Loading...
HomeMy WebLinkAbout2003-12-01 City CouncilCity of Palo Alto City Manager’s Report TO: FROM: HONORABLE CITY COUNCIL ~k~ CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE:DECEMBER 1, 2003 CMR: 523: 03 SUBJECT:LEASE WITH CINGULAR WIRELESS, FOR PLACEMENT OF TELECOMMUNICATIONS FACILIT~S AT THE PALO ALTO FIRE STATION LOCATED AT 2675 HANOVER STREET RECOMMENDATION Staff recommends that Council approve the attached lease from the City of Palo Alto to Pacific Bell Wireless, LLC, dba Cingular Wireless, LLC (Cingular Wireless) for the development and operation of telecommunications facilities at the Mayfield fire station (fire station #2), located at 2675 Hanover Street. BACKGROUND On November 17, 1997, Council approved a set of four telecommunications policy statements (Attachment A). Policy 4, which addresses the use of City-owned and leased property for telecormnunications infrastructure, recognizes that City land and facilities could be used to support the competitive delivery of telecommunications 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-owned or leased property and facilities for siting telecomrnunications 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, Council 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, Council approved a license with Bay Area Cellular Telephone Company for placement of telecommunications facilities on property located under a Pacific Gas & Electric Tower on the south side of Colorado Avenue near the intersection of Colorado Avenue and Simkins Court. CMR: 52~.0~Page 1 of 3 DISCUSSION The Personal Communications Service (PCS) wireless antenna facility proposed at the Mayfield fire station consist of (1) a 65 foot high fiberglass treepole; (2) three pairs of antennas, each 51" tall x 13" wide x 3" deep, mounted on a the fiberglass treepole; (3) four base transceiver stations (BTS), each 5’-7" tall by 4’-3" wide by 3’-1" deep, located at the base of the treepole; and (4) coaxial cables connecting Cingular Wireless ground equipment to the antennas mounted on the fiberglass treepole. These are to be placed in an area of approximately 174 square feet. The land is owned by the City with a deed restriction that, should the property cease to be used for municipal purposes, the property will revert to Stanford University. Stanford University has approved the proposed facility as to its reversionary rights. In accordance with the intent of Telecommunications Policy #4 to reduce adverse impacts of telecommunications infrastructure, the facility has been designed to accommodate another telecommunications provider, which will eliminate the need for an additional site in the area. Lease The terms of the lease are summarized in Attachment B. These include a 5-year term with the option that both parties agree to renew for two additional terms of five years each; annual rent of $18,600 to be adjusted annually according to the Consumer Price Index, all urban consumers for San Francisco/Oakland/San Jose CMSA published by the U.S. Department of Labor (CPI); the requirement that the tenant allow co-location by at least one other telecommunications provider; and conditions of use to accommodate both the needs of the tenant and the fire station personnel and operations. RESOURCE IMPACT The proposed lease will generate annual income to the City General Fund in the amount of $18,600 per year, adjusted annually with changes in the Consumer Price Index. POLICY IMPLICATIONS The proposed license is consistent with Policy #4 of the Statements approved by Council on November 17, 1997 Procedures 1-11, Leased Use of City Land/Facilities. Telecommunications Policy and with City Policies and TIMELINE Construction and operation of the facility will begin shortly following execution of the Lease by the City. ENVIRONMENTAL REVIEW The project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15303 (New Construction) of the CEQA guidelines. On November 18, 2003, the Zoning Administrator approved a conditional use permit for the proposed use at the proposed !ocation, after making the required determination that the use CMR: 523:03 Page 2 of 3 will not be detrimental or injurious to property or improvements in the vicinity, or to the public health, safety, general welfare or convenience; and that the proposed use will be located and conducted in a manner in accordance with the Palo Alto Comprehensive Plan and Title 18 of the Palo Alto Municipal Code. ATTACHMENTS Attachment A: Attachment B: Attachment C: Attachment D: PREPARED BY: Telecommunication Policy Statements Summm’y of Terms of the Lease Lease with Cingular Wireless Photo Simulation of Proposed Cingular Treepole DONNA HARTMAN Financial Analyst DEPARTMENT HEAD: CARL YEAT Director,Services CITY MANAGER APPROVAL: HARRISON Assistant City Manager cc: Cingular Wireless, LLC CMR: 523:03 Page 3 of 3 Use of U~es ~as~emre- The Ci~, allows ~e use ofU~fies ~~cv~e ~d se~ces prodded ~&az ~y Zeie~o~cafio~ us~ does not ~D~Ze "~Don ~e CiD~’s sendces ~d does no~ ~teffere ~4~ ~e CiD~’ s pi~td use of ~e fac~D, or pzope~< mcmaes, ~i co~d be ~ed Zo ~Dpon ~e d%o!o)~ent of ~ "~ ...._ o~ ~e necessm~ ~~c~e i~ is ~e ’" - enco~ag~ q~ed ..... ~d fac~fies use of ........~SS~ v. An.~roved by th~ Palo ~Jto CiD’ Co’~cH on November ! 7, !997 Lessor: SummaD, of Terms of the Lease City of P alo Alto Tenant: Pacific Bell Wireless, LLC, d!b/a Cingular Wireless Premises: 168 square feet of land at the Mayfield fire station (fire station ~_), located at 2675 Hanover Street. Purpose: The purpose of the lease is to provide for the installation, maintenance and operation, at Tenant expense, of a local personal communications system (PCS). Term: Five years with option to extend for two additional terms of five years each. ConsideratiomrRent: $18,600iyear, adjusted annually in proportion to the Consumer Price Index. Allowable Use: Tenant shall use the Premises as a communications site for furnishing telephone, radio and telecommunications services to the public, subject to the fo!lo~4ng conditions: 1.Use to comply ~4fl~ applicable laws and rega~lations regarding electromagztetic. emissions and shall meet all other applicable federal, state and local laws a~d regulations regarding environmental and occupational safety. Tenant shall not permit any unreasonable odors, smoke, dust, gas, substances, or noise or vibration to emanate z%om the facility nor take any action wkich would disturb, obstruct or endanger any ocher occupants or use of the site or interfere wi~ their use. Operation of site shall not cause interference to city or other users of the sit~, including any irrigation system installed by city’. Tenant shall repair any damage city’s property cause by construction of facilities. Operations to be conducted in compliance with FCC requirements and al! laws ~d regulations regarding em4ronmental and occupational safeb~ requirements. Prior to construction on the site, Tenant shall provide the Real Property manager evidence that all permits from any and all agencies having pre-construction jurisdiction are authorized and are available, including but not limited to building permits and street opening permits. Tenant shM1 promptly abate any interference problems which occur on e-~sfing Cii7 radio systems or equipment resulting from Tenant equipment located on the premises. 7.Tenant to maintain all improvements it places on the Premises. Construction or Alteration by Tenant: Tenant may not make any changes to the property without prior Ci~- review and approval. Maintenance and Repair: Tenant shall maintain al! improvements on the leased premises. Assi~amenffSubletting: Any assignment or encumbrance of the Lease must recehre prior CitT approval, except for assig-aments or subleases to any of Tenant’s subsidiaries, ~ates or successor lega! entities or any entity acquiring all of Tenant’ s assets. Taxes, Assessments and Utilities" Tenant shall be responsible for a!l utilities supplied to the faciiity and for taxes and assessments for the Premises. Insurance: Tenant shall maintain insurance meeting the City’s standard requirements for insurance prmection. CiD- Teleeommunieations Poiiey: Tenant agrees it will abide by all lawful terms and conditions of the Telecommunications Policy adopted by City to the extent it relates to Licensee’s communications facility on the Premises. ATTACHMENT C Cingular Wireless Reference No: BA-351-02 LEASE # This LEASE is entered into this day of ,2003 between the City of Palo Alto, a municipal corporation, (CITY) and Pacific Bell Wireless, LLC, a Nevada limited liability company; d/b/a Cingular Wireless, (TENANT). RECITALS CITY owns property located at 2675 Hanover Street, Palo Alto, commonly referred to as Fire Station No. 2 and/or "May-field" Station (PROPERTY). TENANT desires to lease the PREMISES (as defined in Clause I) to operate a Local Personal Communications System (PCS). CITY agrees to permit TENANT’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 Subject to the terms and conditions set forth in this LEASE, CITY leases to TENANT that portion (PREMISES) of the PROPERTY consisting of approximately 174 square feet of land located at the north west side at the rear of the PROPERTY upon which TENANT will install: (1) three pairs of antennas, mounted on a fiberglas TREEPOLE; (2) four base transceiver stations, located at the base of the TREEPOLE; and (3) coaxial cables connecting TENANT’s ground equipment to the antennas mounted on the fiberglas TREEPOLE. The PREMISES are described and shown in "Exhibit B". Exhibit B is attached to and, by this reference, made a part of this LEASE. Unless specifically provided elsewhere in the LEASE, TENANT accepts the PREMISES "as-is" on the date of execution of this LEASE. CITY hereby grants TENANT reasonable rights of ingress/egress as shown on Exhibit B. In addition to the leased PREMISES, CITY hereby grants to TENANT non-exclusive easements (EASEMENT) in and through that portion of the PROPERTY, which is also described and shown in Exhibit B, for the sole purpose of constructing, installing and maintaining cabling and associated hardware incidental to the purposes of this LEASE, together with the right to ingress 9906301~ C8142982.1 1 and egress thereon. Except as otherwise noted in this LEASE, all terms and conditions of this LEASE shall apply to the EASEMENT. The EASEMENT shall be effective during the term of this LEASE and shall terminate without further notice as of the date of termination of the LEASE. II.PURPOSE The purpose of this LEASE is to provide for the installation, maintenance, and operation, at TENANT expense, of a local personal communications system (PCS) (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 LEASE, TENANT shall use the PREMISES as one of TENANT’s local personal communications system (PCS) facilities for furnishing telephone, radio and telecommunications services to the public that TENANT is legally authorized to provide during the term of this Lease. TENANT shall use the PREMISES for the purpose of installing, removing, replacing, maintaining, modifying and operating, at its expense, a (PCS) facility, including an antenna structure (TREEPOLE), base equipment, back-up power sources, cable, wiring and fixtures. TENANT’s use shall be subject to the following conditions: TENANT’s operations on the PREMISES shall comply at all times with all applicable federal laws and regulations regarding electromagnetic emissions. TENANT shall conduct all necessary tests after its PCS facility is 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. o In constructing and operating its PCS Site facilities, TENANT shall include the following items in its plans and operating procedures for its facilities: TENANT 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, tenants or users of the PROPERTY or interfere with their use of their respective premises. TENANT shall operate its facilities on the PREMISES in a manner that will not cause interference to CITY, or other tenants or lessees of the PROPERTY present as of the COMMENCEMENT DATE (defined below) of this LEASE, including but not limited to any irrigation system 990630 Isj C8142982.1 2 installed by CITY. Prior to construction on the site, TENANT shall coordinate TENANT’s placement of its facilities to ensure that placement does not conflict with CITY’s irrigation systems. TENANT shall repair any damage to CITY’s property caused by construction of TENANT’s facilities, including but not limited to any damage caused to CITY’s irrigation system and landscaping. TENANT’s operations shall at all times be conducted in compliance with 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 (FCC) requirements. TENANT 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, TENANT shall have provided CITY’s Real Property Manager, evidence that any and all permits including, but not limited to, building permits, electrical permits and street opening permits from any and all agencies having pre-construction jurisdiction over the proposed development have been authorized and are available. TENANT shall install a fire extinguisher inside its structure on the PREMISES. TENANT shall post a prominent notice on the PREMISES listing its emergency procedures, warnings and emergency contacts. TENANT shall maintain all improvements that it places on the PREMISES. Maintenance shall not occur between the hours of 9 p.m. and 9 a.m. (change of shift at 8 a.m. and maintenance to be performed after change of shift) except in cases of emergency. TENANT’s use shall not have a permanent impact on existing parking at the Fire Station. TENANT shall install fencing around the PCS facility, which shall be designed and constructed in a manner to blend in with the Fire Station and the surroundings on the PROPERTY. Such fencing shall be subject to CITY’s prior approval, which approval shall not be unreasonably withheld, conditioned, or delayed. CITY shall provide TENANT a written list of the Fire Captains of the station, and TENANT shall provide to each such Fire Captain the combination of TENANT’s lock (or a key, as appropriate) on its fence surrounding the PCS facility. 990630 lsj C8142982.1 3 CITY agrees that its personnel shall only enter the PREMISES in the event of an emergency. CITY agrees that except as required by an emergency, its personnel shall not touch, tamper with, alter or attempt to open TENANT’s equipment shelter or any of TENANT’s other equipment ancillary thereto on the PREMISES. TENANT must coordinate with Public Works - Facilities Management the construction of the proposed facility. TENANT shall provide to and receive approval of its plans from the City’s Public Works Department describing the connection between the equipment on the Property and TENANT’s offsite network and utilities. Any work on public property (other than on the PREMISES pursuant to this LEASE ) or in the public right- of-way requires a "Permit for Construction in the Public Street" from CITY’s Public Works Dept. TENANT shall provide as-built record drawing to Public Works - Engineering of any new infrastructure installed in the public right-of-way or on public property. TENANT shall promptly abate any interference problems which occur on existing City radio systems or equipment resulting from TENANT equipment located at the PREMISES. TENANT shall perform and provide to City a radio frequency interference (RF) study of CITY frequencies at that location. The radio frequency interference study shall be performed by TENANT no later than the date that TENANT’s PCS system is installed and operational. Co-location. TENANT shall construct and operate its antenna Treepole on the PREMISES so as to accommodate co-location by one or more other telecommunications providers, and shall make such facilities available to one or more other telecommunications providers on commercially reasonable terms. Any sublease or license between TENANT and another telecommunications provider shall be subject to CITY approval, which approval shall not be unreasonably withheld, conditioned, or delayed. Restricted Uses. The above listed services and uses, both required and optional, shall be the only services and uses permitted upon or from the PREMISES. TENANT agrees not to use the PREMISES for any other purpose nor to engage in, or permit, any other bu;iness activity within or from the PREMISES. IV. TERM 990630 1~C8142982.1 4 The term of this LEASE shall be for a period of (5) years, commencing on the date TENANT receives the last permit required for installation of the PCS telecommunications facility, "Commencement Date". V. OPTION TO EXTEND The term of this LEASE shall be automatically extended for two (2) additional terms of five (5) years each (each a RENEWAL TERM), unless TENANT provides CITY notice of its intention not to renew not less than ninety (90) days prior to the expiration of the TERM or any RENEWAL TERM, and provided TENANT is not in default hereunder (beyond any grace or cure periods) at the time TENANT would be required to notify CITY of its intent not to renew. The automatic extension pursuant to this CLAUSE V shall be void if TENANT has received from CITY more than five notices of TENANT’s default hereunder during any five (5) year TERM or RENEWAL TERM, even if the defaults were corrected during the 30-day period allowed under CLAUSE XIX (DEFAULT 1N TERMS OF THE LEASE BY TENANT). VI. CONSIDERATION/RENT Rent. As consideration for use of the PREMISES, TENANT agrees to pay to CITY an annual rent of eighteen Thousand Six Hundred Dollars ($18,600) 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 VIA (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 LEASE and shall be calculated in accordance with the following formula: X = A (B/C) Where: Adjusted rental. Rental at the Commencement of the LEASE. 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) 990630 lsj C8142982.1 5 Monthly index for the second calendar month prior to the date of this LEASE (or, if the INDEX was not published for that month, the INDEX for the third calendar month prior to the date of this LEASE). VIII. RENT PAYMENT PROCEDURE Concurrently with the full execution of this LEASE, TENANT shall pay to CITY rent for the first year of the term as set forth in Clause VI (CONSIDERATION/RENT). No Commencing on the ftrst anniversary of the COMMENCEMENT DATE, and thereafter, on or before each anniversary of the COMMENCEMENT DATE TENANT shall pay to CITY rent as set forth in Clause VIA (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 thirty (30) days written notice to TENANT. Rental payments may be made by check made payable to the City of Palo Alto, however, TENANT assumes all risk of loss if payments are made by mail. Acceptance of Late or Incorrect Rent: TENANT specifically agrees that acceptance of any late or incorrect rentals submitted by TENANT 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 LEASE. 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, 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 any portion of the overdue payment by CITY shall in no event constitute a waiver of TENANT’S default with respect to such overdue payment, nor prevent CITY from exercising any of the other rights and remedies granted hereunder or by any provision of law. X. MAINTENANCE AND REPAIR TENANT 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 990630 lsj C8142982.1 6 all applicable laws, throughout the term of this LEASE. In addition, TENANT shall maintain, at its expense, all equipment, trade fixtures and any other improvements installed by TENANT upon the PREMISES required for the maintenance and operation of the PCS facility installed on the PREMISES. TENANT 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 agrees that if and when any repairs, alterations, additions or betterments shall be made by it as required by this paragraph, it shall promptly pay for all labor done or materials furnished and shall keep the PREMISES free and clear of any lien or encumbrance of any kind whatsoever. Should TENANT fail to make any repairs or perform any maintenance work for which it is liable, CITY shall have the option to make the repairs, and TENANT shall within fifteen (15) days of receipt of a bill therefor 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 TENANT to make repairs or perform maintenance as provided in this clause. XI.MAINTENANCE OBLIGATIONS OF CITY CITY shall maintain or cause to be maintained, including repair and replacement as necessary, common areas serving the PREMISES but outside the PREMISES, including public roadways, and main utility facilities. Except for the main utility facilities, CITY shall not be required to maintain, repair, or replace improvements constructed within the PREMISES, provided, however, CITY may, at its sole discretion, repair other CITY-constructed facilities in order to protect the PREMISES or other CITY-owned property. XII.CONSTRUCTION AND/OR ALTERATION BY TENANT CITY’S Consent. No structures, improvements, 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). 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. TENANT may, at any time and at its sole expense, install and place business fixtures and equipment within any structure on the PREMISES. Strict Compliance with Plans and Specifications. All improvements constructed by TENANT 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. 990630 lsj C8142982.1 7 Co Certificate of Inspection. Upon completion of construction of any building, TENANT shall submit to the Real Property Manager, a Certificate of Inspection, verifying that the construction was completed in conformance with Title 24 of the California Code of Regulations for non-residential construction. XIII.OWNERSHIP OF IMPROVEMENTS A.Improvements to Realty. All improvements constructed, erected or installed upon the PREMISES site must be free and clear of all liens, claims, or liability for labor or material. Upon expiration or termination of the LEASE, CITY may at its option require TENANT to remove TENANT constructed improvements on the PREMISES including, but not limited to, the foundations, and may further require TENANT to repair to the satisfaction of CITY any damage to the PREMISES caused by such removal; provided, that TENANT may, but shall not be required to, remove underground conduit installed by it during the term of this LEASE. B. Personal Property. Title to all equipment, furniture, furnishings and trade fixtures placed by TENANT upon the PREMISES (including without limitation the antenna structure (TREEPOLE), base equipment, and appurtenances associated with the operation of a PCS facility) shall remain in TENANT, and replacements, substitutions and modifications thereof may be made by TENANT throughout the term of this LEASE. TENANT may remove such fixtures and furnishings upon expiration of this LEASE, provided that TENANT shall repair to the satisfaction of CITY any damage to the PREMISES and improvements caused by such removal. XIV. AS BUILT PLANS Upon completion of any major TENANT-constructed improvements, TENANT shall provide the Real Property Manager with a complete set of reproducible "as built plans" reflecting actual construction within or upon the PREMISES. XV. DAMAGE TO OR DESTRUCTION OF IMPROVEMENTS 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 permanently unusable for reconstruction of a PCS facility, this LEASE shall then terminate and TENANT shall be liable for the rent only up to the time of such destruction and any rent prepaid by TENANT shall be returned to TENANT; but (2) if only partially destroyed and still usable for construction of a PCS facility, TENANT 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 to either (i) to terminate the LEASE, in which case a proportional amount of any rent prepaid by TENANT (prorated from the date notice is 990630 lsj C8142982.1 8 received by CITY) shall be returned to TENANT, or (ii) to continue operating under the LEASE, in which case, TENANT shall, within a reasonable time, repair the PREMISES and the PCS 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. XVI. UTILITIES TENANT shall be responsible for and shall pay, prior to delinquency, all charges for utilities supplied to the PREMISES. XVII. INSURANCE TENANT shall maintain insurance acceptable to CITY in full force and effect throughout the term of this LEASE. Minimum Scope of Insurance Coverage shall be at least as broad as: 1) 2) 3) 4) Insurance Services Office Commercial General Liability coverage (occurrence form CO 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 TENANT shall provide the following limits and coverages: POLICY (1)WORKERS’ COMPENSATION (2) Business AUTO LIABILITY, including owned, hired, and non-owned automobiles MINIMUM LIMITS OF LIABILITY Statutory Bodily Injury Property Damage $1,000,000 $1,000.000 $1,000,000 ea. person ea. occurrence ea. occurrence (3)Bodily Injury $1,000,000 ea. person 990630 lsj C8142982.1 9 Commercial GENERAL LIABILITY including products and completed operations, broad form contractual, and personal injury. Property Damage Personal Injury $1,000,000 $1,000,000 $1,000,000 $1,000,000 ea. occurrence aggregate ea. occurrence ea. occurrence Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the 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 TENANT shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Insurance shall be in full force and effect commencing on the first day of the term of this LEASE. Each insurance policy required by this LEASE shall contain the following clauses: "Each insurance policy required by this clause 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, has been given to the CITY." o The CITY OF PALO ALTO to be named as an additional insured. "The CITY, its officers, officials, employees, agents and volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of the TENANT; products and completed operations of the TENANT; premises owned, occupied or used by the TENANT; or automobiles owned, Leased, hired or borrowed by the TENANT. The coverage shall contain no special limitations on the scope of protection afforded to the CITY, its officers, officials, employees, agents or volunteers." "For any claims related to this LEASE, the TENANT’s insurance coverage shall be primary 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 TENANT’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. 990630 lsj C8142982.!10 o "The TENANT’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." Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A-VII TENANT agrees to deposit with the Real Property Manager, on or before the effective date of this LEASE, certificates of insurance necessary to satisfy CITY that the insurance provisions of this LEASE 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 LEASE. Should TENANT 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 TENANT for the period of non-compliance. 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 LEASE do not provide adequate protection for CITY, the Real Property Manager may require TENANT 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, Commercially available, 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 notify TENANT in writing of changes in the insurance requirements. If TENANT does not deposit copies of acceptable insurance certificates with CITY incorporating such changes within sixty (60) days of receipt of such notice, or in the event TENANT fails to maintain in effect any required insurance coverage, TENANT shall be in default under this LEASE without further notice to TENANT. Such failure shall constitute a material breach and shall be grounds for immediate termination of this Lease at the option of CITY. The procuring of such required policy or policies of insurance shall not be construed to limit TENANT’S liability hereunder nor to fulfill the indemnification provision and requirements of this LEASE. Notwithstanding the policy or policies of insurance, TENANT shall be obligated for the full and total amount of any damage, injury, or loss caused by or connected with this LEASE or with use or occupancy of the PREMISES. XVIII.ASSIGNING, SUBLETTING, AND ENCUMBERING Any mortgage, pledge, encumbrance, transfer, sublease, or assignment (collectively referred to as ENCUMBRANCE) of TENANT’S interest in the PREMISES, or any part or portion thereof, shall first be apprdved in writing by the City Manager or designee, which approval shall not be unreasonably withheld, conditioned, or delayed; provided, however, that TENANT shall have the 990630 lsj C8142982.1 1 1 right to sublease or assign its rights under this LEASE to any of its subsidiaries, affiliates, or successor legal entities or to any entity acquiring substantially all of the assets of TENANT. Should CITY consent to any ENCUMBRANCE, such consent shall not constitute a waiver of any of the terms, covenants, or conditions of this LEASE. Such terms, covenants, or conditions shall apply to each and every ENCUMBRANCE hereunder and shall be severally binding upon each and every assignee, transferee, subtenant, or other successor in interest of TENANT. Any document to encumber, transfer, sublet, or assign the PREMISES or any part thereof shall incorporate directly or by reference all the provisions of this LEASE. Subject to TENANT’s right to sublease or assign as set forth above, CITY agrees that it will not arbitrarily withhold consent to any encumbrance, but CITY may withhold consent at its sole discretion if any of the following conditions exist: No TENANT or any of its successors or assigns is in default of any term, covenant, or condition of this LEASE, whether notice of default has or has not been given by CITY; The prospective ENCUMBRANCER does not indicate in writing that such ENCUMBRANCE is subject to all the terms, covenants, and conditions of this LEASE; All the terms, covenants, and conditions of the proposed ENCUMBRANCE including the consideration therefore of any and every kind, have not been revealed in writing to CITY; Do The processing fee required by CITY and set forth in the then current Palo Alto Municipal Fee Schedule has not been paid to CITY; go If an assignment or sublease is proposed, and TENANT has not provided CITY with sufficient information to permit CITY to completely evaluate the background, skills, financial position, proposed operating plan changes and references of the prospective assignee or subtenant. The above list is not inclusive but is intended to give TENANT some idea of the types of situation where CITY may withhold its consent to any ENCUMBRANCE. Hypothecation of the leasehold interest created by this LEASE is expressly prohibited and any attempted hypothecation shall be null and void. XIX. DEFAULT IN TERMS OF THE LEASE BY TENANT Should TENANT default in the performance of any covenant, condition, or agreement contained in this LEASE and such default is not corrected within thirty (30) days of receipt of a notice of default from CITY, CITY may: Terminate this LEASE and all rights of TENANT, and those who claim under TENANT, under this LEASE, shall end at the time of such termination; 990630 lsj C8142982.1 12 No 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 TENANT to CITY; Co Seek an action or suit in equity to enjoin any acts or things which may be unlawful 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 TENANT 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 agreements with CITY as provided herein; or Pursue any other remedy available by law or specifically provided in other clauses of this LEASE. However, in the event of a default which cannot reasonably be cured within thirty (30) days, TENANT 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 fight of 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 TENANT shall be restored to its and their former position and fights and remedies as if no such suit, action or proceedings had been brought or taken. In addition to a violation or breach of any other provision of this LEASE, TENANT shall be considered to be in default under this LEASE should TENANT: voluntarily file or have involuntarily filed against it any petition under any bankruptcy or insolvency act or law; or B. be adjudicated a bankrupt. CITY TELECOMMUNICATIONS POLICY TENANT 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"). TENANT acknowledges receipt of the City Manager’s report dated March 6, 2000 which recommended for approval a consultant contract between the CITYand an independent finn for preparation of documents related to the Telecommunications Policy, and understands that the City Council approved that contract. TENANT acknowledges that the Telecommunications Policy may include (among other things) the establishment of guidelines 990630 lsj C8142982.1 13 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, TENANT and CITY agree as follows: No TENANT agrees that it will abide by all lawful terms and conditions of the Telecommunications Policy adopted by CITY to the extent they relate to TENANT’s communications facility on the PREMISES. In this regard, the following procedures shall apply: Within ninety (90) days of the adoption of the Telecommunications Policy, if CITY finds that TENANT’s facility on the PREMISES is not in compliance with the Telecommunications Policy, then CITY shall deliver to TENANT a written notice (compliance notice") specifying the items of non-compliance. Such notice shall 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 TENANT to bring its facility into compliance. TENANT acknowledges that such notice may include a requirement to relocate TENANT’s facility, if required, under the Telecommunication s Policy. If CITY fails to deliver such compliance notice within said ninety day period, TENANT’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 TENANT cause its communications facility to become non-compliant. o TENANT shall have six (6) months after its receipt of the compliance notice to bring its facility into compliance under the Telecommunications Policy. If TENANT fails or refuses to bring it facility into compliance within such six month period, CITY may terminate the LEASE on thirty (30) days written notice to TENANT, whereupon, TENANT shall remove its PCS facility as required under the LEASE and the parties shall have no further obligations under the LEASE, except for those obligations which expressly survive the termination of the LEASE. Condemnation Proceedings. TENANT agrees that, if TENANT’s facility must be relocated or modified to comply with the Telecommunications Policy or if the LEASE is terminated due to TENANT’s failure or refusal to comply with the Telecommunications Policy, as set forth above, TENANT shall not initiate condemnation proceedings against the CITY for the purpose of acquiring a leasehold interest, fee interest or other right to use the PREMISES previously permitted for use by TENANT under the LEASE. XXI. NOTICES All notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements, 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 C8142982.1 14 of a facsimile, if sent to the telephone number(s) set forth below during normal business hours of the receiving party 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 service shall include, without limitation, service by delivery service and service by facsimile transmission. Delivery 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 LEASE shall be addressed as set forth below or as either party may subsequently designate by written notice. TO: CITY TO: TENANT Real Property Manager City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto, CA 94303 FAX: (415) 329-2468 Cingular Wireless 6100 Atlantic Boulevard Norcross, GA 30071 Attn: Network Real Estate with a copy to:with a copy to: City Clerk, City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto, CA 94303 FAX: (415) 329-2646 And Cingular Wireless 4420 Rosewood Drive Bldg. 2 - 3ra Floor Pleasanton, CA 94588 Attn: Mgr Network Deployment (925) 227-4356 City Attomey, City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto CA 94303 FAX: (415) 329-2646 XXII.ATTACHMENT TO LEASE This LEASE includes the following exhibits, which are attached hereto and by this reference incorporated into this LEASE: Exhibit A - General Conditions Exhibit B - Description of Leased Premises and Easement 990630 Isj C8142982.1 1 5 _,~,..,e inclusion ofclatmes in :Exhibit A (GEN~P, AL CONDITIONS) is not in ~ny way fntcnd¢d to lessen the import.mace of these clauses, but is merely done to e.rthance fl~e organization of vm’ious 2fzu,~es and this LEA~.qE; provided, however, that in the event of a conflici between the foregoing :2ia,a~s ~-~d t.he provisions of Exhibit A, the foregoing Clauses shall prevail. !N W~NESS "~rflEREOF, the parties have executed this LEASE the day mad year first above C!TY:TENANT: CiTY OF PALO ALTO (LESSOR) Mayor PACIFIC BELL WIRELESS, LLC (LESSEE) By: By: By: Title: Date: GSM Facilities, LLC, its sole member Ckngular Wireless, LLC i~ Agent , APPROr~q~D AS TO FORM: By: Asst, City Attorney N~COMM~NDED FOR APPR.OV.~d.~: Assistant City Manager Manager, Real Property Fire Chief 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 LEASE on behalf of CITY except for termination of this LEASE. Clauses in this LEASE refer to specific officers or employees of CITY. Should these positions be eliminated or the title changes, it is understood and agreed 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 TENANT is a partnership, each general partner: No represents and warrants that the partnership is a duly qualified partnership authorized to do business in Santa Clara County; and B°shall be jointly and severally liable for performance of the terms and provisions of this LEASE. If TENANT is a corporation, each individual signing this LEASE on behalf of TENANT represents and warrants that; No he is duly authorized to do so in accordance with an adopted Resolution of TENANT’S Board of Directors or in accordance with the Bylaws of the corporation; and 990630 lsj C8142982.1 17 B.TENANT is a duly qualified corporation authorized to do business in State of California. As used in this LEASE, the term "TENANT" shall include TENANT, its agents, sublessees, concessionaires, or TENANTS, or any person acting under contract with TENANT; however, the definition of TENANT used herein, shall not be construed to authorize or permit any sublease or leases not authorized or permitted elsewhere in this LEASE. 3. TIME Time is of the essence of this LEASE. 4,SIGNS TENANT agrees not to construct, maintain, or allow any sign to be placed upon the PREMISES except as may be approved by CITY. Unapproved signs, banners, etc., may be removed by CITY. 5.PERMITS AND LICENSES TENANT shall be required to obtain any and all permits and/or licenses which may be required in connection with the operation of the PCS facility, and any approved TENANT construction upon, the PREMISES as set forth in this LEASE. 6.MECHANICS LIENS TENANT shall at all times indemnify and save CITY harmless from all 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. TENANT 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 reserves 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, TENANT shall either: A.Record a valid Release of Lien; or B. 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 C. Procure and record a bond in accordance with Section 3143 of the Civil Code, which releases the PREMISES from the claim of the lien and from any action brought to foreclose the lien. 990630 lsj C8142982.1 18 Should TENANT fail to accomplish one of the three optional actions within fifteen (15) days after the filing of such a lien, the LEASE shall be in default. 7.LEASE 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 otherwise 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 natural persons. The terms "hereby", "hereof", "hereto", "herein", "hereunder" and any similar terms, as used in this agreement, refer to this agreement. All the terms and provisions hereof shall 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 or 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 LEASE 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 TENANT 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 LEASE, or of any regulation, order of law, statute, or ordinance of a governmental agency having jurisdiction over TENANT’S use of the PREMISES. 10.NONDISCRIMINATION TENANT and its employees shall not discriminate against any person because of race, color, religion, ancestry, age, sex, national origin, disability or sexual preference. TENANT shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, sex, age, national origin, disability or sexual preference. TENANT covenants to meet all requirements of the Palo Alto Municipal Code pertaining to nondiscrimination in employment. If TENANT is found 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 LEASE by the State of California Fair Employment Practices Commission or the equivalent federal agency or officer, it shall thereby be found in default under this LEASE, 990630 lsj C8142982.1 19 and such default shall constitute a material breach of this LEASE. CITY shall then have the power to cancel or suspend this LEASE in whole or in part. 11.INSPECTION CITY’S employees and agents shall have the right at all reasonable times, upon 48 hours written notice to TENANT except in case of emergency, to inspect the PREMISES to determine if the TENANT is in compliance with provisions of this LEASE. 12.HOLD HARMLESS TENANT 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) arising out of TENANT’s occupancy of the PREMISES or TENANT’s installation, operation or maintenance of the facilities placed thereon pursuant to this LEASE excepting claims arising from the sole negligence of CITY. 13.TAXES AND ASSESSMENTS This LEASE 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 TENANT and TENANT shall pay the taxes and assessments prior to delinquency. 14. SUCCESSORS IN INTEREST Unless otherwise provided in this LEASE, 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 without fault and beyond the control of the party obligated (financial inability excepted), performance of such act shall 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 990630 lsj C8142982.1 20 If any term, covenant, condition, or provision of this LEASE is determined to be invalid, void, or unenforceable, by a court of competent jurisdiction, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby. 17.WAIVER OF RIGHTS The failure of CITY or TENANT to insist upon strict performance of any of the terms, covenants, or conditions of this LEASE shall not be deemed a waiver of any right or remedy that CITY or TENANT 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 LEASE thereafter, nor a waiver of any remedy for the subsequent breach or default of any term, covenant, or condition of the LEASE. 18.COSTS OF SUSTAINING AN ACTION FOR BREACH OR DEFAULT In the event either CITY or TENANT commences legal action against the other claiming a breach or default of this LEASE, 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 TENANT 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 telegraph 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. No right reserved by CITY in this clause shall be so exercised as to interfere unreasonably with TENANT’S operation hereunder. CITY agrees that rights granted 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 In the event TENANT shall continue in possession of the PREMISES after the term of the LEASE, such possession shall not be considered a renewal of this LEASE but a tenancy from month to month and shall be governed by the conditions, and covenants contained in this LEASE. 21.CONDITION OF PREMISES UPON TERMINATION 990630 lsj C8142982.1 21 Upon termination of this LEASE, except as otherwise agreed to herein, TENANT shall redeliver possession of the PREMISES to CITY in substantially the same condition that existed immediately prior to TENANT’S occupancy, reasonable wear and tear, flood, earthquake, war, and any act of war excepted. 22.DISPOSITION OF ABANDONED PERSONAL PROPERTY If TENANT abandons the PREMISES or is dispossessed thereof by process of law or otherwise, title to any personal property belonging to TENANT and left on the PREMISES forty-five (45) days after such abandonment or dispossession shall be deemed to have been transferred CITY. CITY shall have the right to remove and to dispose of such property without liability therefor to TENANT or to any person claiming under TENANT, and shall have no need to account therefor. 23.QUITCLAIM OF TENANT’S INTEREST UPON TERMINATION Upon termination of this LEASE for any reason, including but not limited to termination because of default by TENANT, TENANT shall, at CITY’S request execute, acknowledge and deliver to CITY within five (5) days after receipt of written demand thereof, a good and sufficient deed whereby all rights, title, and interest of TENANT in the PREMISES, is quitclaimed to CITY. Should TENANT fall or refuse to deliver the required deed to CITY, CITY may prepare and record a notice reciting the failure of TENANT to execute, acknowledge and deliver such deed and the notice shall be conclusive evidence of the termination of this LEASE, and of all right of TENANT or those claiming under TENANT in and to the PREMISES. 24.CITY’S RIGHT TO RE-ENTER TENANT agrees to yield and peaceably deliver possession of the PREMISES to CITY on the date of termination of this LEASE, whatsoever the reason for such termination. Upon giving written notice of termination to TENANT, 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 LEASE and re-entry of the PREMISES by CITY shall in no way alter or diminish any obligation of TENANT under the LEASE terms and shall not constitute an acceptance or surrender. TENANT 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 lawfully re-takes possession of the PREMISES. 25. CONFLICT OF INTEREST TENANT 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 this agreement; or (2) will be employed in the performance of this agreement 990630 lsj C8142982.1 22 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, TENANT upon request of CITY shall ilnmediately terminate such employment. 26.EMINENT DOMAIN In the event the whole or any part of the PREMISES are condemned by a public entity in the lawful exercise of its power of eminent domain, this LEASE 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. If only a part is condemned and the condemnation of that part does not substantially impair the capacity of the remainder to be used for the purposes required by this LEASE, as determined by TENANT, TENANT shall continue to be bound by the terms, covenants and conditions of this LEASE. However, the then current minimum annual rent shall be reduced in proportion to the relationship that the compensation paid by the condemning public entity for the portion condemned bears to the value of the entire PREMISES as of the date of possession of the part condemned. If the condemnation of a part of the PREMISES substantially impairs the capacity of the remainder to be used for the purposes required by this LEASE, TENANT may: Terminate this LEASE and thereby be absolved of obligations under this LEASE which have not accrued as of the date of possession by the condemning public entity; or No Continue to occupy the remaining PREMISES and thereby continue to be bound by the terms, covenants and conditions of this LEASE. If TENANT elects to continue in possession of the remainder of the PREMISES, the then current annual minimum rental shall be reduced in proportion to the relationship that the compensation paid by the condemning public entity for the part condemned bears to the value of the entire leased PREMISES as of the date of possession by the condemning public entity. TENANT shall provide CITY with written notice advising CITY of TENANT’S choice within thirty (30) days of TENANT’s receipt of written notice from CITY or from the condemning public entity, whichever notice TENANT receives first, of possession of the part condemned by the condemning public entity. CITY shall be entitled to and shall receive all compensation related to the condemnation of all or part of the PREMISES by the exercise of eminent domain except that TENANT shall be entitled to that portion of the compensation which represents the value of the TENANT constructed improvements for the remainder of the LEASE term. The amount to which TENANT shall be entitled shall not exceed the actual cost of improvements constructed by TENANT reduced in proportion to the relationship of the remaining LEASE term to the original LEASE term, using a straight-line approach. 27. CHANGES IN PRICE INDICES 990630 lsj C8142982.1 23 Clauses contained in this LEASE 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; No If the subject index is discontinued or revised during the LEASE term, such index shall be replaced by another government 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 TENANCY TENANT hereby acknowledges that its occupancy of the PREMISES is subsequent to acquisition of the PREMISES by CITY. TENANT further understands and agrees that as a post-acquisition TENANT, TENANT is not eligible and furthermore waives all claims for relocation assistance and benefits under federal, state or local law: provided howover, that TENANT shall be entitled to relocation assistance benefits available under federal or state condemnation or eminent domain law from any public entity other than CIYT taking PREMISES in condemnation proceeding.. 29. HAZARDOUS SUBSTANCES 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 governmental 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. B.LIMITATIONS ON TENANT’S USE. During the term of this LEASE, TENANT shall abide and be bound by all of the following requirements: 990630 lsj C8142982.1 24 ii. TENANT shall comply with all laws now or hereafter in effect relating to the use of Hazardous Materials on, under or about the PREMISES and the PROPERTY, and TENANT shall not contaminate the PREMISES or the PROPERTY, or its subsurfaces, with any Hazardous Materials. TENANT shall restrict its use of Hazardous Materials at the PREMISES to those kinds of materials that are normally used in constructing and operating a PCS facility. 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. 111. iv. TENANT 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 TENANT’S activities on the PREMISES or the PROPERTY. TENANT 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. TENANT shall be solely and fully responsible and liable for any such releases which are caused by TENANT on the PREMISES or the PROPERTY, or into CITY’S sewage or storm drainage systems. TENANT 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 or the PROPERTY. TENANT 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 TENANT is not removed by TENANT within ninety (90) days after discovery by TENANT, CITY or any other third party, CITY may pay to have the same removed and TENANT shall reimburse CITY for such costs within thirty (30) 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. TENANT will not introduce or use any such substance on the PREMISES or the PROPERTY in violation of any applicable law. CITY shall indemnify and hold TENANT harmless from and against all claims, actions, damages, fmes, 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 LEASE, unless said materials were actually deposited on the PROPERTY or PREMISES by TENANT. This obligation to indemnify TENANT shall include damages, costs and expenses incurred in connection with any investigation, cleanup, remediation, monitoring, remova! or restoration related to the presence of any substance. This 990630 lsj C8142982.1 25 indemnity shall survive the expiration or termination this LEASE. TENANT shall indemnify and hold harmless CITY from and against all claims, actions, damage, frees, liabilities, costs and expenses (including attorneys’ and expert fees) arising, directly or indirectly, from the deposit by TENANT of any Hazardous Materials on or under the PREMISES or the PROPERTY during the LEASE term, unless said materials were actually deposited onto the PREMISES or PROPERTY by CITY; provided however, that this indemnity shall not apply to claims, actions, damages, frees, liabilities, costs and expenses, (including attorneys’ and expert fees) arising from vandalism to the PREMISES or the PROPERTY 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 termination of this LEASE. vi.TENANT’S and CITY’s obligations under this Clause shall survive the expiration or earlier termination of this LEASE, 30. ALL COVENANTS ARE CONDITIONS All provisions of the LEASE are expressly made conditions. 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 TENANT the covenants, condition or stipulations hereof. All covenants, stipulations, promises and agreements in this LEASE shall be for the sole and exclusive benefit of CITY and TENANT. 32.RECORDATION OF LEASE Neither CITY nor TENANT shall record this LEASE; however, a short-form Memorandum of LEASE may be recorded at either CITY’S or TENANT’S request. 33.INTERFERENCE TENANT will resolve technical interference problems with other equipment located at the PROPERTY as of the commencement date of this LEASE or with any then existing equipment located at the Property that TENANT attaches to the PREMISES at any future date when TENANT desires to add additional equipment to the PREMISES. Notwithstanding anything to the contrary contained herein, CITY will not permit or suffer the installation of any future equipment, which (a) results in technical interference problems with TENANT’s then existing equipment, or (b) physically encroaches onto the PREMISES. 34. TERMINATION 990630 lsj C8142982.1 26 Notwithstanding anything to the contrary contained in this LEASE, TENANT may terminate this LEASE at any time by notice to CITY (i) upon payment of a cancellation fee in the equivalent amount of one (1) months rent if TENANT, after reasonable effort, does not obtain all permits, consents, easements, non-disturbance agreements or other approvals (collectively, "approval") reasonably desired by TENANT or required from any governmental authority or any third party related to or reasonably necessary to operate a PCS facility, or if any such approval is canceled, expires or is withdrawn or terminated, or (ii) without further liability if CITY fails to have proper ownership of the PREMISES or PROPERTY or authority to enter into this LEASE; or (iii) upon payment of a cancellation fee in the equivalent amount of six (6) months rent if TENANT, for any other reason, in its sole discretion, determines that it will be unable to use the PREMISES. Upon termination, CITY shall retain all prepaid rent, unless termination is pursuant to (ii) above is a result of CITY’s default. 9906301sjC8142982.1 27 EXHIBIT B LEGAL DESCRIPTIONS C~GL~A_R WIILELESS LE.4~SE AREA RE~I_. PROPERTY IN THE CITY" OF PALO ALTO, COUNTY OF SANTA CLARA, STATE OF CAL~O_~N’IA~ BEING A 7.25 FOOT BY 24.00 FOOT RECTANGULAR LEASE AR~A SITUATED Ehq’LRELY WITI-IIN THAT CERTAIN 0.984+ ACRE P.%RCEL OF LAND OWNED BY THE CITY OF P~&O _~LTO, SAID PARCEL HAVING THE ADDI~SS OF 2675 HANOVER STREET, AN A,S~ESSOI<’S P.~/ECEL NUMBER OF 142.20.002, AND AS RECOKDED iN DOCUMEb~ NO. 27503’00, ~! THE RECORDS OF SAID COUN~_; SAID LE~E AREA BEliNG MORE ?_:@~ICUL:~RL5’ DESCRIBED AS FOLLOWS: CO),,_~.f£12{CING AT A STAN-DARD CFfY MONUMENT FOUND AT THE iNTERSECTION OF PL~NOVER STREET .aND PAGE MILL ROAD, AND FROM WI-IICH POINT A {4" IRON PiPE IN A MO.ND-M]ENT~ V~UELL FOUND AT THE CEN ,.--ERLINE INTERSECTION OF b2ANOVER STREET AND CALIFORNIA AVEhrUE, BE.~S: N 56~24’03’’ W, 1316.75 FEET AS S.~D ~vfO.NUM]~NTS ARE SHOVTN ON THAT CERTAIN P~COI%D OF SURVEY PILED ON APR!L 1969 FN BOOK 252 05 MAPS AT PAGE 5 LN THE I~CORDS OF SAID COUNTY; THENCE .ALONG SAID HANOVER STREET CENTERL[NE, N 56~24’03" W, 385.06 FEET; THENCE LEAVING SAID CENTERLINE AT A RIGHT ANGLE, N 33~35’~7’’ E, 30.00 FEET TO THE SOLU’H~-ESTERLY COtLNER OF SAID 0.984 ACRE PARCEL, SAID COI~NER ALSO BEING ON THE NORTR~ASTERLY R!GI-1T-OI:-WAY LINg OF SAID K~NOVER STREET; THENCE ALONG NORT.’~Cv’EST~RUg BOU--~’DARY OF SAID PM-ICEL, N 33°35’57" E, 285.08 FEET; L~AVI,NG SAiD BOUNDARY AT A R~GlalT ANGLE, S 56~24’03’’ E, 3.00 FEET TO T~ $O,"JT~Y~%~ST~RLY CORNT-R OF, .AND POE~’T OF BEGINh~L-NG FO~ THE LEASE .a2~E.= ~ DESCP/BP.D: SAID POINT HEP~INAFTER REFERRED TO AS POINT "A"; THENCE N A CLO~.IW~SE DIP, ECTION AROI!ND THE PERIMETER OF SAID LEASE AREA THE FOLLOWING ’.-’O~ (4) COURSES AND DISTANCES: i) N33°35"57" E, 24.00FEET; THENCE, 2} S 56°24"03’’ E, 7.25 FEET; THENCE, 3’~ S ?3~35’57’’ W, 24,00 FEET; THENCE, 4’) N 56~24~03’" W, 7.25 FEET TO THE POINT OF BEGINNING AND CONT.AIN-ING 174 SQUARE FEET, MORE OR LESS. ACCESS EASENIENT A 20-FOOT WIDE STP/P OF L~_ND SITUATED ENTIRELY WITHIN THAT CERTAIN PARCEL O~ LAND OWNED BY ~ CITY OF P.ALO ALTO AS DESCRIBED .~BOVE AND COMMENCING AT SAPD POh-NT "A"; THENCE ALONG THE WESTERLY AND NORTHERLY SIDES OF THE LEASE .~REg_. N 33~ 35’57" E, 24.00 FEET; THENCE, S 56°24’03’’ E, 7.25 FEET; THENCE ONA TIE: S 56~2~I’03’’ E, I0.00 FEET TO TH~ CENTEP, LLNE POINT OF BEGINNING FOP. THE 20-FOOT WiDE ACCESS EASEMENT HEILEEN" DESCRIBED; SA!D EASEME.N-r BEING 10 FEET ON BOTH .SZDES OF ~ FOLLOWING DESCRIBED CENTERLINE, S 33~35’57’’ W, 309.08 FEET TO THE NORTHERLY R!GHT-OF.WAY OF SAID HANOVER STIKE~T AND THE I~OINT O]F TER!VIINVS FOR TN_E EASEMENT. PAGE i OF 3 A 5-FOOT "vVE)E STRIP OF LAND SITUATED E.~KTIRELY WITHIN THAT CERTAIN PARCEL OF LAND OWNED BY THE C1TY OF PALO ALTO AS DESCRIBED ABOVE, SAID EASEMENT COMMENCING AT SAID POINT "A"; THENCE ALONG THE SOUTHEILLY LINE OF THE DESCRIBED LEASE AREA, S 56°24’03" E, 4.75 FEET TO THE CENTERLINE POLNT OF BEG~NI2~G FOR THE 5-FOOT WIDE UTILITY EASEMENT, SAID t~ASEMENT BELNG 2.5 FI~ET ON BOYH SIDES OF THE FOLLOWING DESCRIBED CENTERL~’qE, S 33°35’57’’ W, 152.50 FEET; ~I~NCE S 41~ 30’39" E, 80.31 FEET TO THE POINT OF T~..RMIh’~S FOR THE EASEM~rT. THE SFDES OF WHICH TO BE LENGTHENED OR SHORTENED TO TERMINATE AT AN ELECTRICAL P.~EL ON T_IIE "v’v’.~LL OF ~ EX’IST2¢G FLRE STATION BU]I,DIiWG, ~¢,~ ~TE’E.~.R.LY g-~OOT WIDE UT:LITY EASEMENT A f-FOOT WIDE STRIP OF LAND S1TUATED ENTIRELY WITH3N THAT CERTAIN PARCEL OF L#2CD OVv2qt~D BY THE CITY OF PALO ALTO AS DESCRIBED ABOVE, SAID EASEMENT CO!VLMENCLNG AT SAID POINT "A"; THENCE ALONG T}£E WESTERLY AND NORTHERLY SLDfiS OF ThE LEASE AREA, N 33° 35~57’’ E. 24.00 FEET; THENCE, S 56°24’03" E, 4.7~ FEET TO "VHE CEN~ERLIN’E POINT OF BEGINNING FOR THE ~-FOOT WIDE EASEMENT, SAD EASEMfENT BEING 2,5 FEET ON BOTH SIDES OF THE FOLLOWING DESCR_.~ED CENTERLINrE; N 33~ 35’~7" E, 2.~ FEET; THENCE, S 56° 24’03" E, 2.4I FEET; T~-~’--NCE, S 60: 3~’~9" E, 54.99 ~_=T TO ~ EAS’F~RLY PROPERTY L~qE OF S~_ID PARCEL OF LAND AND THE POINT OF END OF DESCRIPTI/ONS, Yl-~ FOREC-OEWG DESCRIPTIONS AR.E SHOWN ON A PLAT IDENTIFIED AS EXt-EIBIT B-1 ATTACH.ED HERETO AND MADE A PART THEREOF. Expi,"atiom 12/3 U06 ~A ~. DEA ~ob N~ PCBW0000.1~.95 PAGE 2 OF 3 APN: 14_#-02-056 CINGULAR WIRELESS 174. S.F. LEASE~-. AREA / POINT "A" S33’35"57"W1S2.50’ i// / 80.31’ 2.5’+ 2.5’+ SCALE; I" = 50’ LANDS OF CP( OF PALO ALTO 2575 HANOVER STREET APN; 142-20-002 \0,984-.+ ACRES / /P.O,C. FOUND MONUMENT (F’AGE MILL ROAD) I EXHIBIT ’B-I" MAYFIELD STATION #2, BA-351-02 ~2575 HANOVER STREET ~PALO ALTO SANTA CLARA COUNTY CALIFORNIA ~ PCBW-~4S5 tORN. B_Y’%R_PS ICHK. i~Y: KMhlDATE’; ili19/05i PAG~ 3 OF 3 ATTACHMENT D Existing cingular" WIRELESS Proposed BA-351-02 proF Mayfield Station #2 2675 Hanover Street Palo Alto, CA 94304 O:= O O O mill=