safety Code Secti on 25359.7 or its successor regarding notice to Lessor o n discovery by Lessee of the presence or suspec ted presence of any hazardous substa nce on the Premises . D. Le ssee shall not bring any hazardous materials onto th e Premises except for those contained in it s back-up power batteries and comm on ma terials used in telecommunicat ions operatio ns, e.g ., clea n ing so lvents. Lessee shall treat all haza rdous ma terials brought onto the Premises by it in accordance with all fede ral , state and loca l laws an d regula tions. C. Lessee sha ll specify any proposed generator usage and its proposed location. D. Lessor represents that the Premises have not been used for the ge neration, storage, treatment or disposa l of hazardous materia ls, hazardous substances or hazardous wastes. In addition, Lessor represents tha t no hazardo us materia ls, hazardous substances, or hazardous wastes, po ll uta nt s, asbestos, polych lori natcd biphenyls (PC Bs), petroleum or oth er fuels (including crude oil, or any frac tion or deri vative th ereof), or undergroun d storage tan ks arc located on or near the Premises. Teleco1111111111fcatio11s Facility lease at Santa Rosa Park Page 13 o/27 Page 163 of 415 21. Ind emn ity. Lessee shall defend, protect, indemn ify and hold hannlcss Lessor, its officials, employees and agents from a ll claims, demands, damages, causes of action, losses, liability, costs or expenses, including reasonable altomey's fees, of any kind or nature whatsoever (except those resulting from Lessor's sole negligence or willful mis condu ct) which Lessor, its officials, employees and agents may incur for injury to or death of persons or damage to or loss of property occurring in, on or about the Premises arising from the condition of the Premises (other than conditions existing prior to Lessee's occupancy of the Premises), the a ll eged acts or omissions of Lessee, any p arent, subsidiary, affi liate or partnership in which any such entity participates, Lessee's officers, employees or agents, the occupancy, use or misuse of the Premises by Lessee, any parent, subsid iary, affi liate or partnership in which any such entity participate s, Lessee's officers, employees or agents, or any breach of th is Lease. Lessor shall protect, inde nm ify and save hannless Le ssee, and its officers, agents and emp lo yees, fr om and against all claims, demands and causes of action by Lessor's employees or third parties on account of personal injuries or death or on account of property damages arising out of the use of the Pre mises by Le ssor hereunder and resulling from the sole negligence or willful misconduct of Lessor or its officers, agents and empl oyees. 22. Assignlllent and Subletting. Except for an assignlllent, sublease or transfer lo Lessee's affiliate, parent, subsidiary, member or partner, or as a result of a merger or sale of substanti ally all of Lessee's asse\s ("Pcm1itted Assignment") Lessee s hall no\ assign or transfer this Lease or any interest herein, w ith out the prior wrillen consent of Lessor wh ich sh ull not be unreasonably withheld, provided, however, that Lessee shall notify Lessor in writi ng ofa Permitted Assignment with in thirty (30) days. To obtain Lessor's consent to a pro posed assignment or transfer (hereinafter collective ly referred to as "tran sfer"), Lessee shall meet th e fo llowing requirements and Lessee's fai lure to meet any requirement shall allow Lessor to withhold consent: A. Lessee shall notify Le ssor at least sixty (60) days prior to the date when Les see desires the transfer to take effect ("Transfer Date") wh ich noti ce shall contain the name, address and Telrcomm 1111icatio11s Facility lease at Santa Rosa Park Page 14 of 27 Page 164 of 415 telephone number of the proposed transferee; the nature of \he proposed transferee's business and dc\a1l s of its business experi ence. B. Lessor shall notify Lessee a\ least thirty days (30) days prior lo the Transfer Date whether L essor approves or disapproves of the proposed trnn sfcr. C. Any approved transferee shall assume and be deemed to have assumed this Lea se and shall be jointly and severally liable with Lessee for the payment of rent and performance of the terms, covenants, and conditions of thi s Lease. No approved transfer shall be binding on Lessor until such trnns feree shall deliver to Le ssor a counterpart of the transfer agreement with contains a cove nant of assumpti on by transferee but the failure or refusal to execute or deliver such instmment shall not release transferee from its liability as stated herein. 0. The consent of Lessor to any transfer shall not relieve Lessee of the obligation to obtain such consent to any further transfer. Further, neither this Lease nor any interest herein shall be s ubject to transfer by attachment, execution, proceedings in in solvency or bankruptcy (either voluntary or involuntary), or rec eivership. In the event of the transfer without the prior written con sent of Lessor, such trans fer shall be voida ble at Le ssor 's election and, if voided by Lessor, sha ll convey no interest. Any transfer without Lessor's consent shall constitute a default of thi s Lease. E. To obtain Lessor's consent to a sublease, Lessee shall meet the following requirements and Lessee's failure to mecl any rcquircmenl shall allow Lessor to wilhhold consent I) The Lessee must pay to Lessor the same amount of Annual Rent on the sublease tenant's behalf as lhe Lessee ("Additional Annual Rent"). For example, if there were two sublease tenants by the beginning of the third year of this Agreement, the total rent due from lhe Lessee would be S63,654: the Annual Rcnl for the Lessee ($21,2 18, which is the first year's rent of S20,000 increased by 3% for two years) and the Additional Annual Rent for the two sublease tenants (S2 I ,2 I 8 each). While the Lessee may require the sublease tenant to pay this amount as part of their sublease agreement with the L essee, payment of the Additional Annual Rent is the sole res ponsibility of the Lessee, and is subj ect to the same temts, conditions and remedies as the Annual Rent . 1'olecommwiico1ions Fadlity Lease at Sama Rosa Park Page 15 o/27 Page 165 of 415 2} Lessee shall notify Lessor at least sixty (60} days prior to the da te when Lessee desires the sublease to take effect ("Sublease Date"}, which notice shall contain the name, address and telephone number of the proposed s ublease ten ant ; the nature of the p roposed sublease tenant's business and detail s of its business experience. The first year of Additional Annual Rent shall be paid prior to the Sublease Date and will be prorated to the Lessee's Annual Rent payment due date; and shall be due annually thereaf\cr with the Annual Rent. 3} Lessor and Lessee agree (by way of example and without limitation} that it shall he reasonable for Le ssor to withhold its consent if any of the following exist or may exist: the proposed transferee 's use of the Premises conf\1ets with or is inconsistent with the use of the Premises stated herein; the Lessee is in d efault under this Lease at the time th e request for sublease is made and has not cured such default, if the same can be cured, prior to ten (I O} bu siness days prior to the Sublease Date. 4} The sublease tenant is s ubjec t th e same terms and conditions of this Agreement as the Lessee. 5} Lessor shall notify Lessee at least lif\een (15} days prior to the Sublease Date whether Lessor app rove s or disapproves of the proposed sublea se. 23. No Pc nnits . Lessee s hall not grant any rights-of-way, easements, fra nchises or pe rmits in, on or across the Premises. 24. Encumbrances. Le ssee shall take the Premi ses subject to any and a ll existing casements and other encumbrWlces. 25. Reservations. Lessor reserves lhe right 10 grant franchises, casements, rights-of-way or pennits for pipeline purposes which will no t interfere with Lessee's use oflhc Premises. 26. Default. The occurrence of any of the fo ll owing acts shall constitute a default by Lessee: A. Failure to pay Annual Rent or Additional Annual Rent when due where s uch fa ilure shall continue for a period of ten (10} days af\cr Lessee's receipt ofwrillen noti ce from Lessor. B. Failure to perform any o f the terms, co venan ts or conditions of thi s Lease if s aid fai lure is not cured within thirty (30) days ancr Lessee's receipt of written notice from Lessor o f said Telecomm u11icallons Fa ciliiy l ease al Sanla Rosa Park Page 16 o/27 Page 166 of 415 failure. If th e default cannot reasonably be cured in thirty (30) days after rece ipt of such notice, Le ssee shall not be in default if Lesse e begins to cure within the thirty-day period and diligently proceeds to cure to completion. Lessor's notice shall describe the default and shall demand that Lessor perform or quit the Premi ses. No such notice shall be deemed a forfeiture or termination of the Lease unless Lessor so elects in the notice. C. A11y al!empted assignment, transfer or sublease except as permitted in Section 22 hereof. D. Failure to maintain all necessary permits and business licenses required by the City in its municipal or r egulatory capacity or failure to pay any fees for permits or licenses to the City when due; E. Failure to report or pay to the City all applicable sales taxes, transient occupancy taxes, business taxes, utility taxes or other excise taxes, when due. Subject to the tem1s of this Section, if Lessee due s not comply with each term, covenant and cond ition of this Lease or if a default occurs , then Lessor may term in ate this Lease and Le ssor may lhcn enter the Premises and tnkc possession thereof provided, however, that these rem edie s are not exclusive but cumulative to other remedies provided by law in the event of Lessee's d efault, and the exercise by Lessor of one or more rights and remedie s shall not preclude the Lessor's exercise of additional or different remedies for the same or any other default by Lessee. F. Failure to perfom1 any of the term s, covenants o r conditions of this Lease if said failure is not cured within thirty (30) days after Lessee no t ifies Lessor of said failure shall constitute a default by Lessor of this Lease. If the default cannot reasonably be cured in thirty (30) days after recei pt of such notice, Lessor shall not be in default if Lessor begins lo cure within the thi rty (30) day period and d iligen tl y proceeds to cure to completion. 27 . B.1ght ofEntry. A . In the event of an eme rgency which poses an immedi ate threat of hami or damage to persons or property, Lessor may enter the Premises and take such actions as are required lo Te/eco1111111111icotio11s Facility l ease at Santa Rosa Park Page 17 ofll Page 167 of 415 protect persons or property from such immediate threat of harm or damage, provided that promptly after such emergency cntTy into the Premises (and in no event later than twenty-four (24) hours) Lessor gives telephonic and writte n notice to Lessee of Lessor's enrry into the Premises. In addition to Lessor's rights under the immediately preceding se ntence , Lessor shall have the right, upon forty-eigh t (48) hours prior telephonic notification to Lessee (which notifi ca tion sha ll specify the date and time at which Lessor seeks to enter the Premises), to enter the Premises to dctem1ine whether or not Lessee is complying with this Lea se and to serve, post or keep posted any notice. Except in the event of an emergency, Lessor agrees that it shall not enter the Premises wi thout a representati ve of Lessee being pre sent, and Lessee agrees to make its representative promptly and readily available to accompany Lessor on th e date and at the time given in Le ssor's telephonic notice. If Le ssee fails to make its representative available on the date an d at the time given in Lessor's telephonic notice or at a mutually agreeable time, then Lessor may enter the Premises accompanied by a peace officer. ll. Lessee shall install a lock box system on the Premises and give the City access to th e lock box in order to allow the City to inspect the Premi ses pursuant to Paragraph A above. 28.· filgfil. Lessee shall not pla ce, affix, maintain or permit any sign, adverl is emcnt, name, insignia, logo, descriptive materia l or similar item (collectively "sign") on the Pre mises w ithout the pri or written approval of Lessor. Any approved sign shall be maintained by Lessee in good condition at a ll times . Lessor may remove any sign not approved by Lessor al Lessee's cost. The cost of removal shall be additional rent. 29. Condemnation. If the whole of the Premises shall be taken by any public or quasi-public authority under the power of eminent domain, then this Lease shall termina te . If any parl of the Premises shall be taken under the power of emi nent domain, then this Lease sh all tem1inatc as to the part taken, as of the day posse ss ion (of that p~rl) is required fo r any public purpose, and on or before that day Lessee shall dect in writing either to terminate this Lease or to continue in possession of the remainder of the Premises provided, however, that rent shall only be reduced in proporlion to the amount of the Premises taken if Lessee is unable to operate at the same level after the condemnation as before the condemnation. Telecomm1111icatio11s Facility Lease at Sn111a Rosa Park Page 18 o/27 Page 168 of 415 All damages awarded for any taking shall belong to Lessor, whether such damages be awarded as compensation for diminution in va lue to the leasehold or lo the fee provided, however, that Le ssor shall not be entitled lo any portion of the award made for lo ss of Le ssee's business or relocMion expenses. 30. Nuisance. Lessee shall not do or pcnnil to be done in or on the Premises any act, which may be an unreasonable nuisance, annoyance or inconvenience to Lessor, Lessor's tenants on or occupants of adjoining property, or to lhc neighborhood. 31. Exculpation. Except as expressly provided herein, Lessor shall not be liable to Lessee for any damages to Lessee's property from any cause. To the extent pemtitted by law, Lessee waives all c laims against Lessor for damage or injury to persons or property arising or alleged to have arisen from any cause whatsoever, except Lessor's sole negligence or willful mi sconduct or Lessor's breach of its obligations hereunder. 32. Waiver of Rights. The failure or delay of either party to in sist on slrict enforcement of any term, covenant, or condition herein shall not be deemed a waiver of any right or remedy that such party may have and shall not be deemed a waiver of any subsequent or other breach of any tem1 , c ovenant, or condition herein. The receipt and acceptance by Lessor of delinquent rent shall not constitute a waiver of any other default bul shall only constitute a waiver of timely payment for the partic ular rent payment involved. Any waiver by either party of any default or brea ch shall be in writing. Either party's consent to or approval of any act by the other party requiring a party's consent or approval shall 1101 be deemed to waive such party's consent or approva l of any subsequent ac l of the other party. 33. l'arti~) Invalidity . If any tenn, covenant or condition of this Lease is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions h ereof shall remain in full force and effect. 34. ~rs in Interest. TI1is Lease shall be binding on and inure to the benefit of the parties and their successors, h eirs , personal representatives, approved transferees and ass ignees, and all of the parties hereto shall be joinlly and severally liable hereunder. Telecom1mm;,·a1io11s Faciliry lease at Santa Rosa Park Page 19of27 Page 169 of 415 35. Right to Re-Enter. Lessor acknowledges that Lessee 's use of the Premi ses includes proprietary ITnde secrets. Lessor s hall have no right whatsoever to enter the Premises except as provided in Paragraph 27.A. above, without Lessee's written consent which Lessee shall not unreasonably w ithhold , Lessee shall peaceably deliver possession of the Premises to Lessor on the effec tive date of termination or expiration of this Lease. On giving notice of tcm1ination to Lessee, Lessor shall have the right to re-enter a nd take posse ssion of the Pre mise s on the te nnination or expiration d ate without further notice of any kind and without institution o f summary or regular lega l proceedings. Tem1ination of the Lea se a nd re-entry of the Premises by Lessor shall in no way alter or diminish an y obli gat ion of 1.cssee under the Lease and shall not constitute an acceptance or surrender. Lessee waives any and a ll right of red emption unde r any existing or future law, in th e event of eviction from the Pre mi ses and in th e event Le ssor re-enters and takes possession. Lessee agrees that should the manne r and method u sed by Les sor in re-entering or tak ing possession afier breach by Lessee gives Lessee a cause of action for damages or in forcible entry and detainer, th e total amount of d amages to which Lessee shall be entitled due to the re-entering shall be One Dollar ($1.00). Les se e agrees that thi s Section may be fil ed in any s uch action and tha t when filed it s hall be a stipulation by Les see fi x ing the total damages to which Lessee is entitled in such action . 36. Ho ldin g Over. If Lessee holds over and remains in possess ion of the Premises afier the expiration of the Lease, such holding over shall be constrned as a tenancy from month to month on th e sa me terms, covenants, and c onditions here in, except that monthly rent shall be one-twclfih (1/1 2) o f one hundred twenty-fi\•e percent (125%) of the annual rent then in effect. Nothing in this Section shall be constrncd as a consent by Lessor to any holding o ver by Lessee. 37. Time. Time is of the e ssence in thi s Lease and every provision hereof. 38. Attorney's Fees. In any action or proceeding relating to thi s Lease, the prevailing party sha ll be entitl ed to its costs, including reasonable attorney 's fe es and court costs. 39. Integration and Amendm ents. 111i s Lease represents and constitutes the entire und erstanding between th e parties and supe re edes all other agreements and communication between the Te/ecommrmication s Fncl/i/y Leas e al Sama Rosa Park Page 170 of 415 parties, oral o r written, concerning the subject matter herein. 111i s Lease shall not be modifi ed excep t in wri ting duly s igned by the pa rties and referring to thi s Lease. 40. Recordatjon . Concurrentl y with th e exec ution of th is Lease, Lessor sha ll execute before a notary and deliver to Le ssee for recording a "Memorandum of Lease" substantially in the form of Exhibit "C" attached hereto and by this reference incorporated herein (the "Memorandum"). Lessee may record the Memorandum and shall pay any fees or taxes applicable lo or arising from said recordalion . Upon expiratio n or sooner termination of thi s Lease, l essee shall, at it s sole co st, immediately record a Qui tclaim Deed with respect tn its interest und er this l ease. 41. Governing Law. This Lease shall be governed by and construed in accordance wi th the laws of the State of California . 42. ~-'The various headings and num bers herein and th e grouping of the terms h ereof int o se parate sections, paragraphs and clau ses are for conve nience on ly and sha ll not be con sidered a part hereof, and shall have no effect on the constru ction or inlcrprcia tion of this Lease. 43 . 8Jm11doned Pr~-111e vacating or abandonment of the Premises by Lessee sha ll include but not be hmitcd to the fai lure of 1.csscc to occupy the Premises for a continuous period of forty- five (45) days or more wh ile not paying rent. I f lessee abandons the Premi ses, title to any personal p ro perty be longing to Lessee and left on the Premises forty-five (45) da ys a ft er such abandon men t shall be d eemed to have been transferred to Lessor. Lessor shall thereafter have the right to remove and to dispose of sa id property without lia bility to lessee or to any person claiming under Lessee, a nd shall have no duty to a ccount therefor. 44. Complionee with the law. Lessee shall comply with all la ws, ordinances, rules and regulations of all federal, slate a nd lo ca l governmental authori ties having jurisd iction over the Premi ses an d business thereon . 45. Quiet En joyment Lessor covena nts that, if Lessee performs the terms, covenants and conditions of this Lease, Lessee sh all peaceably and quietly hold and enjoy the Premises. Telecomm1111icnU011s Facility Lease at Santa Rosa Park Page l l ofl7 Page 171 of 415 46. Le ssor's Reprcscnlalion of Authority. L essor reprcscnls Iha\ it has title lo lhe Premi ses and full a uthority to execute thi s Lease and to granl the casemen ts and access lo the Premises. Lessor furthe r repre sents that there are no undisclosed liens, judgments, impcd imenls or exce ptions of ti tle on the Premi ses that would affect this Lease. 47. Non-Interference Provision. Lessor will use its best efforts to provid e Lessee wi th notice of a ny applications received from any other communic ations co mpanies wishing to uti lize ony part of Sa nta Rosa Park. Further, Lessor will use it s best elTort s to no t lease property in Santa Rosa Park to other commun ication companies, nor to use S anta Rosa Park for comnmnicalions purposes, \hat might interfere with Lessee's use of the Premises. Jn the event Lessor or any other commun icat ion co mpany on Santa Ros a Park docs , in fac t, interfere w ith Lessee's use of the Premises, Lessor shall eliminate, or cause to be eliminated, suc h interference within seventy-two (72) hours of written noti ce by Le ssee. If such interferen ce is not eliminated in s uch time period, Le ssee may exercise any right o r re medy at law or in equity to e liminate the interfe rence or may tcm1 inate thi s Lea se. fN WITNESS WHEREOF, th e parties have executed thi s Lease wit h all of the formalities r equ ired by law as of the date fir st above written. LESSOR : C ITY OF SAN LUIS OBIS PO, a Muni cipal Corporation By : Le e Price, City Clerk Telecomm1111ications Facility l ease at San ta Rosa Park LESSEE : PAC IFIC BELL WIRELESS LLC, a Nevada limited l iability company d/b/a/ CJNGULAR WIRELESS By : GSM Fac ilities, LLC, its sole membe r By : Cingular Wireless LLC, its agent By: ~~_..wa>t-J~'><><JM.--=~­ Charles Vrane , Vice Presid en , Special Projects.IReal Estate Page 22of27 Page 172 of 415 Page 173 of 415 Page 174 of 415 Page 175 of 415 Page 176 of 415 Page 177 of 415 Page 178 of 415 Page 179 of 415 Page 180 of 415 Page 181 of 415 Page 182 of 415 1 PTI Site US-CA-1258/ Santa Rosa Park PTI US Towers II LLC 999 Yamato Road, Suite 100 Boca Raton, FL 33431 SECOND AMENDMENT TO TELECOMMUNICATIONS FACILITY LEASE AT SANTA ROSA PARK THIS SECOND AMENDMENT TO TELECOMMUNICATIONS FACILITY LEASE AT SANTA ROSA PARK (“Second Amendment”) is executed this ______ day of _____________, 202___, and is effective April 1, 2023 (“Effective Date”) by and between CITY OF SAN LUIS OBISPO, a California municipal corporation, having an address at 990 Palm Street, San Luis Obispo, CA 93401 (“Lessor”) and PTI US Towers II LLC, having a principal office located at 999 Yamato Road, Boca Raton, FL 33431 (“Lessee”). WHEREAS, Lessor and PACIFIC BELL WIRELESS, LLC a Nevada limited liability company d/b/a CINGULAR WIRELESS, entered into that certain Telecommunications Facility Lease at Santa Rosa Park dated February 11, 2003, as thereafter amended from time to time (hereinafter referred to as "Lease") and assigned to Lessee, PTI US Towers II LLC, for Lessee’s use of a portion of the real property (“Premises”), located at 190 Santa Rosa Street, San Luis Obispo, CA 93405 (hereinafter referred to as “Land”), being more particularly described in the attached Exhibit “A”; and WHEREAS, Lessor and Lessee desire and intend to amend and supplement the Lease as provided herein. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby, acknowledged, the parties hereto covenant, agree, and bind themselves to the following modifications to the Lease: 1. Section 3. Term, of the Lease is hereby amended to include the following: In addition to the Renewal Terms as referenced in the Lease, the Lease is hereby amended to include four (4) additional successive Renewal Terms of five (5) years, each of which shall be deemed automatically extended unless Lessee notifies Lessor of its intention not to renew the Lease at least sixty (60) days prior to the commencement of the succeeding Renewal Term. The first additional Renewal Term shall commence on April 1, 2023, upon the expiration of the Renewal Term expiring on March 30, 2023. In the event Lessor determines in its reasonable discretion that the Premises are required for public purposes, during each Renewal Term Lessor may terminate this Lease upon providing two (2) years’ prior written notice. Following such notice, the parties shall negotiate in good faith to identify a potential relocation site within the Land. Should the parties fail to reach an agreement on a mutually acceptable site, or if Lessee is unable or Page 183 of 415 2 PTI Site US-CA-1258/ Santa Rosa Park unwilling to relocate, this Lease shall terminate automatically upon the expiration of the two-year notice period. 2. Section 4. Rent, subsection A, of the Lease is hereby deleted and replaced with the following, wherein all other subsections of Section 4 remain unchanged and in full force and effect: A. Lessee shall pay to Lessor the sum of Forty-Five Thousand and No/100 Dollars ($45,000.00) (“Annual Rent”) and Additional Annual Rent per tenant in the same amount as Annual Rent (as further set forth in Section 22.E.), beginning upon Lessee’s payment of Annual Rent due and payable on or before April 1, 2026. All payments of Annual Rent previously provided by Lessee to Lessor for calendar years 2023, 2024 and 2025 are acknowledged as received by Lessor. Partial payment of Lessee’s Annual Rent due and payable on or before April 1, 2026 is acknowledged as received by Lessor, and Lessee and Lessor agree to reconcile the full amount of Annual Rent due for such period for which Lessee shall provide a true-up differential payment to Lessor within thirty (30) days of the Effective Date of this Second Amendment. 3. Section 19. Notice, of the Lease is hereby amended as follows: LESSOR: City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 LESSEE: PTI US Towers II LLC 999 Yamato Road, Suite 100 Boca Raton, FL 33431 4. Within thirty (30) days of full execution of this Second Amendment, Lessee shall pay to Lessor a one-time payment of Twenty-Five Thousand and No/100 Dollars ($25,000.00). Said amount constitutes a one-time signing bonus, and Lessor’s acceptance thereof shall confirm that neither Lessee nor Lessor are in default of any material term or condition of the Lease, including the payment of Annual Rent, at the time of said payment. 5. Capitalized terms not defined in this Second Amendment will have the meaning ascribed to such terms in the Lease. 6. This Second Amendment will be governed by and construed and enforced in accordance with the laws of the state in which the Land is located without regard to principles of conflicts of law. 7. Except as specifically set forth in this Second Amendment, the Lease is otherwise unmodified and remains in full force and effect and is hereby ratified and reaffirmed. In Page 184 of 415 3 PTI Site US-CA-1258/ Santa Rosa Park the event of any inconsistencies between the Lease and this Second Amendment, the terms of this Second Amendment shall take precedence. 8. Lessor acknowledges that the exhibits attached to the Lease may be incomplete or contain inaccuracies and, accordingly, Lessee may replace and substitute such exhibits at its cost and with written consent of Lessor, with an accurate survey and/or legal descriptions of the Premises and re-record this Second Amendment with copy provided to Lessor. Following such re-recording, the descriptions contained therein shall serve as the descriptions for the same for all purposes under the Lease. 9. Lessor represents and warrants to Lessee that Lessor is the sole owner in fee simple title to the Land and Lessor’s interest under the Lease and that consent or approval of no other person is necessary for Lessor to enter into this Second Amendment. 10. This Second Amendment may be executed in one or more counterparts and by the different parties hereto in separate counterparts, each of which when executed shall be, deemed to be an original but all of which taken together shall constitute one, and the same Second Amendment. 11. Lessee shall have the right to record this Second Amendment. [The remainder of this page is intentionally left blank. Signatures to follow.] Page 185 of 415 4 PTI Site US-CA-1258/ Santa Rosa Park IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the day and year first above written. LESSOR: City of San Luis Obispo, a California municipal corporation By: ___________________________________ Print Name: _________________________ Title: __________________________________ A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. STATE OF CALIFORNIA ) COUNTY OF ) On _________________________, 202___, before me, ____________________________ personally appeared __________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ____________________________________ Notary Public________________________ My Commission Expires _______________ (NOTARY SEAL) Page 186 of 415 5 PTI Site US-CA-1258/ Santa Rosa Park WITNESSES: LESSEE: PTI US Towers II LLC 999 Yamato Road, Suite 100 Boca Raton, FL 33431 _______________________________________ By: ________________________________ Print Name: __________________________ _______________________________________ Print Name: __________________________ STATE OF FLORIDA COUNTY OF PALM BEACH The foregoing instrument was acknowledged before me by means of [X] physical presence or [ ] online notarization, this _____ day of _______________________, 202___, by _________________________, on behalf of said company, who is personally known to me and did not take an oath. ___________________________________ Notary Public ________________________ My Commission Expires _______________ (NOTARY SEAL) Page 187 of 415 6 PTI Site US-CA-1258/ Santa Rosa Park EXHIBIT “A” Page 188 of 415