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HomeMy WebLinkAbout06/01/2004, C3 - TELECOMMUNICATIONS FACILITY LEASE AT LAGUNA LAKE GOLF COURSE D council Mwdng°� June 1,2004 aGenaa neponzt j C I TY OF SAN LU IS 0 B I S P 0 FROM: Paul LeSage,Director of Parks and Recreati6g Prepared by: Cindy McDonald, Supervising Administrative AssistO� SUBJECT: TELECOMMUNICATIONS FACILITY LEASE AT LAGUNA LAKE GOLF COURSE CAO RECOMMENDATION As recommended by the Parks and Recreation Commission, approve a Memorandum of Understanding (MOU) with Sprint PCS for the lease at Laguna Lake Golf Course for a telecommunications facility. DISCUSSION Overview The proposed MOU (Attachment 1) with Sprint PCS provides that if it receives discretionary planning approvals; the City will enter into a lease agreement with them for the use of Laguna Lake Golf Course that includes the following key "business" terms: 1. Annual Rent. The starting rent will be $25,000 annually, payable annually in advance. This will increase annually by 3% or the increase in the consumer price index, which ever is greater. 2. Subtenants. Subtenants are allowed, however, any subtenants are subject to the same terms and conditions as the primary tenant (Sprint PCS), including rent. At this time, no other company has expressed an interest in co-locating. 3. Term. The initial term will be five years, which may be extended for three additional five- year terms at Sprint PCS's option. In essence, this is a 20-year agreement, unless Sprint PCS decides to end it sooner after the first five years. Due to the fluid nature of the market a Termination for Convenience (Section 5 of Exhibit 1) clause has been included in the lease. 4. Golf Course Improvements. Sprint PCS will be responsible for designing and installing City improvements at Laguna Lake Golf Course by landscaping two areas at the entrance of the golf course and replacing the chain link as suggested in Exhibit 2. This is necessary to achieve a stealthy installation. As described below, by entering into an MOU with Sprint PCS, the City separates its regulatory versus proprietary role in this lease. The City does not provide any guarantees under the MOU that Sprint PCS will receive discretionary planning approvals for their project (which includes making improvements to Laguna Lake Golf Course); however, if they receive these approvals then the City agrees to enter into the facility lease provided as Exhibit 1 to the MOU. This "two- C43 Council Agenda Report—Telecommunications Facility Lease at Laguna Lake Golf Course Page 2 step" process ensures that the City retains its full discretion in approving (or not approving) this project in its regulatory role, while providing Sprint PCS with needed assurances on the "business terms" of the lease if it is successful in receiving these approvals. Background On May 21, 2002, at the Laguna Lake Golf Course Fund Rate Review, Council directed staff to pursue a wireless telecommunications facility at Laguna Lake Golf Course as an additional source of revenue (Attachment 2). The proposed lease is consistent with all key concepts presented to Council at the time. Laguna Lake Golf Course Improvements The only Laguna Lake Golf Course improvements are the two (2) areas of landscaping and replacement of chain link in the front of the Maintenance Shop (East side). The RFP suggested a landscape schematic; however, if Sprint PCS and the golf course supervisor concur, other plans could be submitted for approval. The Process: Requests for Proposals and Follow-On Negotiations As noted above, the Council directed staff to find other sources of revenue and to consider negotiations for wireless telecommunication facilities at this site on May 21, 2002. Because there was initial interest in this site by several telecommunication providers, staff prepared and issued a Request for Proposals (RFP) before initiating negotiations with a specific firm. The purpose of the RFP was to set forth the City's minimum "business" terms and the process staff would use in selecting who the City would initiate negotiations with. This resulted in one proposal from Sprint PCS. While multiple proposals were not ultimately received, this process helped clarify which firms were in fact interested in this site. It also helped expedite subsequent negotiations by clearly setting forth the City's business terms—and clearly separating them from our regulatory role—at the very beginning of the process. The City's multi-departmental review team in preparing the RFP and reviewing the proposal included Paul LeSage (Parks and Recreation), Todd Bunte (Laguna Lake Golf Course), Tyler Corey (Community Development), Bill Statler and Teri Maa (Finance & Information Technology), Ron Faria and Rich Fisher (Engineering), Jay Walter (Public Works) and Ron Combs (Urban Forester). Separating Our Proprietary Versus Regulatory Role In entering into the MOU, the City is acting in its "proprietary" role as a property owner. This is separate and distinct from the City's regulatory role, which the City would play regardless of where wireless communications facilities were being proposed in the City. In our "regulatory role," the City cannot guarantee discretionary "planning" approvals in a lease agreement. On the other hand, the vendor cannot responsibly enter into the development review process without GACouncil Agenda ReponALLGC-Cell SUAW-06.01.04-LLGC MOU.DOC W ' Council Agenda Report—Telecommunications Facility Lease at Laguna Lake Golf Course Page 3 knowing the "business" terms of the lease. To address this, staff recommends a "two-step" process: 1. Memorandum of Understanding. The MOU sets forth the basic "business" terms of the lease agreement that the City will enter into after the vendor receives all of its regulatory approvals. 2. Lease Agreement. After the vendor has met all of the pre-conditions set forth in the MOU, the City will enter into the lease agreement provided as Exhibit 1 of the MOU. In short, this two-step process makes it clear that the City will not make any guarantees about the outcome of the development review process. However, if Sprint PCS is successful in this process, it clearly sets forth the business terms for a subsequent lease agreement. Next Steps Upon approval of the MOU, Sprint PCS will finalize plans for their project—including Laguna Lake Golf Course improvements—and submit them for the City's regulatory review. Once the review process is complete, staff will return to the Council for formal approval of the lease agreement. This is likely to occur three to six months from now. Construction will begin shortly thereafter, and this is likely to take three six months. As such, it is possible that construction could be underway by Fall 2004 and completed by early 2005. CONCURRENCES City Staff. City Attorney, Community Development, Finance & Information Technology, Parks &Recreation and Public Works concur with this recommendation. Parks and Recreation Commission. They endorsed the MOU agreement at their May 5, 2004 meeting (Attachment 3). FISCAL IMPACT Assuming approval of the MOU and subsequent lease agreement, this will provide at least $25,000 in additional revenue annually, increasing by at least 3% per year. With this assumption, if the lease goes for its full 20-year term, this will mean at least $500,000 (in 2004 dollars) in additional revenues to the Laguna Lake Golf Course. In reviewing similar site lease agreements in both the private and public sectors, staff believes this is a very competitively priced lease. ALTERNATIVES 1. Do Not Approve the MOU. This would result in less revenue to the Laguna Lake Golf Course without any significant impacts on the community. It would also be inconsistent with the Council's direction on May 21, 2002. G:\Couwfi Agenda Report.NLGC-CeU Sire\CAR-06.01.04-LLGC MOUDOC n I Council Agenda Report—Telecommunications Facility Lease at Laguna Lake Golf Course Page 4 2. Amend the Provisions of the MOU. In this case, the Council would need to identify the specific changes it wants. However, the proposed MOU and lease agreement are consistent with the general terms and conditions conceptually approved by the Council on May 21, 2002. Additionally, staff believes the "economic" terms of the MOU and lease are very competitive. ATTACHMENTS 1. Memorandum of Understanding with Sprint PCS for a telecommunications facility lease at Laguna Lake Golf Course. 2. City Council Minutes of May 21, 2002. 3. Parks and Recreation Commission draft Minutes of May 5, 2004. ON FILE IN THE COUNCIL OFFICE May 21, 2002 Council Agenda Report regarding a lease for wireless telecommunication facilities at Laguna Lake Golf Course. GACmancil Agenda ReporIAUGC-CeR Site\CAR-06.0/.0J-LWC MDUDt 3 , ATTACHMENT MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOV') is made this 1st day of June, 2004 by and between the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city (the "City"), and SPRINT PCS ASSETS,LLC,C/O AFL TELECOMMUNICATIONS (the"Contractor"). RECITALS WHEREAS, Contractor desires to construct a wireless communications facility at Laguna Lake Golf Course; and WHEREAS, the City is willing to lease a portion of Laguna Lake Golf Course to the Contractor upon the terms and conditions set forth in Exhibit 1, provided that Contractor is able to obtain all discretionary approvals required by the City in its municipal and regulatory capacity; and WHEREAS,the MOU is non-binding in nature. Now,therefore,the parties have prepared the following MOU: 1. PROJECT DESCRIPTION The"project"consists of a wireless communications facility at the golf course as follows: a. It is envisioned that the cellular antennas for this project would be of a tree type design that will blend into the scenery, have little impact to the skyline, and meet the City's stealth requirements. b. Construct a building or unit for cellular equipment to be located on the northwest side of the Maintenance Shop—adjacent to the Maintenance Shop(Exhibit 2). c. Construct a structure (tree-type) to hold the antennas to be located on the southwest side of the Maintenance Shop. d. Install landscaping on the east side of Maintenance Shop and in the front driveway entrance (Exhibit 2.A&B) and replace chain link as suggested in Exhibit 2. e. Install one 2-inch HDPE conduit for City services at the Maintenance Shop, intercept existing City communication conduit,and place City standard pullbox with traffic cover. f. Making other minor improvements as may be necessary to successfully complete this project. 2. APPROVAL OF IMPROVEMENTS In its capacity as the owner of Laguna Lake Golf Course, and separate from its capacity as regulator, the City shall have rights of specific approval and review of all designs and plans, initially at the concept and schematic plan level, and subsequently at the final plans as set forth herein. Upon execution of the MOU the City shall review and approve the preliminary design. After approval of the preliminary design, Contractor shall submit to the City the final plans for the Project. Within 30 days of such submission, the City shall exercise its final right of review and approval of such plans. These rights shall be supplemental to and not concurrent with its rights of inspection in connection with building permit, fire and other regulatory functions. 3. CITY RIGHTS OF APPROVAL AND INSPECTION During the construction process, the City shall have the right, as an owner, to review all change orders, to require change orders which the City reasonably deems necessary only in order to C3 -s ATTACHMENT 1- 2 ensure consistency or equivalency with the approved plans and specifications, and to inspect all parts of construction at any time. These rights, like the rights of plan review and approval, are supplementary to and separate from the regulatory functions of the City. 4. CONTINGENCIES TO LEASE SIGNING In its capacity as landowner, the City is under no obligation to enter into any lease until the development review process is concluded and all discretionary approvals are obtained and such other requirements as may pertain to final entitlement and approval of this project are fulfilled. 5. PERFORMANCE BOND FOR PUBLIC IMPROVEMENTS The Contractor shall provide at no cost to the City a surety bond to guarantee completion of the improvements that meet City standards for such bonds. 6. CONTINGENCY FUNDS FOR UNANTICIPATED WORK a. Prior to start of project construction, City will collect from Contractor and hold a sum of $5,000 for any unanticipated work related to the project. b. Contractor will receive an itemized statement of expenditures spent from this fund, within 90 days of completion of project. Funds not expended will be returned to the Contractor, exclusive of claims pending against the City. 7. RESPONSIBILITIES OF THE PARTIES a. Contractor. It shall be the responsibility of Contractor to diligently pursue all aspects of the application for the development of the project, including all environmental processing, all zoning processing, any supporting technical studies, and any other supporting studies as may be necessary. All costs associated with the processing of entitlements and City approvals and the production of studies,planning and design for the project shall be paid for by Contractor. b. City. The City, in its role as landowner, shall cooperate with and furnish information to Contractor on the property. With regard to zoning approvals, the City's responsibility shall be limited to providing that level of interaction, timely response, and review as provided for in regulations and ordinances of the City of San Luis Obispo. 8. OTHER MUNICIPAL PROCESSING a. The Parties understand and agree that those approvals required of the City acting in its governmental or regulatory capacity are separate and distinct from those approvals required by the City under this MOU. Notwithstanding anything to the contrary in this MOU, nothing herein shall be interpreted to mean that the City is any way waiving, limiting or weakening any regulatory or police power the City may have in any of its governmental capacities. It is intended that Contractor shall be obligated to fulfill such requirements as may be imposed by the City or any other governmental agency or authority having or exercising any jurisdiction over the project or over any construction to be undertaken by Contractor in, on or about said project. b. Refusal or failure by the City in its governmental or regulatory capacity to take a legislative action, issue any permit, license or any other action or approval sought by Contractor for construction of improvements on, or development of, the project shall not constitute a breach of this MOU. Memorandum of Understanding Page 2 of 32 C3 `�' ATfAC mw 1-5 9. NON-BINDING NATURE OF THE AGREEMENT a. Without obligating either of the parties, this MOU summarizes what Contractor and the City perceive to be the major deal points with respect to the project. No binding obligation is created by this MOU or can be created other than by execution of a Telecommunications Facilities Lease in the form attached hereto as Exhibit 1. Notwithstanding the foregoing, the parties agree that if a Telecommunications Facilities Lease is entered into between the parties, it shall substantially include the terms of this MOU. b. This MOU is an outline for discussion purposes only, is not intended to be contractual or binding for any purpose and is not an offer or representation by either party. It is designed to reflect the ideas being formulated, to provide a framework to attempt to resolve issues and concerns that have been raised, as well as for the resolution of issues and concerns which may arise. In some instances, a tentative but not binding, agreement on a matter is referred to, and in other instances, material agreements are yet to be defined and specified. The fact that any particular component or issue is not addressed in this MOU does not mean that it cannot be the subject of future discussions and negotiations, and the fact that a component is addressed does not mean that it cannot be rejected or modified by either party. Contractor further acknowledges and agrees that the officers and employees of the City, do not have authority to bind the City, and the final form of any proposed lease to be negotiated may have to contain matters not contemplated by this MOU. The parties acknowledge that neither party will be contractually bound to any agreement nor to any element of the proposed development until the final execution of a mutually acceptable lease approved and executed by authorized representatives. Alternatively, either of the parties may determine that further negotiations will not be fruitful and then terminate this MOU or allow this MOU to lapse without further liability to the other. 10. ACCEPTANCE AND ACKNOWLEDGEMENT CITY OF SAN LUIS OBISPO SPRINT PCS ASSETS,LLC C/O AFL TELECOMMUNICATIONS By: By: Mayor David F.Romero Derek Harding, AFL Telecommunications Authorized Representative of Sprint PCS, Assets,LLC ATTEST: Diane Reynolds, City Clerk AP D OF RM: ath , City Attey Exhibit 1: Form of Telecommunications Facility Lease at Laguna Lake Golf Course. Exhibit 2: Aerial map of proposed project scope. Memorandum of Understanding Page 3 of 32 v✓ _ . EXHIBIT TELECOMMUNICATIONS FACILITY LEASE AT LAGUNA LAKE GOLF COURSE This Lease is made and entered into this_day of , 2004, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city (hereinafter referred to as "Lessor"), and SPRINT PCS ASSETS,LLC, C/O AFL TELECOMMUNICATIONS (hereinafter referred to as"Lessee"). RECITALS This Lease is made and entered into with respect to the following facts: A. Lessor is the owner of the property described in Exhibit A, located at 11175 Los Osos Valley Road, San Luis Obispo, California,commonly known as Laguna Lake Golf Course. B. Lessee has requested permission to construct a wireless communications facility to be located at Laguna Lake Golf Course and Lessee is willing to construct and dedicate certain public improvements to Lessor. Lessor is willing to lease a portion of Laguna Lake Golf Course 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,Laguna Lake Golf Course operations or the public's use of the course. D. This Lease is conditioned upon Lessee obtaining all governmental permits and approvals enabling Lessee to construct and operate wireless communications facilities on the Premises, as defined below. E. Lessor and Lessee have heretofore entered into a Memorandum of Understanding dated June 1,2004 concerning Laguna Lake Golf Course. 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 11175 Los Osos Valley Road, commonly known as Laguna Lake Golf Course. 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 Exhibit I of the Memorandum of Understanding Page 4 of 32 l iCJ I EXHIBIT approximately 400 square feet of the land and all access and utility easements described in Exhibit B attached hereto, and by this reference made a part hereof(hereinafter referred to as the "Premises"). This Lease is subject to the terms, covenants and conditions hereinafter set forth and Lessee covenants, as a material part of the consideration for this Lease, to keep and perform each and every term, covenant and condition of said Lease. During the term of this Lease, Lessor also grants to Lessee an irrevocable, nonexclusive right of ingress and egress, seven days a week, twenty-four(24) hours a day, and the right to install and maintain underground utility wires and cables and conduits and pipes (1)from the Premises to the nearest public right-of-way, and(2) from the radio equipment to the antennas. 2. Improvements. A. Lessee shall design and perform, construct or erect or cause to be constructed or erected at its sole cost the following minor improvements("Improvements") as shown on Exhibit`B:" 1) Construct a building or unit for cellular equipment on the northwest side of the Maintenance Shop. 2) Construct a structure (tree-type) to hold the antennas to be located on the southwest side of the Maintenance Shop. 3) Install landscaping and replace chain link on the east side of Maintenance Shop and landscape the front driveway entrance. 4) Install one 2-inch HDPE conduit for City services at the Maintenance Shop, intercept existing City communication conduit,and place City standard pullbox with traffic cover. 5) Making other minor improvements as may be necessary to successfully complete this project. B. Lessee shall also erect on the Premises communications 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 (hereinafter"Lessee's Facilities") as shown on Exhibit`B". The Exhibit I of the Memorandum of Understanding Page 5 of 32 C;5 -� EXHIBIT plans for the Improvements and Lessee's Facilities (landscaping, irrigation, fencing, building, 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 landlord). Lessee shall dedicate the Improvements to Lessor upon completion thereof. C. The Improvements shall be performed by Lessee under the authority, direction, supervision, and approval of Lessor. Lessee shall submit construction plans to the City's Director of Parks and Recreation for approval prior to submitting the application and plans to the Community Development Department for building permit processing and approval. D. Lessee acknowledges and understands that the improvement is a public construction project subject to the competitive bidding requirement contained in California Public Contracts Code Section 20162 and the prevailing wage requirement contained in California Labor Code Section 1771. 3. Term. The initial term of this Lease shall be for five (5) years ("Initial Term") commencing with the issuance of a City building permit to construct the Lessee's Facilities and Improvements. This Lease shall automatically be renewed on the same terms and conditions, for three(3) additional terms (each a "Renewal Term") of five (5) years each, unless Lessee notifies Lessor of its intention not to renew, at least sixty (60) days prior to the expiration of the Initial Term or any Renewal Term 4. Rent. Rent shall be paid annually in advance as follows: A. Lessee shall pay to Lessor as annual rent on or before the Commencement Date of the Lease the sum of Twenty-Five Thousand Dollars ($25,000.00) ("Annual Rent") without deduction, setoff, notice or demand. B. Annually thereafter, Lessee shall pay to Lessor as Annual Rent for that lease year without deduction, setoff, notice, or demand the previous year's Annual Rent multiplied by the CPI Adjuster, or multiplied by three percent(3%), whichever is greater. Exhibit 1 of the Memorandum of Understanding Page 6 of 32 ( O EXHIBIT C. The CPI Adjuster means a percent, which is calculated by dividing the United States Consumer Price Index (All Urban Consumers) published by the Bureau of Labor Statistics of the U.S. Department of Labor three (3) months prior to the adjustment date by the base Index number published three (3) months prior to the Commencement Date, or previous adjustment date, as applicable. If the Index is changed so that the base Index number differs from that in effect when the fust extended term commenced, the Index shall be converted in accordance with the conversion factor published by the Bureau of Labor Statistics. If the Index is discontinued or revised during an extended term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised. D. If Lessee fails to pay the Annual Rent within thirty (30) days after such rent is due, Lessee shall pay a late fee of one and one half percent(1.5%) per month. This late charge does not establish a grace period. Lessor and Lessee agree that the charge is presumed to be the damages sustained by Lessor for Lessee's late payment of rent and that it is impracticable or difficult to fix the actual damages. 5. Termination for Convenience. Notwithstanding, the initial and renewal terms set forth in Section 3, Sprint PCS may terminate this Lease without further liability by delivering 60 days prior written notice. In this event, Lessee's improvements shall be removed in accordance with Section 18 of this Lease, without refund of previously paid rent; a termination fee of one (1) year's current rent shall be paid to Lessor. 6. Use. A. Lessee shall use the Premises for the sole purpose of constructing, maintaining, securing and operating wireless communications facilities including the construction of equipment buildings and installation of required antennas and related communications equipment upon the new stealth poles all as listed, depicted, and described in the "Lessee's Facilities" which is attached hereto as Exhibit I of the Memorandum of Understanding Page 7 of 32 I J EXHIBIT Exhibit`B"and hereby incorporated by reference. Any other use of the Premises or use of equipment not described in Exhibit`B, is not authorized and shall constitute a breach of this Lease. B. Lessee must obtain all discretionary permits and approvals required by Lessor in its municipal capacity. Installation of a new wireless telecommunication or modification of an existing installation shall require use permit approval and architectural review. The applicant shall submit application materials and fees as required by the Community Development Department. Wireless communications facilities shall not be constructed, installed or modified prior to obtaining a City building permit. It shall be the responsibility of the owner/operator of a telecommunications facility to provide the City with a notice of intent to modify site equipment in any way. Lessor shall reasonably cooperate(at no expense to Lessor) with Lessee in connection with Lessee's efforts to obtain all such permits and approvals; provided, however, Lessor shall not be obligated to apply for any permits or approvals with Lessee. Construction of Lessee's Facilities and the Park Improvements shall be at Lessee's sole expense. Further,Lessee shall maintain the Lessee's Facilities free from hazards or risk to the public health, safety and welfare. C. At all times throughout the term of this Lease, Lessee's use of the Premises shall be in conformance with, and subject to all conditions of,any and all discretionary permits in effect. D. Lessor agrees that Lessee's ability to use the Premises is dependent upon Lessee's obtaining all necessary certificates, permits and/or other approvals which may be required from Lessor in its municipal or regulatory capacity and from any federal, state or other local authority. Lessor agrees to cooperate with Lessee as to Lessee's obtaining such certificates, permits or other approvals. In the event Lessee is unable to obtain any necessary certificate, permit or other approval in order to operate or construct the Park Improvements or Lessee's Facilities, Lessee may terminate this Lease as provided herein, upon thirty(30)days prior written notice. E. Facility cannot be operational until final acceptance by the Lessor. 7. Interference. Exhibit 1 of the Memorandum of Understanding Page 8 of 32 c3- Ca- EXHIBIT A. Lessee warrants that its construction, repair and operation of Lessee's Facilities will not interfere with Lessor's fire, police, public works and other public safety or city department communication broadcasts or frequencies. All operations by Lessee shall be in compliance with all Federal Communications Commission requirements and all applicable laws. B. If Lessor suspects or has reason to believe that Lessee's use of the Premises creates radio or television interference for nearby residents or interference with Lessor's communication systems, and if Lessee (i)does not proceed diligently to eliminate such interference, or (ii)provide evidence that Lessee and the sublease tenant are not the source of such interference, within ten (10) business days after notice from Lessor to do so, Lessor may immediately terminate this Lease by giving notice to Lessee. C. Lessee shall provide Lessor with a contact person who shall be available twenty- four (24) hours a day to receive reports of any interference with Lessor's frequencies. In the event that there is interference with Lessor's public safety frequencies, Lessee shall immediately cease the operations creating the interference when directed to do so by the City's Director of Finance and Information Technology until such time that the interference can be eliminated to the satisfaction of the Information Technology Division. Lessee's failure to immediately cease such operations shall be considered a material breach of this Lease notwithstanding Paragraph 6.13. above. 8. Radio Frequency Emission Exposure. A. No wireless telecommunication facility shall be sited or operated in such a manner that it violates any condition of its Federal Communication Commission's (FCC) permit or license. To that end no facility or combination of facilities shall produce at any time power densities in any inhabited area that exceed the FCC's Maximum Permissible Exposure (MPE) limits for electric and magnetic field strength and power density for transmitters or any more restrictive legally enforceable and applicable standard subsequently adopted or promulgated by the city, county, the state of California, or the federal government. For purposes of radio frequency emissions, compliance with FCC exposure Exhibit I of the Memorandum of Understanding Page 9 of 32 '' EXHIBIT 1 - 7 limitations shall constitute a conclusive presumption that there is no hazard or risk to the public health, safety or welfare. B. Initial compliance with this requirement shall be demonstrated for any facility within three hundred (300) feet of residential uses or sensitive receptors such as schools, churches, hospitals, etc. and all broadcast radio and television facilities, regardless of adjacent land uses, through submission, at the time of application for the necessary permit or entitlement, calculations specifying MPE levels in the inhabited area where the levels produced are projected to be highest. If these calculated levels exceed eighty percent (80%) of the MPE limits, the applicant shall hire a qualified electrical engineer licensed by the State of California to measure exposure levels at the location after the facility is in operation. A report of these measurements and the engineer's findings with respect to compliance with MPE limits shall be submitted to the Community Development Director. Lessee's Facilities shall not commence normal operations until it complies with, or has been modified to comply with this standard. Proof of compliance shall be a certification provided by the engineer who prepared the original report. In order to assure the objectivity of the analysis, the City may require, at the applicant's expense, independent verification of the results of the analysis. C. Every wireless telecommunication facility within three hundred (300) feet of an inhabited area and all broadcast radio and television facilities shall demonstrate continued compliance with its FCC permit or license and MPE limits. Every five (5) years a report listing each transmitter and antenna present at the facility and the effective radiated power radiated shall be submitted to the Community Development Director. If either the equipment or effective radiated power has increased, calculations specifying exposure levels in the inhabited areas where the levels are projected to be highest shall be prepared. Calculations shall also be prepared every time the adopted MPE limits change. If calculated levels in either of these cases exceed eighty (80%) of the MPE limits, the operator of the facility shall hire a qualified electrical engineer licensed by the State of California to measure the actual exposure levels produced. A report of these calculations, required measurements, if any, and the engineer's findings with respect to compliance with the current MPE limits shall be submitted to the Exhibit 1 of the Memorandum of Understanding Page 10 of 32 C3 EXHIBIT— Community Development Director within five (5) years of facility approval and every five (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 limits shall be considered a material breach of this Lease. 9. Visual Mitigation. Lessee will use a variety of visual mitigation strategies for all of its facilities, as determined necessary by the Community Development Director and as required through the Architectural Review process, with the goal of achieving a 100% stealth installation. Facilities shall be creatively designed to minimize the visual impact to the greatest extent possible by means of placement, screening, and camouflage. The applicant shall use the smallest and least visible antennas possible to accomplish the coverage objectives. Each installation shall be designed to blend into its surroundings so that the antenna(s) and equipment are not apparent to the casual observer. The structure in which antennas are located shall not exceed fourteen (14) inches in diameter. No more than one carrier shall install antennas in any given pole. Ground mounted support equipment shall be undergrounded 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 telephone service to the support equipment shall be undergrounded. 10. Noise. Each facility shall be operated in a manner that minimizes any possible disruption caused by noise to people working and living in the vicinity. At no time shall equipment noise from any source exceed an exterior noise level of 55 dB at the property line or within 20 feet of such equipment, whichever is less. This requirement may be modified at the discretion of the Community Development Director where typical ambient noise levels exceed 55 dB. Outdoor noise producing construction activities shall take place only on weekdays between the hours of 8:00 am and 5:00 pm unless a different schedule is approved as part of the use permit. Any facility utilizing temporary backup generators shall be required to meet or exceed Air Pollution Control District Standards. All generators shall be fitted with approved air pollution control devices. The cellular site shall not be in operation prior to the issuance of a Exhibit I of the Memorandum of Understanding Page 11 of 32 C3- � EXHIBIT Certificate of Occupancy from the Community Development Department. Projects that propose to include backup generators shall require review and approval from the Air Pollution Control District. Project plans shall indicate location, size, horsepower and type of fuel used for any proposed generator. Generators shall only be operated during power outages and for testing and maintenance purposes. Testing and maintenance shall only take place on weekdays between the hours of 10:00 am and 2:00 pm. 11. Nondiscrimination. Subject to applicable laws, rules, and regulations, Lessee shall not discriminate against any person or group on the basis of age, sex, sexual orientation, AIDS, AIDS related condition, marital status,race,religion,creed, ancestry,national origin,disability, or handicap. 12. Subsurface Restrictions. The parties agree that this Lease covers only the surface of the Premises and only so much of the subsurface as is reasonably necessary for Lessee's use of the Premises as permitted in this Lease(including, without limitation, (i)the foundation for Lessee's monopole antenna structure and building, and (ii)cables, conduits and pipes within the Premises to connect Lessee's communications equipment within such building to the antennas to be constructed and maintained by Lessee within the Premises). 13. Liens. Lessee shall keep the premises free of mechanic's, material suppliers or other liens for any work done, labor performed 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, loss, cost and expense (including reasonable attorney's fees)of whatever kind for any such work done, labor performed or materials furnished. 14. No Utilities. Lessor shall not provide any utilities to fhe Premises. Lessee shall be permitted to install utility lines, meters for electricity, and shall arrange and pay for the installation and use of all utilities of whatsoever kind to the Premises. 15. Maintenance. A. Lessee shall, at Lessee's sole cost and to the satisfaction of Lessor, maintain Lessee's Facilities and all related improvements (except the Improvements as shown on Exhibit `B") in good condition, free from rodents, weeds, noxious plants and wild growth, in substantial repair, in a safe Exhibit 1 of the Memorandum of Understanding Page 12 of 32 EXHIBIT Wo and sanitary 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 Lessee's Facilities as required herein, Lessor may notify Lessee of said failure. If Lessee fails to correct the situation within thirty (30) days after notice or such longer period as may be established by Lessor, Lessor may make the necessary correction and the cost thereof, including but not limited to the cost of administration, and labor, materials, equipment, shall be paid by Lessee within thirty (30) days after receipt of a statement of said cost from Lessor. If said statement is not timely paid, Lessor may, at its option, choose any remedy available herein or by law, including the termination of this Lease. Lessee hereby waives to the extent permitted by law any right to make repairs at the expense of Lessor or to vacate the Premises in lieu thereof as may be provided by law. B. Lessor shall have no duty to maintain or repair Lessee's Facilities or any of Lessee's improvements. 16. Taxes. Lessee acknowledges that this Lease may create a possessory interest subject to property taxation and that Lessee may be liable for payment of taxes levied on such interest. Lessee shall promptly pay, prior to delinquency, all taxes, assessments and other governmental fees that may be lawfully levied against the Premises and any improvements or personal property located on the Premises and on any possessory interest created by this Lease, and provide proof of payment to Lessor on demand. 17. Insurance. Concurrent with the execution of this Lease, Lessee shall procure and- maintain, at its cost, during the initial and any extended or Renewal Term of this Lease from an insurer admitted in California or having a minimum rating of or equivalent to A: VII in Best's Insurance Guide: A. Comprehensive General Liability insurance with a combined single limit of at least Five Million Dollars ($5,000,000) for each occurrence. Lessor, its officials, employees and agents shall be covered as additional insured's with respect to liability arising from activities performed by or on behalf of Lessee. Said insurance shall be primary insurance with respect to Lessor and shall contain a cross liability endorsement. Exhibit I of the Memorandum of Understanding Page 13 of 32 i -- EXHIBIT B. "All Risk" property insurance in an amount sufficient to cover the full replacement value of Lessee's personal property, improvements and equipment on the Premises. C. Upon the execution of this Lease, Lessee shall deliver to Lessor certificates of insurance with original endorsements evidencing the coverage required by this Lease. The certificates and endorsements shall be signed by a person authorized by the insurer to bind coverage on its behalf. D. Said insurance shall contain an endorsement requiring thirty (30) days prior written notice from insurer to Lessor before cancellation or change of coverage. E. Said insurance may provide for such deductibles or self-insured retention as may be acceptable to the City's Risk Manager or designee. In the event such insurance does provide for deductibles or self-insured retention, Lessee agrees that it will fully protect Lessor its officials and employees in the same manner as these interests would have been protected had a policy of commercial insurance been in effect. With respect to damage to property, Lessor and Lessee hereby waive all rights of subrogation, one against the other, but only to the extent that collectible commercial insurance is available for said damage. F. The procuring of insurance shall not be construed as a limitation on Lessor's liability or as full performance on Lessee's part of the indemnification provision of this Lease. Lessee understands and agrees that, notwithstanding any insurance, Lessee's obligation to defend and indemnify Lessor, its officials and employees hereunder is for the full amount of any damage, loss cost or expense. G. Any modification or waiver of these insurance requirements shall only be made with the written approval of the Lessor's Risk Manager or designee. 18. Removal of Improvements. On the expiration or sooner termination of this Lease,Lessee at Lessee's sole cost shall have the right to remove Lessee's Facilities (with the exception of the Improvements as shown on Exhibit B) erected on the Premises by Lessee by giving notice of its intention to do so to Lessor and by removing same within forty-five (45) days after expiration or sooner termination of this Lease. Lessor may treat any such buildings or improvements as abandoned if Lessee fails to timely remove them and, in such event, (a)Lessor shall be deemed owner of them without Exhibit I of the Memorandum of Understanding Page 14 of 32 C-3 - i4 EXHIBIT accounting to Lessee, or (b)Lessor may cause their removal at Lessee's cost, with the exception of the underground conduits which may be abandoned in place by Lessee. 19. Relocation. Lessee agrees that nothing contained in this Lease shall create any right in Lessee for any relocation payment or assistance pursuant to the provisions of Title 1, Division 7, Chapter 16 of the California Government Code from Lessor on account of the expiration or sooner termination of this Lease. 20. Notice. Any notice required hereunder shall be in writing and personally delivered or deposited in the U.S. Postal Service, registered or certified, return receipt, postage prepaid, to the address of the respective parties set forth below: LESSOR: LESSEE: Parks and Recreation Director Authorized Representative of City of San Luis Obispo Sprint PCS,Assets,LLC. 1341 Nipomo Street 810 Gravilla Drive San Luis Obispo, CA 93401 Santa Barbara, CA 93109 Notice shall be deemed effective on the date shown on the return receipt or on the date personal delivery is made, whichever first occurs. If delivery is refused, the date of deposit of the copy in the mail shall be deemed the date of notice. Change of address shall be given as provided herein for notices. 21. Hazardous Materials and Waste. A. Lessee shall comply with all applicable laws regarding the use, storage and disposal of hazardous materials on the Premises. Lessee shall comply with California Health and Safety Code Section 25359.7 or its successor regarding notice to Lessor on discovery by Lessee of the presence or suspected presence of any hazardous substance on the Premises. B. Lessee shall not bring any hazardous materials onto the Premises except for those contained in its back-up power batteries and common materials used in telecommunications operations, e.g., cleaning solvents. Lessee shall treat all hazardous materials brought onto the Premises by it in accordance with all federal, state and local laws and regulations. C. Lessee shall specify any proposed generator usage and its proposed location. Exhibit 1 of the Memorandum of Understanding Page 15 of 32 q C EXHIBIT - 3 D. Lessor represents that the Premises have not been used for the generation, storage, treatment or disposal of hazardous materials, hazardous substances or hazardous wastes. In addition, Lessor represents that no hazardous materials, hazardous substances, or hazardous wastes, pollutants, asbestos, polychlorinated biphenyls (PCBs), petroleum or other fuels (including crude oil, or any fraction or derivative thereof),or underground storage tanks are located on or near the Premises. 22. Indemnity. Lessee shall defend, protect, indemnify and hold harmless Lessor, its officials, employees and agents from all claims, demands, damages, causes of action, losses, liability, costs or expenses, including reasonable attorney's fees, of any kind or nature whatsoever (except those resulting from Lessor's sole negligence or willful misconduct) 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 alleged acts or omissions of Lessee, any parent, subsidiary, affiliate 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, subsidiary, affiliate or partnership in which any such entity participates,Lessee's officers,employees or agents,or any breach of this Lease. Lessor shall protect, indemnify and save harmless Lessee, and its officers, agents and employees, from 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 Premises by Lessor hereunder and resulting from the sole negligence or willful misconduct of Lessor or its officers, agents and employees. 23. Assignment and Subletting. Except for an assignment, sublease or transfer to Lessee's affiliate, parent, subsidiary, member or partner, or as a result of a merger or sale of substantially all of Lessee's assets ("Permitted Assignment"), Lessee shall not assign or transfer this Lease or any interest herein, without the prior written consent of Lessor which shall not be unreasonably withheld, provided, however,that Lessee shall notify Lessor in writing of a Permitted Assignment within thirty(30)days. To Exhibit I of the Memorandum of Understanding Page 16 of 32 �3_ EXHIBIT 1 - obtain Lessor's consent to a proposed assignment or transfer (hereinafter collectively referred to as "transfer"), Lessee shall meet the following requirements and Lessee's failure to meet any requirement shall allow Lessor to withhold consent: A. Lessee shall notify Lessor at least sixty (60) days prior to the date when Lessee desires the transfer to take effect ("Transfer Date's which notice shall contain the name, address and telephone number of the proposed transferee; the nature of the proposed transferee's business and details of its business experience. B. Lessor shall notify Lessee at least thirty days (30) days prior to the Transfer Date whether Lessor approves or disapproves of the proposed transfer. C. Any approved transferee shall assume and be deemed to have assumed this Lease and shall be jointly and severally liable with Lessee for the payment of rent and performance of the terms, covenants, and conditions of this Lease. No approved transfer shall be binding on Lessor until such transferee shall deliver to Lessor a counterpart of the transfer agreement with contains a covenant of assumption by transferee but the failure or refusal to execute or deliver such instrument shall not release transferee from its liability as stated herein. D. 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 subject to transfer by attachment, execution, proceedings in insolvency or bankruptcy (either voluntary or involuntary), or receivership. In the event of the transfer without the prior written consent of Lessor, such transfer shall be voidable at Lessor's election and, if voided by Lessor, shall convey no interest. Any transfer without Lessor's consent shall constitute a default of this Lease: E. To obtain Lessor's consent to a sublease, Lessee shall meet the following requirements and Lessee's failure to meet any requirement shall allow Lessor to withhold consent: 1) The Lessee must pay to Lessor the same amount of Annual Rent on the sublease tenant's behalf as the 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 the Lessee Exhibit I of the Memorandum of Understanding Page 17 of 32 03- �I \ EXHIBIT would be $79,567.50: the Annual Rent for the Lessee ($26,522.50, which is the fust year's rent of $25,000 increased by 3% for two years) and the Additional Annual Rent for the two sublease tenants ($26,522.50 each). While the Lessee may require the sublease tenant to pay this amount as part of their sublease agreement with the Lessee, payment of the Additional Annual Rent is the sole responsibility of the Lessee, and is subject to the same terms,conditions and remedies as the Annual Rent. 2) Lessee shall notify Lessor at least sixty (60) days prior to the date when Lessee desires the sublease the transfer to take effect ("Sublease Date"), which notice shall contain the name, address and telephone number of the proposed sublease tenant; the nature of the proposed sublease tenant's business and details of its business experience. The fust 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 thereafter with the Annual Rent. 3) Lessor and Lessee agree (by way of example and without limitation)that it shall be reasonable for Lessor to withhold its consent if any of the following exist or may exist: the proposed transferee's use of the Premises conflicts with or is inconsistent with the use of the Premises stated herein; the Lessee is in default under this Lease at the time the request for sublease is made and has not cured such default, if the same can be cured,prior to ten(10) business days prior to the Sublease Date. 4) The sublease tenant is subject the same terms and conditions of this Agreement as the Lessee. 5) Lessor shall notify Lessee at least fifteen (15) days prior to the sublease date whether Lessor approves or disapproves of the proposed sublease. 24. No Permits. Lessee shall not grant any rights-of-way, easements, franchises or permits in,on or across the Premises. 25. Encumbrances. Lessee shall take the Premises subject to any and all existing easements and other encumbrances. 26. Reservations. Lessor reserves the right to grant franchises, easements, rights-of-way or permits for pipeline purposes which will not interfere with Lessee's use of the Premises. Exhibit I of the Memorandum of Understanding Page 18 of 32 C3-� EXHIBIT 27. Default. The occurrence of any of the following acts shall constitute a default by Lessee: A. Failure to pay Annual Rent or Additional Annual Rent when due where such failure shall continue for a period of ten(10)days after Lessee's receipt of written notice from Lessor. B. Failure to perform any of the terms, covenants or conditions of this Lease if said failure is not cured within thirty (30) days after Lessee's receipt of written notice from Lessor of said failure. If the default cannot reasonably be cured in thirty (30) days after receipt of such notice, Lessee shall not be in default if Lessee 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 Premises. No such notice shall be deemed a forfeiture or termination of the Lease unless Lessor so elects in the notice. C. Any attempted 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 regulatory 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 terms of this Section, if Lessee does not comply with each term, covenant and condition of this Lease or if a default occurs, then Lessor may terminate this Lease and Lessor may then enter the Premises and take possession thereof provided, however, that these remedies are not exclusive but cumulative to other remedies provided by law in the event of Lessee's default, and the exercise by Lessor of one or more rights and remedies shall not preclude the Lessor's exercise of additional or different remedies for the same or any other default by Lessee. F. Failure to perform any of the terms, covenants or conditions of this Lease if said failure is not cured within thirty (30) days after Lessee notifies 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 receipt Exhibit I of the Memorandum of Understanding Page 19 of 32 C3-J3 EXHIBIT _ of such notice,Lessor shall not be in default if Lessor begins to cure within the thirty (30) day period and diligently proceeds to cure to completion. 28. Right of Entry. A. In the event of an emergency which poses an immediate threat of harm or damage to persons or property, Lessor may enter the Premises and take such actions as are required to protect persons or property from such immediate threat of harm or damage, provided that promptly after such emergency entry into the Premises (and in no event later than twenty-four (24) hours) Lessor gives telephonic and written notice to Lessee of Lessor's entry into the Premises. In addition to Lessor's rights under the immediately preceding sentence, Lessor shall have the right, upon forty-eight (48) hours prior telephonic notification to Lessee (which notification shall specify the date and time at which Lessor seeks to enter the Premises), to enter the Premises to determine whether or not Lessee is complying with this Lease 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 without a representative of Lessee being present, and Lessee agrees to make its representative promptly and readily available to accompany Lessor on the date and at the time given in Lessor's telephonic notice. If Lessee fails to make its representative available on the date and 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. B. Lessee shall install a lock box system on the Premises and give the City access to the lock box in order to allow the City to inspect the Premises pursuant to Paragraph A above. 29. Signs. Lessee shall not place, affix, maintain or permit any sign, advertisement, name, insignia, logo, descriptive material or similar item(collectively"sign") on the Premises without the prior written approval of Lessor. Any approved sign shall be maintained by Lessee in good condition at all times. Lessor may remove any sign not approved by Lessor at Lessee's cost. The cost of removal shall be additional rent. 30. 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 terminate. If any part of the Premises Exhibit I of the Memorandum of Understanding Page 20 of 32 EXHIBIT " shall be taken under the power of eminent domain, then this Lease shall terminate as to the part taken, as of the day possession (of that part) is required for any public purpose, and on or before that day Lessee shall elect 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 proportion to the amount of the Premises taken if Lessee is unable to operate at the same level after the condemnation as before the condemnation. All damages awarded for any taking shall belong to Lessor, whether such damages be awarded as compensation for diminution in value to the leasehold or to the fee provided, however, that Lessor shall not be entitled to any portion of the award made for loss of Lessee's business or relocation expenses. 31. Nuisance. Lessee shall not do or permit 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 the neighborhood. 32. 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 permitted by law, Lessee waives all claims 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 misconduct or Lessor's breach of its obligations hereunder. 33. Waiver of Rights. The failure or delay of either party to insist on strict 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 term, covenant, or condition herein. The receipt and acceptance by Lessor of delinquent rent shall not constitute a waiver of any other default but shall only constitute a waiver of timely payment for the particular rent payment involved. Any waiver by either party of any default or breach 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 not be deemed to waive such party's consent or approval of any subsequent act of the other party. Exhibit 1 of the Memorandum of Understanding Page 21 of 32 C3 �� EXHIBIT 1 -19 34. Partial Invalidity. If any term, 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 hereof shall remain in full force and effect. 35. Successors in Interest. This Lease shall be binding on and inure to the benefit of the parties and their successors, heirs,personal representatives, approved transferees and assignees, and all of the parties hereto shall be jointly and severally liable hereunder. 36. Right to Re-Enter. Lessor acknowledges that Lessee's use of the Premises includes proprietary trade secrets. Lessor shall 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 withhold. Lessee shall peaceably deliver possession of the Premises to Lessor on the effective date of termination or expiration of this Lease. On giving notice of termination to Lessee, Lessor shall have the right to re-enter and take possession of the Premises on the termination or expiration date without further notice of any kind and without institution of summary or regular legal proceedings. Termination of the Lease and re-entry of the Premises by Lessor shall in no way alter or diminish any obligation of Lessee under the Lease and shall not constitute an acceptance or surrender. Lessee waives any and all right of redemption under any existing or future law, in the event of eviction from the Premises and in the event Lessor re-enters and takes possession. Lessee agrees that should the manner and method used by Lessor in re-entering or taking possession after breach by Lessee gives Lessee a cause of action for damages or in forcible entry and detainer, the total amount of damages to which Lessee shall be entitled due to the re-entering shall be One Dollar ($1.00). Lessee agrees that this Section may be filed in any such action and that when filed it shall be a stipulation by Lessee fixing the total damages to which Lessee is entitled in such action. 37. Holding Over. If Lessee holds over and remains in possession of the Premises after the expiration of the Lease, such holding over shall be construed as a tenancy from month to month on the same terms, covenants, and conditions herein, except that monthly rent shall be one-twelfth(1/12) of one Exhibit I of the Memorandum of Understanding Page 22 of 32L 3 " EXHIBIT 1 ,2,D hundred twenty-five percent (125%) of the annual rent then in effect. Nothing in this Section shall be construed as a consent by Lessor to any holding over by Lessee. 38. Time. Time is of the essence in this Lease and every provision hereof. 39. Attorney's Fees. In any action or proceeding relating to this Lease, the prevailing party shall be entitled to its costs, including reasonable attorney's fees and court costs. 40. Integration and Amendments. This Lease represents and constitutes the entire understanding between the parties and supercedes all other agreements and communication between the parties, oral or written, concerning the subject matter herein. This Lease shall not be modified except in writing duly signed by the parties and referring to this Lease. 41. Recordation. Concurrently with the execution of this Lease, Lessor shall execute before a notary and deliver to Lessee 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 to or arising from said recordation. Upon expiration or sooner termination of this Lease, Lessee shall, at its sole cost, immediately record a Quitclaim Deed with respect to its interest under this Lease. 42. Governing Law. This Lease shall be governed by and construed in accordance with the laws of the State of California. 43. Captions. The various headings and numbers herein and the grouping of the terms hereof into separate sections, paragraphs and clauses are for convenience only and shall not be considered a part hereof, and shall have no effect on the construction or interpretation of this Lease. 44. Abandoned Property. The vacating or abandonment of the Premises by Lessee shall include but not be limited to the failure of Lessee to occupy the Premises for a continuous period of forty- five (45) days or more while not paying rent. If Lessee abandons the Premises, title to any personal property belonging to Lessee and left on the Premises forty-five (45) days after such abandonment shall be deemed to have been transferred to Lessor. Lessor shall thereafter have the right to remove and to Exhibit 1 of the Memorandum of Understanding Page 23 of 32 EXHIBIT 2I dispose of said property without liability to lessee or to any person claiming under Lessee, and shall have no duty to account therefore. 45. Compliance with the Law. Lessee shall comply with all laws, ordinances, rules and regulations of all federal, state and local governmental authorities having jurisdiction over the Premises and business thereon. 46. Ouiet Enjoyment. Lessor covenants that, if Lessee performs the terms, covenants and conditions of this Lease,Lessee shall peaceably and quietly hold and enjoy the Premises. 47. Lessor's Representation of Authority. Lessor represents that it has title to the Premises and full authority to execute this Lease and to grant the easements and access to the Premises. Lessor further represents that there are no undisclosed liens,judgments, impediments or exceptions of title on the Premises that would affect this Lease. 48. Non-Interference Provision. Lessor will use its best efforts to provide Lessee with notice of any applications received from any other communications companies wishing to utilize any part of Laguna Lake Golf Course. Further, Lessor will use its best efforts to not lease property in Laguna Lake Golf Course to other communication companies, nor to use Laguna Lake Golf Course for communications purposes, that might interfere with Lessee's use of the Premises. In the event Lessor or any other communication company on Laguna Lake Golf Course does, in fact,interfere with Lessee's use of the Premises, Lessor shall eliminate, or cause to be eliminated, such interference within seventy-two (72) hours of written notice by Lessee. If such interference is not eliminated in such time period,Lessee may exercise any right or remedy at law or in equity to eliminate the interference or may terminate this Lease. IN WITNESS WHEREOF, the parties have executed this Lease with all of the formalities required by law as of the date first above written. LESSOR: LESSEE: SPRINT PCS ASSETS,LLC CIO AFL TELECOMMUNICATIONS Exhibit 1 of the Memorandum of Understanding Page 24 of 32 C3 -� EXHIBIT By: By: Mayor David F. Romero Derek Harding,AFL Telecommunications Authorized Representative of Sprint PCS, Assets,LLC ATTEST: By: Diane Reynolds, City Clerk APPROVED AS TO FORM: By: Jonathan P.Lowell, City Attorney Exhibit 1 of the Memorandum of Understanding Page 25 of 32 ' J � EXHIBIT ' � ✓ LXHIBrrA LEGAL DESCRIPTION OF THE PROPERTY All real property located in the State of California, County of San Luis Obispo, described as follows: The legal description will be prepared at a later date prior to execution of the lease Exhibit 1 of the Memorandum of Understanding Page 26 of 32 C3'� EXHIBIT 2,4 EXHIBIT B DESCRIPTION OF THE PROJECT The detailed project description will be prepared at a later date prior to execution of the lease. Exhibit I of the Memorandum of Understanding Page 27 of 32 EXHIBIT =IBTf C MEMORANDUM OF LEASE RECORDING REOUESTED BY: WHEN RECORDED,RETURN TO: MEMORANDUM OF LEASE This MEMORANDUM OF LEASE ("Memorandum") dated as of 2004, is between the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city ("Lessor") and a Delaware limited liability company, on behalf of. ("Lessee"). RECITALS WHEREAS, Lessor and Lessee have executed that certain Telecommunications Facility Lease at Laguna Lake Golf Course "Lease") dated as of , 2004, covering certain premises (the "Premises") situated on a portion of that certain real property located in the County of San Luis Obispo, State of California, and more particularly described in Exhibit "A" attached hereto and incorporated herein by this reference; and WHEREAS,Lessor and Lessee desire to record notice of the Lease in the Official Records of San Luis Obispo County,California; NOW, THEREFORE, in consideration of the foregoing, Lessor and Lessee hereby declare as follows: 1. Demise. Lessor has leased the Premises to Lessee (together with access rights), and Lessee has hired the Premises from Lessor, subject to the terms, covenants and conditions contained in the Lease. 2. Expiration Date. The term of the Lease ("Term') is scheduled to commence on or before and shall expire five (5) years thereafter, subject to Lessee's option to extend the Term pursuant to Section 3 of the Lease for three(3) additional terms of five(5) years each. 3. Lease Controlling. This Memorandum is solely for the purpose of giving constructive notice of the Lease. In the event of conflict between the terms of the Lease and this Memorandum, the terms of the Lease shall control. Exhibit I of the Memorandum of Understanding Page 28 of 32 (�3 - 3a EXHIBIT I — IN WITNESS WHEREOF, Lessor and Lessee have executed this Memorandum of Lease as of the date and year first written above. LESSOR LESSEE By: By: Name: Name: Title: Title: NOTARIZED SIGNATURES STATE OF CALIFORNIA ) ss. COUNTY OF ) On ,before me, personally appeared personally known to me (or 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. WITNESS my hand and official seal. (Signature of Notary Public) STATE OF CALIFORNIA ) ss. COUNTY OF ) On before me, personally appeared personally known to me (or 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. WITNESS my hand and official seal. Exhibit 1 of the Memorandum of Understanding Page 29 of 32 C3-33 EXHIBIT EXHIBIT 2 AERIAL MAP OF PROPOSED PROJECT SCOPE F�l ;11fJ ming here 1n front Cow= CeD equipment here Chain link to be revhtced B CeIl t r��r" —► here EXHIBIT EXHIBIT 2 AERIAL MAP OF PROPOSED PROJECT SCOPE Nr Landscaping here Cell equipment In front entrance here Chain link to be replaced B r "tree-type" I Cell tower here ` c Exhibit 2 of the Memorandum of Understanding Page 30 of 32 EXHIBIT L-2 EXHIBIT 2.A LANDSCAPING SCHEMATICS OF PROPOSED PROJECT ,a = O �✓ Exhibit 2 of the Memorandum of Understanding Page 31 of 32 CJ' ^ 3,V. EXHIBIT EXHIBIT 2.B LANDSCAPING SCHEMATICS OF PROPOSED PROJECT • ' t'. � (. � err/ ���� t �7 �(�•t '$i:• r • 1 • 1 1 ', I• n V � 1 , 1 1 z • t r 1 1 Ir\ • I• 1 1 r' ' I �- r r 1 \ ' , , r• 11 1 \1 t '1 . • 1 y 1 1 ' • I t r 1 1 Exhibit 2 of the Memorandum of Understanding Page 32 of 32 C3- � City Council Meeting Page 5 Tuesda , May 21,2002-5:00 D. GOLF TOURSE FUND RATE REVIEW. 2°� Parks and Recreation Director LeSage presented the staff report. Mayor Settle opened the public hearing. Andrew Carter, 1283 Woodside,asked for clarification on past rate increases. Mary Beth Schroeder,2085 Wilding Lane, spoke in oposition to the staff recommendations. Mayor Settle closed the public hearing. Brief questions from the Council followed. ACTION: Moved by Mulholland/Settle to: 1) Adopt Resolution No.9316(2002 Series)setting fees for Laguna Lake Golf Course effective July 1,2002. 2) Authorize an additional General Fund transfer of$16,300 for 2001-02 and$216,300 in 2002-03 for general government costs and capital improvements. 3)-Direct staff to pursue a telecommunications facility lease at Laguna Lake Golf Course as an additional source of revenue; motion carried 5:0. E. EEK AND FLOOD PROT CTION FU EVIEW F 002-03. Public Works.Director McC us cey, Finance Director Statler and Public Works Analyst Elliott presented an in-depth staff report. Council questions followed. Mayor Settle opened the public hearing. Speaking in opposition to the staff recommendations. Roy Hanff,569 Lawrence Drive Eric Greening,Atascadero resident Mary Beth Schroeder,2085 Wilding Lane Gary Fowler,777 Mill Street Richard Ferris, Branch Street resident(submitted written correspondence for the record) Jean Webb, 1997 Partridge Drive Jim Webb, 1997 Partridge Drive Ron Rusconi,527 Branch Street Speaking in support of the staff recommendations: John French,3942 Hollyhock Dave Romero,2057 Skylark Andrew Carter, 1283 Woodside Drive Mayor Settle closed the public hearing. Mayor Softie called a recess at 9.12 p.m. The meeting resumed at 9:27 p.m. Lengthy Council discussion followed. ACTION; Moved by Marx/Ewan to: 1) Adopt Resolution.No.9317(2002 Series) establishing a new Creek and Flood Protection Fund and enacting fee schedules to take effect July 1,2002. 2) Approve a significant operating program change request Parks and Recreation Commission ATTACHMENT 3_ MINUTES City-County Library Conference Room Wednesday, May 5, 2004 7:00 p.m. . 14A O o CALL TO ORDER: Chair Peter Dunan called the meeting to order at 7:01 p.m. Q ROLL CALL: Chair Pete Dunan, Commissioners:, Gary Clay, Don Dollar, Ty Griffin, John Knight,Jill Lemieux, and Bill Pyper. ABSENT: None STAFF: Director Paul LeSage,Todd Beights, and Cindy McDonald. CONSIDERATION OF MINUTES: The minutes of the April 7, 2004 meeting were approved as submitted. PUBLIC COMMENT PERIOD: No public comment. 1. Volunteer of the Month Chair Dunan presented Howard Hendlener as the Volunteer of the Month. 2. Mitchell Park Bandstand Donation LeSage presented the staff report regarding the Rotary Club's offer to construct and donate a bandstand in Mitchell Park. LeSage introduced Jim and Gail Hoffman, donor's of the bandstand who described the bandstand construction. Commission discussed the item. Recommendation: Recommend that the City Council accept the Rotary Club of San Luis Obispo's offer to construct and donate a bandstand in Mitchell Park. (Pyper/Griffin, unanimous). 3. Laguna Lake Golf Course Rates LeSage presented the staff report for the change in fees for the 2004/2005 fiscal year. Commission discussed the item. Recommended Action: Endorse the change in fees for Laguna Lake Golf Course effective July 1, 2004, increasing all rates by 25 cents per round and$1.00 a round for Twilight Rates. 7to e Golf Course MOU for a Telecommunications Lease d Cindy McDonald, who presented the staff report regarding a telecommunications (facilityted in Laguna Lake Golf Course. ussed the item. C� t.'IP&k59 Re COMMLVA"120041M/nu2s705.05.04 minufixdac Parks and Recreation Cor. 'ssion Minutes for May 5, 2004 _ ATfACHMENT3 -;, Page 2 .,..�.�-�-- Recommended Action: Recommend approval of a Memorandum of Understanding (MOU) with Sprint PCS for a telecommunications facility lease at Laguna Lake Golf Course. (Lemieux/Griffin,unanimous). LeSage briefed the Commission on the following projects: o Laguna Lake Park Master Plan ■ Other Projects 6. Staff Reports \Oa Todd Beights,Parks Maintenance, updated the Commission with various park projects. 7. Committee Reports Commissioners gave reports on Committees they attended. ■ Tree Committee-Dunan i Joint Use Committee ■ Mayors Youth Task Force- ■ Jack House Committee-Pyper ■ Open Space-Dollar ■ Golf-Lemieux ■ Therapy Pool ■ Landscape Parkways 8. Communications None. 9. Adjourned The meeting adjourned at 8:15 pm to the June 2,2004 meeting, in the City Council Chambers. C3 -4b RECEIVED ����������������►�►►��`►��►��� MCMORAnbum MAY � 'r 2GG4 city of san lues oBispo, pa>zks ana uecueation aepatttment —SL"O C—IIY CLERK May 26, 2004 To: City Council Via: Ken Hampian, City Administrative Officer From: Paul LeSage, Parks and Recreation Directo (� � Cindy McDonald, Supervising Administrative Assistailf Subject: Item C3 —June 1, 2004—City Council Meeting Telecommunications Facility Lease at Laguna Lake Golf Course Sprint PCS informed the City on May 25, 2004, that they would like to the MOU and Lease to reflect the following name: Sprint PCS Assets,L.L.C. A Deleare Limited Liability Company. These changes have been made throughout the MOU and Lease and a clean copy is at the City Clerks Office. .QjYIaRED FILE COUNCIL 0F MEETING AGENDA ICAO .2� DIF DATE � 1o ITEM #� ,'ACAO ? ;AE CHIEF C;/ATTORNEY 'E-pw DIR p'CLERK/ORIG Z`POLICE CHF ❑ DEPT HEAD -'iZc D!R .2"'u7.L DiR C:\DOCUM£-lWoweALOC4U-N'emyWEMOA-1.DOC MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding("MOU') is made this 1 at day of June,2004 by and between the CITY OF SAN LUIS OBISPO,a municipal corporation and charter city(the"City"),and SPRINT PCS ASSETS, LLC, A DELAWARE LIMITED LIABILITY COMPANY. C/O AFL------ Formamed:nn aps -------------------------------- — TELECOMMUNICATIONS(the to "Conhacr"). ----- ---- RECITALS WHEREAS,Contractor desires to construct a wireless communications facility at Laguna Lake Golf Course;and WHEREAS,the City is willing to lease a portion of Laguna Lake Golf Course to the Contractor upon the terms and conditions set forth in Exhibit 1, provided that Contractor is able to obtain all discretionary approvals required by the City in its municipal and regulatory capacity,and' WHEREAS,the MOU is non-binding in nature. Now,therefore,the parties have prepared the following MOU: 1. PROJECT DESCRIPTION The"project"consists of a wireless communications facility at the golf course as follows: a. It is envisioned that the cellular antennas for this project would be of a tree type design that will blend into the scenery, have little impact to the skyline, and meet the City's stealth requirements. b. Construct a building or unit for cellular equipment to be located on the northwest side of the Maintenance Shop—adjacent to the Maintenance Shop(Exhibit 2). ' c. Construct a structure(tree-type)to hold the antermas to be located on the southwest side of the Maintenance Shop. d. Install landscaping on the east side of Maintenance Shop and in the front driveway entrance (Exhibit 2A&B)and replace chain link as suggested in Exhibit 2. e. Install one 2-inch HDPE conduit for City services at the Maintenance Shop,intercept existing City communication conduit,and place City standard pullbox wiih traffic cover. f. Making other minor improvements as may be necessary to successfully complete this project 2. APPROVAL OF IMPROVEMENTS In its capacity as the owner of Laguna Lake Golf Course, and separate from its capacity as regulator, the City shall have rights of specific approval and review of all designs and plans, initially at the concept and schematic plan level,and subsequently at the final plans as set forth herein. Upon execution of the MOU the City shall review and approve the preliminary design. After approval of the preliminary design,Contractor shall submit to the City the final plans for the Project Within 30 days of such submission,the City shall exercise its final right of review and approval of such plans. These rights shall be supplemental to and not concurrent with its rights of inspection in connection with building permit,fire and other regulatory functions. 3. CITY RIGHTS OF APPROVAL AND INSPECTION During the construction process,the City shall have the right,as an owner,to review all change orders, to require change orders which the City reasonably deems necessary only in order to ensure consistency or equivalency with the approved plans and specifications,and to inspect all parts of construction at any time. These rights, like the rights of plan review and approval,are supplementary to and separate from the regulatory functions of the City. 4. CONTINGENCIES TO LEASE SIGNING In its capacity as landowner, the City is under no obligation to enter into any lease until the development review process is concluded and all discretionary approvals are obtained and such other requirements as may pertain to final entitlement and approval of this project are fulfilled. 5. PERFORMANCE BOND FOR PUBLIC IMPROVEMENTS The Contractor shall provide at no cost to the City a surety bond to guarantee completion of the improvements that meet City standards for such bonds. 6. CONTINGENCY FUNDS FOR UNANTICIPATED WORK a. Prior to start of prcjcet construction, City will collect from Contractor and hold a sum of $5,000 for any unanticipated work related to the project. b. Contractor will receive an itemized statement of expenditures spent from this fund,within 90 days of completion of project. Funds not expended will be returned to the Contractor, exclusive of claims pending against the City. 7. RESPONSIBILITIES OF THE PARTIES a. Contractor. It shall be the responsibility of Contractor to diligently pursue.all aspects of the application for the development of the project, including all environmental processing, all zoning processing,any supporting technical studies,and any other supporting studies as may be necessary. All costs associated with the processing of entitlements and City approvals and the production of studies,planning and design for the project shall be paid for by Contractor. b. City. The City, in its role as landowner, shall cooperate with and furnish information to Contractor on the property. With regard to zoning approvals,the City's responsibility shall be limited to providing that level of interaction,timely response,and review as provided for in regulations and ordinances of the City of San Luis Obispo. 8. OTHER MUNICIPAL PROCESSING a. The Parties understand and agree that those approvals required of the City acting in its governmental or regulatory capacity are separate and distinct from those approvals required by the City under this MOU. Notwithstanding anything to the contrary in this MOU,nothing herein shall be interpreted to mean that the City is any way waiving,limiting or weakening any regulatory or police power the City may have in any of its governmental capacities. It is intended that Contractor shall beobligated to fulfill such requirements as may be imposed by the City or any other governmental agency or authority having or exercising any jurisdiction over the project or over any construction to be undertaken by Contractor in,on or about said project. b. Refusal or failure by the City in its governmental or regulatory capacity to take a legislative action, issue any permit, license or any other action or approval sought by Contractor for Mw"=dan of Undersrandmg Page 2 of33 construction of improvements on,or development of,the project shall not constitute a breach of this MOU. 9. NON-BINDING NATURE OF THE AGREEMENT a. Without obligating either of the parties,this MOU summarizes what Contractor and the City perceive to be the major deal points with respect to the project. No binding obligation is created by this MOU or can be created other than by execution of a Telecommunications Facilities Lease in the form attached hereto as Exhibit 1. Notwithstanding the foregoing,the patties agree that if a Telecommunications Facilities Lease is entered into between the parties,it shall substantially include the terms of this MOU. b. This MOU is an outline for discussion purposes only, is not intended to be contractual or binding for any purpose and is not an offer or representation by either party. It is designed to reflect the ideas being formulated,to provide a framework to attempt to resolve issues and concerns that have been raised,as well as for the resolution of issues and concerns which may arise. In some instances,a tentative but not binding,agreement on a matter is referred to,and in other instances,material agreements are yet to be defined and specified. The fact that any particular component or issue is not addressed in this MOU does not mean that it cannot be the subject of future discussions and negotiations,and the fact that a component is addressed does not mean that it cannot be rejected or modified by either party. Contractor further acknowledges and agrees that the officers and employees of the City,do not have authority to bind the City,and the final form of any proposed lease to be negotiated may have to contain matters not contemplated by this MOU. The parties acknowledge that neither party will be contractually bound to any agreement nor to any element of the proposed development until the final execution of a mutually acceptable lease approved and executed by authorized representatives. Alternatively,either of the parties may determine that further negotiations will not be fruitful and then terminate this MOU or allow this MOU to lapse without further liability to the other. 10. ACCEPTANCE AND ACKNOWLEDGEMENT CITY OF SAN LUIS OBISPO $PRINT PCS ASSETS LLC A Delaware------- Fonnond:Indent tAt tY, Limited Company banging: 3.S C/O AFL TELECOMMUNICATIONS Detetd:... By: By: Mayor David F.Romero Derek Harding,AFL Telecommunications Authorized Representative of Sprint PCS, Assets,LLC ATTEST: Diane Reynolds,City Clerk APPROVED AS TO FORM: Jonathan P.Lowell,City Attorney Exhibit 1: Form of Telecommunications Facility Lease at Laguna Lake Golf Course. Mmvrmrdum of Underarando g Page 3 of33 Exhibit 2: Aerial map of proposed project scope. Memorandum of Understandmg Page 4 of33 J C, TELECOMMUNICATIONS FACILITY LEASE AT LAGUNA LAKE GOLF COURSE This Lease is made and entered into this_day of 2004,by and between the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city (hereinafter referred to as "Lessor),and SPRINT PCS A DELAWARE LIMITED LIABHATY COMPANY,ASSETS,LLC,C/O AFL TELECOMMUNICATIONS(hereinafter referred to as"Lessee'). RECITALS This Lease is made and entered into with respect to the following facts: A. Lessor is the owner of the property described in Exhibit A, located at 11175 Los Osos Valley Road,San Luis Obispo,California,commonly known as Laguna Lake Golf Course. B. Lessee has requested permission to construct a wireless communications facility to be located at Laguna Lake Golf Course and Lessee is willing to construct and dedicate certain public improvements to Lessor. Lessor is willing to lease a portion of Laguna Lake Golf Course 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,Laguna Lake Golf Course operations or the public's use of the course. D. This Lease is conditioned upon Lessee obtaining all governmental permits and approvals enabling Lessee to construct and operate wireless communications facilities on the Premises,as defined below. E. Lessor and Lessee have heretofore entered into a Memorandum of Understanding dated June 1,2004 concerning Laguna Lake Golf Course. 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 11175 Los Osos Valley Road, commonly known as Laguna Lake Golf Course. 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 ExhibitI of theMwwran ronofUnd"mndog Pap Sof33 D ' approximately 400 square feet of the land and all access and utility easements described in Exhibit B attached hereto,and by this reference made a part hereof(hereinafter referred to as the"Premises'. This Lease is subject to the terms, covenants and conditions hereinafter set forth and Lessee covenants, as a material part of the consideration for this Lease,to keep and perform each and every term,covenant and condition of said Lease. During the term of this Lease,Lessor also grants to Lessee an irrevocable,nonexclusive right of ingress and egress,seven days a week,twenty-four(24)hours a day,and the right to install and maintain underground utility wires and cables and conduits and pipes(1)from the Premises to the neatest public right-of-way,and(2)from the radio equipment to the antennas. 2. Improvements. A. Lessee shall design and perform,construct or erect or cause to be constructed or erected at its sole cost the following minor improvements("Improvements")as shown on Exhibit`B:" 1) Construct a building or unit for cellular equipment on the northwest side of the Maintenance Shop. 2) Construct a structure(tree-type)to hold the antennas to be located on the southwest side of the Maintenance Shop. 3) Install landscaping and replace chain link on the east side of Maintenance Shop and landscape the front driveway entrance. 4) Install one 2-inch HDPE conduit for City services at the Maintenance Shop,intercept existing City communication conduit and place City standard pullbox with traffic cover. 5) Making other minor improvements as may be necessary to successfully complete this project. B. Lessee shall also erect on the Premises communications facilities,which include, but arc 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(hereinafter"Lessee's Facilities')as shown on Exhibit"B". The EdibitI of theMwwmndionofUnd=t=ding Page 6of33 plans for the Improvements and Lessee's Facilities(landscaping, irrigation, fencing, building,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 landlord). Lessee shall dedicate the Improvements to Lessor upon completion thereof. C. The Improvements shall be performed by Lessee under the authority, direction, supervision, and approval of Lessor. Lessee shall submit construction plans to the City's Director of Parks and Recreation for approval prior to submitting the application and plans to the Community Development Department for building permit processing and approval. D. Lessee acknowledges and understands that the improvement is a public construction project subject to the competitive bidding requirement contained in California Public Contracts Code Section 20162 and the prevailing wage requirement contained in California Labor Code Section 1771. 3. Term. The initial term of this Lease shall be for five (5) years ("Initial Term) commencing with the issuance of a City building permit to construct the Lessee's Facilities and Improvements. This Lease shall automatically be renewed on the same terns and conditions,for three(3) additional terms (each a "Renewal Term'D of five (5) years each, unless Lessee notifies Lessor of its intention not to renew.at least sixty(60)days prior to the expiration of the Initial Term or any Renewal Term. 4. Rent. Rent shall be paid annually in advance as follows: A. Lessee shall pay to Lessor as annual tent on or before the Commencement Date of the Lease the sum of Twenty-Five Thousand Dollars($25,000.00)("Annual Rent')without deduction, setoff,notice or demand. B. Annually thereafter,Lessee shall pay to Lessor as Annual Rent for that lease year without deduction, setoff, notice, or demand the previous year's Annual Rent multiplied by the CPI Adjuster,or multiplied by three percent(3%),whichever is greater. B:hibir I of Me Memorandum of Understmrdmg, Page 7 of 33 `u C. The CPI Adjuster means a percent,which is calculated by dividing the United States Consumer Price Index(All Urban Consumers)published by the Bureau of Labor Statistics of the U.S. Department of Labor three (3) months prior to the adjustment date by the base Index number published three(3)months prior to the Commencement Date,or previous adjustment date,as applicable. If the Index is changed so that the base Index number differs from that in effect when the first extended term commenced,the Index shall be converted in accordance with the conversion factor published by the Bureau of Labor Statistics. If the Index is discontinued or revised during an extended term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised. D. If Lessee fails to pay the Annual Rent within thirty(30)days after such rent is due,Lessee shall pay a late fee of one and one half percent(1.5%)per month. This late charge does not establish a grace period. Lessor and Lessee agree that the charge is presumed to be the damages sustained by Lessor for Lessee's late payment of rent and that it is impracticable or difficult to fix the actual damages. 5. Termination for Convenience. Notwithstanding,the initial and renewal terms set forth in Section 3, Sprint PCS may terminate this Lease without further liability by delivering 60 days prior written notice. In this event,Lessee's improvements shall be removed in accordance with Section 18 of this Lease,without refimd of previously paid rent;a termination fee of one(1)year's current rent shall be paid to Lessor. 6. Use. A. Lessee shall use the Premises for the sole purpose of constructing,maintaining, securing and operating wireless communications facilities including the construction of equipment buildings and installation of required antennas and related communications equipment upon the new stealth poles all as listed,depicted,and described in the"Lessee's.Facilities"which is attached hereto as Exhibit l of theMawt=dum of Understanding Page 8 of33 O �J Exhibit`B"and hereby incorporated by reference. Any other use of the Premises or use of equipment not described in Exhibit`B,"is not authorized and shall constitute a breach of this Lease. B. Lessee must obtain all discretionary permits and approvals required by Lessor in its municipal capacity. Installation of a new wireless telecommunication or modification of an existing installation shall require use permit approval and architectural review. The applicant shall submit application materials and fees as required by the Community Development Department. Wireless communications facilities shall not be constructed,installed or modified prior to obtaining a City building permit. It shall be the responsibility of the owner/operator of a telecommunications facility to provide the City with a notice of intent to modify site equipment in any way. Lessor shall reasonably cooperate(at no expense to Lessor) with Lessee in connection with Lessee's efforts to obtain all such permits and approvals;provided,however,Lessor shall not be obligated to apply for any permits or approvals with Lessee. Construction of Lessee's Facilities and the Park Improvements shall be at Lessee's sole expense. Further,Lessee shall maintain the Lessee's Facilities free from hazards or risk to the public health,safety and welfare. C. At all times throughout the term of this Lease,Lessee's use of the Premises shall be in conformance with,and subject to all conditions of,any and all discretionary permits in effect. D. Lessor agrees that Lessee's ability to use the Premises is dependent upon Lessee's obtaining all necessary certificates,permits and/or other approvals which may be required from Lessor in its municipal or regulatory capacity and from any federal, state or other local authority. Lessor agrees to cooperate with Lessee as to Lessee's obtaining such certificates,permits or other approvals. In the event Lessee is unable to obtain any necessary certificate,permit or other approval in order to operate or construct the Park Improvements or Lessee's Facilities,Lessee may terminate this Lease as provided herein,upon thirty(30)days prior written notice. E. Facility cannot be operational until final acceptance by the Lessor. 7. Interference. Exhibit I of the Memorandum of Understanding page 9 of33 A. Lessee wan-ants that its construction,repair and operation of Lessee's Facilities will not interfere with Lessor's fire, ponce, public works and other public safety or city department communication broadcasts or frequencies. All operations by Lessee shall be in compliance with all Federal Communications Commission requirements and all applicable laws. B. If Lessor suspects or has reason to believe that Lessee's use of the Premises creates radio or television interference for nearby residents or interference with Lessor's communication systems, and if Lessee (i)does not proceed diligently to eliminate such interference, or (ii)provide evidence that Lessee and the sublease tenant are not the source of such interference, within ten (10) business days after notice from Lessor to do so,Lessor may immediately terminate this Lease by giving notice to Lessee. C. Lessee shall provide Lessor with a contact person who shall be available twenty- four(24)hours a day to receive reports of any interference with Lessor's frequencies. In the event that there is interference with Lessor's public safety frequencies, Lessee shall immediately cease the operations creating the interference when directed to do so by the City's Director of Finance and Information Technology until such time that the interference can be eliminated to the satisfaction of the Information Technology Division. Lessee's failure to immediately cease such operations shall be considered a material breach of this Lease notwithstanding Paragraph 6.B.above. 8. Radio Frequency Emission Exposure. A. No wireless telecommunication facility shall be sited or operated in such a manner that it violates any condition of its Federal Communication Commission's (FCC) permit or license. To that end no facility or combination of facilities shall produce at any time power densities in any inhabited area that exceed the FCC's Maximum Permissible Exposure(MPE)limits for electric and magnetic field strength and power density for transmitters or any more restrictive legally enforceable and applicable standard subsequently adopted or promulgated by the city,county,the state of Califomia,or the federal government. For purposes of radio frequency emissions, compliance with FCC exposure Erhib&IofdwMe wndumofUndemaAV Page 10 of 33 limitations shall constitute a conclusive presumption that there is no hazard or risk to the public health, safety or welfare. B. Initial compliance with this requirement shall be demonstrated for any facility within three hundred (300) feet of residential uses or sensitive receptors such as schools, churches, hospitals,etc. and all broadcast radio and television facilities,regardless of adjacent land uses, through submission, at the time of application for the necessary permit or entitlement, calculations specifying MPE levels in the inhabited area where the levels produced are projected to be highest. If these calculated levels exceed eighty percent (80%) of the NTE limits, the applicant shall hire a qualified electrical engineer licensed by the State of California to measure exposure levels at the location after the facility is in operation. A report of these measurements and the engineer's findings with respect to compliance with MPE limits shall be submitted to the Community Development Director. Lessee's Facilities shall not commence normal operations until it complies with,or has been modified to comply with this standard. Proof of compliance shall be a certification provided by the engineer who prepared the original report. In order to assure the objectivity of the analysis,the City may require,at the applicant's expense,independent verification of the results of the analysis. C. Every wireless telecommunication facility within three hundred(300)feet of an inhabited area and all broadcast radio and television facilities shall demonstrate continued compliance with its FCC permit or license and MPE limits. Every five(5)years a report listing each transmitter and antenna present at the facility and the effective radiated power radiated shall be submitted to the Community Development Director. If either the equipment or effective radiated power has increased, calculations specifying exposure levels in the inhabited areas where the levels are projected to be highest shall be prepared. Calculations shall also be prepared every time the adopted MPE limits change. If calculated levels in either of these cases exceed eighty (80%) of the NTE limits, the operator of the facility shall hire a qualified electrical engineer licensed by the.State of California to measure the actual exposure levels produced. A report of these calculations, required measurements, if any, and the engineer's findings with respect to compliance with the current MPE limits shall be submitted to the Edtibiz I of theMemarandwn of Undersrmtdmg Page I I of n 0 0 Community Development Director within five (5) years of facility approval and every five (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 NTE limits shall be considered a material breach of this Lease. 9. Visual Mitigation. Lessee will use a variety of visual mitigation strategies for all of its facilities,as determined necessary by the Community Development Director and as required through the Architectural Review process,with the goal of achieving a 1001/o stealth installation. Facilities shall be creatively designed to minimize the visual impact to the greatest extent possible by means of placement, screening, and camouflage. The applicant shall use the smallest and least visible antennas possible to accomplish the coverage objectives. Each installation shall be designed to blend into its surroundings so that the antenna(s) and equipment are not apparent to the casual observer. The structure in which antennas are located shall not exceed fourteen (14) inches in diameter. No more than one cattier shall install antennas in any given pole. Ground mounted support equipment shall be undergrounded or otherwise screened from view so as to be effectively unnoticeable. All connections and conduits between the base of the antenn (s) and support equipment shall be undergrounded. Electrical and telephone service to the support equipment shall be undergrounded. 10. Noise. Each facility shall be operated in a manner that minimizes any possible disruption caused by noise to people working and living in the vicinity. At no time shall equipment noise from any source exceed an exterior noise level of 55 dB at the property line or within 20 feet of such equipment, Whichever is less. This requirement may be modified at the discretion of the Community Development Director where typical ambient noise levels exceed 55 dB. Outdoor noise producing construction activities shall take place only on weekdays between the hours of 8:00 am and 5:00 pm unless a different schedule is approved as part of the use permit. Any facility utilizing temporary backup generators shall be required to meet or exceed Air Pollution Control District Standards. All generators shall be fitted with approved air pollution control devices. The cellular site shall not be in operation prior to the issuance of a Exhibit I of the Me randan of Understanding Page 12 of33 Certificate of Occupancy from the Community Development Department. Projects that propose to include backup generators shall require review and approval from the Air Pollution Control District. Project plans shall indicate location, size,horsepower and type of fuel used for any proposed generator. Generators shall only be operated during power outages and for testing and maintenance purposes. Testing and maintenance shall only take place on weekdays between the hours of 10:00 am and 2:00 pm. 11. Nondiscrimination. Subject to applicable laws, rules, and regulations, Lessee shall not discriminate against any person or group on the basis of age,sex,sexual orientation,AIDS,AIDS related condition,marital status,race,religion,creed,ancestry,national origin,disability,or handicap. 12. Subsurface Restrictions. The parties agree that this Lease covers only the surface of the Premises and only so much of the subsurface as is reasonably necessary for Lessee's use of the Premises as permitted in this Lease(including,without limitation,(i)the foundation for Lessee's monopole anterma structure and building, and (u)cables, conduits and pipes within the Premises to cormeet Lessee's communications equipment within such building to the antennas to be constructed and maintained by Lessee within the Premises). 13. Liens. Lessee shall keep the premises free of mechanic's, material supplier's or other liens for any work done,labor performed 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,loss,cost and expense(including reasonable attorney's fees)of whatever kind for any such work done,labor performed or materials furnished. 14. No Utilities. Lessor shall not provide any utilities to the Premises. Lessee shall be permitted to install utility lines,meters for electricity,and shall arrange and pay for the installation and use of all utilities of whatsoever kind to the Premises. 15. Maintenance. A. Lessee shall, at Lessee's sole cost and to the satisfaction of Lessor, maintain Lessee's Facilities and all related improvements(except the Improvements as shown on Exhibit`B'D in good condition,free from rodents,weeds,noxious plants and wild growth,in substantial repair,in a safe Exhibit I of dw Memorandum of Understanding Page 13 of33 and sanitary 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 Lessee's Facilities as required herein, Lessor may notify Lessee of said failure. If Lessee fails to correct the situation within shirty(30)days after notice or such longer period as may be established by Lessor, Lessor may make the necessary correction and the cost thereof, including but not limited to the cost of administration, and labor, materials,equipment,shall be paid by Lessee within thirty(30)days atter receipt of a statement of said cost from Lessor. If said statement is not timely paid, Lessor may, at its option, choose any remedy available herein or by law,including the termination of this Lease. Lessee hereby waives to the extent permitted by law any right to make repairs at the expense of Lessor or to vacate the Premises in lieu thereof as may be provided by law. B. Lessor shall have no duty to maintain or repair Lessee's Facilities or any of Lessee's improvements. 16. Taxes. Lessee acknowledges that this Lease may create a possessory interest subject to property taxation and that Lessee may be liable for payment of taxes levied on such interest. Lessee shall promptly pay, prior to delinquency, all taxes, assessments and other governmental fees that may be lawfully levied against the Premises and any improvements or personal property located on the Premises and on any possessory interest created by this Lease,and provide proof of payment to Lessor on demand. 17. Insurance. Concurrent with the execution of this Lease, Lessee shall procure and maintain,at its cost,during the initial and any extended or Renewal Term of this Lease from an insurer admitted in California or having a minimum rating of or equivalent to A: VII in Best's Insurance Garde: A. Comprehensive General Liability insurance with a combined single limit of at least Five Million Dollars($5,000,000)for each occurrence. Lessor,its officials,employees and agents shall be covered as additional insured's with respect to liability arising from activities performed by or on behalf of Lessee. Said insurance shall be primary insurance with respect to Lessor and shall contain a cross liability endorsement. E.&ibff I of dn:Men nmhvn of Under iqg Page 14 of 33 I B. "All Risk" property insurance in an amount sufficient to cover the full replacement value of Lessee's personal property,improvements and equipment on the Premises. C. Upon the execution of this Lease. Lessee shall deliver to Lessor certificates of insurance with original endorsements evidencing the coverage required by this Lease. The certificates and endorsements shall be signed by a person authorized by the insurer to bind coverage on its behalf. D. Said insurance shall contain an endorsement requiring thirty (30) days prior written notice from insurer to Lessor before cancellation or change of coverage. E. Said insurance may provide for such deductibles or self-insured retention as may be acceptable to the City's Risk Manager or designee. In the event such insurance does provide for deductibles or self-insured retention, Lessee agrees that it will fully protect Lessor its officials and employees in the same manner as these interests would have been protected had a policy of commercial insurance been in effect With respect to damage to property,Lessor and Lessee hereby waive all rights of subrogation, one against the other, but only to the extent that collectible commercial insurance is available for said damage. F. The procuring of insurance shall not be construed as a limitation on Lessor's liability or as full performance on Lessee's part of the indemnification provision of this Lease. Lessee understands and agrees that,notwithstanding any insurance,Lessee's obligation to defend and indemnify Lessor,its officials and employees hereunder is for the full amount of any damage,loss cost or expense. G. Any modification or waiver of these insurance requirements shall only be made with the written approval of the Lessor's Risk Manager or designee. is. Removal of Imorovements. On the expiration or sooner termination of this Lease,Lessee at Lessee's sole cost shall have the right to remove Lessee's Facilities (with the exception of the Improvements as shown on Exhibit B)erected on the Premises by Lessee by giving notice of its intention to do so to Lessor and by removing same within forty-five (45) days after expiration or sooner termination of this Lease. Lessor may treat any such buildings or improvements as abandoned if Lessee fails to timely remove them and, in such event, (a)Lessor shall be deemed owner of them without E*Wbrt I ofrhe Mawmndimi of Undentmidmg Page 15 of 33 1 �J wcetmtins to T C..—,az(b)LeeO^•.04,oft"Up«•:•�� ^tet sf Lessee scost-with the exception of the underground conduits Whidh maybe abandoned in placeby7.essee. 19. Relocation. Lessee agrees that nothing contained in this Lease shall create any right in Lessee for any relocation payment or assistance pursuant to the provisions of Title 1,Division 7,Chapter 16 of the California Government Code from Lessor on account of the expiration or sooner termination of this Lease. 20. Notice. Any notice required hereunder shall be in writing and personally delivered or deposited in the U.S.Postal Service,registered or certified,return receipt,postage prepaid,to the address of the respective parties set forth below: LESSOR: LESSEE: Parks and Recreation Director Authorized Representative of City of San Luis Obispo Sprint_PCS,Assets,LLC.,6 Delaware Limited------- Formatted:Indent Left: os, Liability Company HamgIng: 3- 1341 Npomo Street 810 Gravilla Drive Formatted:Not AU cps San Luis Obispo,CA 93401 Santa Barbara,CA 93109 Notice shall be deemed effective on the date shown on the return receipt or on the date personal delivery is made,whichever first occurs. If delivery is refused,the date of deposit of the copy in the mail shall be deemed the date of notice. Change of address shall be given as provided herein for notices. 21. Hazardous Materials and Waste. A. Lessee shall comply with all applicable laws regarding the use, storage and disposal of hazardous materials on the Premises. Lessee shall comply with California Health and Safety Code Section 25359.7 or its successor regarding notice to Lessor on discovery by Lessee of the presence or suspected presence of any hazardous substance on the Premises. B. Lessee shall not bring any hazardous materials onto the Premises except for those contained in its back-up power batteries and common materials used in telecommunications operations, e.g., cleaning solvents Lessee shall treat all hazardous materials brought onto the Premises by it in accordance with all federal,state and local laws and regulations. ErhibitI ofMcMemorandmnofUnderstmtdmg Page 16 of 33 `J 'J C. Lessee shall specify any proposed generator usage and its proposed location. D. Lessor represents that the Premises have not been used for the generation, storage, treatment or disposal of hazardous materials, hazardous substances or hazardous wastes. In addition, Lessor represents that no hazardous materials, hazardous substances, or hazardous wastes, pollutants,asbestos,polychlorinated biphenyls(PCBs),petroleum or other fuels(including crude oil,or any fraction or derivative thereof),or underground storage tanks are located on or near the Premises. 22. Indemnily. Lessee shall defend, protect, indemnify and hold harmless Lessor, its officials, employees and agents from all claims, demands, damages, causes of action, losses, liability, costs or expenses,including reasonable attorney's fees, of any kind or nature whatsoever(except those resulting from Lessor's sole negligence or willful misconduct)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 alleged acts or omissions of Lessee, any parent, subsidiary, affiliate 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, subsidiary, affiliate or partnership in which any such entity participates,Lessee's officers,employees or agents,or any breach of this Lease. Lessor shall protect,indemnify and save harmless Lessee,and its officers,agents and employees, from and against all claims, demands and causes of action by Lessor's employees or third parties an account of personal injuries or death or on account of property damages arising out of the use of the Premises by Lessor hereunder and resulting from the sole negligence or willful misconduct of Lessor or its officers,agents and employees. 23. Assignment and Subletting. Except for an assignment, sublease or transfer to Lessee's affiliate,parent, subsidiary,member or partner, or as a result of a merger or sale of substantially all of Lessee's assets ("Permitted Assignment'),Lessee shall not assign or transfer this Lease or any interest herein,without the prior written consent of Lessor which shall not be unreasonably withheld, provided, F-ribrtI of the Me mnd/onofUnderstanding Page 17 of 33 however,,that Lessee shall notify Lessor in writing of a Permitted Assignment within thirty(30)days. To obtain Lessor's consent to a proposed assignment or transfer (hereinafter collectively referred to as "transfer"), Lessee shall meet the following requirements and Lessee's failure to meet any requirement shall allow Lessor to withhold consent: A. Lessee shall notify Lessor at least sixty(60)days prior to the date when Lessee desires the transfer to take effect ("Transfer Date'D which notice shall contain the name, address and telephone number of the proposed transferee;the nature of the proposed transferee's business and details of its business experience. B. Lessor shall notify Lessee at least thirty days(30)days prior to the Transfer Date whether Lessor approves or disapproves of the proposed transfer. C. Any approved transferee shall assume and be deemed to have assumed this Lease and shall be jointly and severally liable with Lessee for the payment of rent and performance of the terms, covenants; and conditions of this Lease. No approved transfer shall be binding on Lessor until such transferee shall deliver to Lessor a counterpart of the transfer agreement with contains a covenant of assumption by transferee but the failure or refusal to execute or deliver such instrument shall not release transferee from its liability as stated herein. D. 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 subject to transfer by attachment,execution,proceedings in insolvency or bankruptcy(either voluntary or involuntary),or receivership. In the event of the transfer without the prior written consent of Lessor,such transfer shall be voidable at Lessor's election and, if voided by Lessor, shall convey no interest. Any transfer without Lessor's consent shall constitute a default of this Lease: E. To obtain Lessor's consent to a sublease, Lessee shall meet the following requirements and Lessee's failure to meet any requirement shall allow Lessor to withhold consent 1) The Lessee must pay to Lessor the same amount of Annual Rent on the sublease tenant's behalf as the Lessee("Additional Annual Rent"). For example, if there were two ENhib#1 of the Me rand=of Understanding Page 18 of 33 C) J sublease tenants by the beginning of the third year of this Agreement,the total rent due from the Lessee would be $79,567.50: the Annual Rent for the Lessee ($26,522.50, which is the first year's rent of $25,000 increased by 3% for two years) and the Additional Annual Rent for the two sublease tenants ($26,522.50 each). While the Lessee may require the sublease tenant to pay this amount as part of their sublease agreement with the Lessee,payment of the Additional Annual Rent is the sole responsibility of the Lessee,and is subject to the same terms,conditions and remedies as the Annual Rent. 2) Lessee shall notify Lessor at least sixty(60)days prior to the date when Lessee desires the sublease the transfer to take effect("Sublease Date"),which notice shall contain the name,address and telephone number of the proposed sublease tenant;the nature of the proposed sublease tenant's business and details of its business experience. The fust 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 thereafter with the Annual Rent. 3) Lessor and Lessee agree(by way of example and without limitation)that it shall be reasonable for Lessor to withhold its consent if any of the following exist or may exist: the proposed transferee's use of the Premises conflicts with or is inconsistent with the use of the Premises stated herein;the Lessee is in default under this Lease at the time the request for sublease is made and has not cured such default,if the same can be cured,prior to ten(10)business days prior to the Sublease Date. 4) The sublease tenant is subject the same terms and conditions of this Agreement as the Lessee. 5) Lessor shall notify Lessee at least fifteen(15)days prior to the sublease date whether Lessor approves or disapproves of the proposed sublease. 24. No Permits. Lessee shall not grant any rights-of-way,easements,franchises or permits in,on or across the Premises. 25. Encumbrances. Lessee shall take the Premises subject to any and all existing easements and other encumbrances. EvWba l of theM=wnmdmn of Understm ding Page 19 of 33 26. Reservations. Lessor reserves the right to grant franchises,easements, rights-of-way or permits for pipeline purposes which will not interfere with Lessee's use of the Premises. 27. Default. The occurrence of any of the following acts shall constitute a default by Lessee: A. Failure to pay Annual Rent or Additional Annual Rent when due where such failure shall continue for a period of ten(10)days after Lessee's receipt of written notice from Lessor. B. Failure to perform any of the terms,covenants or conditions of this Lease if said failure is not cured within thirty (30) days after Lessee's receipt of written notice from Lessor of said failure. If the default cannot reasonably be cured in thirty(30)days after receipt of such notice,Lessee shall not be in default if Lessee 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 Premises. No such notice shall be deemed a forfeiture or termination of the Lease unless Lessor so elects in the notice. C. Any attempted 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 regulatory 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 terms of this Section,if Lessee does not comply with each term,covenant and condition of this Lease or if a default occurs,then Lessor may terminate this Lease and Lessor may then enter the Premises and take possession thereof provided, however, that these remedies are not exclusive but cumulative to other remedies provided by law in the event of Lessee's default, and the exercise by Lessor of one or more rights and remedies shall not preclude the Lessor's exercise of additional or different remedies for the same or any other default by Lessee. Exhibit I of dreMwwrandwn of Undewanding Page 20 of33 o F. Failure to perform any of the terms,covenants or conditions of this Lease if said failure is not cured within thirty(30) days after Lessee notifies 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 receipt of such notice,Lessor shall not be in default if Lessor begins to cure within the thirty(30)day period and diligently proceeds to cure to completion. 28. Right of Entry. A. In the event of an emergency which poses an immediate threat of harm or damage to persons or property,Lessor may enter the Premises and take such actions as are required to protect persons or property from such immediate threat of harts or damage,provided that promptly after such emergency entry into the Premises(and in no event later than twenty-four(24)hours)Lessor gives telephonic and written notice to Lessee of Lessor's entry into the Premises. In addition to Lessor's rights under the immediately preceding sentence,Lessor shall have the right,upon forty-eight(48)hours prior telephonic notification to Lessee(which notification shall specify the date and time at which Lessor seeks to enter the Premises),to enter the Premises to determine whether or not Lessee is complying with this Lease 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 without a representative of Lessee being present,and Lessee agrees to make its representative promptly and readily available to accompany Lessor on the date and at the time given in Lessor's telephonic notice. If Lessee fails to make its representative available on the date and 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. B. Lessee shall install a lock box system on the Premises and give the City access to the lock box in order to allow the City to inspect the Premises pursuant to Paragraph A above. 29. Signs. Lessee shall not place,affix,maintain or permit any sign, advertisement,name, insignia,logo,descriptive material or similar item(collectively"sign")on the Premises without the prior written approval of Lessor. Any approved sign shall be maintained by Lessee in good condition at all Erhibd 1 of rhe Memorandinn of Understanding Page 21 of 33 I r times. Lessor may remove any sign not approved by Lessor at Lessee's cost. The cost of removal shall be additional rent 30. 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 terminate. If any part of the Premises shall be taken under the power of eminent domain,then this Lease shall terminate as to the part taken,as of the day possession(of that part)is required for any public purpose,and on or before that day Lessee shall elect 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 proportion to the amount of the Premises taken if Lessee is unable to operate at the same level after the condemnation as before the condemnation. All damages awarded for any taking shall belong to Lessor, whether such damages be awarded as compensation for diminution in value to the leasehold or to the fee provided,however,that Lessor shall not be entitled to any portion of the award made for loss of Lessee's business or relocation expenses.. 31. Nuisance. Lessee shall not do or permit 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 the neighborhood. 32. 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 permitted by law, Lessee waives all claims 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 misconduct or Lessor's breach of its obligations hereunder. 33. Waiver of Rights. The failure or delay of either party to insist on strict 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 term, covenant, or condition herein. The receipt and acceptance by Lessor of delinquent rent shall not constitute a waiver of any other default but shall only constitute a waiver of timely payment for the particular rent payment involved. Any waiver by either party of any default or breach shall be in writing. Erhiba I of dwMmvmndam of Undentandmg Page 22 of 33 Either party's consent to or approval of any act by the other party requiring a party's consent or approval shall not be deemed to waive such party's consent or approval of any subsequent act of the other party. 34. Partial Invalidity. If any term,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 hereof shall remain in full force and effect. 35. Successors in Interest. This Lease shall be binding on and inure to the benefit of the parties and their successors,heirs,personal representatives,approved transferees and assignees,and all of the parties hereto shall be jointly and severally liable hereunder. 36. Right to Re-Enter. Lessor acknowledges that Lessee's use of the Premises includes proprietary trade secrets. Lessor shall 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 withhold. Lessee shall peaceably deliver possession of the Premises to Lessor on the effective date of termination or expiration of this Lease. On giving notice of termination to Lessee,Lessor shall have the right to re-enter and take possession of the Premises on the termination or expiration date without further notice of any kind and without institution of summary or regular legal proceedings. Termination of the Lease and re-entry of the Premises by Lessor shall in no way alter or diminish any obligation of Lessee under the Lease and shall not constitute an acceptance or surrender. Lessee waives any and all right of redemption under any existing or future law,in the event of eviction from the Premises and in the event Lessor re-enters and takes possession. Lessee agrees that should the manner and method used by Lessor in recntering or taking possession after breach by Lessee gives Lessee a cause of action for damages or in forcible entry and detainer, the total amount of damages to which Lessee shall be entitled due to the re-entering shall be One Dollar($1.00). Lessee agrees that this Section may be filed in any such action and that when filed it shall be a stipulation by Lessee fixing the total damages to which Lessee is entitled in such action. 37. Holding Over. If Lessee holds over and remains in possession of the Premises after the expiration of the Lease,such holding over shall be construed as a tenancy from month to month on the Edrib&I ofire Memnmdwn of Understanding Page 23 ofM same terms,covenants,and conditions herein,except that monthly rent shall be one-twelfth(1/12)of one hundred twenty-five percent(125%)of the annual rent then in effect. Nothing in this Section shall be construed as a consent by Lessor to any holding over by Lessee. 38. Time. Time is of the essence in this Lease and every provision hereof. 39. Attorney's Fees. In any action or proceeding relating to this Lease,the prevailing party shall be entitled to its costs,including reasonable attorney's fees and court costs. 40. Integration and Amendments. This Lease represents and constitutes the entire understanding between the parties and superoedes all other agreements and communication between the parties,oral or written,concerning the subject matter herein. This Lease shall not be modified except in writing duly signed by the parties and referring to this Lease. 41. Recordation. Concurrently with the execution of this Lease,Lessor shall execute before a notary and deliver to Lessee 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 to or arising from said recordation. Upon expiration or sooner termination of this Lease, Lessee shall,at its sole cost,immediately record a Quitclaim Deed with respect to its interest under this Lease. 42. Governing Law. This Lease shall be governed by and construed in accordance with the laws of the State of California. 43. Captions. The various headings and numbers herein and the grouping of the terms hereof into separate sections,paragraphs and clauses are for convenience only and shall not be considered a part hereof,and shall have no effect on the construction or interpretation of this Lease. 44. Abandoned Property, The vacating or abandonment of the Premises by Lessee shall include but not be limited to the failure of Lessee to occupy the Premises for a continuous period of forty- five (45) days or more while not paying rent. If Lessee abandons the Premises, title to any personal property belonging to Lessee and left on the Premises forty-five(45)days after such abandonment shall be deemed to have been transferred to Lessor. Lessor shall thereafter have the right to remove and to F_mUsit I ofdreMemorandwn of UndersrmidvW Page 24 of 33 dispose of said property without liability to lessee or to any person claiming under Lessee,and shall have no duty to account therefore. 45. Compliance with the Law. Lessee shall comply with all laws, ordinances, rules and regulations of all federal,state and local governmental authorities having jurisdiction over the Premises and business thereon. 46. Quid Enjoyment Lessor covenants that, if Lessee performs the terms, covenants and conditions of this Lease,Lessee shall peaceably and quietly hold and enjoy the Premises. 47. Lessor's Representation of Authority. Lessor represents that it has title to the Premises and full authority to execute this Lease and to grant the easements and access to the Premises. Lessor further represents that there are no undisclosed liens,judgments,impediments or exceptions of title on the Premises that would affect this Lease. 48. Non-Interference Provision. Lessor will use its best efforts to provide Lessee with notice of any applications received from any other communications companies wishing to utilize any part of Laguna Lake Golf Course. Further,Lessor will use its best efforts to not lease property in Laguna Lake Golf Course to other communication companies, nor to use Laguna Lake Golf Course for communications purposes,that might interfere with Lessee's use of the Premises. In the event Lessor or any other communication company on Laguna Lake Golf Course does,in fact,interfere with Lessee's use of the Premises,Lessor shall eliminate,or cause to be eliminated,such interference within seventy-two (72)hours of written notice by Lessee. If such interference is not eliminated in such time period,Lessee may exercise any right or remedy at law or in equity to eliminate the interference or may terminate this Lease. IN WITNESS WHEREOF, the parties have executed this Lease with all of the formalities required by law as of the date first above written. LESSOR: LESSEE: SPRINT PCS ASSETS, LLC A DELAWARE-------- Fa named:rodent Left 3.5,Post LIMITED LIABILITY COMPANY, fie: tY Erhiba I of dwMe random of Undersratdvg Page 25 af33 C/O AFL TELECOMMUNICATIONS By: By: Mayor David F.Romero Derek Harding,AFL Telecommunications Authorized Representative of Sprint PCS, Assets,LLC ATTEST: By: Diane Reynolds,City Clerk APPROVED AS TO FORM: By: Jonathan P.Lowell,City Attorney E%*ibu l of dwMwwrandwn of Understanding Page 26 oj33 Ea7MBIT A LEGAL DESCRIPTION OF THE PROPERTY All real property located in the State of California,County of San Luis Obispo,described as follows: The legal description will be prepared at a later date prior to execution of the lease Eshibe I ofrhe Me randmn of Unde'sstmrdmg Page 27 of33 EXHIBIT B DESCRIPTION OF THE PROJECT The detailed project description will be prepared at a later date prior to execution of the lease. Fi6jbu t ofdwMmwrandmnof Undemzmdmg Page 28 of-3-3 EXHIBIT C MEMORANDUM OF LEASE RECORDING REOUESTED BY: WHEN RECORDED,RETURN TO: MEMORANDUM OF LEASE This MEMORANDUM OF LEASE ("Memorandum')dated as of 2004, is between the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city ("Lessor's and a Delaware limited liability company,on behalf of ("Lessee'). RECITALS WHEREAS,Lessor and Lessee have executed that certain Telecommunications Facility Lease at Laguna Lake Golf Course"Lease)dated as of 2004,covering certain premises(the "Premises')situated on a portion of that certain real property located in the County of San Luis Obispo, State of California, and more particularly described in Exhibit "A" attached hereto and incorporated herein by this reference;and WHEREAS,Lessor and Lessee desire to record notice of the Lease in the Official Records of San Luis Obispo County,California; NOW, THEREFORE, in consideration of the foregoing, Lessor and Lessee hereby declare as follows: I. Demise. Lessor has leased the Premises to Lessee (together with access rights), and Lessee has hired the Premises from Lessor,subject to the terms,covenants and conditions contained in the Lease. 2. Expiration Date. The term of the Lease("Term')is scheduled to commence on or before and shall expire five(5)years thereafter,subject to Lessee's option to extend the Term pursuant to Section 3 of the Lease for three(3)additional terms of five(5)years each. 3. Lease Controlling. This Memorandum is solely for the purpose of giving constructive notice of the Lease. In the event of conflict between the terms of the Lease and this Memorandum,the terms of the Lease shall control. Erhibkl of rhe Memorandum ofUndersrandog Page 29 of 33 IN WITNESS WHEREOF,Lessor and Lessee have executed this Memorandum of Lease as of the date and year first written above. LESSOR LESSEE By: By: Name: Name: Title: Title: NOTARIZED SIGNATURES STATE OF CALIFORNIA ) )ss. COUNTY OF ) On before me, personally appeared personally known to me(or proved to me on the basis of satisfactory evidence)to be the person(s)whose name(s)islare 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. WITNESS my hand and official seal. (Signature ofNotary Public) STATE OF CALIFORNIA ) )ss. COUNTY OF ) On before me, personally appeared personally known to me(or 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. WITNESS my hand and official seal. Exhibir l of the Memorandum of Understanding Page 30 of 33 EYHIBIT 2 AERIAL MAP OF PROPOSED PROJECT SCOPE ~ f Al FAs.� .,fd ^g=pmg bei Cdl in fiat CLhaeee hem 1�. —' � Cham Ivdc to be ieolaced B Cell I hese i _7J, r f r Fx*zbRl afdeMaw=uhm of Ua cntmidvw Page 31 of33 EXHIBIT 2.A LANDSCAPING SCHEMATICS OF PROPOSED PROJECT �l ' r r Fi*zbit 2 of theMetwmndon of Undersmndmg Page 32 of33 EXHIBIT 2B LANDSCAPING SCHEMATICS OF PROPOSED PROJECT . •I �' �� �� 1, ` I • I ii ' I • I Erh}3rt 2 of the Me mndmn of Unde standnT Page 33 of 33