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HomeMy WebLinkAboutStaff Report 377-07City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL 7 FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE:OCTOBER 22, 2007 CMR: 377:07 SUBJECT:APPROVAL OF A LICENSE AGREEMENT "~VITH T-MOBILE, FOR PLACEMENT OF TELECOMMUNICATIONS FACILITIES ON CITY O’~VNED PROPERTY LOCATED AT 1082 COLORADO AVENUE RECOMMENDATION Staff recommends that Council hold a public hearing, and subsequently approve and authorize the City Manager to execute the attached license from the City of Palo Alto to T-Mobile, for the development and operation of telecommunications facilities near a Pacific Gas & Electric (PG&E) tower on City-owned property located at 1082 Colorado Avenue (on the south side of Colorado Avenue near the intersection of Colorado Avenue and Simkins Court). BACKGROUND On November 17, 1997, Council approved a set of four telecommunications policy statements (Attacbanent A). Policy 4, which adda’esses the use of City-owned and leased property for telecommunications infrastructure, reco~zizes that City land and facilities could be used to support the competitive delivery oftelecormrmnications services and also reduce the adverse impacts associated with the development of the necessary infrastructure by reducing the total number of sites needed by wireless service providers. This policy encourages qualified outside parties to use designated City- ov~aaed or leased property and facilities for siting telecommunications infrastructure when these are compatible with the primary use of the property, and are used in a manner that is consistent with City real estate policy, zoning, legal, environmental and other requirements as necessary. On May 8, 2000, Comaci! approved leases with Sprint Spectrum L.P. (Sprint), for the construction and operation of Personal Communications Service (PCS) wireless antenna facilities at the Rinconada Park and Mitchell Park Fire Stations. On December 19, 2000, Counci! approved a license with AT&T Wireless for placement of telecomrnunications facilities on property located under a Pacific Gas & Electric Tower on City property at 1082 Colorado Avenue. On December 1,2003, Council approved a lease with Cingular Wireless for development and operation of telecommunications facilities at the Mayfield fire station. On September 19, 2005, Council approved a license with Metro-PCS for development and operation of telecommunications facilities located near a Pacific Gas & Electric Tower at 1082 Colorado Avenue. CMR: 377:07 Page 1 of 3 DISCUSSION . The T-Mobile wireless facilities proposed to be placed on the site consist of: 1) eight antennas mounted on the existing PG&E tower; and 2) ground equipment, consisting of enclosed equipment pads and cabinets, covering an area of approximately 200 square feet to be placed 46.5 feet from the tower. The land is owned by the City and PG&E has an easement for its power lines on the City’s propelS,. T-Mobile has obtained a license from PG&E for the antenna on the tower, and the attached license is for the ground equipment on the City’s land. The equipment cabinet is fully self-serviced, containing an independent air conditioning unit, heating unit, electrical supply, telephone hook up and back up power supply. In accordance with the intent of Telecommunications Policy #4 to reduce adverse impacts of telecommunications infrastructure, use of this site by T-Mobile has the advantage of using an existing tower, which eliminates the need for an additional tower in the area. The site, zoned Public Facility (PF), is cm-rently used for utility facilities including the City substation, the PG&E lines and two wireless can’iers previously approved by Council. Because of the City’s new Zoning Ordinance amendments that became effective on March 7, 2007, the project no longer requires a Conditional Use Permit. The project was approved for staff level Architecmra! Review on May 7, 2007, subject to conditions. License The terms of the license are summarized in Attachment B. Maj or terms include a 5-year term with the option to renew for two additional terms of five years each; annual rent of $20,000 to be adjusted annually in proportion to the CPI; and conditions of use to accommodate both the needs of the licensee and other occupants/users of the property. License conditions require the use to comply with applicable laws and regulations regarding electromagnetic emissions and to meet all other applicable federal, state and local laws and regulations regarding environmental and occupational safety. An engineering firm has been retained on behalf of T-Mobile to evaluate the proposed facility for compliance with appropriate guidelines limiting human exposure to radio frequency (RF) electromagnetic files. Results of the study conclude the facility wil! comply with the prevailing standards for limiting public exposure to RF energy and that the highest calculated level in publicly accessible areas is much less than the prevailing standards allow for exposures of unlimited duration. Specifically, given "worst-case" assumptions, for a person an?~’here at ground, the maximum anabient RF exposure level due to the proposed T-Mobile facility by itself is 0.20 percent of the applicable pub!~c exposure limit. The maximum calculated cumulative level at ground for the simultaneous operation of T-Mobile, Metro-PCS and the existing AT&T Wireless facility is 3.1 percent of the public exposure limit; the maximum calculated cumulative level at the second floor elevation of any nearby building is 6.1 percent of the public exposure limit. RESOURCE IMPACT The proposed license will generate annual income to the City in the amount of $20,000 per year, adjusted annually with changes in the Consumer Price Index. This rent is consistent with what other local agencies charge for similar rental uses. CMR: 377:07 Page 2 of 3 POLICY IMPLICATIONS The proposed license is consistent with Policy #4 of the Teleconmaunications Policy Statements approved by Council on November ! 7, 1997 and with City Policies and Procedures 1-11, Leased Use of City Land/Facilities. TIMELINE Construction and operation of the facility will begin shortly following execution of the License and approval of all required permits. ENVIRONMENTAL REVIEW The project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA guidelines. On July 20, 2005, the Zoning Administrator approved a conditional use permit for the proposed use at the proposed location, after making the required determination that the use will not be detrimental or ic onJnUxllie°n~ 2 :: eP; rm° lP~ t hr t Yat° trtl ~Prro;VoesI:~ nut ~21 n~t" lhlebV2,~ lC io cniatty~22~ ;hoen~UubcltieCdhienal: ~ 2 n na fee~’ i ng :I~ :~ldV~2 lce fa~: i ~-- ~DONNA HARTMAN Senior Financial Analyst DEPARTMENT HEAD: CITY MANAGER APPROVAL: CARL YEATS r Director, Aiministrati’, e Services EMILY HARRISON Assistant City Manager ATTACHMENTS Attact~ment A: Telecommunication Policy-Statements Attachment B: Summm’y of Temps of the License Attact~nent C: License with T-Mobile cc: T-Mobile CMR: 377:07 Page 3 of 3 ATTACHMENT A ~enerai - it ~.s the nOtiCv OZ me Cityo,_ ra~o >2to to i~acilitate the comneuUve deliver,, conveFltionai and advanced telecommumcations serAces tMoughout Paio A!to in mn environmentally sound msmmer; wiile ensuing ~ost recove<,, and ein_.ancemeni of revenues derived ,.~om ~e use of the Cib"s assets. -)$:~-’-"a e!ecommun,.catmns The c~t,,, is the ox~er~..ng ana installation of New ~" "r~-’~°~r*~ .~,,~s -" of the public right-of-way over wNch it has conU-ol ~d the regulatory body for the deve!opment of z~cilities ~thin its jurisdictional boundaies, tt is the policy of the to re~uiate~ the" location ana’ m~mer of consU~action., mana~, ~ r.h~ sat%., orderly and ~e~_~c~en~ use of Palo .Allo’s public right-of-way, and ~o r~cilitate fimeiy insta!lation of telecommunications ....mnras~mcmre in enviro~entalty sound mamner. Use of Utilities infrastructure - The City allows the use of Utilities infrastpacture mud Uti!ities-owned or-!eased facilities *.o promote the delivery of te!ecommunications se~ices provided that any telecorm’-nunications use does not impinge upon the City’s abi!i~ to provide safe and reiiable electric, gas, water, wastewater, and storm drainage services and does not interfere with the Civ’s ptamned use of the faciiRy or prope~);. Use of City Facilities and Property - The City ovms and leases propeKy and facilities, in addition to Utilities facilities, that could be used to support the deployment of ar2%rdable te!ecommunications se~’ices while iimiting the potential adverse impacts associated with the deve!opmem of the necessary infrastructure. !t is the policy of the City to encourage qua!ified outside parties to use designated CiV-owned or -leased property and facilities for siting of telecommunications infrastructure that is compatible with the primar2 use of the prope~y, and in a manner that is consistent with Civ real estate po!icy, zoning, legal, environmental, and other requirements as necessary. Approved by the Palo Alto Ci7 Council on November 17, !99,7 ATTACHMENT B Summary of Terms of the License Licensor: City of Palo Alto Licensee: Omnipoint Communications, Inc., a Delaware corporation, d/b/a T-Mobile Premises: 200 square feet of land located 46.5 feet from an existing PG&E tower on the south side of Colorado Avenue near the intersection of Simkins Court. Purpose: To provide for the installation, maintenance and operation, at Licensee expense, of a communications site (Cell Site). Term: Five years with the option to extend for ttn’ee additional terms of five years, but with the right of either party to terminate at any time with one year’s notice. Consideration/Rent: $20,000/year, adjusted ammally in proportion to the Consmner Price Index. Allowable Use: A communications site for fiarnishing telephone, radio and telecommunications services to the public, subject to the following conditions: Use to comply with applicable laws and regulations regarding electromagnetic emissions and shall meet all other applicable federal, state, and local laws and regulations regarding environmental and occupational safety. Licensee shall not permit any unreasonable odors, smoke, dust gas, substances, or noise or vibration to emanate from the facility nor take any action which would disturb, obstruct or endanger may other occupants or use of the site or interfere with their use. Operation of site shall not cause interference to city or other users of the site, including any irrigation system installed by city. Prior to consmaction on the site, Licensee shall coordinate placement of its facilities so as to not conflict with city’s irrigation systems. License shall repair any damage to city’s property caused by construction of facilities. 4.Operations to be conducted in compliance with FCC requirements and all law and regulations regarding environmental and occupational safety requirements. 5.Prior to construction on the site, Licensee shall provide the Real Estate manager evidence that ail permits from ant" and aii agencies having pre-construction jurisdiction are o authorized and are available, including but not limited to building permits and street opening permits. Licensee shall post a notice on tt~e Premises listing its emergency procedures, warnings and contracts. 7. Licensee to maintain all improvements it places on the Premises. Construction or Alteration by Licensee: Licensee may not make any changes to the property without prior city review and approval. Maintenance and Repair: Licensee shall maintain all improvements to the licensed premises. Assignment/Subletting: The License conveys no property rights to Licensee; therefore, assignment or encumbrance is prohibited; however, Licensee has the right to assign its rights under the License to any of Licensee’s subsidiaries, affiliates or successor legal entities or any entity acquiring all of Licensee’s assets. Termination of License: City may terminate the License upon any of the following events: 1.Breach or default by Licensee of any condition of the License which is not corrected within 3 0 days of receipt of written notice from City. 2.Licensee’s inability to obtain or maintain any required certificate, license easement or other approval from PG&E. 3. Any time upon one year notice. 4. Bankruptcy by Licensee. Taxes, Assessments and Utilities: Licensee shall be responsible for all utilities supplied to the facility and for taxes and assessments for the Premises. Insurance: Tenant shall protection. maintain insurance meeting the City’s standard requirements for insurance City Telecommunication Policy: License agrees it will abide by all lawful terms and conditions of any Telecommunications Policy adopted by City to the extent it relates to Licensee’s communications facility on the Premises. ATTACHMENT C LICENSE # This License A~eement is entered into this day of ,200__ between the City of Palo Alto, a chartered municipal corporation, (CITY) and Omnipoint Communications, Inc., a Delaware corporation, d/b/a, T-Mobile (LICENSEE). RECITALS A.CITY owns a strip of property adjacent to 1082 Colorado Avenue, commonly referred to as the Sterling Canal (PROPERTY). Pacific Gas and Electric Company (PG&E), under an easement a~eement with CITY, installed and operates a transmission tower and electric transmission lines along PROPERTY; Co The CITY and AT&T entered into a License Ageement in December 2000, for the use of a 160 square foot portion of the PROPERTY, to operate a communications site within the footprint of the PO&E transmission tower (TO~rER) along the Sterling Canal. The CITY and MetroPCS entered into a License Agreement in October 2005, for the use of 140 square foot portion of the PROPERTY, to operate a communications site within 20’ from the legs of the TOWER along the Sterling Canal. Eo LICENSEE desires to use a 200 square foot portion of the PROPERTY, the PREMISES (as defined in Clause I), to operate a communications site 46.5 from the footprint of the Tov~q~R along the Sterling Canal. LICENSEE intends to install certain antennas and cables on the TOWER pursuant to a separate License A~eement with PG&E (PG&E LICENSE), which antennas w~ll be connected to equipment cabinets to be located on the PREMISES pursuant to the terms and conditions of this License. E.CITY a~ees to permit LICENSEE’s use of the PREMISES, under the terms and conditions set forth below-. Now, therefore, in consideration of these covenants, terms and conditions, the parties hereto mutually agree as follows: I.PREMISES 9906301~ C8142982.1 1 Subject to the terms and conditions set forth in this License, CITY gants to LICENSEE the right to use 200 square feet of the PROPERTY, more particularly described as a ten (10) foot by twenty (20) foot parcel of land located approximately 46.5’ from the legs of the TOWER upon which LICENSEE will construct certain communications facilities consisting of an equipment shelter for placement of LICENSEE’s base station equipment, a back-up emergency power generator and/or batteries and coaxial cables and other conduits connecting LICENSEE’s equipment shelter to the antennas to be placed on the TO\VER. CITY ~ants to LICENSEE the right to a portion of the PROPERTY, for the sole purpose of constructing and installing cabling and associated hardware including utilit3, runs incidental to the communications facilities described earlier in this Clause I, together with the right to in~ess and egess thereon. The LICENSED areas are referred to collectively as the PREMISES. The PREMISES are described and shown in "Exhibit B". Exhibit B is attached to and, by this reference, made a part of this LICENSE. CITY hereby consents to LICENSEE’s use of the TOWER for placement of LICENSEE’s antennas and related equipment on the TOWER pursuant to PG&E LICENSE. II.PURPOSE The pro-pose of this License is to provide for the installation, removal, replacement, maintenance, modification, upgrade and operation, at LICENSEE expense, of a communications site (a Cell Site as defined in Clause III, A). III. ALLOWABLE SERVICES AND USES In furtherance of the purposes stated above, the following services and uses shall be permitted: Throughout the term of this License LICENSEE shall use the PREMISES for the purpose of installing, removing, replacing, maintaining, modifying, upgading and operating, at its expense, one of LICENSEE’s communications sites (a "Cell Site") for furnishing telephone, radio and telecommmaications services to the public. A Cell Site is a site at which radio, telephone and communications equipment and antermas are installed and used to send and receive radio signals to and from cellular telephones and other mobile devices and to connect those signals to radio, telephone or other communications facilities either directly, by means of cables or indirectly, by means of transmitting and receiving facilities (including microwave antennas and GPS antenna) located at the Celt Site. LICENSEE’s use shall be subject to the following conditions: 1.LICENSEE’s use of the PROPERTY shall be non-exclusive but its use of the 9906301~ C8142982,1 2 PREMISES shall be exclusive and irrevocable other than as set forth herein. o LICENSEE’s operations on the PREMISES shall comply at all times with all applicable federal laws and regulations regarding electromagnetic emissions. LICENSEE shal! conduct reasonably necessary tests after its Cell Site facilities are constructed on the PREMISES to ensure that its facilities are in compliance with those laws and regulations. The tests shall be conducted by a licensed professional engineer, and the results shall be provided to CITY. In constructing and operating its Cell Site facilities, LICENSEE shall comply with and include the following items in its plans and operating procedures for its facilities: go co LICENSEE shall not permit any unreasonable odors, smoke, dust, gas, substances, noise or vibrations to emanate from the PREMISES, nor take any action which would constitute a nuisance or would disturb, obstruct or endanger any other occupants or use of the site or interfere with their use of their respective premises. LICENSEE shall operate the communications site in a manner that wil! not cause interference to CITY or other licensees or lessees of the site present on the PROPERTY as of the COMMENCEMENT DATE (defined below) of this A~eement, including but not limited to any irrigation system installed by CITY and the Bay Area Cellular Telephone Company, doing business as AT&T Wireless cell site. Prior to construction on the site, LICENSEE shall coordinate LICENSEE’s placement of its facilities to ensure that placement does not conflict with CITY’s irrigation systems. LICENSEE shal! repair any damage to CITY’s property caused by construction of LICENSEE’s facilities, including but not limited to any damage caused to City’s irrigation system and landscaping. LICENSEE’S operations shall at all times be conducted in compliance in all applicable federal, state and local laws and regulations, including but not limited to laws and regulations regarding environmental and occupational safety and all Federal Communications Commission (FCC) requirements. LICENSEE shall submit all required hazardous materials filings and obtain all required approvals prior to installing its batteries or any other hazardous materials. Prior to construction on the site, LICENSEE shall have provided CITY’s Manager, Real Property, evidence that any and all permits including, but not limited to building permits and street opening permits from any and all 9906301~ C8142982,1 3 eo agencies having pre-construction jurisdiction over the proposed development have been authorized and are available. LICENSEE shall post a prominent notice on the PREMISES listing its emergency procedures, warnings and emergency contacts. LICENSEE shall maintain all improvements that it places on the PREMISES. No Restricted Uses. The above listed services and uses, shall be the only services and uses permitted upon or from the PREMISES. LICENSEE a~ees not to use the PREMISES for any other purpose nor to engage in, or permit, any other business activity within or from the PREMISES. IV. TERM The term of this License shall be for a period of five (5) years, commencing on the date LICENSEE receives the last permit required for installation of the Cell Site facility (the "COMMENCEMENT DATE") V.OPTION TO EXTEND Subject to the CITY’s right of early termination under Clause XVIII (TERMINATION), LICENSEE shall have the option to extend this License A~eement for an additional three (3) terms of five (5) years each if the following conditions have been satisfied: LICENSEE is not in default hereunder (beyond any all applicable ~ace or cure periods) at the time of LICENSEE’s exercise of the right to extend. B°LICENSEE has submitted to CITY, a v~Mtten notice of LICENSEE’S intent to extend the License in accordance with the tel~ns of this clause, on or before six (6) months prior to the end of the License term set forth in Clause IV (TERM) or any subsequent term under this Clause V (OPTION TO EXTEND). This option shall be void if more than three defaults have been noticed during any single yea’, even if the defaults were corrected during the 30-day period allowed m~der Clause XIX (TERMINATION). VI.CONSIDERATION/RENT License Fee. As consideration for use of the PREMISES, LICENSEE a~ees to pay to CITY an annual fee (hereinafter referred to as "Rent") of Twenty Thousand Dollars 9906301~ C8142982.1 4 ($20,000) per year, subject to adjustment as provided in Clause VII, payable in advance in accordance with Clause VIII (RENT PAYMENT PROCEDURE). VII. REVISION OF RENT The rental specified in Clause VI (CONSIDERATION/RENT) shall be subject to automatic annual adjustments in proportion to changes in the Consumer Price Index, All Urban Consumers, (base years 1982-1984 = 100) for San Francisco-Oakland-San Jose CSMA published by the U.S. Department of Labor, Bureau of Labor Statistics or any replacement index published by said Bureau (INDEX). The automatic adjustment shall be effective on each anniversary of the commencement date of the term of this License and shall be calculated in accordance with the following formula: X=A (B/C) Where: Adjusted rental. Rental at the Commencement of the License. INDEX for the second calendar month prior to the month in which that rental rate adjustment is to become effective (or, if the INDEX is not published for that month, the INDEX for the third calendar month prior to the month in which the rental rate adjustment is to become effective) Monthly index for the second calendar month prior to the date of this License (or, if the INDEX was not published for that month, the INDEX for the third calendar month prior to the date of this License). VIII.RENT PAYMENT PROCEDURE No Within fifteen (15) days of the COMMENCEMENT DATE of this License, LICENSEE shall pay to CITY Rent for the first year of the term as set forth in Clause VI (CONSIDERATION/RENT). No Commencing on the first anniversary- of the COMMECEMENT DATE, on or before each subsequent anniversary of the COMMENCEMENT DATE LICENSEE shall pay to CITY Rent as set forth in Clause VI (CONSIDERATION/RENT), as revised pursuant to Clause VII. Rental payments shall be delivered to the Revenue Collections Division, 250 Hamilton Avenue, PO Box 10250, Palo Alto, CA 94303. The designated place of payment may be changed at any time by CITY upon ten (10) day’s w-ritten notice to LICENSEE. Rental 990630 lsj C8142982.!5 pa?~nents, may be made by check made payable to the City of Palo Alto, however, LICENSEE assumes all risk of loss ifpay~nents are made by mail. Do Acceptance of Late or Incorrect Rent: LICENSEE specifically a~ees that acceptance of any late or incorrect rentals submitted by LICENSEE shall not constitute an acquiescence or waiver by CITY and shall not prevent CITY from enforcing Clause IX (CHARGE FOR LATE PAYMENT) or any other remedy provided in this License. IX. CHARGE FOR LATE PAYMENT If any payment of Rent as specified in Clause VI (CONSIDERATION/RENT) or of any other sum due CITY is not received by CITY, within five (5) business days of the due date, a late charge equal to two percent (2%) of the payment due and unpaid plus an administrative fee of $ 45.00 shall be added to the payment, and the total sum shall become immediately due and payable to CITY. Acceptance of late charges and/or an?, portion of the overdue payment by CITY shall in no event constitute a waiver of LICENSEE’S default with respect to such overdue pa?a-nent, nor prevent CITY from exercising any of the other rights and remedies granted hereunder or by any provision of law. X.MAINTENANCE AND REPAIR LICENSEE at its expense, shall perform all maintenance and repairs, including all painting, and all maintenance of landscaped areas necessary to keep the PREMISES and all improvements thereto in first-class order, repair and condition, and shall keep the PREMISES in a safe, clean, wholesome, and sanitary- condition to the complete satisfaction of CITY, and in compliance with all applicable laws, throughout the term of this License. In addition, LICENSEE shall maintain, at its expense, all equipment, trade fixtures and any- other improvements installed by LICENSEE upon the PREMISES required for the maintenance and operation of a Cell Site to be operated pursuant to Clause III. LICENSEE waives the right to make repairs at the expense of CITY and the benefit of the provisions of Sections 1941 and 1942 of the Civil Code of California relating thereto; and further aN’ees that if and when any repairs, alterations, additions or betterments shall be made by it as required by this para~aph, it shall promptly pay for all labor done or materials furnished and shall keep the PREMISES free and clear of an?, lien or encumbrance of any kind whatsoever. Should LICENSEE fail to make any repairs or perform any maintenance work for which it is liable within ten (10) calendar days of receipt of written notice from CITY, CITY shall have the option to make the repairs, and LICENSEE shall within ten (10) days of receipt of a bill therefore from the Real Property- Manager, reimburse CITY for the cost of such repairs, including a fifteen percent (15%) administrative overhead fee. The making of such repairs or performance of maintenance by CITY shall in no event be construed as a waiver of the duty of LICENSEE to make repairs or perform maintenance as provided in this clause. 9906301~ C8142982.1 6 XI.CONSTRUCTION AND/OR ALTERATION BY LICENSEE No No CITY’S Consent. No structures, hnprovements, or facilities shall be constructed, erected, altered, or made within the PREMISES without the prior written consent of the CITY (by action of the City Council if required by City of Palo Alto procedures or ordinances, or otherwise by the City- Manager or designee). LICENSEE shall have the right to construct the Cell Site (including the base station radio equipment) in approximately the configuration shown on the plans attached as Exkibit B (subject to all necessary architectural review, zoning approvals and building permits). Any conditions relating to the manner, method, design, and construction of the structures, improvements, or facilities established by CITY shall be conditions of this clause as though originally stated herein. LICENSEE may, at any time and at its sole expense, install and place business fixtures and equipment within any structure on the PREMISES, provided such fixtures and installation have been previously noticed to the City Manager. Strict Compliance with Plans and Specifications. All improvements constructed by LICENSEE within the PREMISES shall be constructed in an efficient and workmanlike manner and in strict compliance with detailed plans and specifications approved by the CITY (by action of the City Council if required by City of Palo Alto procedures or ordinances, or otherwise by the City Manager or designee), and applicable City of Palo Alto codes and ordinances. Co XII. Buildin~ Permit Final Inspection. Upon completion of construction of any building, LICENSEE shall submit to the Real Property Manager, a copy of the Building Permit showing the final inspection has been completed and is signed off. OWNERSHIP OF IMPROVEMENTS A. Improvements to Realty. All improvements constructed, erected or installed upon the PREMISES must be free and clear of all liens, claims, or liability for labor or material. Upon expiration or termination of the License, CITY may at its option require LICENSEE to remove LICENSEE constructed improvements including, but not limited to, the foundations, and may further require LICENSEE to repair to the satisfaction of CITY any damage to the PREMISES caused by such removal; provided, that LICENSEE may, but shall not be required to, remove underground conduit installed by it during the term of this License. B.Personal Property. Title to all equipment, furniture, furnishings and trade fixtures placed by LICENSEE upon the 990630 !~ C8142982.1 7 PREMISES (inc_luding without limitation the Cell Site facility) shall remain in LICENSEE, and replacements, substitutions and modifications thereof may be made by LICENSEE tln’oughout the term of this License. LICENSEE may remove such fixtures and furnishings upon expiration of this License, provided that LICENSEE shall repair to the reasonable satisfaction of CITY any damage to the PREMISES and improvements caused by such removal. LICENSOR ac’knowledges that LICENSEE may enter into financing arrangements including promissory notes and financial and security agreements for the financing of LICENSEE’s equipment (the "Collateral") with a third party" financing entity and may in the future enter into additional financing arrangements with other financing entities. In connection therewith, LICENSOR (i) subject to the provisions of Clause XI.A, consents to the installation of the Collateral; (ii) disclaims any interest in the Collateral, as fixtures or otherwise; and (iii) agrees that the Collateral shall be exempt from execution, foreclosure, sale, levy, attachment, or distress for any Rent due or to become due and that such Collateral may be removed at any time without recourse to legal proceedings. XIII.AS BUILT PLANS Upon completion of an?, major LICENSEE-constructed improvements, LICENSEE shall provide the Real Property Manager with a complete set of reproducible "as built plans" reflecting actual construction within or upon the PREMISES. XIV. DAMAGE TO OR DESTRUCTION OF Ig~ROVEMENTS If the PREMISES are, in whole or in part, damaged or destroyed then: (1) if wholly damaged or destroyed so that the PREMISES are rendered pelTnanently unusable for reconstruction of a Cell Site facility, this License shall then terminate and LICENSEE shall be liable for the Rent only up to the time of such destruction and any Rent prepaid by LICENSEE shall be returned to LICENSEE; but (2) if only partially destroyed and still usable for construction of a Cell Site Facility, LICENSEE shall, within a reasonable time, not to exceed thirty (30) days from the date of the damage or destruction, notify CITY in writing of its intent either (i) to terminate the License, in which case a proportional amount of any Rent prepaid by LICENSEE (prorated from the date notice is received by CITY) shall be returned to LICENSEE, or (ii) to continue operating under the License, in which case, LICENSEE shall, within a reasonable time, repair the PREMISES and the Cell Site facility, with a reasonable reduction of Rent from the date notice is received by CITY until the date the PREMISES and the facility are usable. XV.UTILITIES LICENSEE shall be responsible for and shall pay, prior to delinquency, all charges for utilities supplied to the PREMISES at the rate charged by the servicing utility provider. XVI. INSURANCE 990630 lsj C8142982.1 8 LICENSEE, at its sole expense, shall maintain insurance meeting the following requirements in full force and effect throughout the term of this License. A. Minimum Scope of Insurance Coverage shall be at least as broad as: 1) 3) 4) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. Course of Construction insurance form providing coverage for "all risks" of loss. The policy or policies of insurance maintained by LICENSEE shall provide the following limits and coverages: POLICY MINIMUM LIMITS OF LIABILITY (1)WORKERS’ COMPENSATION (2)Business AUTOMOBILE LIABILITY, including owned, hired, and non-owned automobiles Statutory Bodily Injury Property Damage $1,000,000 $1,000.000 $1,000,000 ea. person ea. occurrence ea. occurrence (3)Commercial GENERAL LIABILITY including products and completed operations, broad form contractual, and personal injury. Bodily Injury Property Dmnage Personal Injury B. Deductibles and Self-Insured Retentions $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 ea. person ea. occurrence ag~egate ea. occurrence ea. occurrence Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the 990630 lsj C8142982.1 9 option of the CITY either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the CITY, its officers, officials, employees and volunteers; or the LICENSEE shall provide a financi!l guarantee satisfactory to the CITY guaranteeing payment of losses and related investigations, claim administration and defense expenses. Insurance shall be in full force and effect commencing on the COMMMENCEMENT DATE of the term of this License. Each insurance policy required by this License shall contain the following provisions: Each insurance policy required shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the CITY provided that only (10) days notice w-ill be required for cancellation due to a failure to pay premiums. o All rights of subrogation are hereby waived against the CITY OF PALO ALTO and the members of the City Council and elective or appointive officers or employees, when acting within the scope of their emplo3~nent or appointment. o The CITY, its officers, officials, employees, agents and volunteers are to be covered as additiona! insureds as respects: liability arising out work or operations of activities performed by or on behalf of the LICENSEE; products and completed operations of the LICENSEE; PREMISES o’,~ned, occupied or used by the LICENSEE; or automobiles owned, licensed, hired or borrowed by the LICENSEE. The coverage shall contain no specia! limitations on the scope of protection afforded to the CITY, its officers, officials, emp!oyees, agents or volunteers. °For any claims related to this License, the LICENSEE’s insurance coverage shall be primax3~ insurance as respects the CITY, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees, agents or volunteers shall be excess of the LICENSEE’s insurance and shall not contribute with it. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the CITY, its officers, officials, employees, agents or volunteers. o The LICENSEE’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. C. Acceptability of Insurers 9906301~ C8!42982.1 10 Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A-VII D. Evidence of/Changes LICENSEE agees to deposit with the Real Property Manager, on or before the effective date of this License, certificates of insurance reasonably evidencing that the insurance provisions of this License have been complied with, and to keep such insurance in effect and the certificates therefore on deposit with CITY during the entire term of this License. Should LICENSEE not provide evidence of such required coverage at least three (3) days prior to the expiration of any existing insurance coverage, CITY may purchase such insurance, on behalf of and at the expense of LICENSEE to provide six months of coverage. CITY shall retain the right at any time to review the coverage, form, and amount of the insurance required hereby. If, in the opinion of the Risk Manager, the insurance provisions in this License do not provide adequate protection for CITY, the Real Property Manager may require LICENSEE to obtain insurance sufficient in coverage, form, and amount to provide adequate protection as determined by the Risk Manager. CITY’S requirements shall be reasonable and shall be designed to assure protection from and against the kind and extent of risk which exists at the time a change in insurance is required. The Real Property Manager shall notif)7 LICENSEE in w-riting of changes in the insurance requirements. If LICENSEE does not deposit w-ritten evidence with the CITY that its insurance coverage incorporates such changes within sixty (60) days of receipt of such notice, or in the event LICENSEE fails to maintain in effect any required insurance coverage, LICENSEE shall be in default under this License without further notice to LICENSEE. Such failure shall constitute a material breach and shall be wounds for irmnediate termination of this License at the option of CITY. The procuring of such required policy or policies of insurance shall not be construed to limit LICENSEE’S liability hereunder nor to fulfill the indemnification provision and requirements of this License. Notwithstanding the policy or policies of insurance, LICENSEE shall be obligated for the full and total amotmt of any danage, injury, or loss to the extent caused by license with its use or occupancy of the PREMISES. XVII. ASSIGNING, SUBLETTING, AND ENCUMBERING This License conveys no property rights to LICENSEE. Therefore, any attempted mortgage, pledge, hypothecation, encumbrance, transfer, sublicense, or assignment (collectively referred to as ENCUMBRANCE) of LICENSEE’S interest in the PREMISES, or any part or portion there of, shall be void and of no effect; provided, however, that LICENSEE shall have the right to assign its rights under this License in whole or in part to any of its parent companies subsidiaries, affiliates or 990630 Isj C8142982.1 11 successor legal entities or to any entity acquiring substantially all the assets of LICENSEE. XVIII. TERMINATION OF LICENSE A.Termination of the License by CITY. Notwithstanding the provisions of Clause IV and Clause V, CITY may terminate this License upon the occurrence of any of the following events: Upon a breach or default by LICENSEE of any covenant, condition or ageement contained in this License, which is not corrected within thirty (30) days of receipt of written notice of default from CITY; o Upon LICENSEE’s inability to obtain or maintain any required certificate, license, easement or other approval, including, but not limited to, a license for the Sterling Canal site from PG&E, and which is not remedied or corrected within thirty (30) days of receipt of written notice of default from CITY; 3.At any time upon one year’s prior written notice to LICENSEE. If LICENSEE files a petition under any- chapter of the U.S. Bankruptcy Code, (or any similar petition under any insolvency law of any jurisdiction), or has filed against it any such petition which is not dismissed within sixty (60) days of the date filed, or is LICENSEE proposes any dissolution, liquidation or composition, with creditors, makes an assignment for the benefit of its creditors, or if a receiver, trustee, custodian or similar agent is appointed with respect to or takes possession of any materia! portion of the property or business of LICENSEE. Upon the occurrence of any of the events described in para~aphs 1 and 2 of this Clause, CITY may: At CITY’S sole option, cure any such default by performance of any act, including payment of money, and the cost thereof, plus reasonable administrative cost, shall become immediately due and payable by LICENSEE to CITY; Seek an action or suit in equity to enjoin any acts or things which may be unlaw-ful or in violation of the rights of CITY; Seek a mandamus or other suit, action or proceeding at law or in equity to enforce its rights against LICENSEE and any of its officers, agents, and employees and its assigns, and to compel it to perform and carry out its duties and obligations under the law- and its covenants and a~eements with CITY as provided herein; or 990630 lsj C8142982.1 12 Pursue any other remedy available by law or specifically provided in other clauses of his License. Notwithstanding anything to the contrary contained herein however, in the event of a default which carmot reasonably be cured v¢ithin thirty (30) days, LICENSEE shall have a reasonable period of time (as determined by the City Manager) to cure the default. Each and all of the remedies given to CITY hereunder or by any law now or hereafter enacted, are cumulative and the exercise of one right or remedy shall not impair the right to CITY to exercise any or all other remedies. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and then discontinued or abandoned, then, and in every such case, CITY and LICENSEE shall be restored to its and their former position and rights and remedies as if no such suit, action or proceedings had been brou~at or taken. In addition to a violation or breach of any other provision of this License, LICENSEE shall be considered to be in default under this License should LICENSEE: voluntarily file or have involuntarily filed against it any petition under ar~y bankruptcy or insolvency act or law; or 2.be adjudicated a bankrupt. Termination of the License by LICENSEE. LICENSEE may terminate this License at any time upon 180 days prior written notice to CITY; provided that in the event of such early termination, no portion of the then current year’s rent shall be refunded to LICENSEE. XIX.CITY TELECOMMUNICATIONS POLICY LICENSEE acknowledges that CITY has commenced evaluation and preparation of comprehensive telecommunications policies, procedures and implementation materials related to telecommunications uses within the CITY (collectively referred to herein as the "Telecommunications Policy"). LICENSEE acknowledges receipt of the City o ’Manager s report dated March 6, 2000 which recommended for approval a consultant contract between the CITY and an independent firm for preparation of documents related to the Telecommunications Policy, and understands that the City Council approved that contract. LICENSEE acknowledges that the Telecommunications Policy may include (among other things) the establishment of guidelines and/or ordinances governing the siting of telecommunications facilities within the City of Palo Alto, including facilities on private land and on City-owned land. In light of the pending Telecommunications Policy, LICENSEE and CITY agree as follows: 990630 lsj C8142982.1 13 No LICENSEE a~ees that it will abide by all lawful terms and conditions of the Telecommunications Policy adopted by CITY to the extent they relate to LICENSEE’s communications facility on the PREMISES. In this regard, the following procedures shall apply: Within ninety (90) days of the adoption Qfthe Telecommunications Policy, if CITY finds that LICENSEE’s facility on the PREMISES is not in compliance with the Telecommunications Policy, then CITY shall deliver to LICENSEE a w-ritten notice (:’compliance notice") specifying the items of non-compliance. Such notice shal! include reasonably detailed items of non-compliance, a copy of the applicable provision of the Telecommunications Policy and, if appropriate, actions required to be undertaken by LICENSEE to bring its facility into compliance. LICENSEE acknowledges that such notice may include a requirement to relocate LICENSEE’s facility, if required, under the Telecommunication s Policy. If CITY fails to deliver such compliance notice within said ninety day period, LICENSEE’s communications facility on the PREMISES shall thereafter be deemed compliant with all of the terms and conditions of the Telecommunications Policy, unless later actions of LICENSEE cause its communications facility to become non-compliant. o LICENSEE shall have six (6) months after its receipt of the’compliance notice to bring its facility into compliance under the Telecommunications Policy. If LICENSEE fails or refuses to bring it facility into compliance within such six month period, CITY may terminate the LICENSE on thirty (30) days written notice to LICENSEE, whereupon, LICENSEE shall remove its communications facility as required under the LICENSE and the parties shall have no further obligations under the LICENSE, except for those obligations which expressly survive the termination of the LICENSE. B. Condemnation Proceedings. LICENSEE a~ees that, if LICENSEE’s facility must be relocated or modified to comply with the Telecommunications Policy or if the LICENSE is terminated due to LICENSEE’s failure or refusal to comply with the Telecommunications Policy, as set forth above, LICENSEE shall not initiate condemnation proceedings against the CITY for the purpose of acquiring a license interest, lease interest or other right t° use the PREMISES previously permitted for use by LICENSEE under the L ICENSE. XX. NOTICES All notices, statements, demands, requests, consents, approvals, authorizations, offers, ageements, appointments or designations hereunder give by either party to the other, shall be in writing and shall be sufficiently given and served upon the other party if (1) personally served, (2) sent by United States Certified mail, postage, prepaid, (3) sent by express delivery service, or (4) in the case 990630 lsj CS142982.1 14 of a facsimile, if sent to the telephone nmnber(s) set forth below during normal business hours of the receiving par~y and followed within 48 hours by delivery of hard copy of the material sent by facsimile, in accordance with (1), (2) or (3) above. Personal serv’ice shall include, without limitation, service by delivery service and sen, ice by facsimile transmission. Deliver3, of notices properly addressed shall be deemed complete when the notice is physically delivered to the Real Property Manager or the City Clerk. All notices pursuant to this License shall be addressed as set forth below or as either party may subsequently designate by written notice. TO: CITY TO: LICENSEE Real Property Manager City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto, CA 94303 FAX: (650) 329-2468 with a copy to: City Clerk, City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto, CA 94303 FAX: (650) 329-2646 And City Attorney, City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto CA 94303 FAX: (650) 329-2646 ATTACHMENT TO LICENSE T-Mobile USA, Inc. 12920 SE 38th Street Belle~nae, WA 98006 Attn: PCS Lease Administrator with a copy to: Attn: Legal Department And with a copy to: Omnipoint Communications, Inc. d/b/a T-Mobile 2380-A Bisso Lane Concord, CA 94520 Atm: Lease Administration Manager: with a copy to: Attn: Legal Department This License includes the following exhibits, .which are attached hereto and by this reference incorporated into this License: 9906301~ C8t42982.1 15 Exhibit A - General Conditions Exhibit B - Description of Licensed Premises The inclusion of clauses in Exhibit A (OENERAL CONDITIONS) is not in any way intended to lessen the in~portance of these clauses, but is merely done to enhance the organization of various clauses and this License; provided, however, that in the event of a conflict between the foregoing Clauses and the provisions of Exhibit A, the foregoing Clauses shall prevail. IN WITNESS WHEREOF, the parties have executed this License the day and year first above w-ritten. CITY:LICENSEE: CITY OF PALO ALTO (LICENSOR)OMNIPOINT COMMUNICATIONS, INC., a Delaware corporation, d/b/a T-MOBILE By: Assistant City Manager By: David Gallacher Its: Vice President. West Re~ion ATTEST: By: City Clerk By: Christopher Eldridge Its: Director of Re2ional Development I APPROVED AS TO FORM: By: Senior Asst. City Attorney RECOMMENDED FOR APPROVAL: By: Real Property Manager 990630 lsj C8t42982A 16 EXHIBIT A GENERAL CONDITIONS 1.DEFINITIONS CITY shall mean the City Council of the City of Palo Alto, a municipal corporation. The City Manager is hereby authorized to take any actions under this License on behalf of CITY except for termination of this License. Clauses in this License refer to specific officers or employees of CITY. Should these positions be eliminated or the title changes, it is understood and a~eed that such references shall be considered to be to the new title for renamed positions or to the replacement official designated with the responsibilities of any eliminated position. Any reference to a City officer or employee includes a reference to the officer’s or employee’s designated representative. 2.PARTNERSHIP/CORPORATE AUTHORITY & LIABILITY If LICENSEE is a partnership, each general partner: A.represents and warrants that the parmership is a duly qualified partnership authorized to do business in Santa Clara Count3,; and B.shall be jointly and severally liable for performance of the terms and provisions of this License. If LICENSEE is a corporation, each individual signing this License on behalf of LICENSEE represents and warrants that; No he is duly authorized to do so in accordance with an adopted Resolution of LICENSEE’S Board of Directors or in accordance with the Bylaws of the corporation; and B.LICENSEE is a d~ly qualified corporation authorized to do business in State of California. 3.TIME Time is of the essence of this License. 4.SIGNS 990630 lsj C8142982.1 17 LICENSEE agrees not to construct, maintain, or allow any sign to be placed upon the PR~MISES except as may be approved by CITY. Unapproved signs, banners, etc., may be removed by CITY. 5.PERMITS AND LICENSES LICENSEE shall be required to obtain any and all permits and!or licenses which may be required in counection with the operation of.. and any approved LICENSEE construction upon, the PREMISES as set forth in this License. 6.MECHANICS LIENS LICENSEE shall at all times indemnify and save CITY harmless from al! claims for labor or materials supplied in connection with construction, repair, alteration, or installation of structures, improvements, equipment, or facilities within the PREMISES, and from the cost of defending against such claims, including attorney fees. LICENSEE shall provide CITY with at least ten (10) days written notice prior to commencement of any work which could give rise to a mechanics lien or stop notice. CITY reselwes the right to enter upon PREMISES for the purposes of posting Notices of Non-Responsibility. In the event a lien is imposed upon the PREMISES as a result of such construction, repair, alteration, or installation, LICENSEE shall either: A.Record a valid Release of Lien; or Deposit sufficient cash with CITY to cover the amount of the claim on the lien in question and authorize payment to the extent of said deposit to any subsequent judgment holder that may arise as a matter of public record from litigation with regard to lienholder claim; or Co Procure and record a bond in accordance with Section 3143 of the Civil Code, which releases the PREMISES from the claim of the lien from any action brought to foreclose the lien. Should LICENSEE fail to accomplish one of the three optional actions within fifteen (15) days after the filing of such a lien, the License shal! be in default and may be subject to immediate termination. 7.LICENSE ORGANIZATION AND RULES OF CONSTRUCTION Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Unless the context other~,v-ise indicates, words importing the singular number shall include the plural number and vice versa, and words importing persons shall include corporations and associations, including public bodies, as well as natura! persons. The terms "hereby", "hereof", "hereto", "herein", "hereunder" and any sinailar terms, as used in this agreement, refer to this agreement. All the terms and provisions hereof shal! be construed to effectuate the purposes set forth herein, and to sustain the validity hereof. The titles and headings of the sections of this agreement have been inserted for convenience of reference only, are not to be considered a part hereof and shall not in any way modify or restrict any of the terms of provisions hereof or be considered or given any effect in construing this agreement or any provision hereof in ascertaining intent, if any question of intent shall arise. 8.AMENDMENTS This License sets forth all of the agreements and understandings of the parties and any modifications must be written and properly executed by both parties. 9.UNLAWFUL USE LICENSEE agrees that no improvements shall be erected, placed upon, operated, nor maintained within the PREMISES, nor any business conducted or carried on therein or therefrom, in violation of the terms of this License, or of any regulation, order of law-, statute, or ordinance of a governmental agency having jurisdiction over LICENSEE’S use of the PREMISES. 10.NONDISCRIMINATION LICENSEE and its employees shall not discriminate against any person because of race, color, religion, ancestry, age, sex, national origin, disability, sexual preference, housing status, marital status, fanailial status, weight or height of such person. LICENSEE shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, sex, age, national origin, disability, sexual preference, housing status, marital status, familial status, weight or height of such person. LICENSEE covenants that in all of the activities LICENSEE conducts or allows to be conducted on the licensed PREMISES, LICENSEE shall accept and enforce the statements of policy set forth in Palo Alto Municipal Code Section 9.73.010 regarding hmnan rights and nondiscrimination. If LICENSEE is found in violation of the provisions of Palo Alto Municipal Code Section ~.73.010 by a court or administrative body of competent jurisdiction or in violation of the nondiscrimination provision of the State of California Fair Employment Practices Act or similar provisions of federal law or executive order in the conduct of its activities under this License by the State of California Fair Emplo?anent Practices Commission or the equivalent federal agency or officer, it shal! thereby be found in .default under this License, and such default shall constitute a material breach of this License. CITY shall then have the power to cancel or suspend this License in whole or part. 990630 lsj C8142982.1 19 11.INSPECTION CITY’S employees and agents shall have the right at all reasonable times to inspect the PREMISES to determine if the provisions of this License are being complied with provided that reasonable prior v,a’itten notice has been provided to LICENSEE to allow LICENSEE to accompany any such inspection. Notwithstanding the foregoing, CITY shall not, and shall not have the right to, touch or othel~ise interfere with an of LICENSEE’s equipment, fixtures, or improvements located within the PREMISES. 12.HOLD HARMLESS LICENSEE hereby agrees to indemnify, hold harmless and defend CITY, its officers, agents and employees against any and all claims, liability, demands, damages and costs (including reasonable attorneys’ fees (collectively "Claims") to the extent caused by LICENSEE except to the extent such Claims are caused by the sole or gross negligence or w~llful misconduct of CITY, its officers, agents and/or employee’s. 13.TAXES AND ASSESSMENTS This License may create a possessory interest which is subject to the payment of taxes levied on such interest. It is understood and agreed that all taxes and assessments (including but not limited to the possessory interest tax) which become due and payable upon the PREMISES or upon fixtures, equipment, or other property installed or constructed thereon, shall be the full responsibility of LICENSEE and LICENSEE shall pay the taxes and assessments prior to delinquency. 14.SUCCESSORS IN INTEREST Unless otherwise provided in this License, the terms, covenants, and conditions contained herein shall apply to and bind the heirs, successors, executors, administrators, and assigns of all the parties hereto, all of whom shall be jointly and severally liable hereunder. 15.CIRCUMSTANCES WHICH EXCUSE PERFORMANCE (FORCE MAJEURE) If either party hereto shall be delayed or prevented from the performance of any act required hereunder by reason of acts of God, restrictive governmental laws or regulations, or other cause w-ithout fault and beyond the control of the party obligated (financial inability excepted), performance of such act sha!l be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. 16. PARTIAL INVALIDITY If may term, covenant, condition, or provision of this License is determined to be invalid, void, or 990630 lsj C8142982.1 20 unenforceable, b~v a court of competent jurisdiction, the remainder of the provisions hereof shall remain in ful! force and effect and shall in no way be affected, impaired, or invalidated thereby. 17.WAIVER OF RIGHTS The failure of CITY or LICENSEE to insist upon strict performance of any of the terms, covenants, or conditions of this License shall not be deemed a waiver of any right or remedy that CITY or LICENSEE may have, and shall not be deemed a waiver of the right to require strict performance of all the terms, covenants, and conditions of the License thereafter, nor a waiver of any remedy for the subsequent breach or default of any term, covenant, or condition of the License. 18.COSTS OF SUSTAINING AN ACTION FOR BREACH OR DEFAULT In the event either CITY or LICENSEE commences legal action against the other claiming a breach or default of this License, the prevailing party in such litigation shall be entitled to recover from the other cost of sustaining such action, including reasonable attorney fees, as may be fixed by the Court. 19.RESERVATIONS TO CITY The PREMISES are accepted "as is" and "where is" by LICENSEE subject to any and all existing easements, and encumbrances. CITY reserves the right to install, lay, construct, maintain, repair, and operate such sanitary sewers, drains, storm water sewers, pipelines, manholes, and connections; water, oil, and gas pipelines; telephone and tele~aph power lines; and the applications and appurtenances necessary or convenient for connection therewith, in, over, upon, through, across and along the PREMISES or any part thereof., and to enter the PREMISES for any and all such purposes. CITY also reserves the right to grant franchises, easements, rights of way, and permits, in, over, upon, through, across, and along any and all portions of the PREMISES. Notwithstanding anything to the contrary contained here, no right reserved by CITY in this clause shall be so exercised as to interfere mxreasonably with LICENSEE’S operation hereunder. CITY agrees that rights ~anted to third parties by reason of this clause shall contain provisions that the surface of the land shall be restored as nearly as practicable to the original condition upon the completion of any construction. 20. HOLDING OVER ha the event LICENSEE shall continue in possession of the PREMISES after the term of the License, such possession shall not be considered a renewal of this License but a tenancy from month to month and shall be governed by the conditions, and covenants contained in this License. 990630 lsj C8142982.1 21 21.CONDITION OF PREMISES UPON TERMINATION Upon telTnination of this License, except as otherwise agreed to herein, LICENSEE shall redeliver possession of the PREMISES to CITY in substantially the sane condition that existed immediately prior to LICENSEE’S occupancy, reasonable wear and tear, flood, earthquake, war, and any act of war or other casualty beyond the control of LICENSEE excepted. 22. DISPOSITION OF ABANDONED PERSONAL PROPERTY If LICENSEE abandons the PREMISES or is dispossessed thereof by process of law or otherwise, title to any personal property belonging to LICENSEE and left on the PREMISES forty-five (45) days after such abandonment or dispossession shal! be deemed to have been transferred to CITY. CITY shall have the right to remove and to dispose of such property without liability therefor to LICENSEE or to any person claiming under LICENSEE, and shall have no need to account therefor. 23.RELINQUISMENT OF LICENSEE’S INTEREST UPON TERMINATION Upon termination of this License for any reason, including but not limited to tennination because of default by LICENSEE, LICENSEE shall, at CITY’S request execute, ac -knowledge and deliver to CITY "adthin five (5) days after receipt of written demand thereof, a w~-itten document, signed by an official recognized under Section 313 of the California Corporations Code, certifying LICENSEE’s relinquishment of the PREMISES. Should LICENSEE fail or refuse to deliver the required certification to CITY, CITY may prepare and record a notice reciting the failure of LICENSEE to execute, acknowledge and deliver such certification and the notice shall be conclusive evidence of the termination of this License, and of all right of LICENSEE or those claiming under LICENSEE in and to the PREMISES. 24. CITY’S RIGHT TO RE-ENTER LICENSEE agrees to yield and peaceably deliver possession of the PREMISES to CITY on the date - of termination of this License, whatsoever the reason for such termination. Upon giving written notice of termination to LICENSEE, CITY shall have the right to re-enter and take possession of the PREMISES on the date such termination becomes effective without further notice of any "kind and without institution of regular legal proceedings. Termination of the License and re-ent13, of the PREMISES by CITY shall in no way alter or diminish any obligation of LICENSEE under the License telTns and shall not constitute an acceptance or stm’ender. LICENSEE waives any and all rights of redemption under any existing or future law or statute in the event of eviction from or dispossession of the PREMISES for any reason or in the event CITY re- enters and law-fully re-takes possession of the PREMISES. 990630 lsj C8142982.1 22 25.CONFLICT OF INTEREST LICENSEE warrants and covenants that no official or employee of CITY nor any business entity in which any official or employee of CITY is interested: (1) has been employed or retained to solicit or aid in the procuring of tl~s agreement; or (2) will be employed in the performance of this agreement without the divulgence of such fact to CITY. In the event that CITY determines that the employment of any such official, employee or business entity is not compatible with such official’s or employee’s duties as an official or employee of CITY, LICENSEE upon request of CITY shall ilrnnediately terminate such employment. Violation of this provision constitutes a serious breach of this License and CITY may terminate this License as a result of such violation. 26.EMINENT DOMAIN In the event the whole or any part of the PREMISES are condemned by a public entity in the law-ful exercise of its power of eminent domain, this License shall cease as to the part condemned. The date of such termination shall be the effective date of possession of the whole or part of the PREMISES by the condemning public entity. CITY shall be entitled to and shall receive all compensation related to the condemnation of al! or part of the PREMISES by the exercise of eminent domain. 27.CHANGES IN PRICE INDICES Clauses contained in this License may provide for adjustment based on the Consumer Price Index, component indices, or other indices. Should these indices be changed, altered or cease to be published, the following conditions shall apply: No If the subject index is changed so that the base year differs from that used as of the month in which the term commences, the subject index shall be converted in accordance with the conversion factor published by the publisher of that index; If the subject index is discontinued or revised during the License term, such index shall be replaced by another govermnent index or computation which will obtain substantially the same result as would be obtained if the subject index had not been discontinued or revised. 28.POST-ACQUISITION LICENSE LICENSEE hereby acknowledges that its occupancy of the PREMISES is subsequent to acquisition of the PREMISES by CITY. LICENSEE further understands and agees that as a post-acquisition LICENSEE, LICENSEE is not eligible and furthermore waives all claims for relocation assistance and benefits under federal, state or local law. 990630 Isj C8142982.1 __...3 29.HAZARDOUS SUBSTANCES No Definition. As used herein, the term "Hazardous Materials" means any substance or material which has been determined by any state, federal or local governmental authority to be capable of posing risk of injury-to health, safety, and property, including petroleum and petroleum products and all of those materials and substances designated as hazardous or toxic by the U.S. Environmental Protection Agency, the California Water Quality Control Board, the U.S. Department of Labor, the California Department of Industrial Relations, the California Department of Health Services, the California Health and Welfare Agency in connection with the Safe Water and Toxic Enforcement Act of 1986, the U.S. Department of Transportation, the U.S. Department of Agriculture, the U.S. Consumer Product Safety Commission, the U.S. Department of Health and Human Services, the U.S. Food and Drug Administration or any other govermnental agency now or hereafter authorized to regulate materials and substances in the environment. Without limiting the generality of the foregoing, the term "Hazardous Materials" shall include all of those materials and substances defined as "toxic materials" in Sections 66680 through 66685 of Title 22 of the California Code of Regulations, Division 4, Chapter 20, as the same may be amended from time to time. LICENSEE’S USE of PREMISES. Dm’ing the term of this LICENSE, LICENSEE shall abide and be bound by all of the follov, dng requirements: LICENSEE shall comply w4th all laws now- or hereafter in effect relating to the use of Hazardous Materials on, under or about the PREMISES, and LICENSEE shall not contaminate the PREMISES, or its subsurfaces, with any Hazardous Materials. ii.LICENSEE shall restrict its use of Hazardous Materials at the PREMISES to those kinds of materials that are normally used in constructing telecommunications systems. Disposal of any Hazardous Materials at the Premises are strictly prohibited. Storage of such permissible Hazardous Materials is allowed only in accordance with all applicable laws now or hereafter in effect. All safety, and monitoring features of any storage facilities shall be approved by CITY’S Fire Chief in accordance with all laws. iii. iv. LICENSEE shall be solely and fully responsible for the reporting of all Hazardous Materials releases to the appropriate public agencies, when such releases are caused by or result from LICENSEE’S activities on the PREMISES. LICENSEE shall immediately inform CITY of any release of Hazardous Materials, whether or not the release is in quantities that would otherwise be reportable to a public agency. LICENSEE shall be solely and fully responsible and liable for any such releases 9906301~ C8142982.1 24 which are caused by LICENSEE at the Premises, or into CITY’S sewage or storm drainage systems. LICENSEE shall take all necessary precautions to prevent any of its Hazardous Materials from entering into any storm or sewage drain system or from being released on the Premises. LICENSEE shall remove releases of its Hazardous Materials in accordance with all laws. In addition to all other rights and remedies of CITY hereunder, if the release of Hazardous Materials caused by LICENSEE is not removed by LICENSEE within ninety (90) days after discovery by LICENSEE, CITY or any other third party, CITY may pay to have the same removed and LICENSEE shall reimburse CITY for such costs within five (5) days of CITY’S demand for payment. City represents that it has no knowledge of any Hazardous Materials on or under the PREMISES or PROPERTY. LICENSEE wil! not introduce or use any such substance on the PREMISES in violation of any applicable law-. CITY shall indemnify and hold LICENSEE harmless from and against all claims, actions, damages, fines, liabilities, costs and expenses (including attorneys= and expert fees) arising, directly or indirectly, from the deposit of any Hazardous Materials on or under the PROPERTY or the PREMISES prior to the commencement of the LICENSE, unless said materials were actually deposited on the PROPERTY or PREMISES by LICENSEE. This obligation to indemnify LICENSEE shall include damages, costs and expenses incurred in connection with any investigation, cleanup, remediation, monitoring, removal or restoration related to the presence of any substance. This indemnity shall survive the expiration or termination this LICENSE. LICENSEE shall indemnify and hold harmless CITY from and against all claims, actions, damage, fines, liabilities, costs and expenses (including attorneys’ and expert fees) arising, directly or indirectly, from he deposit by LICENSEE of any Hazardous Materials on or under the PREMISES during the LICENSE term, unless said materials were actually deposited onto the PREMISES by CITY; provided however, that this indemnity shall not apply to claims, actions, damages, fines, liabilities, costs and expenses, (including attorneys’ and expert fees) arising from vandalism to the PREMISES by third parties. This obligation to indemnify CITY shall include damage, costs and expenses incurred in connection with any investigation, cleanup, remediation, monitoring, removal or restoration related to the presence of any substance. This indemnity shall survive the expiration or ten~aination of this LICENSE. vi.LICENSEE’S and CITY’s obligations under this Clause shall survive the expiration or earlier termination of this LICENSE. 30.ALL COVENANTS ARE CONDITIONS All provisions of the License are expressly made conditions. 990630 lsj C8t42982.1 25 31.PARTIES OF INTEREST Nothing in this agreement, expressed or implied, is intended to, or shall be construed to, confer upon or to give to any person or party other than CITY and LICENSEE the covenants, condition or stipulations hereof. All covenants, stipulations, promises and agreements in this License shall be for the sole and exclusive benefit of CITY and LICENSEE. 990630 lsj C8142982.1 26 PG&E COLORADO SF-14366