Loading...
HomeMy WebLinkAbout2000-05-08 City CouncilTO: City of Palo Alto C ty Manager’s Report HONORABLE CITY COUNCIL 12 FROM: DATE: ¯ CITY MANAGER MAY 8, 2000 DEPARTMENT: ADMINISTRATIVE SERVICES CMR: 134:00 SUBJECT:LEASES WITH SPRINT SPECTRUM L.P. FOR PLACEMENT OF TELECOMMUNICATIONS FACILITIES AT THE PALO ALTO FIRE STATIONS LOCATED AT 799 EMBARCADERO ROAD AND 3600 MIDDLEFIELD ROAD RECOMMENDATION Staff recommends that Council hold a public hearing and approve the attached two leases between the City of Palo Alto and Sprint Spectrum L.P. (Sprint) for the development and operation of telecommunications facilities at the Rinconada fire station and the Mitchell Park fire station (fire stations #3 and #4), located at 799 Embarcadero Road and 3600 Middlefield Road, respectively. BACKGROUND On November 17, 1997, Council approved a set of four telecommunications policy statements as a first step in the development and implementation of a comprehensive telecommunications policy for Palo Alto. On January 8, 1999, Sprint Spectrum L.P. (Sprint), submitted to staff a proposal to lease space for the construction and operation of Personal Communications Service (PCS) wireless antenna facilities at the Rinconada Park and Mitchell Park fire stations. On October 21, 1999, following a public hearing before the Zoning Administrator, Sprint was granted a conditional use permit for each facility. DISCUSSION Attachment A lists the telecommunications policy statements approved by Council in November 1997. Policy 4, which addresses the use of City-owned and leased property for telecommunications 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 telecommunications infrastructure when these are compatible with the primary use of the CMR:134:00 Page 1 of 3 property, and are used in a manner that is consistent with City real estate policy, zoning, legal, environmental and other requirements as necessary. As yet, specific sites have not been designated; however, pending the completion of a comprehensive telecommunications policy, staff has worked with Sprint under current City policy to facilitate its request for use of City property to improve service to its customers. Sprint has also agreed to relocate its facilities if their location turns out to be incompatible with the telecommunications policy when adopted. The Personal Communications Service (PCS) wireless antenna facilities proposed at the Rinconada and Mitchell Park fire stations consist of an array of antennas mounted on, respectively, 65 foot high and 51 foot high stealth towers (flag poles), and associated ground equipment. These are placed in an area of approximately 20 by 25 feet, consisting of enclosed equipment pads and cabinets. The base equipment is located on the ground behind landscaping and a wood fence to match existing fencing on the site. The equipment cabinets are fully self serviced, containing an independent air conditioning unit, heating unit, electrical supply telephone hook up and back up power supply. The fence securing the leased premises containing Sprint facilities will be locked, and the Fire battalion chief at each station will be provided with a key for emergency access. In accordance with the intent of Policy #4 to reduce adverse impacts of telecommunications infrastructure, each facility has been designed to accommodate another telecommunications provider, which will eliminate the need for an additional site in the area. On October 21, 1999, the Zoning Administrator granted Sprint conditional use permits for the proposed use at the proposed locations after making the required determinations that the use 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 accord with the Palo Alto Comprehensive Plan and Title 18 of the Palo Alto Municipal Code. Lease The attached leases, which are identical except for the sites involved, are the result of extensige negotiations between staff and Sprint and may serve as the model for future leases with telecommunications providers. The terms of the leases are summarized in Attachment A. Major terms include a 5 year term with the option to renew for two additional terms of five years each; annual rent of $15,600 to be adjusted annually by the 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. CMR: 134:00 Page 2 of 3 RESOURCE IMPACT The proposed leases will each generate annual income to the City in the amount of $15,600 per year, adjusted annually by changes in the Consumer Price Index. In addition to the monetary compensation, Sprint will provide the City with up to 10 PCS telephones and service at no charge for the City’s temporary use in the event of an emergency in which the fire chief requires the temporary use of PCS telephones. POLICY IMPLICATIONS The proposed lease is consistent with Policy #4 of the Telecommunications Policy Statements approved by Council on November 17, 1997 and with City Policies and Procedures 1-11, Leased Use of City Land/Facilities, Section C, paragraph la, which provides for the awarding of a lease of city property following a notice of intent to award the lease and a public hearing before the Council. TIMELINE Construction and operation of the facility will begin as soon as the City executes the Leases. ENVIRONMENTAL REVIEW During the conditional use permit process, an environmental impact assessment as required by the California Environmental Quality Act was prepared and a~negative declaration was approved by the Zoning Administrator. ATTACHMENTS Attachment A: Attachment B: Attachment C: Attachment D: Telecommunication Policy Statements Summary of Terms of the Lease Lease with Sprint for 799 Embarcadero Road with Addendum Lease with Sprint for 3600 Middlefield Road with Addendum PREPARED BY: Janet Freeland, Senior Financial Analyst DEPARTMENT HEAD: CARL yA~ATS Director, Administrative Services CITY MANAGER APPROVAL: Assistant City Manager cc: Sprint Spectrum, L.P. CMR:134:00 Page 3 of 3 ATTACHMENT A TELECOMMUNICATIONS POLICY STATEMENTS General - It is the policy of the City of Palo Alto to facilitate the competitive delivery of conventional and advanced telecommunications services throughout Palo Alto in an environmentally sound manner, while ensuring cost recovery and enhancement of revenues derived from the use of the City’s assets. Siting and installation of New Telecommunications Facilities - The city is the owner of the public fight-of-way over which it has control and the regulatory body for the development of facilities within its jurisdictional boundaries. It is the policy of the City to regulate the location and manner of construction, manage the safe, orderly and efficient use of Palo Alto’s public fight-of-way, and to facilitate timely installation of telecommunications infrastructure in environmentally sound manner. o Use of Utilities Infrastructure .- The City allows the use of Utilities infrastructure and Utilities-owned or-leased facilities to promote the delivery of telecommunications services provided that any telecommunications use does not impinge upon the City’s ability to provide safe and reliable electric, gas, water, wastewater, and storm drainage services and does not interfere with the City’s planned use of the facility or property. Use of City Facilities and Property - The City owns and leases property and facilities, in addition to Utilities facilities, that could be used to support the deployment of affordable telecommunications services while limiting the potential adverse impacts associated with ~e development of the necessary infrastructure. It is the policy of the City to encourage qualified outside parties to use designated City-owned or -leased property and facilities for siting of telecommunications infrastructure that is compatible with the primary use of the property, and in a manner that is consistent with City real estate policy, zoning, legal, environmental, and other requirements as necessary. Approved by the Palo Alto City Council on November 17, 1997 ATTACHMENT B Summary of Terms of the Lease Lessor: City of Palo Alto Tenant: Sprint Spectrum L.P. Premises: 799 Embarcadero Road and 3600Middlefield Road, commonly known as Fire Stations #3 and #4 respectively. Purpose: The purpose of the lease is to provide for the installation, maintenance and operation, at Tenant expense, of a personal communications service (PCS) system facility. Term: Five years with option to renew for two additional terms of five years each. Consideration/Rent: Monetary: Non-monetary: $15,600/year, adjusted annually in proportion to the Consumer Price Index In the event of an emergency, Tenant to provide City up to 10 PCS telephones at no charge for temporary use. Required Use: Tenant shall use the Premises as a PCS site for furnishing telephone, telecommunications services to the public, subject to the following conditions: 1. radio and 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. Tenant shall not permit any unreasonable odors, smoke, dust, gas, substances, or noise or 1 vibration so emanate from the facility nor take any action which would constitute a nuisance or disturb occupants or neighbors of the site. 3.City may enter the Premises in the event of an emergency~ 4.fenant shall install a fire extinguisher on the Premises and post a notice listing its emergency procedures, warnings and contacts. 5.Tenant shall install fencing around the facility to blend in with the Fire Station and its surroundings, and tenant shall provide to each Fire Captain a key to the lock on the fence. 6.City shall raise and take down the flag each day. Co-location Tenant shall construct and operate its antenna tower so as to accommodate co-location by one or more other telecommunications providers, and shall make such facilities available on commercially reasonable terms. Construction or Alteration by Tenant: Tenant may not make any changes to the property without prior City review and approval. Maintenance and Repair: Tenant shall maintain all improvements on the leased premises; City to maintain common areas serving the premises but outside the premises. Assignment/Subletting: Any assignment or encumbrance of the lease must receive prior City approval, except for assignments or subleases to any of tenant’s subsidiaries, affiliates or successor legal entities or any entity acquiring all of Tenant’s assets. Taxes, Assessments and Utilities: Tenant shall be responsible for all utilities supplied to the PCS facility and for taxes and assessments for the Premises. Insurance: Tenant shall maintain insurance meeting the City’s standard requirements for insurance protection. 2 Sprint Reference No. : SF-13-XC-825 (A) ATTACHMENT C LEASE # This Lease (LEASE) is made this day of , 2000 by and between the City of Palo Alto, a municipal corporation, (CITY) and Sprint Spectrum L.P., a Delaware limited partnership (TENANT). RECITALS CITY owns the property located at 799 Embarcadero Road, Palo Alto, California 94303, commonly referred to as Fire Station No. 3 and/or "Rinconada" Station (PROPERTY). TENANT desires to lease the PREMISES (as defined in Clause I) to operate a personal-communications service (PCS) system facility. 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 (RL 3.0) S Subject to the terms and conditions set forth in this LEASE, CITY leases to TENANT ~that portion (PREMISES) of the PROPERTY 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 this.LEASE, TENANT accepts the PREMISES "as-is" on the date ’of execution of this LEASE. CITY hereby grants TENANT reasonable rights of ingress and egress as shown on Exhibit B. In addition to the leased PREMISES, CITY hereby grants to TENANT a non-exclusive easement (EASEMENT) in and through that portion of the PROPERTY, which is also described and shown in Exhibit B, for the sole purpose of constructing and installing cabling and associated hardware incidental to the purposes of this Lease, together with the right to ingress ~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 000120 sdl 0032305 Lease and shall terminate without further notice as of the date of termination of the Lease. II.PURPOSE (RL 4.0) S The purpose of this LEASE is to provide for the installation, maintenance,and operation, at TENANT expense, of a personal communications service (PCS) system facility. III. REQUIRED AND OPTIONAL SERVICES AND USES (RL 5.0) S In furtherance of the purposes stated above, the following required and optional services and uses shall be provided, permitted or prohibited: Required Services and Uses. Throughout the term of this LEASE TENANT shall use the PREMISES as one of TENANT’s PCS sites 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 system facility, including without limitation an antenna structure, base equipment, back-up power sources (including generators and fuel storage tanks), cable, wiring and fixtures (P~S FACILITY). 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 antenna facilities are constructed on the PREMISES to ensure that its PCS FACILITY is in compliance. The tests shall be conducted by a licensed professional engineer, and the results shall be provided to CITY. After the installation of the PCS FACILITY, TENANT shall conduct safety training classes for CITY personnel as reasonably required to inform them about working safely with the PCS FACILITY. In constructing and operating the PCS FACILITY, TENANT shall include the following items in its plans and operating procedures: 000120 sdl 0032305 TENANT shall not permit any unreasonable odors, smoke, dust, gas, substances, noise or vibrations to emanate 2 000120 sdl 0032305 f o ho from the PCS FACILITY, nor take any action which would constitute a nuisance or would disturb, obstruct or endanger any other tenants or occupants of the site or interfere with their use of their respective premises. TENANT’s operation of the PCS FACILITY 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. TENANT shall submit all required hazardous materials filings and obtain all required approvals prior to installing its batteries or any other hazardous materials. CITY agrees that its personnel shall only enter the PREMISES in the event of an emergency. CITY agrees that its personnel shall not touch, tamper with, alter or attempt to open the PCS FACILITY or any of TENANT’s other equipment ancillary thereto on the PREMISES. 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 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 approval, which approval shall not be unreasonably withheld, conditioned, or delayed. CITY shall provide TENANT a written list of the Fire Captains of each 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. TENANT shall maintain all improvements that it places on the PROPERTY, including the fence, flagpole, and the mounting equipment for the flag. CITY shall be -responsible for raising and taking down .the flag each day TENANT’s service lights in the PREMISES shall remain off unless its service personnel are in the area and require the lights to be turned on to conduct their operations. Co-location. TENANT shall construct and operate its antenna tower 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 provi4ers on commercially reasonable terms. Any sublease or lice~.se 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 optiona!, 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 business activity within or from the PREMISES. IV.TERM (RL 6.0) S The term of this LEASE shall be for a period of five (5) years, commencing on the date TENANT receives the last permit required for installation of the PCS FACILITY (COMMENCEMENT DATE). V.OPTION TO EXTEND (RL 6.2) S 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 it’s intent not to renew. The automatic extensions pursuant to this Clause V shall be void if TENANT has received from CITY more than three 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 XX (DEFAULT IN TERMS OF THE LEASE BY TENANT). VI. CONSIDERATION/RENT (RL 7.2) S Rent. As partial consideration for use of the PREMISES, TENANT agrees to pay to CITY annual rent of Fifteen Thousand Six Hundred Dollars ($15,600) per year, subject to adjustment as 000120 sdl 0032305 provided in Clause VII, payable in advance in accordance with Clause VIII (RENT PAYMENT PROCEDURE). Non-Monetary Consideration. In addition to the rent set forth in subparagraph A above, TENANT agrees to perform the following services or provide the following public benefits on behalf of CITY: In the event of an emergency which the CITY’s Fire Chief deems requires the temporary use of PCS telephones by CITY (EMERGENCY), TENANT shall provide CITY up to (ten) I0 PCS telephones (PHONES) and service, at no charge, for CITY’s temporary use. In the event of an EMERGENCY, CITY’s Fire Chief (or other agent previously designated in writing) shall, during normal business hours, contact the acting Manager of TENANT’s store located at 499 University Avenue, Palo Alto, CA 94301 (PALO ALTO STORE) (telephone (650) 614-9140), which Manager shall provide CITY with up to ten (I0) of the highest quality PCS telephones available at the PALO ALTO STORE at the time of the EMERGENCY. As soon as is practical following the EMERGENCY, CITY shall return the PHONES to the PALO ALTO STORE and reimburse TENANT for any loss or damage thereto. CITY acknowledges that it shall be entitled to a cumulative total of not more than ten (i0) PHONES in the event of an EMERGENCY, regardless of the number of lease or other agreements it enters into with TENANT or of the number of PCS Facilities TENANT may be installing, operating, or planning to install or operate in the city of Palo Alto, California. TENANT’s-liability to CITY for any breach of the obligation set forth in this Clause VI.B. shall be limited to the sole and exclusive remedy of liquidated damages in an amount equal to TENANT’s cost of the PHONES. CITY shall not be entitled to any consequential or incidental damages from TENANT as a result of any such failure. The parties agree that the provision for liquidated damages set forth above is a reasonable remedy given that the obligation to provide the PHONES to the CITY will arise only in the event of an emergency situatibn, the circumstances of which are uncertain, and therefore it is difficult to ascertain TENANT’s ability to provide the PHONES should the need arise. Furthermore, CITY shall indemnify, defend, and hold TENANT harmless from and against any and all costs (including attorney’s fees) and claims of liability or loss arising from CITY’s use of the PHONES (including without limitation any loss or interruption of service) or TENANT’s failure to provide the PHONES to CITY pursuant to this Clause VI.B. This indemnity obligation shall survive the termination of this LEASE. TENANT’s indemnity obligation set forth in Clause 12 of Exhibit 000120 sdl 0032305 A hereto (HOLD HARMLESS) shall not apply to any claims for costs or liability arising from CITY’s use of the PHONES (including without limitation any loss or interruption of service) or TENANT’s failure to provide the PHONES to CITY pursuant to this Clause VI.B. VII. REVISION OF RENTALS (RL 7.3) S 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 = i00) 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: X =Adjusted rental. A =Rental at the Commencement of the LEASE. B =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) C = 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. A. mo RENT PAYMENT PROCEDURE (RL I0.0) S Until the COMMENCEMENT DATE, rent hereunder shall be a one-time aggregate payment of one hundred dollars ($I00), receipt of which CITY hereby acknowledges. On the COMMENCEMENT DATE, TENANT shall pay to CITY rent for the first year of the term as set forth in Clause VI (CONSIDERATION/RENT). Commencing on the first anniversary of the COMMENCEMENT DATE, on or before each anniversary of the COMMENCEMENT DATE, TENANT 000120 sdl 0032305 shall pay to CITY rent as set forth in Clause (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 (i0) days written notice to TENANT. Rental payments may be made by check made payable to the City of Palo Alto. 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 any remedy provided in this LEASE. IX.MAINTENANCE AND REPAIR (RL 14.1) NS 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 of TENANT’s related 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 LEASE. In @ddition, 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. 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 within ten (I0) 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 ~o make repairs or perform maintenance as provided in this clause. 000120 sdl 0032305 X.MAINTENANCE OBLIGATIONS OF CITY (RL 14.2) S 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. XI.CONSTRUCTION AND/OR ALTERATION BYTENANT (RL 15.1) S 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 CITY’s City Council if required by City of Palo Alto procedures or ordinances, or otherwise by CITY’s City Manager or designee), which consent shall not be unreasonably withheld, conditioned, or delayed. 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 thoug~ originally stated herein. TENANT may, at any time and at its sole expense, install and place business fixtures and equipment within any building on the PREMISES, provided such fixtures and installation have been reviewed and approved by CITY’s City Manager. 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 CITY’s City Council if required by City of Palo Alto procedures or ordinances, or otherwise by CITY’s City Manager or designee, and which approval shall not be unreasonably withheld, conditioned., or delayed) and applicable City of Palo Alto codes and ordinances. Certificate of Inspection. Upon completion of construction of any building, TENANT shall submit to CITY’s Real Property Manager, a Certificate of Inspection, verifying that the construction was completed in conformance with Title 20 of the California Code of Regulations for residential construction, or in conformance with Title 24 of the California Code of Regulations for non-residential construction. 000120 sdl 0032305 XII.OWNERSHIP OF IMPROVEMENTS (RL 16.0) NS 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 this Lease, CITY may at its option require TENANT to remove TENANT constructed improvements 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 donduit 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 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 if TENANT is not then in default under this LEASE, provided that TENANT shall repair to the satisfaction of CITY any damage to the PREMISES and improvements caused by such removal. XIII.AS BUILT PLANS (RL 15.5) S Upon completion of any major TENANT-constructed improvements, TENANT shall provide CITY’s Real Property. Manager with a complete set of reproducible "as built plans" reflecting actual construction within or upon the PREMISES. TENANT shall also provide CITY’s Real Property Manager with a statement signed by TENANT under penalty of perjury certified as to accuracy and of actual construction costs for all such improvements. XIV. DAMAGE TO OR DESTRUCTION OF IMPROVEMENTS (NS) If the PREMISES are, in whole or in part, damaged or destroyed, then: (I) 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 000120 sdl 0032305 reasonable time, repair the PREMISES with a reasonable reduction of rent from the time of such partial destruction until the PREMISES are again .as fully usable by TENANT as they were before such partial damage or destruction; provided, however, that TENANT shall not be required to rebuild the PCS FACILITY or repair the PREMISES if: (i) such partial damage or destruction shall occur with~in one (i) year prior to the expiration of the LEASE, and (ii) TENANT continues to pay the rental amounts due hereunder and the PREMISES are maintained in a safe and sanitary condition. A decision as to whether partially destroyed or partially condemned PREMISES is still usable for reconstruction of a PCS FACILITY shall be made jointly by CITY and TENANT, and, if they cannot agree, by an arbitrator reasonably acceptable to both parties. TENANT shall have the right to operate a temporary PCS FACILITY on the PROPERTY during any repair or reconstruction of the PREMISES, including the right to operate suc~h generators or other back-up power supply sources as TENANT determines may be required. XV. UTILITIES (RL 17.0) S TENANT shall be responsible for and shall pay, prior to delinquency, all charges for utilities supplied to the PCS FACILITY. XVI. INSURANCE (RL 18.0) S 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 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. 000120 sdl 0032305 10 The policy or policies of insurance maintained by TENANT shall provide the following limits and coverages: POLICY MINIMUM LIMITS OF LIABILITY (I)WORKERS’ COMPENSATION Statutory (2) COMPREHENSIVE Bodily Injury $I,000,000 AUTOMOBILE $I,000,000 LIABILITY,Property Damage $I,000,000 including owned, hired, and non-owned automobiles ea. person ea. occurrence ea. occurrence (3) COMPREHENSIVE Bodily Injury $I,000,000 GENERAL $I,000,000 LIABILITY "$I,000,000 including Property Damage $1,00D,000 products and Personal Injury $I,000,000 completed operations, broad form contractual, and personal injury. ea. person 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 o’f the term of this LEASE. Each insurance policy required by this LEASE shall contain the following clauses: "Each insuranc~ 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 by certified mail, return receipt requested, has been given to the CITY." 000120 sdl 0032305 "All rights of subrogation are hereby waived against the CITY OF PALO ALTO and the members of the City Council and ii elective or appointive officers or employees, when acting within the scope of their employment or appointment." "The CITY OF PALO ALTO is named as a loss payee on the property and course of construction insurance policies described above." "The CITY, its officers, officials, employees, agents and volunteers are to be covered as 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." "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-:X. XVII.INSURANCE (RL 18.2) TENANT agrees to deposit with CITY’s 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 000120 sdl 0032305 12 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 CITY’s Risk Manager, the insurance provisions in this LEASE do not provide adequate protection for CITY, CITY’s Real Property Manager may require TENANT to obtain insurance sufficient in coverage, form, and amount to provide adequate protection as determined by CITY’s Risk Manager and TENANT. 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. CITY’s Real Property Manager shall notify TENANT in writing of changes in the insurance requirements. If TENANT does not deposit adequate evidence of insurance 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. 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 obligat@d 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 (RL 19.0) S Any mortgage, pledge, hypothecation, 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 approved 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 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 000120 sdl 0032305 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 fort~ above, CITY agrees that it wil! not arbitrarily withhold consent to any encumbrance, but. CITY may withhold consent at its sole discretion if any of the following conditions exist: 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; Intentionally Omitted; The processing fee required by CITY and set forth in the then current Palo Alto Municipal Fee Schedule has not been paid to CITY; 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; or 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 (RL 20.0) S Should TENANT default in the performance of any covenant, condition, or agreement contained in this LEASE and such default is not 000120 sdl 0032305 14 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, stemming from this LEASE, shall end at the time of such termination; 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; 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 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 TENANT shall be restored to its and their former position and rights 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. 000120 sdl 0032305 15 XX. NOTICES (RL 23.0). S All notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements, appointments or designations hereunder gJ e by either party to the other, shall be in writing and shall be sui..~ciently given and served upon the other party if (i) personally served, (2) sent by United States Certified mail, postage prepaid, (3) sent by express delivery service, or (4) in the case 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 (i), (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: (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 Sprint Spectrum, L.P. 4683 Chabot Drive, Suite i00 Pleasanton, CA 94588 Attn: Property Specialist, Palo Alto Cascade NO. FAX: (925) 468-7313 Sprint Spectrum, L.P. 4900 Main Street, 12th Floor Kansas City, MO 64112 City Attorney, City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto CA 94303 FAX: (650) 329-2646 Robbins, Palmer & Allen, LLP 1901 Harrison St., Suite 1550 Oakland, CA 94612 Attn: John Boat FAX: (510) 446-1946 000120 sdl 0032305 16 XXI. ATTACHMENT TO LEASE (RL 24.0) S 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 PREMISES and EASEMENT Exhibit C - Memorandum of LEASE The inclusion of clauses in Exhibit A (GENERAL CONDITIONS) is not in any way intended to lessen the importance of such clauses, but rather is merely done to enhance the organization of this LEASE. In the event of a conflict between the foregoing Clauses and the provisions of Exhibit A, the foregoing Clauses shall prevail. // // // // // // // // // // // // // // // // 000120 sdl 0032305 17 IN WITNESS WHEREOF, the parties have executed this LEASE the day and year first above written. CITY:TENANT: CITY OF PALO ALTO (LESSOR) By: Its: Mayor ATTEST: SPRINT SPECTRU~/L~P., a Delaware limited~~ip /[’ , ~-~’_°"7 Print ~e.~f" k ~/~ Lawrence moherty Its: ~egional Director of Site Development, We~t By: Print Name: Its: City Clerk APPROVED AS TO FORM: By: Print Name: Its: Senior Asst. City Attorney PROPERTY DESCRIPTION APPROVED: By: Print Name: Its: Public Works/Engineering RECOMMENDED FOR APPROVAL: By: Print Name: Its: Asst. City Manager By: Print Name: Its:Fire Chief By: Print Name: Its: 000120 sdl 0032305 Real Property Manager 18 EXHIBIT A GENERAL CONDITIONS i.DEFINITIONS (RL 27.1) S 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 (RL 27.2) S If TENANT is a partnership, each general partner: Bo represents and warrants that the partnership is a duly qualified partnership authorized to do business in Santa Clara County; and 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 represen~ts and warrants that; A°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 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, conGessionaires, or licensees, 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 licenses not authorized or permitted elsewhere in this LEASE. 000120 sdl 0032305 19 3.TIME (RL 27.3) S Time is of the essence of this LEASE. 4.SIGNS (RL 27.4) S 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 (RL 27.5) S 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 (RL 27.6) S. TENANT shall at all times indemnify and save CITY harmless from all claims for labor or materials supplied in connection with TENANT’S 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 (I0) 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 postingNotices of Non-Responsibility. In the event a lien is imposed upon the PREMISES as a result of such construction, repair, alteration, or installation by TENANT, TENANT shall either: A.Record a valid Release of Lien; or Co 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 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. 000120 sdl 0032305 2O 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 (RL 27.7) S 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 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 (RL 27.8) S 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’ (RL 27.9) S TENANT shall not erect, place upon, operate, or maintain any improvements 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. 000120 sdl 0032305 21 I0.NONDISCRIMINATION (RL 27.10) S Revised 8-19-93 TENANT and its ~mployees 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, 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. II.INSPECTION (RL 27.11) CITY’s employees and agents shall have the right at all reasonable times to inspect the PREMISES to determine if the provisions of this LEASE are being complied with. 12.HOLD HARMLESS (RL 27.12) S CITY and TENANT each indemnifies the other against and holds the other harmless from any and all costs (including reasonable attorneys’ fees) and claims of l~ability or loss which arise out of the ownership, use and/or occupancy of the PREMISES by the indemnifying party. This indemnity does not apply to any claims arising from the Sole negligence or intentional misconduct of the indemnified party. Tenant’s obligation under this Cl~use shall not apply to any claims arising from CITY’s use of the PHONES (including Without limitation any !oss or interruption of service) or TENANT’s failure to provide the PHONES to CITY pursuant to Clause VIoB. The indemnity obligations under this Clause will survive the termination of this LEASE. 13.TAXES AND ASSESSMENTS (RL 27.13) S 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 000120 sdl 0032305 22 the possessory interest tax) which become due and payable upon the PREMISES or upon fixtures, equipment or other property installed or constructed by Tenant thereon, shall be the full responsibility of TENANT and TENANT shall pay the taxes and assessments prior to delinquency. 14.SUCCESSORS IN INTEREST (RL 27.14) S 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) RL 27.15) S 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 (RL 27.16)S If any term, covenant, condition, or provision of this LEASE is determined to be invalid, void, or unenforc.eable, 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 (RL 27.17) S 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. 000120 sdl 0032305 23 18.COSTS OF SUSTAINING AN ACTION FOR BREACH OR DEFAULT(RL 27.18 S In the event either CITY or TENANT commences legal actionagainst the other claiming a breach or default of this LEASE, theprevailing party in such litigation shal! 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 (RL 27.19) S 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. In exercising the rights reserved in this Clause, CITY shall take all reasonable steps to ayoid any physical encroachment onto the PREMISES. In the event CITY’s exercise of the rights reserved in this Clause results in either of the two occurrences described in clause (a) or (b) of Provision 33, which is not cured by CITY within a reasonable time following written notice from TENANT, TENANT may terminate this LEASE upon written notice to CITY. 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 (RL 27.20) S 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. 000120 sdl 0032305 24 21.CONDITION OF PREMISES UPON TERMINATION (RL 27.21) S 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 (RL 27.22) S 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 to CITY if not removed by TENANT within fifteen (15) days after CITY gives written notice of such abandonment to TENANT. 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 UPONTERMINATION (RL 27.23) S Upon termination of this LEASE for anyreason, including but not limited to termination because of defaultby 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 fail 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 (RL 27.24 S 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 termina[ion 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 000120 sdl 0032305 25 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 (RL 27.25) S 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: (I) 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 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 immediately terminate such employment. 26.EMINENT DOMAIN (RL 27.26) S 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 000120 sdl 0032305 26 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 (RL 27.27) S 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: 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 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 (RL 27.28) S TENANT hereby acknowledges that its occupancy of the PREMISES is subsequent to acquisition of the PREMISES by CITY. TENANT further 000120 sdl 0032305 27 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. HAZARDOUS SUBSTANCES (RL 27.29) S 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 Industria! 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. TENANT’s Use of PREMISES. During the term of this LEASE, TENANT shall abide and be bound by all of the following requirements: 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 TENANT shall not contaminate the PREMISES, or its subsurface, with any Hazardous Materials. ii.TENANT shall restrict its use of Hazardous Materials at the PREMISES to those kinds of materials that are normally used in constructing personal telecommunications systems. Disposal of any Hazardous Materials at the Premises is 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. 000120 sdl 0032305 28 iii.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. 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. iv.TENANT shall be solely and fully responsible and liable for any such releases which are caused by TENANT at the Premises, 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. 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 five (5) days of CITY’s .demand for payment. 000120 sdl 0032305 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 in violation Of any applicable law. CITY ~shall indemnify and hold TENANT 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 LEASE, unless said materials were actually deposited onto 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, removal or restoration related to the presence of any substance. This indemnity shall survive the expiration or termination of this LEASE. TENANT shall indemnify and hold CITY 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 bY TENANT of any Hazardous Materials on or under the PREMISES during the LEASE term, unless said materials were actually deposited onto the PREMISES by CITY; provided, however, that this indemnity obligation shall not 29 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 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 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 (RL 27.30) S All provisions of the LEASE are expressly made conditions. 31.PARTIES OF INTEREST (RL 27.31) S NDthing 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 (RL 27.32) S Neither CITY nor TENANT shall record this LEASE; however, upon request CITY and TENANT agree to execute and deliver to the other a recordable Memorandum of this LEASE in a form substantially identical to the one attached as Exhibit D hereto. 33 INTERFERENCE TENANT will resolve technical interference problems with other equipment located at the PREMISES as of the commencement date of this LEASE or with any equipment 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. 000i20 sdl 0032305 3O 34.TERMINATION 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 (I) month 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 the 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 ~wnership of the PREMISES or PROPERTY or authority to en£er 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. 000120 sdl 0032305 31 SURVEYING, iNC.EXHIBIT B LEGAL DESCRIPTION SPRINT PCS SITE NUMBER: SF13XC825 SITE NAME: RINCONADA A PORTION OF RINCONADA PARK, WITHIN THE GROUNDS OF FIRE STATION #3 OF THE CITY OF PALO ALTO, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: UTILITY EASEMENT A STRIP OF LAND 5 FEET WIDE, 2.50 FEET EACtt SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: STRIP .4 COMMENCING AT A POINT ON TIlE CENTER.LINE OF EMBARCADERO ROAD. OCCUPIED BY A 1"’ IRON PIPE AT TflE INTERSECTION OF ENBARCADERO ROAD & NEWELL ROAD; THENCE ALONG THE CENTERI.INE OF EMBARCADERO ROAD $71°00’20"W, 8.81 FEET THENCE NOR’HI ALONG THE CENTERI.tNE OF NEWELL ROAD N00°46’47"E, 61.98 FEET; THENCE LEAVfNG SAID CENTE!U_INE N89°I3’I3"W, 26.64 FEET; THENCE NSl°26’35"W, 13.48 FEET TO TIIE TRUE POINT OF BEGINNING; THENCE N81 °26’35"W, 13.83 FEET TO A POINT HEREINAFTER REFERRFD TO AS POINT "A"; THENCEoN. 0 18 06 x;¢, 11.40 FEET TO A POINT HEREINAFFER REFERRED ’FO AS POINT "’B". THE SIDEI ;’N~S AR}] TO., ’-’" ’ ;"w "’ t’-~ ...., ....~- ~~:.~ -.,_:,t,GFLr~,,,.I-.~,._-. OR bHORTENED TO MEET THE WE~ t ERI., ~: R!GHT-OF- WAY OF NEWELL RCA.,~., .,at.. , ,-~.=. ~L:,,~.:,~ ARE.,\ AS DESCRIBED ,,r. t STRIP B BEGINNING A’F POINT "A" AS DESCRIBED ABOVE; "I’ttENCE $25~06’!3"E, 30.30 FEET TO THE END OF SAID STRIP. THE SIDELINES ARE TO BE LENGTHENED OR SHORTENED TO MEET THE WESTERLY RIGHT-OF- WAY OF NEWELL ROAD AND "’STRIP A" AS DESCRIBED ABOVE. LEASE AREA BEGINNING AT POIN’F ?BZ’ AS DESCRIBED ABOVE; THENCE $88°55’21"E, 3.98 FEET; THENCE N0°46’46"E, 12.25 FEET; THENCE N88°55"21"W, 29.50 FEET; THENCE S0°46’46"W. 12.25 FEET: THENCE $88°55’21"E, 6.00 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "C": THENCE $88°55"21"E. i9.52 FEET TO THE POINT OF BEG1Nq’4ING. CONTAINING 361 SQUARE FEET OF LAND, MORE OR LESS. ’ ACCESS EASEMENT A STRIP OF LAND 12 FEET WIDE, 6.00 FEET EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT POINT "C" AS DESCRIBED ABOVE; THENCE S00°46’46"W, 27.16 FEET; THENCE $39°06’43"W, 38.22 FEET; THENCE S00°46’46"W, 18 FEET MORE OR LESS TO THE NORTHWESTERLY RIGHT-OF-WAY OF EMBARCADERO ROAD AND THE END OF SAID STRIP. 108 Business Center Drive ¯ Corona, CA 91720 Phone (909) 2B0-9960 ¯ Fax (909) 280-9746 Page 1 of 2 99~75o~/o7/oo 7905 East Greenway Road, Suite 207, Seottsdale, AZ 85260 Phone (602) 596-6514 o Fax (602) 596-2674 THE SIDELINES ARE TO BE LENGTHENED OR SHORTENED TO MEET THE NORTHWESTERLY RIGHT- OF-WAY OF EMBARCADERO ROAD AND THE LEASE AREA AS DESCRIBED ABOVE. CONTAINING 1,003 SQUARE FEET OF LAND, MORE OR LESS. SAID DESCRIPTIONS ARE SHOWN ON EXHIBIT B-1 ATTACHED HEREIN AND MADE A PART THEREOF. EDWARD L. SCHENET P.L.S. 4240 Phone (909) 280-9960 ,, Fax (909) 280-9746 Page ;z of 2 99175o~,/o7/oo 7905 East Greenway Road, Suite 207 ¯ Scottsdale, AZ 85250 Phone (602) 596-6514 = Fax (602) 596-2674 EXHIBIT SITE NUMBER:RINCONADA SITE NAME:SF13XC825 PLAT TO ACCOMPANY 1 HOPKINS ~ ~ ROAD SITE ADDRESS: 1120 HOPKINS AVE, PALO ALTO, CA 94301 SANTA CLARA COUNTY DESCRIPTION 0rophic Sc01e L_-_-~’ L_~," i SCt~_E: P.O.C. LINE LINE LI L2 L3 L4 L5 L6 L7 TABLE BEARING N81’26’35"W N81’26’35"W N30’18’36"W $88’55’21 "E N00’46’46"E S00"46’46"W $88’55’21 "E LENGTH 13.48’ 13.83’ 11.4-0’ 3.98’ 12.25’ 12.25’ 6.00’ Job No 99175 108 Business Center Drive Corono~ CA 92880-1782 Phone: (909/ 280-9960 Fox: (909~__280-9746 EXHIBIT C TO LEASE Site Name:Site I.D. No.: MEMORANDUM OF AGREEMENT THIS MEMORANDUM OF AGREEMENT is made and entered into as of , 2000, by and between , a ("Owner") and SPRINT SPECTRUM L.P., a Delaware limited partnership ("SSLP"). WITNESSETH: That Owner hereby leases to SSLP and SSLP hereby leases from Owner that certain real property (the "Property")in the State of California,Cqunty of , City of ,commonly known as , a legal description of which is shown in Exhibit C attached hereto and incorporated herein by reference, under the terms and Conditions of the unrecorded Lease by and between Owner and SSLP dated , 2000 and incorporated herein by reference (the "Agreement") for an initial term of five (5) years, and two (2) subsequent optional extension terms of five (5) years each, pursuant to the terms of the Agreement. The Agreement provides for grant of rights of access to the Property and to electrical and telephone facilities serving the Property. IN WITNESS WHEREOF, the parties have executed this Memorandum as of the day and year first above written. SPRINT SPECTRUM L.P., a Delaware lim’ited,par~hnership BY:i . - ~ .v Lawrence \Doherty Tl~e: Regional Director of \ Site Development Owner: City of Palo Alto, a municipal corporation By: Print Name: Its:Mayor 000120 sdl 0032305 32 ACKNOWLEDGMENT ATTACHED [FORM DOCUMENT -PLEASE INITIAL ONLY -NOT FOR EXECUTION] CITY Initials TENANT Initials 000120 sdl 0032305 33 Fiscal Authorization Policy SPRINT PCS ATTACHMENT C TEMPORARY DELEGATION OF APPROVAL AUTHORITY Title in accordance with Sprint PCS Financial Policy, paragraph 9.1, do hereby delegate my fiscal approval authority to : Employee Name (PrinCryp~)Social Security Number Titl~~ e t~-e (o pv~’e¢~-- for the following department(s): Department Number(s) This delegation is effective for the period (not to exceed 30 days) and is necessary due to (reason: e.g. absence, vacation, etc.) Si whose authority is being legated Date Date A copy of this completed form should accompany all individualfinancial commitments or expenditure documentation approved under the above temporary delegation. ADDENDUM TO LEASE Sprint PCS Reference No. SF.13-XC-82~(A) This Addendum to Lease (the "Addendum") is entered into concurrently with and is intended to be made a part of that certain lease (the "LEASE") entered into between Sprint Spectrum L.P., a Delaware limited partnership ("TENANT") and the City of Palo Alto, a municipal corporation ("CITY") dated as of ., 2000. Under the LEASE, CITY is leasing to TENANT a portion of CITY’s property located at’799 Embarcadero Road, Palo Alto, California, 94303, commonly referred to as Fire Station No. 3 and/or "Rinconada" Station, for the purpose of TENANT installing and operating a communications facility. CITY and TENANT are entering into this Addendum to include additional provisions to the LEASE; all defined terms contained in the LEASE and used in this Addendum shall have the same meaning as provided in the LEASE and, except as set forth in this Addendum, all of the terms and conditions of the LEASE shall remain unchanged and in full force and effect. 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 CITY and an independent firm for preparation of documents related to the Telecommunications Policy, and understands that the City Counsel approved that contract. TENANT 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, TENANT and’ CITY agree as follows: (a) 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 TENANTs communications facility on the PROPERTY. In this regard, the following procedure shall apply: (i)Within ninety (90) days of the adoption of the Telecommunications Policy, if CITY finds that TENANT’s facility at the PROPERTY 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 .~ ~m-(ompliance, a copy of the applicable provisions of the Telecommunications Policy and, if ap~ ~:opriate, 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 Telecommunications Policy. If CITY fails to deliver such compliance notice within said ninety day period, TENANT’s communications facility on the PROPERTY 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. (ii) 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 its facility into compliance within such six month period, CITY may terminate the G’\CI IFN~fSdSB~PRIN~Northern Czhfornl~dF-13-XCd~251Al~Addtndum,wpd Sprint PCS Reference No. SF.13.XC.825(A)~ LEASE on thirty (30) days written notice to TENANT, whereupon TENANT shall remove its communications 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. 2. 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 leased to TENANT under the LEASE. SIGNATURE PAGE FOLLOWS CITY: CITY OF PALO ALTO (LESSOR) Its: Mayor ATTEST: By: Print Name: Its: City Clerk APPROVED AS TO FORM: 13y: Print Name: Its: Senior Asst. City Attorney PROPERTY DESCRIPTION APPROVED: By: Print Name: Its: Public Works/Engineering RECOMMENDED FOR APPROVAL: By: Print Name: Its: Asst. City Manager By: Print Name: Its:Fire Chief By: Print Name: Its: Real Property Manager (;:~CLIEN-fS~/SB~SPRINqkNI~rth~rn Caldt)rnlad)ocs~S|,- 13-X(’*g25~A)~Addendurn wpd Spdnt PCS Reference No. SF-13-XC-825(A) TENANT: SPRINT SPECTRUM L.P., a Delaware~ Print Name:.~wrence D~erty Its:Regional Director of Site Development - West Sprint Reference No.: FS-14-XC-004 ATTACHMENT D This Lease (LEASE) is made this day of , 2000 by and between the City of Palo Alto, a municipal corporation, (CITY) and Sprint Spectrum L.P., a Delaware limited partnership (TENANT). RECITALS CITY owns the property located at 3600 Middlefield Road, Palo Alto, California 94303 commonly referred to as Fire Station No. 4 and/or "Mitchell" Station (PROPERTY). TENANT desires to lease the PREMISES (as defined in Clause I) to operate a personal communications service (PCS) system facility. CITYagrees 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: PREMISES (RL 3.0) S Subject to the terms and conditions set forth in this LEASE, CITY leases to TENANT that portion (PREMISES) of the PROPERTY 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 this LEASE, TENANT accepts the PREMISES "as-is" on the date of execution of this LEASE. CITY hereby grants TENANT reasonable rights of ingress and egress as shown on Exhibit B. In addition to the leased PREMISES, CITY hereby grants to TENANT a non-exclusive easement (EASEMENT) in and through that portion of the PROPERTY, which is also described and shown in Exhibit B, for the sole purpose of constructing and installing cabling and associated hardware incidental to the purposes of this Lease, together with the right to ingress 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 000120 sdl 0032306 Lease and shall terminate without further notice as of the date of termination of the Lease. II.PURPOSE (RL 4.0) S The purpose of this LEASE is to provide for the installation, maintenance, and operation, at TENANT expense, of a personal communications service (PCS) system facility. III. REQUIRED AND OPTIONAL SERVICES AND USES (RL 5.0) S In furtherance of the purposes stated above, the following required and optional services and uses shall be provided, permitted or prohibited: Required Services and Uses. Throughout the term of this LEASE TENANT shall use the PREMISES as one of TENANT’s PCS sites 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 system facility, including without limitation an antenna structure, base equipment, back-up power sources (including generators and fuel storage tanks), cable, wiring and fixtures (PCS FACILITY). 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 antenna facilities are constructed on the PREMISES to ensure that its PCS FACILITY is in compliance. The tests shall be conducted by a licensed professional engineer, and the results shall be provided to CITY. After the installation of the .PCS FACILITY, TENANT shall conduct safety training classes for CITY personnel as reasonably required to inform them about working safely with the PCS FACILITY. In constructing and operating the PCS FACILITY, TENANT shall include the following items in its plans and operating procedures: 000120 sdl 0032306 TENANT shall not permit any unreasonable odors, smoke, dust, gas, substances, noise or vibrations to emanate O00120sdl 0032306 So from the PCS FACILITY, nor take any action which would constitute a nuisance or would disturb, obstruct or endanger any other tenants or occupants of the site or interfere with their use of their respective premises. TENANT’s operation of the PCS FACILITY 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. TENANT shall submit all required hazardous materials filings and obtain all required approvals prior to installing its batteries or. any other hazardous materials. CITY agrees that its personnel shall only enter the PREMISES in the event of an emergency. CITY agrees that its personnel shall not touch, tamper with, alter or attempt to open the PCS FACILITY or any of TENANT’s other equipment ancillary thereto on the PREMISES. 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 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 approval, which approval shall not be unreasonably withheld, conditfoned, or delayed. CITY shall provide TENANT a written list of the Fire Captains of each 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. TENANT shall maintain all improvements that it places on the PROPERTY, including the fence, flagpole, and the mounting equipment for the flag. CITY shall be responsible for raising and taking down the flag each day TENANT’s service lights in the PREMISES shall remain off unless its service personnel are in the area and require the lights to be turned on to conduct their operations. Co-location. TENANT shall construct and operate its antenna tower 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 business activity within or from the PREMISES. IV.TERM (RL 6.0) S The term of this LEASE shall be for a period of five (5) years, commencing on the date TENANT receives the last permit required for installation of the PCS FACILITY (COMMENCEMENT DATE). V. OPTION TO EXTEND (RL 6.2) S 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 extensions pursuant to this Clause V shall be void if TENANT has received from CITY more than three 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 XX (DEFAULT IN TERMS OF THE LEASE BY TENANT). VI.CONSIDERATION/RENT (RL 7.2) S Rent. As partial consideration for use of the PREMISES, TENANT agrees to pay to CITY annual rent of Fifteen Thousand Six Hundred Dollars ($15,600) per year, subject to adjustment as 000120 sdl 0032306 provided in Clause VII, payable in advance in accordance with Clause VIII (RENT PAYMENT PROCEDURE). Non-Monetary Consideration. In addition to the rent set forth in subparagraph A above, TENANT agrees to perform the following services or provide the following public benefits on behalf of CITY: In the event of an emergency which the CITY’s Fire Chief deems requires the temporary use of PCS telephones by CITY (EMERGENCY), TENANT shall provide CITY up to (ten) I0 PCS telephones (PHONES) and service, at no charge, for CITY’s temporary use. In the event of an EMERGENCY, CITY’s Fire Chief (or other agent previously designated in writing) shall, during normal business hours, contact the acting Manager of TENANT’s store located at 499 University Avenue, Palo Alto, CA 94301 (PALO ALTO STORE) (telephone (650) 614-9140), which Manager shall provide CITY with up to ten (I0) of the highest quality PCS telephones available at the PALO ALTO STORE at the time of the EMERGENCY. As soon as is practical following the EMERGENCY, CITY shall return the PHONES to the PALO ALTO STORE and reimburse TENANT for any loss or damage thereto. CITY acknowledges that it shall be entitled to a cumulative total of not more than ten (I0) PHONES in the event of an EMERGENCY, regardless of the number of lease or other agreements it enters into with TENANT or of the number of PCS Facilities TENANT may be installing, operating, or planning to install or operate in the city of Palo Alto, California. TENANT’s liability to CITY for any breach of the obligation set forth in this Clause VI.B. shall be limited to the sole and exclusive remedy of liquidated damages in an amount equal to TENANT’s cost of the PHONES. CITY shall not be entitled to any consequential or incidental, damages from TENANT as a result of any such failure. The parties agree that the provision for liquidated damages set forth above is a reasonable remedy given that the obligation to provide the PHONES to the CITY will arise only in the event of an emergency situation, the circumstances of which are uncertain, and therefore it is difficult to ascertain TENANT’s ability’to provide the PHONES should the need arise. Furthermore, CITY shall indemnify, defend, and hold TENANT harmless from and against any and all costs (including attorney’s fees) and claims of liability or loss arising from CITY’s use of the PHONES (including without limitation any loss or interruption of service) or TENANT’s failure to provide the PHONES to CITY pursuant to’ this Clause VI.B. This indemnity obligation shall survive the termination of this LEASE. TENANT’s indemnity obligation set forth in Clause 12 of Exhibit 000120 sdl 0032306 5 A hereto (HOLD HARMLESS) shall not apply to any claims for costs or liability arising from CITY’s use of the PHONES (including without limitation any loss or interruption of service) or TENANT’s failure to provide the PHONES to CITY pursuant to this Clause VI.B. VII. REVISION OF RENTALS (RL 7.3) S 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 = I00) 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: X =Adjusted rental. A =Rental at the Commencement of the LEASE. B =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) C = 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. A. RENT PAYMENT PROCEDURE (RL I0.0) S Until the COMMENCEMENT DATE, rent hereunder shall be a one-time aggregate payment of one hundred dollars ($i00), receipt of which CITY hereby acknowledges. On the COMMENCEMENT DATE, TENANT shall pay to CITY rent for [he first year of the term as set forth in Clause VI (CONSIDERATION/RENT). Commencing on the first anniversary of the COMMENCEMENT DATE, on or before each anniversary of the COMMENCEMENT DATE, TENANT 000120 sdl 0032306 shall pay to CITY rent as set forth in Clause (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 (I0) days written notice to TENANT. Rental payments may be made by check made payable to the City of Palo Alto. 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 any remedy provided in this LEASE. IX.MAINTENANCE AND REPAIR (RL 14.1) NS 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 of TENANT’s related 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 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. 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 shal! 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 within ten (I0) 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. 000120 sdl 0032306 X.MAINTENANCE OBLIGATIONS OF CITY (RL 14.2) S 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. XI.CONSTRUCTION AND/OR ALTERATION BY TENANT (RL 15.1) S CITY’s Consent. No structures, improvements, or facilities shall be constructed, erected, altered, or made within the PREMISES without the ~rior written consent of the CITY (by action of CITY’s City Council if required by City of Palo Alto procedures or ordinances, or otherwise by CITY’s City Manager or designee), which consent shall not be unreasonably withheld, conditioned, or delayed. 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 building on the PREMISES, provided such fixtures and installation have been reviewed and approved by CITY’s City Manager. Strict Compliance with Plans and Specifications. All improvements constructed by TENANT within the PREMISES shal! be constructed in an efficient and workmanlike manner and in strict compliance with detailed plans and specifications approved by the CITY (by action of CITY’s City Council if required by City of Palo Alto procedures or ordinances, or otherwise by CITY’s City Manager or designee, and which approval shall not be unreasonably withheld, conditioned, or delayed) and applicable City of Palo Alto codes ahd ordinances. Certificate of Inspection. Upon completion of construction of any building, TENANT shall submit to CITY’s Real Property Manager, a Certificate of Inspection, verifying that the construction was completed in conformance with Title 20 of the California Code of Regulations for residential construction, or in conformance with Title 24 of the California Code of Regulations for non-residential construction. 000120 sdl 0032306 XII.OWNERSHIP OF IMPROVEMENTS (RL 16.0) NS 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 materia!. Upon expiration or termination of this Lease, CITY may at its option require TENANT to remove TENANT constructed improvements 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 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 if TENANT is not then in default under this LEASE, provided that TENANT shall repair to the satisfaction of CITY any damage to the PREMISES and improvements caused by such removal. XIII.AS BUILT PLANS (RL 15.5) S Upon completion of any major TENANT-constructed improvements, TENANT shall provide CITY’s Real Property Manager with a complete set of reproducible "as built plans" reflecting actual construction within or upon the PREMISES. TENANT shall also provide CITY’s Real Property Manager with a statement signed by TENANT under penalty of perjury certified as to accuracy and of actual construction costs for all such improvements. XIV. DAMAGE TO OR DESTRUCTION OF IMPROVEMENTS (NS) If the PREMISES are, in whole or in part, damaged or destroyed, then: (i) 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 000120 sdl 0032306 9 reasonable time, repair the PREMISES with a reasonable reduction of rent from the time of such partial destruction until the PREMISES are again as fully usable by TENANT as they were before such partial damage or destruction; provided, however, that TENANT shall not be required to rebuild the PCS FACILITY or repair the PREMISES if: (i) such partial damage or destruction shall occur within one (I) year prior to the expiration of the LEASE, and (ii) TENANT continues to pay the rental amounts due hereunder and the PREMISES are maintained in a safe.and sanitary condition. A decision as to whether partially destroyed or partially condemned ~PREMISES is still usable for reconstruction of a PCS FACILITY shall be made jointly by CITY and TENANT, and, if they cannot agree, by an arbitrator reasonably acceptable to both parties. TENANT shall have the right to operate a temporary PCS FACILITY on the PROPERTY during any repair or reconstruction of the PREMISES, including the right to operate such generators or other back-up power supply sources as TENANT determines may be required. XV. UTILITIES (RL 17.0) S TENANT shall be responsible for and shall pay, prior to delinquency, all charges for utilities supplied to the PCS FACILITY. XVI. INSURANCE (RL 18.0) S 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: i) 2) 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. 000120 sdl 0032306 10 The policy or policies of insurance maintained by TENANT shall provide the following limits and coverages: POLICY MINIMUM LIMITS OF LIABILITY (I)WORKERS’ COMPENSATION Statutory (2) COMPREHENSIVE Bodily Injury $I,000,000 AUTOMOBILE $I,000,000 LIABILITY,Property Damage $I,000,000 including owned, hired, and non-owned automobiles ea. person ea. occurrence ea. occurrence (3) COMPREHENSIVE Bodily Injury $I,000,000 GENERAL $I,000,000 LIABILITY $I,000,000 including Property Damage $I,000,000 products and ’Personal Injury $i,000,000 completed operations, broad form contractual, and personal injury. Deductibles and Self-Insured Retentions ea. person ea. occurrence aggregate ea. occurrence ea. occurrence 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 polfcy 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 by certified mail, return receipt requested, has been given to the CITY." o 000120 sdl 0032306 "All rights of subrogation are hereby waived against the CITY OF PALO ALTO and the members of the City Council and ii elective or appointive officers or employees, when acting within the scope of their employment or appointment." "The CITY OF PALO ALTO is namedas a loss payee on the property and course of construction insurance policies described above." "The CITY, its officers, officials, employees, agents and volunteers are to be covered as 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." 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-:X. XVII.INSURANCE (RL 18.2) TENANT agrees to deposit with CITY’s 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 000120 sdl 0032306 12 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 CITY’s Risk Manager, the insurance provisions in this LEASE do not provide adequate protection for CITY, CITY’s Real Property Manager may require TENANT to obtain insurance sufficient in coverage, form, and amount to provide adequate protection as determined by CITY’s Risk Manager and TENANT. 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. CITY’s Real Property Manager shall notify TENANT in writing of changes in the insurance requirements. If TENANT does not deposit adequate evidence of insurance 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. 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 (RL 19.0) S Any mortgage, pledge, hypothecation, 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 approved 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 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 000120 sdl 0032306 13 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: 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; D.Intentionally Omitted; The processing fee required by CITY and set forth in the then current Palo Alto Municipal Fee Schedule has not been paid to CITY; 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; or 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 (RL 20.0) S Should TENANT default in the performance of any covenant, condition, or agreement contained in this LEASE and such default is not 000120 sdl 0032306 14 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, stemming from this LEASE, shall end at the time of such termination; 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; 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 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 TENANT shall be restored to its and their former position and rights 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 consideZed 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. 000120 sdl 0032306 15 XX.NOTICES (RL 23.0) S 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 (i) personally served, (2) sent by United States Certified mail, postage prepaid, (3) sent by express delivery service, or (4) in the case 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 (i), (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: (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 Sprint Spectrum, L.P. 4683 Chabot Drive, Suite I00 Pleasanton, CA 94588 Attn: Property Specialist, Palo Alto Cascade No. ~14~d-OO4 FAX: (925) 468-7313 Sprint Spectrum, L.P. 4900 Main Street, 12th Floor Kansas City, MO 64112 and City Attorney, City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto CA 94303 FAX: (650) 329-2646 Robbins, Palmer & Allen, LLP 1901 Harrison St., Suite 1550 Oakland, CA 94612 Attn: John Boat FAX: (510) 446-1946 000120 sdl 0032306 16 XXI. ATTACHMENT TO LEASE (RL 24.0) S 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 PREMISES and EASEMENT Exhibit C - Memorandum of LEASE The inclusion of clauses in Exhibit A (GENERAL CONDITIONS) is not in any way intended to lessen the importance of such clauses, but rather is merely done to enhance the organization of this LEASE. In the event of ~a conflict between the foregoing Clauses and the provisions of Exhibit A, the foregoing Clauses shall prevail. // // // // // // // // // // // // // // // 000120 sdl 0032306 17 IN WITNESS WHEREOF, the parties have executed this LEASE the day and year first above written. CITY:TENANT: CITY OF PALO ALTO (LESSOR) By: Its: Mayor ATTEST: SPRINT SPECTRUM ~L.P., a Delaware limited par~n~hip Print Name: /~ Lawrence Doherty Its: Re~ional Director of Si~e Development, West By: Print Name: ~Its: City Clerk APPROVED AS TO FORM: By: Print Name: Its: Senior Asst. City Attorney PROPERTY DESCRIPTION APPROVED: By: Print Name: Its: Public Works/Engineering RECOMMENDED FOR APPROVAL: By: Print Name: Its: Asst. City Manager By: Print Name: Its:Fire Chief By: Print Name: Its: 000120 sdl 0032306 Real Property Manager 18 EXHIBIT A GENERAL CONDITIONS I.DEFINITIONS (RL 27.1)S 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 (RL 27.2) S If TENANT is a partnership, each general partner: represents and warrants that the partnership is a duly qualified partnership authorized to do business in Santa Clara County; and 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; 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 Be 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 licensees, 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 licenses not authorized or permitted elsewhere in this LEASE. 000120 sdl 0032306 19 3. TIME (RL 27.3 S Time is of the essence of this LEASE. 4. SIGNS (RL 27.4) S 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, egc., may be removed by CITY. 5.PERMITS AND LICENSES (RL 27.5) S 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 (RL 27.6) S TENANT shall at all times indemnify and save CITY harmless from all claims for labor or materials supplied in connection with TENANT’S 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 (i0) 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 by TENANT, TENANT shall either: 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 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. 000120 sdl 0032306 2O Should TENANT fail to a~ccomplish 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 (RL 27.7) S 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 sustai~ 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 (RL 27.8) S 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 (RL 27.9) S TENANT shall not erect, place upon, operate, or maintain any improvements 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. 000120 sdl 0032306 21 I0.NONDISCRIMINATION (RL 27.10) S Revised 8-19-93 TENANT and its employees shall not discriminate against any person because of sace, 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 sexua! 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, 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. II.INSPECTION (RL 27.11) S CITY’s employees and agents shall have the right at all reasonable times to inspect the PREMISES to determine if the provisions of this LEASE are being complied with. 12.HOLD HARMLESS (RL 27.12] S CITY and TENANT each indemnifies the other against and holds t~he other harmless from any and all costs (including reasonable attorneys’ fees) and claims of liability or loss which arise out of the ownership, use and/or occupancy of the PREMISES by the indemnifying party. This indemnity does not apply to any claims arising from the Sole negligence or intentional misconduct of the indemnified party. Tenant’s obligation under this Clause shal! not apply to any claims arising from CITY’s use of the PHONES (including without limitation any loss or interruption of service) or TENANT’s failure to provide the PHONES "to CITY pursuant to Clause VI.B. The indemnity obligations under this Clause will survive the termination of this.LEASE. 13.TAXES AND ASSESSMENTS (RL 27.13) S 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 000120 sdl 0032306 22 the possessory interest tax which become due and payable upon the PREMISES or upon fixtures, equipment or other property installed or constructed by Tenant thereon, shall be the full responsibility of TENANT and TENANT shall pay the taxes and assessments prior to delinquency. 14.SUCCESSORS IN INTEREST (RL 27.14) S 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) RL 27.15) S 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 (RL 27.16)S 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 (RL 27.17) S 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. 000120 sdl 0032306 23 18.COSTS OF SUSTAINING AN ACTION FOR BREACH OR DEFAULT(RL 27.18)S In the event either CITY or TENANT commences legal actionagainst the other claiming a breach or default of this LEASE, theprevailing 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 (RL 27.19) S 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 al! 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. In exercising the rights reserved in this Clause, CITY shall take all reasonable steps to avoid any physical encroachment onto the PREMISES. In the event CITY’s exercise of the rights reserved in this Clause results in either of the two occurrences described in clause (a) or (b) of Provision 33, which is not cured by CITY within a reasonable time following written notice from TENANT, TENANT may terminate this LEASE upon written notice to CITY. 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 nearlyas practicable to the original condition upon the completion of any construction. 20.HOLDING OVER (RL 27.20) S 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. 000120 sdl 0032306 24 21.CONDITION OF PREMISES UPON TERMINATION (RL 27.21) S 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 (RL 27.22) S 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 to CITY if not removed by TENANT within fifteen (15) days after CITY gives written notice of such abandonment to TENANT. 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 UPONTERMINATION (RL 27.23) S Upon termination of this LEASE for anyreason, including but not limited to termination because of defaultby 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 fail 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 (RL 27.24) S TENANT agrees to yield and peaceably deliver possession of the PREMISES to CITY on the date oftermination 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 000120 sdl 0032306 25 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 (RL 27.25) S 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: (I) 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 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 immediately terminate such employment. 26.EMINENT DOMAIN (RL 27.26) S 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 000120 sdl 0032306 26 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 (RL 27.27) S Clauses contained in this LEASE may provide for adjustment based on the tonsumer Price Index, component indices, or other indices. Should these indices be changed, altered or cease to be published, the following conditions shall apply:- 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 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 (RL 27.28) S TENANT hereby acknowledges that its occupancy of the PREMISES is subsequent to acquisition of the PREMISES by CITY. TENANT further 000120 sdl 0032306 27 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. HAZARDOUS SUBSTANCES (RL 27.29) S 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 ~f 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. TENANT’s Use of PREMISES. During the term of this LEASE, TENANT shall abide and be bound by all of the following requirements: 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 TENANT shall not contaminate the PREMISES, or its subsurface, with any Hazardous Materials. ii.TENANT shall restrict its use of Hazardous Materials at the PREMISES to those kinds of materials that are normally used in constructing personal telecommunications systems. Disposal of any Hazardous Materials at the Premises is 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. 000120 sdl 0032306 28 iiio TENANT shall be solely and fully responsible for the reporting of al! Hazardous Materials releases to the appropriate public agencies, when such releases are caused by or result from TENANT’s activities on the PREMISES. 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. iv.TENANT shall be solely and fully responsible and liable for any such releases which are caused by TENANT at the Premises, 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. 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 five (5) days of CITY’s demand~for payment. 000120 sdi 0032306 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 in violation of any applicable law. CITY shall indemnify and hold TENANT 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 LEASE, unless said materials were actually.deposited onto 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, removal or restoration related to the presence of any substance. This indemnity shall survive the expiration or termination of this LEASE. TENANT shall indemnify and hold CITY 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 by TENANT of any Hazardous Materials on or under the PREMISES during the LEASE.term, unless said materials were actually deposited onto the PREMISES by CITY; provided, however, that this indemnity obligation shall not 29 vi. 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 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 hermination of this LEASE. TENANT’s and CITY’s obligations under this Clause shall survive the expiration or earlier termination of this LEASE. 30. ALL COVENANTS ARE CONDITIONS (RL 27.30) S All provisions of the LEASE are expressly made conditions. 31.PARTIES OF INTEREST (RL 27.31) S 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 (RL 27.32) Neither’ CITY nor TENANT shall record this LEASE; however, upon request CITY and TENANT agree to execute and deliver to the other a recordable Memorandum of this LEASE in a form substantially identical to the one attached as Exhibit D hereto. 33. INTERFERENCE TENANT will resolve technical interference problems with other equipment located at the PREMISES as of the commencement date of this LEASE or with any equipment that TENANT attaches to the PREMISES at any future date when TENANT desires to add additional equipment to the PREMISES. Notwithstahding 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. 000120 sdl 0032306 3O 34.TERMINATION 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 (I) month 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 the 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. 000120 sdl 0032306 31 SURVEYING,INC. EXHIBIT B LEGAL DESCRIPTION SPRINT PCS SITE NUMBER: SFI4XC004 SITE NAME: MITCHELL PARK A PORTION OF THE LAND GRANTED TO THE CITY OF PALO ALTO THROUGH EMINANT DOMAIN PER DEED RECORDED IN BOOK 3715 PAGE 448 RECORDS OF SANTA CLARA COUNTY, STATE OF CALIFORNIA. ACCESS EASEMENT A STRIP OF LAND 12.00 FEET WIDE, 6.00 FEET EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: COMMENCING AT THE INTERSECTION OF EAST MEADOW DRIVE AND M[DDLEFIELD ROAD; THENCE ALONG THE CENTERLINE OF EAST MEADOW RD. $57°31 ’43"W, 201.10 FEET; THENCE $33 21’18"W, 35.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE $33 21 18 E, 67.70 FEET; THENCE ~., ~.,.,. _-~ t:, 74.62 FEET TO THE END OF SAID STRIP AND A POINT ftEREINAFTER REFERED TOAS POINT A. SPRINT LEASE AREA BEGINNING AT POINT "A"’ AS DESCRIBED A~.OVE; THENCE N39 24’01%, i3.16 FEE ,; THENCE $50°35’59"’E, 9.50 ~’EET; THENCE $39°24’01"W, 26.33 FEET; THENCE NS0°35’59"W, 2.50 FEET TO POINT B , THENCE N50 35’59"’W, 4.50 FEET TO PGINT .....C , THENCE N50 35 .,_, W.. 2.50 FEE’[’: THENCE N39 24’01"E, 13.17 FEET TO "I-HE POINT OF ,q ~" T CONTAINING 250 SQUARE FEET OF LAND, MORE OR LESS. UTILITY EASEMENT TWO STRIPS OF LAND 5.00 FEET W|DE, 2.50 FEET EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINES. STRIP ONE BEGINNING AT POINT "B" AS DESCRIBED ABOVE; THENCE $35°27’00"W, 36.56 FEET TO THE END OF SAID STRIP ONE. STRIP TWO BEGINNING AT POINT "A" AS DESCRIBED ABOVE; THENCE N48°06’27"W, 90.23 FEET; THENCE oN17 24’00"E, 22.74 FEET TO THE END OF STRIP TWO. SAID DESCRIPTIONS ARE SHOWN ON EXHIBIT B-1 ATTACI-~-[~-II~tR~lgOkl~ MADE A PART Edward L. Schenet P.L.S. 4240 . . ~i ! 99176 ~’,~ ~ : (~ Business Cenl~r Drwe Corona, CA ~1720 _ 7905 East ~reenway Road, Suite 207, Sco~sdale, AZ 85260 ~hone (909) 280-9960, Fax (909) 280-9746 Phone (602) 596-6514 , Fax (602) 596-2574 ASSESSOR’S PARCEL NO.: SITE ADDRESS: ’"~~ PROPOSED SPRINT PCS’"’ ’ -"’" , \\-,>. ~ , ’"’,, -MONOPOLE PROPOSED SPRINT PCSACCESS EASEMENT DETAIL / ,., "’N50"35’,59"W¯ " 2.50 PROPOSED SPRINT PCS UTILITY EASEMENT (STRIP 2) N39"24’O,1~E-13.16 " ~PROPOSED PCS \ LEASE --~ ~ SUrViVINg3,,108 Business Center Drive Corona CA 92880-1782 Phone: $39"24’01 ’~/26.33’ SEE DETAIL "PROPOSED SPRINT PCS UTILITY EASEMENT (STRIP I) Job No 99 176 9960 Fox;280-9746 EXHIBIT C TO LEASE Site Name:Site I.D. No.: MEMORANDUM OF AGREEMENT THIS MEMORANDUM OF AGREEMENT is made and entered into as of , 2000, by and between , a ("Owner") and SPRINT SPECTRUM L.P., a Delaware limited partnership ("SSLP"). WITNESSETH: That Owner hereby leases to SSLP and SSLP hereby leases from Owner that certain real property (the "Property")in the State of California,County of , City of ,commonly known as , a legal description of which is shown in Exhibit C attached hereto and incorporated herein by reference, under the terms and conditions of the unrecorded Lease by and between Owner and SSLP dated , 2000 and incorporated herein by reference (the "Agreement") for an in--~tial term of five (5) years, and two (2) subsequent optional extension terms of five (5) years each, pursuant to the terms of the Agreement. The Agreement provides for grant of rights of access to the Property and to electrical and telephone facilities serving the Property. IN WITNESS WHEREOF, the parties have executed this Memorandum as of the day and year first above written. SPRINT SPECTRUM L.p., a Delaware.~mi}ed partnership ~wrence Doherty Titld~\Regional Director of \ Site Development Owner: City of Palo Alto, a municipal corporation By: Print Name: Its:Mayor 000120 sdl 0032306 32 ACKNOWLEDGMENT ATTACHED [FORM DOCUMENT -PLEASE INITIAL ONLY -NOT FOR EXECUTION] CITY Initials TENANT Initials 000120 sdl 0032306 33 Fiscal Authorization Policy SPRINT PCS ATTACHMENT C TEMPORARY DELEGATION OF APPROVAL AUTHORITY To : VP, Controller - Sprint PCS Authorizing Name (Print/Type)Title in accordance with Sprint PCS Financial Policy, paragraph 9.1, do hereby delegate my fiscal approval authority to : Ernl~loyee Name (Print/Type)Social Security Number Titlo-/ for the following department(s): Department Number(s) This delegation is effective for the period ~_ (not to exceed 30 days) and is necessary due to (reason: e.g. absence, vacation, etc.) Si Date ~ S’~~ person whose authori~ is be~Date A copy of this completed form shouM accompany all individualfinancial commitments or expenditure documentation approved under the above temporary delegation. Sprint PCS Reference No. FS.14.XC.~ ADDENDUM TO LEASE This Addendum to Lease (the "Addendum") is entered into concurrently with and is intended to be made a part of that certain lease (the "LEASE") entered into between Sprint Spectrum L.P., a Delaware limited partnership ("TENANT") and the City of Palo Alto, a municipal corporation ("CITY") dated as of ,2000. Under the LEASE, CITY is leasing to TENANT a portion of CITY’s property located at 3600 Middlefield Road, Palo Alto, California, commonly referred to as Fire Station No. 4 and/or "Mitchell" Station, for the purpose of TENANT installing and operating a communications facility. CITY and TENANT are entering into this Addendum to include additional provisions to the LEASE; all defined terms contained in the LEASE and used in this Addendum shall have the same meaning as provided in the LEASE and, except as set forth in this Addendum, all of the terms and conditions of the LEASE shall remain unchanged and in full force and effect. 1. 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 CITY and an independent firm for preparation of documents related to the Telecommunications Policy, and understands that the City Counsel approved that contract. TENANT 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, TENANT and CITY agree as follows: (a) 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 PROPERTY. In this regard, the following procedure shall apply: (i) Within ninety (90) days of the adoption of the Telecommunications Policy, if CITY finds that TENANTs facility at the PROPERTY is not in compliance with the Telecommunications Policy, then CITY shall deliver to TENANT a written notice ("compliance notice") specifying theitems of non-compliance. Such notice shallinclude reasonably detailed items of non-compliance, a copy of the applicable provisions of the Telecommunications Policy and, if appropriate, actions required to be undertaken by TENANT to bring its facilityinto compliance. TENANTacknowledges that such notice may include a requirement to relocate TENANT’s facility, if required, under the Telecommunications Policy. If CITY fails to deliver such compliance notice within said ninety day period, TENANT’s communications facility on the PROPERTY 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. (ii) TENANT shall have six (6) monthsafter its receipt of the compliance notice to bring its facility into compliance under the Telecommunications Policy. If TENANT fails or refuses to bring its facility into compliance within such six month period, CITY may terminate Sprint PCS Reference No. FS-14-XC-O04 the LEASE on thirty (30) days written notice to TENANT, whereupon TENANT shall remove its communications 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. 2. 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 3reviously leased to TENANT under the LEASE. SIGNATURE PAGE FOLLOWS CITY: CITY OF PALO ALTO (LESSOR) By: Its: Mayor ATTEST: By: Print Name: Its: City Clerk APPROVED AS TO FORM: By: Print Name: Its: Senior Asst. City Attorney PROPERTY DESCRIPTION APPROVED: By: Print Name: Its: Public Works/Engineering RECOMMENDED FOR APPROVAL: By: Print Name: Its: Asst. City Manager By: Print Name: Its: Fire Chief By: Print Name: Its: Real Property Manager Sprint PCS Reference No. FS.14.XC~ TENANT: SPRINT SPECTRUM L.P., a Delaware~ By: ~ Print~__~m .~Lawrence Doherty Its:Regional Director of Site Development - West