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Item 17 - Approval of Lease Agreement between City and Sprint PCS Assets LLC AGENDA REPORT SUMM • ARY F P�w�y TO: Honorable Mayor and Members of the City Council ,. THE `O� 7 FROM: James L. Bowersox, City Mana• INITIATED BY: Warren H. Shafer, Director of Administrative Services DATE: April 26, 2005 SUBJECT: Approval of Lease Agreement Between the City of Poway and Sprint PCS Assets, LLC for the Installation & Operation of a Telecommunications Facility at Celestial Reservoir ABSTRACT Sprint PCS Assets, LLC submitted an application for Conditional Use Permit (CUP 04-08), for the installation of a telecommunications,facility at Celestial Reservoir, which was approved by the City Council at a public hearing on November 9, 2004. Following the conditional use permit process, staff negotiated the terms and conditions of a lease for the facilities. Staff is recommending that the City Council approve the attached lease agreement with Sprint PCS Assets, LLC and authorize the Mayor to execute the lease on behalf of the City. Legal counsel for Sprint and the City Attorney have reviewed and approved the lease agreement. ENVIRONMENTAL REVIEW This item is not subject to CEQA review. FISCAL IMPACT The lease agreement will generate $150,082 in revenue over the initial five-year term of the agreement. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Additional notification was sent to Velocitel representing Sprint PCS Assets, LLC. RECOMMENDATION It is recommended that the City Council approve the attached lease agreement with Sprint PCS Assets, LLC and authorize the Mayor to execute such lease agreement. ACTION Approved staff recommendation, 4-0, with yor a agna absent. lane Shea, City Clerk c2da to b ro perry•TinalSprintCe lestial.summ a ry.doc 1 of 45 April 26, 2005 Item # i CITY OF POWA Y AGENDA REPORT This report is included on the Consent Calendar. There will be no separate discussion of the report priorto approval by the City Council unless members of the Council, staff or public request it to be removed from the Consent Calendar and discussed separately. If you wish to have this report pulled for discussion, please fill out a slip indicating the report number and give it to the City Cieri< prior to the beginning of the City Council meeting. TO: FROM: Honorable Mayor and Members\~~ City Council James L. Bowersox, City Mana~ .~. Warren H. Shafer, Director of Administrative SeryiC'~ Tina White, Revenue & Business Activity Manage~ April 26, 2005 INITIATED BY: DATE: SUBJECT: Approval of Lease Agreement Between the City of Poway and Sprint PCS Assets, LLC for the Installation and Operation of a Telecommunications Facility at Celestial Reservoir (13472 Celestial Road) BACKGROUND Since December 2004, City staff has been working with Delta Groups and Velocitel, representatives of Sprint PCS Assets, LLC, to negotiate a lease agreement for the installation of a Sprint telecommunications facility at Celestial Reseryoir. Sprint's application for Conditional Use Permit (CUP 04-08) for this site, was approved by the City Council on November 9, 2004. FINDINGS Staff has negotiated the terms of a lease with Velocitel for an initial period of five years, with three options to renew for a period of five years per option. Lease payments are to be paid annually on the anniversary date ofthe lease. The first year lease payment of $26,256 is due upon execution of the lease agreement by the City. Sprint's legal counsel and the City Attorney have reviewed and approved the proposed lease agreement. Staff recommends approval of the lease. ENVIRONMENTAL REVIEW This item is not subject to CEQA review. FISCAL IMPACT The lease agreement will generate $150,082 in revenue for the initial five-year term of the agreement. 2of45 April 26, 2005 Item # ...11 Approval of Lease Agrmt. Between City & Sprint at Celestial Reservoir April 26, 2005 Page 2 PUBLIC NOTIFICATION AND CORRESPONDENCE Additional notification was sent to Velocitel representing Sprint PCS Assets, LLC. RECOMMENDATION It is recommended that the City Council approve the attached lease agreement with Sprint PCS Assets, LLC and authorize the Mayor to execute the lease agreement on behalf of the City. Attachment: Exhibit A - Lease Agreement JLB:WS:TW:dh 3 of 45 April 26, 2005 Item # I '1 LEASE AGREEMENT This Lease Agreement ("Lease") is entered into this day of , 200_, by and between the City of Poway ("Landlord") and Sprint PCS Assets, L.L.C., a Delaware limited liability company (formerly known as Cox PCS Assets) ("Tenant"). Background A. Landlord is the owner in fee simple of a parcel of land located in the City of Poway, San Diego County, State of California, legally described on the attached Exhibit A (the "Owned Premises" or "Premises" as the context may require), on which a reseryoir is located. The street address of the Owned Premises is 13472 Celestial Road. B. Tenant desires to lease space on the Owned Premises for the installation and operation of certain antenna facilities and other related equipment and improvements ("Antenna Facilities") for use in connection with Tenant's communications business. C. Pursuant to Resolution No. P-04-88, Conditional Use Permit No. 04-08 for the Antenna Facilities (the CUP) was approved by the Poway City Council on November 9, 2004. E. Accordingly, the parties are entering into this Lease on the terms and conditions set forth below. Agreement In consideration of their mutual covenants, the parties agree as follows: 1. Leased Premises. Landlord leases to Tenant and Tenant leases from Landlord on a non-exclusive basis a portion of the Owned Premises, including space on the Reservoir and Reservoir Site (the "Reseryoir"), as shown on the Site Plan attached as Exhibit B (the "Leased Premises" or "Premises" as the context may require). Tenant intends to locate the Antenna Facilities on the Leased Premises as described more fully on the attached Exhibit C. Tenant may not add additional equipment and/or antennas from that shown on Exhibit C without the prior written approval of Landlord, which may include the requirement to amend the CUP. Landlord reserves the right to require Tenant to relocate its facilities to another location on the Reservoir and/or Owned Premises. Any such relocation shall be limited to one time only during the term of this Lease, including any options. Tenant shall complete the relocation of its facilities within sixty (60) days after Tenant's receipt of written notice from Landlord. During such period of relocation, Landlord shall allow Tenant to install temporary facilities sufficient to maintain Tenant's operations. Tenant must remove such temporary facilities from the Premises after Tenant's relocation is 40f45 ATTACHMENT April 26, 2005 Item # 1'7 complete. In no event will temporary facilities remain on the Premises for more than sixty (60) days without the written permission of Landlord. The relocation shall be at Tenant's expense unless Landlord's relocation requirement results from Landlord's desire to lease space on the Reseryoir or Leased Premises to non-governmental third- party users. In that case, Landlord will promptly reimburse Tenant for the reasonable relocation costs of Tenant. Relocation shall not result in a lessening of Tenant's ability to use the Leased Premises for its intended purpose, or the quality of such use. This Lease is not a franchise pursuant to Chapter 5.60 of the Poway Municipal Code nor is it a permit to use the rights-of-way under Chapter 12.04 of the Poway Municipal Code. Any such franchise or permit must be obtained separately from Landlord. This Lease shall not be interpreted as imposing, elevating validation, invalidating or in any way modifying any franchise license or permit requirement imposed, restricted, pre-empted or otherwise affected by local, state or federal law. 2. Term. The term of this Lease shall be five (5) years, commencing on the first day of the month following both (i) City Council approval of the CUP and (ii) execution of this Lease by the parties hereto (The "Commencement Date"). So long as Tenant is in compliance with the terms and conditions contained herein and the terms and conditions of the CUP, Tenant shall have three (3) five-year options to extend this Lease on the same terms and conditions, excluding Rent which shall be adjusted annually as set forth in Section 3.b. below. Each option shall be deemed exercised unless Tenant provides written notice of intent not to exercise the option at least ninety (90) days prior to the expiration of the then current five-year term. Notwithstanding such extension options, Tenant understands and acknowledges that conditions of approval of the CUP are subject to review and modification at any time by the City Council, after public hearing. 3. Rent. a. Tenant shall pay Landlord as annual initial rent for the Premises the sum of Twenty Six Thousand Two Hundred Fifty Six Dollars ($26,256) ("Rent"). Tenant shall pay Landlord Rent for the first year on the Commencement Date. Tenant shall pay Landlord Rent annually in advance on each annual anniversary of the Commencement Date. Rent shall be as follows: Year 2 Year 3 $27,569 $28,947 Year 4 Year 5 $ $ 30,395 31,915 b. Upon extension of this Lease a cost of living adjustment shall be applied to the rent, calculated as follows: 2 April 26, 2005 Item #J1... 5 of 45 Beginning with Year 6 following the Commencement Date, and annually thereafter on the anniversary of the Commencement Date, Rent shall be calculated by multiplying the amount of rent for the prior year by a fraction, the numerator of which is the Revised Consumer Price Index for All Urban Consumers, published by the U.S. Department of Labor, Bureau of Labor Statistics for the Los Angeles-Riverside-Orange County Area, All Items (1982-84 = 100), the ("CPI"), and the denominator of which is the CPI for the same calendar month of the prior year. Each such adjustment shall apply to the rent to be paid for that year until the next adjustment occurs. In no event shall the cost of living increase be less than three percent (3%) per year nor greater than eight percent (8%) per year. If the index is discontinued or revised during the term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the index had not been discontinued or revised, as determined by the Director of Administrative Services of the Landlord. c. Tenant shall pay Landlord a late payment charge equal to five percent (5%) of the Rent for any Rent not paid when due. Any amounts not paid when due shall bear interest until paid at the lesser of the rate of two percent (2%) per month or the highest rate permitted by law. d. For each additional antenna installed by Tenant beyond the initial array described in Exhibit C and approved by Landlord pursuant to Section 8 below, Tenant shall execute an amendment to this Lease and shall pay Landlord as additional Rent $200 per month for each additional antenna. The additional Rent shall increase annually under the same terms provided in this Lease and shall become part of the annual Rent. e. If this Lease is terminated at a time other than on the last day of the term, Rent shall be prorated as of the date of termination and, in the event of termination for any reason other than nonpayment of Rent, the balance of all prepaid Rents shall be refunded to Tenant within thirty (30) days of the date of termination. 4. Taxes. This Lease may result in a taxable possessory interest and be subject to the payment of property taxes. Tenant agrees to and shall pay before delinquency all taxes and assessments of any kind assessed or levied upon Tenant or the Premises by reason of this Lease or of any buildings, machines, or other improvements of any nature whatsoever erected, installed or maintained by Tenant or by reason of the business or other activities of Tenant upon or in connection with the Premises. Such taxes and assessments shall be in addition to Rent. 3 April 26, 2005 Item # I t"J 6 of 45 5. Use of Premises. Tenant shall use the Premises for the installation, operation, and maintenance of the Antenna Facilities for the transmission, reception and operation of a communications system and uses incidental thereto and for no other uses. Tenant may not add additional equipment and/or antennas from that shown on Exhibit C without the prior written approval of Landlord, which may require the amendment of the CUP, pursuant to Section 8 below. Landlord reserves the right to enter into agreements with other parties, including, but not limited to, wireless communication carriers (hereinafter "Carrier") for use of the Owned Premises. The Carrier will provide Landlord and Landlord will deliver to Tenant a certified evaluation indicating the antenna and other facilities will not interfere with Tenant's existing antennas, and the Reseryoir and/or Reservoir Site can structurally support the additional antennas. If Carrier's plans and specifications are approved by Landlord, Landlord shall notify Tenant in writing as to the scheduled date and time of commencement of construction and installation of Carrier's transmittinglreceiving equipment not less than ten (10) business days prior to such date. Any change to the Carrier's approved antenna type and location and/or change in transmitter types and power output shall be made compatible with Tenant's use of the Reservoir at Carrier's sole expense. In the event Tenant experiences interference with a Carrier in the use of the Premises and the Antenna Facilities, Landlord will make its best effort to assist Tenant in resolving such interference. Tenant shall, at its expense, comply with all applicable present and future federal, state, and local laws, ordinances, rules and regulations (including laws and ordinances relating to health, radio frequency emissions, other radiation and safety) in connection with the use, operation, maintenance, construction and/or installation of the Antenna Facilities and/or the Owned Premises. Landlord agrees to reasonably cooperate with Tenant in obtaining, at Tenant's expense (including reimbursement of Landlord's reasonable attorney and administrative fees), any federal, state and local licenses and permits required for or required by Tenant's use of the Leased Premises. Tenant shall exercise due diligence in utilizing the Owned Premises so as to not interfere with utilization of the Owned Premises by Landlord, and Tenant agrees to comply with the terms and provisions of this Lease and the CUP. It is understood by Tenant that Landlord's principal use of the Owned Premises is as a water storage reseryoir and as a part of the water transmission system of Landlord and that it is necessary to maintain adequate security at all times for the primary utilization of the Owned Premises by Landlord. Tenant has been advised and understands that Landlord has a radio controlled telemetry system for the Reservoir and Tenant agrees not to create any interference of any kind with Landlord's signals and further agrees to promptly, upon receipt of written notice and supporting evidence from Landlord, correct any interference that may result from Tenant's equipment or to promptly cease all operations of Tenant's equipment (except for intermittent testing) until non-interference with Landlord's telemetry equipment has been obtained. 4 April 26, 2005 Item #..r::L 7 of 45 Tenant's installation, operation, and maintenance of the Antenna Facilities shall not damage or interfere in any way with Landlord's operations or related repair and maintenance activities. Tenant agrees to cease all such actions which materially interfere with Landlord's use of the Reservoir or Owned Premises promptly upon Tenant's receipt of actual written notice of such interference, provided, however, in such case, Tenant shall have the right to terminate this Lease pursuant to the provisions of Section 6 herein. Landlord, at all times during this Lease, reserves the right to take any action it deems necessary, in its sole discretion and for any reason, to repair, maintain, alter or improve the Owned Premises of which the Reservoir is a part, in connection with its operations as may be necessary including leasing parts of the Reseryoir or Owned Premises to others as provided herein. 6. Termination. This Lease may be terminated, without liability to either party, (a) by Tenant upon ninety (90) days' written notice if it is unable to obtain or maintain any license, permit, or other Governmental Approval necessary for the construction and/or operation of the Antenna Facilities or Tenant's business; or (b) by Landlord if Landlord decides, in its sole discretion and for any reason, to discontinue use of the Reservoir and/or Owned Premises and provides Tenant with a one hundred eighty (180) day notice of termination; or (c) by Landlord upon thirty (30) days' written notice if it determines, in its sole discretion and for any reason, that the Reservoir and/or Owned Premises is not safe for Tenant's use; or(d) immediately by Landlord if it determines in its reasonable and qualified discretion that continued use of the Reservoir or Owned Premises by Tenant is in fact a threat to health, safety or welfare or violates applicable laws or ordinances and ten (10) days after receiving written notice from Landlord, Tenant fails to resolve issue; or (e) by Tenant upon sixty (60) days' prior written notice if Tenant determines that interference by or to Tenant's use of Premises cannot be resolved to Tenant's reasonable satisfaction; or (f) by Landlord upon ninety (90) days' prior written notice if Landlord determines that interference by or to Landlord's use of Premises cannot be resolved to Landlord's reasonable satisfaction; or (g) by Tenant upon ninety (90) days' written notice if, due to technological changes, Tenant determines that it is no longer practical to use the Premises for Tenant's intended purposes, provided Tenant has removed Antenna Facilities from the Premises by that time. If the Reservoir, Owned Premises or Leased Premises, or any portion thereof, is altered, destroyed or damaged so as to materially hinder effective use of the Antenna Facilities through no fault or negligence of Tenant, Tenant may elect to terminate this Lease upon thirty (30) days' written notice to Landlord. Landlord shall have no obligation to undertake any repair to the Reservoir or Owned Premises. If this Lease is terminated by Landlord due to a material breach by Tenant of one of Tenant's obligations herein, the termination shall be effective thirty (30) calendar days from the date of delivery of written notice of termination. 5 April 26, 2005 Item #n 8 of 45 Upon termination of this Lease for any reason, Tenant shall remove its equipment, personal property, Antenna Facilities, and leasehold improvements from the Premises within 30 days after the date of termination, and shall restore the Leased Premises to the same condition as existed prior to this Lease, ordinary wear and tear excepted; all at Tenant's sole cost and expense. Any such property, equipment or Antenna Facilities not removed within thirty (30) days of Lease termination, may be removed by Landlord and stored on behalf of Tenant at Tenant's sole expense and Tenant may be charged for the reasonable, actual and documented cost of removal. Notice of Termination of this Lease for any reason shall be given pursuant to Section 25 below. 7. Construction Standards. The Antenna Facilities shall be installed on the Premises in a good and workmanlike manner, without the attachment of any construction liens, and in compliance with the terms and conditions of the CUP and this Lease. 8. Installation of Eauipment. a. Tenant shall have the right, at its sole cost and expense, to install, operate and maintain on the Premises, in accordance with good engineering practices and with all applicable FCC and CPUC rules and regulations, the Antenna Facilities as described in Exhibit C. Tenant may not add additional equipment and/or antennas from that shown on Exhibit C without the prior written approval of Landlord, which may require an amendment of the CUP. b. Tenant's installation of the Antenna Facilities shall be done according to plans approved by Landlord and in compliance with the conditions of approval for the CUP. Any damage done to the Reservoir or Owned Premises during installation and/or during operations shall be repaired or replaced promptly at Tenant's expense. In connection with the installation and operation of the Antenna Facilities, Tenant shall not locate or attach any antennas or other equipment to the Reservoir tank except that approved by the CUP. The installation methods for the Antenna Facilities or other equipment to the Reseryoir tank must be done in a manner that will be compatible with the cathodic protection of the Reservoir tank and all other City facilities and equipment located on the Owned Premises and in compliance with the terms and conditions of the CUP. c. Within thirty (30) days after final inspection of the Antenna Facilities, Tenant shall provide Landlord with as-built drawings of the Antenna Facilities and the improvements installed on the Premises, which show the actual location of all equipment and improvements consistent with Exhibit C. 6 April 26, 2005 Item # 1'1 90f45 d. Any change to Tenant's approved antenna type, number of antennas, antenna location andlor change in transmitter type and power output shall require the prior written approval of Landlord, which may include an amendment of the CUP, and shall, at the sole expense of Tenant, be made in accordance with applicable regulations issued by the FCC and/or the CPUC. If Tenant's plans and specifications are approved by Landlord, Landlord shall notify all other tenants of the Reservoir in writing as to the scheduled date and time of commencement of construction on installation of Tenant's modified equipment not less than ten (10) days prior to such date. 9. Eouipment Uporade. Tenant may update or replace the Antenna Facilities from time to time with the prior written approval of Landlord, provided that the replacement facilities are not greater in number or size than the existing facilities and that any change in their location on the Reseryoir or Premises is approved in writing by Landlord. Such equipment upgrades may also require an amendment of the CUP . Tenant shall submit to Landlord a detailed proposal for any such replacement facilities and any supplemental materials as may be reasonably requested, for Landlord's evaluation and determination. 10. Maintenance and Operations. a. Tenant shall, at its own expense, maintain the Premises and any equipment on or attached to the Premises in a safe condition, in good repair and in a manner suitable to Landlord so as not to conflict with the use of or other leasing of the Reservoir and Owned Premises by Landlord. b. Tenant shall have sole responsibility for the maintenance, repair, and security of its equipment, personal property, Antenna Facilities, and leasehold improvements, and shall keep the same in good repair and condition during the Lease term. c. Tenant shall keep the Premises free of debris and anything of a dangerous, noxious or offensive nature or which would create a hazard or undue vibration, heat, noise or interference. d. In the event Landlord or any other tenant undertakes painting, construction or other alterations on the Reseryoir or Owned Premises, Tenant shall take reasonable measures at Tenant's cost to cover Tenant's equipment, personal property or Antenna Facilities and protect such from paint and debris fallout which may occur during the painting, construction or alteration process. Landlord and/or any tenant that is undertaking the work on the Reservoir or Owned Premises will give each other tenant at least fifteen (15) days written notice prior to commencing such work. 7 April 26, 2005 Item # 1'1 10 of 45 11. Premises Access. a. Tenant shall have both pedestrian and vehicular access to the Premises by means reasonably designated by Landlord, subject to notice requirements to Landlord in 11 b., below. b. Tenant shall have access to the Premises in order to install, operate, maintain and remove the Antenna Facilities only with the prior written approval of Landlord. Said written approval shall not be unreasonably withheld and may be obtained by fax. Tenant shall notify Landlord twenty-four (24) hours in advance of Tenant's access to the Premises, except in an emergency, in which case Tenant shall notify Landlord within twenty-four (24) hours after such emergency access. c. In the event Tenant requires access to the Premises outside of City's regular business hours (7:00 a.m. to 3:30 p.m., Monday through Friday), Tenant shall be billed for City's costs to provide such access. Costs shall include any overtime or call-out compensation to which an employee facilitating Tenant access may be entitled, the cost of the vehicle, as well as an overhead charge. Tenant shall reimburse City for these costs within thirty (30) days of billing. d. Landlord shall be allowed and granted access to the Premises at reasonable times to examine and inspect the Premises for safety reasons or to ensure that Tenant's covenants are being met, as long as Tenant's equipment, technology and proprietary interests remain secure and the operation of the Antenna Facilities is not adversely affected. 12. Utilities. Tenant shall, at its expense, separately meter charges for the consumption of electricity and other utilities associated with its use of the Leased Premises and shall timely pay all costs associated therein. 13. Approvals: Comoliance with Laws. This Lease, Tenant's obligations under this Lease and Tenant's use of the Premises is contingent upon Tenant's ability to obtain and maintain all necessary governmental licenses, permits, and approvals and pay all fees in connection therewith that may be required by any federal, state or local authority ("Governmental Approvals"), including Landlord. Landlord makes no representation, commitment or obligation, as to Tenant's success in obtaining the required Governmental Approvals. Tenant shall erect, maintain and operate the Antenna Facilities in accordance with statutes, ordinances, rules and regulations now in effect or that may be issued thereafter by the FCC or any other governing bodies. 8 April 26, 2005 Item #n 11 of 45 14. Interference. Before approving the placement of Antenna Facilities, Landlord may obtain from Tenant, at Tenant's expense an interference study indicating whether Tenant's intended use will interfere with any existing communications facilities on the Reservoir or Owned Premises and an engineering study indicating whether the Reservoir or Premises is able to structurally support Tenant's Antenna Facilities without prejudice to Landlord's primary use of the Reservoir. After review of Tenant's study, Landlord may, in its sole discretion, determine that a third party study is necessary and Landlord may obtain such study at Tenant's expense. Tenant shall be responsible for installing any equipment, at its own expense, reasonably required by Landlord to eliminate any interference that may be caused by the location of the radio transmitting or other equipment of all parties existing on the Reservoir prior to the Commencement Date including, but not limited to, Landlord and other Carriers on the Owned Premises. Tenant's use and operation of the Antenna Facilities shall not interfere with the use and operation of other communication facilities on the Reseryoir or Owned Premises which pre-existed the Antenna Facilities. If the Antenna Facilities cause interference, Tenant shall take all measures reasonably necessary to correct and eliminate the interference. If the interference cannot be eliminated in a reasonable time, Tenant shall immediately cease operating its facility (other than intermittent testing) until the interference has been eliminated. If the interference cannot be eliminated within thirty (30) days after Tenant receives written notice from Landlord of such interference, Landlord or Tenant may terminate this Lease pursuant to Section 6 herein. 15. Lease and Landlord's Remedies. It shall be a default if Tenant fails to pay Rent or any other sums to Landlord when due, and does not cure such default within ten (10) business days after receipt of written notice from Landlord; or if Tenant fails to obtain the necessary Governmental Approvals; or if Tenant defaults in the performance of any other covenant or condition of this Lease and does not cure such other default within thirty (30) days after receipt of written notice from Landlord specifying the default complained of; or if Tenant abandons or vacates the Premises; or if Tenant is adjudicated bankrupt and the bankruptcy proceeding is not dismissed within ninety (90) days from its commencement or makes any assignment for the benefit of creditors; or if Tenant becomes insolvent. In the event of a default and following the applicable cure period if the default remains uncured, Landlord shall have the right, at its option, in addition to and not exclusive of, any other remedy Landlord may have by operation of law, without any further demand or notice, to reenter the Premises and eject all persons therefrom, and either (a) declare this Lease at an end, in which event Tenant shall immediately pay Landlord a sum of money equal to the total of (i) the amount of the unpaid Rent accrued through the date of termination; (ii) the amount by which the unpaid Rent reserved for the balance of the term exceeds the amount of such rental loss that Tenant proves 9 April 26, 2005 Item #fl 12 of 45 could be reasonably avoided (net of the costs of such reletting); and (iii) any other amount necessary to compensate Landlord for all detriment proximately caused by Tenant's failure to perform its obligations under this Lease, or (b) without terminating this Lease, relet the Premises, or any part thereof, for the account of Tenant upon such terms and conditions as Landlord may deem advisable, and any monies received from such reletting shall be applied first to the expenses of such reletting and collection, including reasonable attorneys' fees, and thereafter toward payment of all sums due or to become due Landlord hereunder, and if a sufficient sum shall not be thus realized to pay such sums and other charges, Tenant shall pay Landlord any deficiency monthly, notwithstanding that Landlord may have received rental in excess of the rental stipulated in this Lease in previous or subsequent months, and Landlord may bring an action therefor as such monthly deficiency shall arise. No reentry and taking of possession of the Premises by Landlord shall be construed as an election on Landlord's part to terminate this Lease, regardless of the extent of renovations and alterations by Landlord, unless a written notice of such intention is given to Tenant by Landlord. Notwithstanding any reletting without termination, Landlord may at any time thereafter elect to terminate this Lease for such previous breach. 16. Cure bv Landlord. In the event of any default of this Lease by Tenant, Landlord may at any time, after delivering at least thirty (30) days' prior written notice to Tenant, cure the default for the account of and at the expense of Tenant. If Landlord incurs any expense to cure such default, Tenant shall reimburse Landlord for such expense. 17. Condemnation. In the event the Premises are taken by eminent domain by the City of Poway or any other governmental agency, this Lease shall terminate as of the date possession of the Premises is taken by the condemning authority. In the event a portion of the Premises is taken by eminent domain, either party shall have the right to terminate this Lease as of the date of transfer of possession, by giving thirty (30) days' written notice to the other party. In the event of any taking under the power of eminent domain, Tenant shall not be entitled to any portion of the award paid for the taking (except for relocation expenses) and Landlord shall otherwise receive the full amount of such award. Except as herein provided, Tenant hereby expressly waives any right or claim to any portion thereof, including any claim for loss of business or goodwill. All damages, whether awarded as compensation for diminution in value of the leasehold or to the fee of the Premises, shall belong to Landlord. 18. Indemnitv and Insurance. a. Disclaimer of Liabilitv: Landlord shall not at any time be liable for injury or damage occurring to any person or property from any cause whatsoever arising out of Tenant's construction, maintenance, repair, use, operation, condition or dismantling of the Premises or the Antenna Facilities. 10 April 26, 2005 Item # 1 '1 13 of 45 b. Indemnification: Tenant shall, at its sole cost and expense, indemnify and hold harmless Landlord and all associated, affiliated, allied and subsidiary entities of Landlord, now existing or hereinafter created, and their respective officers, boards, employees, agents, attorneys, and contractors (hereinafter referred to as "Indemnitees"), from and against: i. Any and all liability, obligation, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants), which may be imposed upon, incurred by or be asserted against the Indemnitees by reason of any act or omission of Tenant, its personnel, employees, agents, contractors or subcontractors, resulting in personal injury, bodily injury, sickness, disease or death to any person or damage to, loss of or destruction of tangible or intangible property, libel, slander, invasion of privacy and unauthorized use of any trademark, trade name, copyright, patent, service mark or any other right of any person, firm or corporation, which may arise out of or be in any way connected with the construction, installation, operation, maintenance, use or condition of the Owned Premises, Leased Premises or Antenna Facilities or the Tenant's failure to comply with any federal, state or local statute, ordinance or regulation. ii. Any and all liabilities, obligations, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitations, reasonable fees and expenses of attorneys, expert witnesses and other consultants), which are imposed upon, incurred by or asserted against the Indemnitees by reason of any claim or lien arising out of work, labor, materials or supplies provided or supplied to Tenant, its contractors or subcontractors, for the installation, construction, operation, maintenance or use of the Premises or Antenna Facilities, and, upon the written request of Landlord, Tenant shall cause such claim or lien covering Landlord's property to be discharged or bonded within thirty (30) days following such request. iii. Any and all liability, obligation, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants), which may be imposed upon, incurred by or be asserted against the Indemnitees by reason of any financing or securities offering by Tenant or its affiliates which results in any violations of the common law or any laws, statutes, or regulations of the State of California, or United States, including those of the Federal Securities and Exchange Commission. iv. Tenant's obligation to indemnify Indemnitees under this Lease shall not extend to claims, losses, and other matters covered hereunder that are caused by the negligence of one or more Indemnitees. 11 April 26, 2005 Item #...r:L 14 of 45 c. Assumption of Risk. Tenant undertakes and assumes for its officers, agents, affiliates, contractors and subcontractors and employees (collectively "Tenant" for the purpose of this section), all risk of dangerous conditions, if any, on or about the Premises, and Tenant hereby agrees to indemnify and hold harmless the Landlord against and from any claim asserted or liability imposed upon the Indemnitees for personal injury or property damage to any person (other than from Indemnitee's gross negligence) arising out of the Tenant's installation, operation, maintenance, condition or use of the Premises or Tenant's Antenna Facilities or Tenant's failure to comply with any federal, state or local statute, ordinance or regulation. d. Defense of Landlord. In the event any action or proceeding shall be brought against the Landlord by reason of any matter for which the Landlord is indemnified hereunder, Tenant shall, upon receipt of written notice from Landlord, at Tenant's sole cost and expense, resist and defend the same with legal counsel mutually selected by Tenant and Landlord; provided however, that Tenant shall not admit liability in any such matter on behalf of the Landlord without the prior written consent of Landlord and provided further that Landlord shall not admit liability for, nor enter into any compromise or settlement of, any claim for which it is indemnified hereunder, without the prior written consent of Tenant. e. Notice, Cooperation and Expenses. Landlord shall give Tenant prompt written notice of the making of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this Section. Nothing herein shall be deemed to prevent Landlord from cooperating with Tenant and participating in the defense of any litigation by Landlord's own counsel. Tenant shall pay all expenses incurred by Landlord in response to any such actions, suits or proceedings. These expenses shall include all out-of-pocket expenses such as attorney fees and shall also include the reasonable value of any services rendered by the Landlord's attorney, and the actual expenses of Landlord's agents, employees or expert witnesses and disbursements and liabilities assumed by Landlord in connection with such suits, actions or proceedings but shall not include attorneys' fees for services that are unnecessarily duplicative of services provided Landlord by Tenant. If Tenant requests Landlord to assist it in such defense then Tenant shall pay all expenses incurred by Landlord in response thereto, including defending itself with regard to any such actions, suits or proceedings. These expenses shall include all out- of-pocket expenses such as reasonable attorney fees and shall also include the reasonable costs of any services rendered by the Landlord's attorney, and the actual and documented expenses of Landlord's agents, employees or expert witnesses, and disbursements and liabilities assumed by Landlord in connection with such suits, actions or proceedings, but shall not include attorneys fees for services that are unnecessarily duplicative of seryices provided Landlord by Tenant. f. Insurance. During the term of this Lease, Tenant shall maintain, or cause to be maintained, in full force and effect and at its sole cost and expense, the following types and limits of insurance: 12 April 26, 2005 Item #n 15 of 45 i. Workers' compensation insurance meeting applicable statutory requirements and employer's liability insurance with minimum limits of One Hundred Thousand Dollars ($100,000) for each accident. ii. Comprehensive commercial general liability insurance with minimum limits of Three Million Dollars ($3,000,000) as the combined single limit for each occurrence of bodily injury, personal injury and property damage. The policy shall provide blanket contractual liability insurance for all written contracts, and shall include coverage for products and completed operations liability, independent contractor's liability; coverage for property damage from perils of explosion, collapse or damage to underground utilities, commonly known as XCU coverage. iii. Automobile liability insurance covering all owned, hired, and non- owned vehicles in use by Tenant, its employees and agents, with personal protection insurance and property protection insurance to comply with the provisions of state law with minimum limits of Two Million Dollars ($2,000,000) as the combined single limit for each occurrence for bodily injury and property damage. iv. At the start of and during the period of any construction, builders all-risk insurance, together with an installation floater or equivalent property coverage covering cables, materials, machinery and supplies of any nature whatsoever which are to be used in or incidental to the construction. Upon completion of the construction, Tenant shall substitute for the foregoing insurance policies of fire, extended coverage and vandalism and malicious mischief insurance. The amount of insurance at all times shall be representative of the insurable values installed or constructed. v. All policies other than those for Workers' Compensation shall be written on an occurrence and not on a claims made basis. vi. The coverage amounts set forth above may be met by a combination of underlying and umbrella policies so long as in combination the limits equal or exceed those stated. vii. Tenant shall furnish certificates of insurance to Landlord before commencement of any work on the Leased Premises or Owned Premises. 13 April 26, 2005 Item #-LL 16 of 45 g. Additional Insureds. All policies, except for business interruption and worker's compensation policies, shall name Landlord and all associated, affiliated, allied and subsidiary entities of Landlord, now existing or hereafter created, and their respective officers, boards, commissions, employees, agents and contractors, as their respective interests may appear as additional insureds (herein referred to as the "Additional Insureds"). Each policy which is to be endorsed to add Additional Insureds hereunder, shall contain cross-liability wording, as follows: "In the event of a claim being made hereunder by one insured for which another insured is or may be liable, then this policy shall cover such insured against whom a claim is or may be made in the same manner as if separate policies had been issued to each insured hereunder." h. Evidence of Insurance. Certificates of insurance for each insurance policy required to be obtained by Tenant in compliance with this Section, shall be filed and maintained with Landlord annually during the term of this Lease. Tenant shall promptly advise Landlord in writing of any claim or litigation that may result in liability to Landlord. i. Cancellation of Policies of Insurance. All insurance policies maintained pursuant to this Lease shall contain the following endorsement: "At least sixty (60) days' prior written notice shall be given to Landlord by the insurer of any intention not to renew such policy or to cancel, such notice to be given by U.S. registered mail to the Landlord or certificate holder named in this policy." j. Deductibles. Tenant agrees to indemnify and save harmless Landlord, the Indemnitees and Additional Insureds from and against the payment of any deductible and from the payment of any premium on any insurance policy required to be furnished by this Lease. k. Contractors. Tenant and Landlord shall each require that each and every one of its contractors and their subcontractors who perform work on the Owned Premises or Leased Premises to carry, in full force and effect, workers' compensation, comprehensive public liability and automobile liability insurance coverages of the type which the insured is required to obtain under the terms of this Section with appropriate limits of insurance. 19. Hazardous Substance Indemnification. Tenant represents and warrants that its use of the Premises herein will not generate any hazardous substance, and it will not store or dispose on the Premises nor transport to or over the Premises any hazardous substance in violation of any applicable local, state or federal law or regulation. Tenant shall be allowed to store on the Premises the number of batteries as shown in Exhibits Band C of this Lease. The batteries shown on the Exhibits are to be used for emergency backup power. No additional batteries may be stored on the Premises without the prior written approval of Landlord. Tenant further agrees to hold Landlord harmless from and indemnify Landlord against any release of any such hazardous 14 April 26, 2005 Item #...r:L 17 of 45 substance and any damage, loss, or expense or liability resulting from such release including reasonable attorneys' fees, costs and penalties incurred as a result thereof except any release caused by the negligence of Landlord, its employees, agents or contractors. "Hazardous substance" shall be interpreted broadly to mean any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic material, hazardous or toxic or radioactive substance or other similar term by any federal, state or local environmental law, regulation or rule presently in effect or promulgated in the future, as such laws, regulations or rules may be amended from time to time; and it shall be interpreted to include, but not be limited to, any substance which after release into the environment will or may reasonably be anticipated to cause sickness, death or disease. 20. Radio Freouencv (RF) Indemnification. Tenant shall comply with all present and future applicable laws, orders, and regulations relating to Radio Frequency ("RFs") to the extent required by current or future Federal Communications Commission regulations. 21. Holdina Over. Any holding over after the expiration of the term hereof with the consent of Landlord shall be construed to be a tenancy from month to month at two times the rents herein specified (prorated on a monthly basis) and shall otherwise be for the term and on the conditions herein specified, so far as applicable. 22. Subordination to Mortaaae. Any mortgage now or subsequently placed upon any property of which the Premises are a part shall be deemed to be prior in time and senior to the rights of Tenant under this Lease. Tenant subordinates all of its interest in the leasehold estate created by this Lease to the lien of any such mortgage. Tenant shall, upon receipt of Landlord's written request, execute any additional documents reasonably necessary to effectuate this subordination. 23. Aaoreoate Payment. With the execution of this Lease, Tenant shall pay Landlord the sum of Five Thousand Dollars ($5,000). This Aggregate Payment is a one-time payment and is in addition to Rent. 24. Acceptance of Premises. By taking possession of the Premises, Tenant accepts the Premises in the condition existing as of the Commencement Date. Landlord makes no representation or warranty with respect to the condition of the Premises and, except as provided by applicable law, Landlord shall not be liable for any latent or patent defect in the Premises. 25. Notices. All notices, requests, demands, and other communications hereunder shall be in writing and shall be deemed given as of the date of such service or mailing if personally delivered, mailed, certified mail, return receipt requested or sent by a nationally recognized overnight courier; to the following addresses: 15 18 of 45 April 26, 2005 Item #.J:L If to Landlord, to: James L. Bowersox City Manager City of Poway P.O. Box 789 Poway, California 92074-0789 With a copy to: Tina M. White Revenue & Business Activity Manager City of Poway P.O. Box 789 Poway, California 92074-0789 If to Tenant, to: Sprint PCS Assets, L.L.C. 4683 Chabot Drive, Suite 100 Pleasanton, California 94588-2715 Attn: Lease Management With a copy to: Sprint Law Department 6391 Sprint Parkway MailStop: KSOPHT0101-22020 Overland Park, Kansas 66251-2020 Attn: Sprint Real Estate Attorney 26. Assianment. Tenant may assign this Lease and all or any rights, benefits, liabilities and obligations hereunder, to: (i) any person or entity which is a parent, subsidiary or affiliate of Tenant; (ii) any person or business entity that controls or is controlled by or under common control with Tenant; or (iii) any person or business entity that is merged or consolidated with Tenant or purchases a majority or controlling interest in the ownership or assets of Tenant. Upon notification to Landlord by Tenant of any such assignment, Tenant will be relieved of all future performance, liabilities and obligations under this Lease to the extent of such assignment. Tenant may not otherwise assign or sublet this Lease without Landlord's written consent, which consent shall not be unreasonably withheld, conditioned or delayed. 27. Successors and Assions. This Lease shall be binding upon and inure to the benefit of the parties, their respective successors, personal representatives and assigns. 28. Miscellaneous. a. Landlord and Tenant represent and warrant to each other that each, respectively, has full right, power, and authority to execute this Lease. b. This Lease constitutes the entire agreement and understanding of the parties and supersedes all offers, negotiations, and other agreements of any kind. There are no representations or understandings of any kind not set forth herein. Any 16 April 26, 2005 Item # I ~ 19 of 45 modifications of or amendment to this Lease must be in writing and executed by both parties. c. This Lease shall be construed in accordance with the laws of the State of California. d. If any term of this Lease is found to be void or invalid, such invalidity shall not affect the remaining terms of this Lease, which shall continue in full force and effect. e. Landlord represents and warrants to Tenant that: (i) it solely owns the Owned Premises as a lot in fee simple, unencumbered by any liens, restrictions, mortgages, covenants, conditions, easements, leases, agreements, of record or not of record, which would adversely affect Tenant's intended use and enjoyment of the Premises under this Lease; and (ii) as long as Tenant is not in default, Landlord grants to Tenant sole, actual, quiet and peaceful use, enjoyment and possession of the Premises. f. Limitation on Applicabilitv. Notwithstanding any language in this Lease, the terms and conditions herein shall apply only to the Reservoir and the Premises described above. Nothing in this Lease shall be interpreted to affect the parties' right and obligations regarding other properties, sites, facilities or proposed projects of Tenant. This Lease was executed as of the date first set forth above. LANDLORD: City of Poway TENANT: Sprint pes Assets, L.L.C. By: By: Michael P. Cafagna, Mayor Approved as to form: By: Tamara A. Smith, City Attorney Attest: By: L. Diane Shea, City Clerk 17 April 26, 2005 Item #fl. 20 of 45 EXHIBIT A LEGAL DESCRIPTION OF OWNED PREMISES 21 of 45 April 26, 2005 Item #n EXHIBIT B SITE PLAN OF RESERVOIR 22 of 45 April 26, 2005 Item # \'1 EXHIBIT C DESCRIPTION OF ANTENNA FACILITIES 23 of 45 April 26, 2005 Item # Pl LEASE AGREEMENT This Lease Agreement ("Lease") is entered into this day of , 200_. by and between the City of Poway ("Landlord") and Sprint PCS Assets, L.L.C., a Delaware limited liability company (formerly known as Cox PCS Assets) ("Tenant"). Background A. Landlord is the owner in fee simple of a parcel of land located in the City of Poway, San Diego County, State of California, legally described on the attached Exhibit A (the "Owned Premises" or "Premises" as the context may require), on which a reseryoir is located. The street address of the Owned Premises is 13472 Celestial Road. B. Tenant desires to lease space on the Owned Premises for the installation and operation of certain antenna facilities and other related equipment and improvements ("Antenna Facilities") for use in connection with Tenant's communications business. C. Pursuant to Resolution No. P-04-88, Conditional Use Permit No. 04-08 for the Antenna Facilities (the CUP) was approved by the Poway City Council on November 9, 2004. E. Accordingly, the parties are entering into this Lease on the terms and conditions set forth below. Agreement In consideration of their mutual covenants, the parties agree as follows: 1. Leased Premises. Landlord leases to Tenant and Tenant leases from Landlord on a non-exclusive basis a portion of the Owned Premises, including space on the Reseryoir and Reseryoir Site (the "Reservoir"), as shown on the Site Plan attached as Exhibit B (the "Leased Premises" or "Premises" as the context may require). Tenant intends to locate the Antenna Facilities on the Leased Premises as described more fully on the attached Exhibit C. Tenant may not add additional equipment and/or antennas from that shown on Exhibit C without the prior written approval of Landlord, which may include the requirement to amend the CUP. Landlord reserves the right to require Tenant to relocate its facilities to another location on the Reseryoir and/or Owned Premises. Any such relocation shall be limited to one time only during the term of this Lease, including any options. Tenant shall complete the relocation of its facilities within sixty (60) days after Tenant's receipt of written notice from Landlord. During such period of relocation, Landlord shall allow Tenant to install temporary facilities sufficient to maintain Tenant's operations. Tenant must remove such temporary facilities from the Premises after Tenant's relocation is 24 of 45 April 26, 2005 Item # l" complete. In no event will temporary facilities remain on the Premises for more than sixty (60) days without the written permission of Landlord. The relocation shall be at Tenant's expense unless Landlord's relocation requirement results from Landlord's desire to lease space on the Reservoir or Leased Premises to non-governmental third- party users. In that case, Landlord will promptly reimburse Tenant for the reasonable relocation costs of Tenant. Relocation shall not result in a lessening of Tenant's ability to use the Leased Premises for its intended purpose, or the quality of such use. This Lease is not a franchise pursuant to Chapter 5.60 of the Poway Municipal Code nor is it a permit to use the rights-of-way under Chapter 12.04 of the Poway Municipal Code. Any such franchise or permit must be obtained separately from Landlord. This Lease shall not be interpreted as imposing, elevating validation, invalidating or in any way modifying any franchise license or permit requirement imposed, restricted, pre-empted or otherwise affected by local, state or federal law. 2. Term. The term of this Lease shall be five (5) years, commencing on the first day of the month following both (i) City Council approval of the CUP and (iI) execution of this Lease by the parties hereto (The "Commencement Date"). So long as Tenant is in compliance with the terms and conditions contained herein and the terms and conditions of the CUP, Tenant shall have three (3) five-year options to extend this Lease on the same terms and conditions, excluding Rent which shall be adjusted annually as set forth in Section 3.b. below. Each option shall be deemed exercised unless Tenant provides written notice of intent not to exercise the option at least ninety (90) days prior to the expiration of the then current five-year term. Notwithstanding such extension options, Tenant understands and acknowledges that conditions of approval of the CUP are subject to review and modification at any time by the City Council, after publiC hearing. 3. Rent. a. Tenant shall pay Landlord as annual initial rent for the Premises the sum of Twenty Six Thousand Two Hundred Fifty Six Dollars ($26,256) ("Rent"). Tenant shall pay Landlord Rent for the first year on the Commencement Date. Tenant shall pay Landlord Rent annually in advance on each annual anniversary of the Commencement Date. Rent shall be as follows: Year 2 Year 3 $27,569 $28,947 Year 4 Year 5 $ $ 30,395 31,915 b. Upon extension of this Lease a cost of living adjustment shall be applied to the rent, calculated as follows: 2 25 of 45 April 26, 2005 Item # \'1 Beginning with Year 6 following the Commencement Date, and annually thereafter on the anniversary of the Commencement Date, Rent shall be calculated by multiplying the amount of rent for the prior year by a fraction, the numerator of which is the Revised Consumer Price Index for All Urban Consumers, published by the U.S. Department of Labor, Bureau of Labor Statistics for the Los Angeles-Riverside-Orange County Area, All Items (1982-84 = 100), the ("CPI"), and the denominator of which is the CPI for the same calendar month of the prior year. Each such adjustment shall apply to the rent to be paid for that year until the next adjustment occurs. In no event shall the cost of living increase be less than three percent (3%) per year nor greater than eight percent (8%) per year. If the index is discontinued or revised during the term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the index had not been discontinued or revised, as determined by the Director of Administrative Seryices of the Landlord. c. Tenant shall pay Landlord a late payment charge equal to five percent (5%) of the Rent for any Rent not paid when due. Any amounts not paid when due shall bear interest until paid at the lesser of the rate of two percent (2%) per month or the highest rate permitted by law. d. For each additional antenna installed by Tenant beyond the initial array described in Exhibit C and approved by Landlord pursuant to Section 8 below, Tenant shall execute an amendment to this Lease and shall pay Landlord as additional Rent $200 per month for each additional antenna. The additional Rent shall increase annually under the same terms provided in this Lease and shall become part of the annual Rent. e. If this Lease is terminated at a time other than on the last day of the term, Rent shall be prorated as of the date of termination and, in the event of termination for any reason other than nonpayment of Rent, the balance of all prepaid Rents shall be refunded to Tenant within thirty (30) days of the date of termination. 4. Taxes. This Lease may result in a taxable possessory interest and be subject to the payment of property taxes. Tenant agrees to and shall pay before delinquency all taxes and assessments of any kind assessed or levied upon Tenant or the Premises by reason of this Lease or of any buildings, machines, or other improvements of any nature whatsoever erected, installed or maintained by Tenant or by reason of the business or other activities of Tenant upon or in connection with the Premises. Such taxes and assessments shall be in addition to Rent. 3 April 26, 2005 Item # 1'1 26 of 45 5. Use of Premises. Tenant shall use the Premises for the installation, operation, and maintenance of the Antenna Facilities for the transmission, reception and operation of a communications system and uses incidental thereto and for no other uses. Tenant may not add additional equipment and/or antennas from that shown on Exhibit C without the prior written approval of Landlord, which may require the amendment of the CUP, pursuant to Section 8 below. Landlord reserves the right to enter into agreements with other parties, including, but not limited to, wireless communication carriers (hereinafter "Carrier") for use of the Owned Premises. The Carrier will provide Landlord and Landlord will deliver to Tenant a certified evaluation indicating the antenna and other facilities will not interfere with Tenant's existing antennas, and the Reservoir and/or Reservoir Site can structurally support the additional antennas. If Carrier's plans and specifications are approved by Landlord, Landlord shall notify Tenant in writing as to the scheduled date and time of commencement of construction and installation of Carrier's transmittinglreceiving equipment not less than ten (10) business days prior to such date. Any change to the Carrier's approved antenna type and location andlor change in transmitter types and power output shall be made compatible with Tenant's use of the Reseryoir at Carrier's sole expense. In the event Tenant experiences interference with a Carrier in the use of the Premises and the Antenna Facilities, Landlord will make its best effort to assist Tenant in resolving such interference. Tenant shall, at its expense, comply with all applicable present and future federal, state, and local laws, ordinances, rules and regulations (including laws and ordinances relating to health, radio frequency emissions, other radiation and safety) in connection with the use, operation, maintenance, construction and/or installation of the Antenna Facilities and/or the Owned Premises. Landlord agrees to reasonably cooperate with Tenant in obtaining, at Tenant's expense (including reimbursement of Landlord's reasonable attorney and administrative fees), any federal, state and local licenses and permits required for or required by Tenant's use of the Leased Premises. Tenant shall exercise due diligence in utilizing the Owned Premises so as to not interfere with utilization of the Owned Premises by Landlord, and Tenant agrees to comply with the terms and provisions of this Lease and the CUP. It is understood by Tenant that Landlord's principal use of the Owned Premises is as a water storage reseryoir and as a part of the water transmission system of Landlord and that it is necessary to maintain adequate security at all times for the primary utilization of the Owned Premises by Landlord. Tenant has been advised and understands that Landlord has a radio controlled telemetry system for the Reseryoir and Tenant agrees not to create any interference of any kind with Landlord's signals and further agrees to promptly, upon receipt of written notice and supporting evidence from Landlord, correct any interference that may result from Tenant's equipment or to promptly cease all operations of Tenant's equipment (except for intermittent testing) until non-interference with Landlord's telemetry equipment has been obtained. 4 April 26, 2005 Item #~ 27 of 45 Tenant's installation, operation, and maintenance of the Antenna Facilities shall not damage or interfere in any way with Landlord's operations or related repair and maintenance activities. Tenant agrees to cease all such actions which materially interfere with Landlord's use of the Reservoir or Owned Premises promptly upon Tenant's receipt of actual written notice of such interference, provided, however, in such case, Tenant shall have the right to terminate this Lease pursuant to the provisions of Section 6 herein. Landlord, at all times during this Lease, reserves the right to take any action it deems necessary, in its sole discretion and for any reason, to repair, maintain, alter or improve the Owned Premises of which the Reseryoir is a part, in connection with its operations as may be necessary including leasing parts of the Reservoir or Owned Premises to others as provided herein. 6. Termination. This Lease may be terminated, without liability to either party, (a) by Tenant upon ninety (90) days' written notice if it is unable to obtain or maintain any license, permit, or other Governmental Approval necessary for the construction and/or operation of the Antenna Facilities or Tenant's business; or (b) by Landlord if Landlord decides, in its sole discretion and for any reason, to discontinue use of the Reservoir and/or Owned Premises and provides Tenant with a one hundred eighty (180) day notice of termination; or (c) by Landlord upon thirty (30) days' written notice if it determines, in its sole discretion and for any reason, that the Reservoir and/or Owned Premises is not safe for Tenant's use; or(d) immediately by Landlord if it determines in its reasonable and qualified discretion that continued use of the Reservoir or Owned Premises by Tenant is in fact a threat to health, safety or welfare or violates applicable laws or ordinances and ten (10) days after receiving written notice from Landlord, Tenant fails to resolve issue; or (e) by Tenant upon sixty (60) days' prior written notice if Tenant determines that interference by or to Tenant's use of Premises cannot be resolved to Tenant's reasonable satisfaction; or (f) by Landlord upon ninety (90) days' prior written notice if Landlord determines that interference by or to Landlord's use of Premises cannot be resolved to Landlord's reasonable satisfaction; or (g) by Tenant upon ninety (90) days' written notice if, due to technological changes, Tenant determines that it is no longer practical to use the Premises for Tenant's intended purposes, provided Tenant has removed Antenna Facilities from the Premises by that time. If the Reservoir, Owned Premises or Leased Premises, or any portion thereof, is altered, destroyed or damaged so as to materially hinder effective use of the Antenna Facilities through no fault or negligence of Tenant, Tenant may elect to terminate this Lease upon thirty (30) days' written notice to Landlord. Landlord shall have no obligation to undertake any repair to the Reseryoir or Owned Premises. If this Lease is terminated by Landlord due to a material breach by Tenant of one of Tenant's obligations herein, the termination shall be effective thirty (30) calendar days from the date of delivery of written notice of termination. 5 April 26, 2005 Item # 1"1 28 of 45 Upon termination of this Lease for any reason, Tenant shall remove its equipment, personal property, Antenna Facilities, and leasehold improvements from the Premises within 30 days after the date of termination, and shall restore the Leased Premises to the same condition as existed prior to this Lease, ordinary wear and tear excepted; all at Tenant's sole cost and expense. Any such property, equipment or Antenna Facilities not removed within thirty (30) days of Lease termination, may be removed by Landlord and stored on behalf of Tenant at Tenant's sole expense and Tenant may be charged for the reasonable, actual and documented cost of removal. Notice of Termination of this Lease for any reason shall be given pursuant to Section 25 below. 7. Construction Standards. The Antenna Facilities shall be installed on the Premises in a good and workmanlike manner, without the attachment of any construction liens, and in compliance with the terms and conditions of the CUP and this Lease. 8. Installation of Eauipment. a. Tenant shall have the right, at its sole cost and expense, to install, operate and maintain on the Premises, in accordance with good engineering practices and with all applicable FCC and CPUC rules and regulations, the Antenna Facilities as described in Exhibit C. Tenant may not add additional equipment and/or antennas from that shown on Exhibit C without the prior written approval of Landlord, which may require an amendment of the CUP. b. Tenant's installation of the Antenna Facilities shall be done according to plans approved by Landlord and in compliance with the conditions of approval for the CUP. Any damage done to the Reservoir or Owned Premises during installation andlor during operations shall be repaired or replaced promptly at Tenant's expense. In connection with the installation and operation of the Antenna Facilities, Tenant shall not locate or attach any antennas or other equipment to the Reservoir tank except that approved by the CUP. The installation methods for the Antenna Facilities or other equipment to the Reseryoir tank must be done in a manner that will be compatible with the cathodic protection of the Reservoir tank and all other City facilities and equipment located on the Owned Premises and in compliance with the terms and conditions of the CUP. c. Within thirty (30) days after final inspection of the Antenna Facilities, Tenant shall provide Landlord with as-built drawings of the Antenna Facilities and the improvements installed on the Premises, which show the actual location of all equipment and improvements consistent with Exhibit C. 6 April 26, 2005 Item # 11 29 of 45 d. Any change to Tenant's approved antenna type, number of antennas, antenna location andlor change in transmitter type and power output shall require the prior written approval of Landlord, which may include an amendment of the CUP, and shall, at the sole expense of Tenant, be made in accordance with applicable regulations issued by the FCC and/or the CPUC. If Tenant's plans and specifications are approved by Landlord, Landlord shall notify all other tenants of the Reseryoir in writing as to the scheduled date and time of commencement of construction on installation of Tenant's modified equipment not less than ten (10) days prior to such date. 9. Equipment Upqrade. Tenant may update or replace the Antenna Facilities from time to time with the prior written approval of Landlord, provided that the replacement facilities are not greater in number or size than the existing facilities and that any change in their location on the Reservoir or Premises is approved in writing by Landlord. Such equipment upgrades may also require an amendment of the CUP. Tenant shall submit to Landlord a detailed proposal for any such replacement facilities and any supplemental materials as may be reasonably requested, for Landlord's evaluation and determination. 10. Maintenance and Operations. a. Tenant shall, at its own expense, maintain the Premises and any equipment on or attached to the Premises in a safe condition, in good repair and in a manner suitable to Landlord so as not to conflict with the use of or other leasing of the Reservoir and Owned Premises by Landlord. b. Tenant shall have sole responsibility for the maintenance, repair, and security of its equipment, personal property, Antenna Facilities, and leasehold improvements, and shall keep the same in good repair and condition during the Lease term. c. Tenant shall keep the Premises free of debris and anything of a dangerous, noxious or offensive nature or which would create a hazard or undue vibration, heat, noise or interference. d. In the event Landlord or any other tenant undertakes painting, construction or other alterations on the Reservoir or Owned Premises, Tenant shall take reasonable measures at Tenant's cost to cover Tenant's equipment, personal property or Antenna Facilities and protect such from paint and debris fallout which may occur during the painting, construction or alteration process. Landlord and/or any tenant that is undertaking the work on the Reseryoir or Owned Premises will give each other tenant at least fifteen (15) days written notice prior to commencing such work. 7 April 26, 2005 Item # \ '1_ 30 of 45 11. Premises Access. a. Tenant shall have both pedestrian and vehicular access to the Premises by means reasonably designated by Landlord, subject to notice requirements to Landlord in 11 b., below. b. Tenant shall have access to the Premises in order to install, operate, maintain and remove the Antenna Facilities only with the prior written approval of Landlord. Said written approval shall not be unreasonably withheld and may be obtained by fax. Tenant shall notify Landlord twenty-four (24) hours in advance of Tenant's access to the Premises, except in an emergency, in which case Tenant shall notify Landlord within twenty-four (24) hours after such emergency access. c. In the event Tenant requires access to the Premises outside of City's regular business hours (7:00 a.m. to 3:30 p.m., Monday through Friday), Tenant shall be billed for City's costs to provide such access. Costs shall include any overtime or call-out compensation to which an employee facilitating Tenant access may be entitled, the cost of the vehicle, as well as an overhead charge. Tenant shall reimburse City for these costs within thirty (30) days of billing. d. Landlord shall be allowed and granted access to the Premises at reasonable times to examine and inspect the Premises for safety reasons or to ensure that Tenant's covenants are being met, as long as Tenant's equipment, technology and proprietary interests remain secure and the operation of the Antenna Facilities is not adversely affected. 12. Utilities. Tenant shall, at its expense, separately meter charges for the consumption of electricity and other utilities associated with its use of the Leased Premises and shall timely pay all costs associated therein. 13. Approvals: Compliance with Laws. This Lease, Tenant's obligations under this Lease and Tenant's use of the Premises is contingent upon Tenant's ability to obtain and maintain all necessary governmental licenses, permits, and approvals and pay all fees in connection therewith that may be required by any federal, state or local authority ("Governmental Approvals"), including Landlord. Landlord makes no representation, commitment or obligation, as to Tenant's success in obtaining the required Governmental Approvals. Tenant shall erect, maintain and operate the Antenna Facilities in accordance with statutes, ordinances, rules and regulations now in effect or that may be issued thereafter by the FCC or any other governing bodies. 8 31 of 45 April 26, 2005 Item #-fl- 14. Interference. Before approving the placement of Antenna Facilities, Landlord may obtain from Tenant, at Tenant's expense an interference study indicating whether Tenant's intended use will interfere with any existing communications facilities on the Reservoir or Owned Premises and an engineering study indicating whether the Reservoir or Premises is able to structurally support Tenant's Antenna Facilities without prejudice to Landlord's primary use of the Reservoir. After review of Tenant's study, Landlord may, in its sole discretion, determine that a third party study is necessary and Landlord may obtain such study at Tenant's expense. Tenant shall be responsible for installing any equipment, at its own expense, reasonably required by Landlord to eliminate any interference that may be caused by the location of the radio transmitting or other equipment of all parties existing on the Reservoir prior to the Commencement Date including, but not limited to, Landlord and other Carriers on the Owned Premises. Tenant's use and operation of the Antenna Facilities shall not interfere with the use and operation of other communication facilities on the Reseryoir or Owned Premises which pre-existed the Antenna Facilities. If the Antenna Facilities cause interference, Tenant shall take all measures reasonably necessary to correct and eliminate the interference. If the interference cannot be eliminated in a reasonable time, Tenant shall immediately cease operating its facility (other than intermittent testing) until the interference has been eliminated. If the interference cannot be eliminated within thirty (30) days after Tenant receives written notice from Landlord of such interference, Landlord or Tenant may terminate this Lease pursuant to Section 6 herein. 15. Lease and Landlord's Remedies. It shall be a default if Tenant fails to pay Rent or any other sums to Landlord when due, and does not cure such default within ten (10) business days after receipt of written notice from Landlord; or if Tenant fails to obtain the necessary Governmental Approvals; or if Tenant defaults in the performance of any other covenant or condition of this Lease and does not cure such other default within thirty (30) days after receipt of written notice from Landlord specifying the default complained of; or if Tenant abandons or vacates the Premises; or if Tenant is adjudicated bankrupt and the bankruptcy proceeding is not dismissed within ninety (90) days from its commencement or makes any assignment for the benefit of creditors; or if Tenant becomes insolvent. In the event of a default and following the applicable cure period if the default remains uncured, Landlord shall have the right, at its option, in addition to and not exclusive of, any other remedy Landlord may have by operation of law, without any further demand or notice, to reenter the Premises and eject all persons therefrom, and either (a) declare this Lease at an end, in which event Tenant shall immediately pay Landlord a sum of money equal to the total of (i) the amount of the unpaid Rent accrued through the date of termination; (ii) the amount by which the unpaid Rent reseryed for the balance of the term exceeds the amount of such rental loss that Tenant proves 9 April 26, 2005 Item # \ 1 32 of 45 could be reasonably avoided (net of the costs of such reletting); and (iii) any other amount necessary to compensate Landlord for all detriment proximately caused by Tenant's failure to perform its obligations under this Lease, or (b) without terminating this Lease, relet the Premises, or any part thereof, for the account of Tenant upon such terms and conditions as Landlord may deem advisable, and any monies received from such reletting shall be applied first to the expenses of such reletting and collection, including reasonable attorneys' fees, and thereafter toward payment of all sums due or to become due Landlord hereunder, and if a sufficient sum shall not be thus realized to pay such sums and other charges, Tenant shall pay Landlord any deficiency monthly, notwithstanding that Landlord may have received rental in excess of the rental stipulated in this Lease in previous or subsequent months, and Landlord may bring an action therefor as such monthly deficiency shall arise. No reentry and taking of possession of the Premises by Landlord shall be construed as an election on Landlord's part to terminate this Lease, regardless of the extent of renovations and alterations by Landlord, unless a written notice of such intention is given to Tenant by Landlord. Notwithstanding any reletting without termination, Landlord may at any time thereafter elect to terminate this Lease for such previous breach. 16. Cure bv Landlord. In the event of any default of this Lease by Tenant, Landlord may at any time, after delivering at least thirty (30) days' prior written notice to Tenant, cure the default for the account of and at the expense of Tenant. If Landlord incurs any expense to cure such default, Tenant shall reimburse Landlord for such expense. 17. Condemnation. In the event the Premises are taken by eminent domain by the City of Poway or any other governmental agency, this Lease shall terminate as of the date possession of the Premises is taken by the condemning authority. In the event a portion of the Premises is taken by eminent domain, either party shall have the right to terminate this Lease as of the date of transfer of possession, by giving thirty (30) days' written notice to the other party. In the event of any taking under the power of eminent domain, Tenant shall not be entitled to any portion of the award paid for the taking (except for relocation expenses) and Landlord shall otherwise receive the full amount of such award. Except as herein provided, Tenant hereby expressly waives any right or claim to any portion thereof, including any claim for loss of business or goodwill. All damages, whether awarded as compensation for diminution in value of the leasehold or to the fee of the Premises, shall belong to Landlord. 18. Indemnitv and Insurance. a. Disclaimer of Liabilitv: Landlord shall not at any time be liable for injury or damage occurring to any person or property from any cause whatsoever arising out of Tenant's construction, maintenance, repair, use, operation, condition or dismantling of the Premises or the Antenna Facilities. 10 April 26, 2005 Item # \ '1 33 of 45 b. Indemnification: Tenant shall, at its sole cost and expense, indemnify and hold harmless Landlord and all associated, affiliated, allied and subsidiary entities of Landlord, now existing or hereinafter created, and their respective officers, boards, employees, agents, attorneys, and contractors (hereinafter referred to as "Indemnitees"), from and against: i. Any and all liability, obligation, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants), which may be imposed upon, incurred by or be asserted against the Indemnitees by reason of any act or omission of Tenant, its personnel, employees, agents, contractors or subcontractors, resulting in personal injury, bodily injury, sickness, disease or death to any person or damage to, loss of or destruction of tangible or intangible property, libel, slander, invasion of privacy and unauthorized use of any trademark, trade name, copyright, patent, seryice mark or any other right of any person, firm or corporation, which may arise out of or be in any way connected with the construction, installation, operation, maintenance, use or condition of the Owned Premises, Leased Premises or Antenna Facilities or the Tenant's failure to comply with any federal, state or local statute, ordinance or regulation. ii. Any and all liabilities, obligations, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitations, reasonable fees and expenses of attorneys, expert witnesses and other consultants), which are imposed upon, incurred by or asserted against the Indemnitees by reason of any claim or lien arising out of work, labor, materials or supplies provided or supplied to Tenant, its contractors or subcontractors, for the installation, construction, operation, maintenance or use of the Premises or Antenna Facilities, and, upon the written request of Landlord, Tenant shall cause such claim or lien covering Landlord's property to be discharged or bonded within thirty (30) days following such request. iii. Any and all liability, obligation, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants), which may be imposed upon, incurred by or be asserted against the Indemnitees by reason of any financing or securities offering by Tenant or its affiliates which results in any violations of the common law or any laws, statutes, or regulations of the State of California, or United States, including those of the Federal Securities and Exchange Commission. iv. Tenant's obligation to indemnify Indemnitees under this Lease shall not extend to claims, losses, and other matters covered hereunder that are caused by the negligence of one or more Indemnitees. 11 April 26, 2005 Item # \ rt. 34 of 45 c. Assumption of Risk. Tenant undertakes and assumes for its officers, agents, affiliates, contractors and subcontractors and employees (collectively "Tenant" for the purpose of this section), all risk of dangerous conditions, if any, on or about the Premises, and Tenant hereby agrees to indemnify and hold harmless the Landlord against and from any claim asserted or liability imposed upon the Indemnitees for personal injury or property damage to any person (other than from Indemnitee's gross negligence) arising out of the Tenant's installation, operation, maintenance, condition or use of the Premises or Tenant's Antenna Facilities or Tenant's failure to comply with any federal, state or local statute, ordinance or regulation. d. Defense of Landlord. In the event any action or proceeding shall be brought against the Landlord by reason of any matter for which the Landlord is indemnified hereunder, Tenant shall, upon receipt of written notice from Landlord, at Tenant's sole cost and expense, resist and defend the same with legal counsel mutually selected by Tenant and Landlord; provided however, that Tenant shall not admit liability in any such matter on behalf of the Landlord without the prior written consent of Landlord and provided further that Landlord shall not admit liability for, nor enter into any compromise or settlement of, any claim for which it is indemnified hereunder, without the prior written consent of Tenant. e. Notice, CooDeration and Expenses. Landlord shall give Tenant prompt written notice of the making of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this Section. Nothing herein shall be deemed to prevent Landlord from cooperating with Tenant and participating in the defense of any litigation by Landlord's own counsel. Tenant shall pay all expenses incurred by Landlord in response to any such actions, suits or proceedings. These expenses shall include all out-of-pocket expenses such as attorney fees and shall also include the reasonable value of any seryices rendered by the Landlord's attorney, and the actual expenses of Landlord's agents, employees or expert witnesses and disbursements and liabilities assumed by Landlord in connection with such suits, actions or proceedings but shall not include attorneys' fees for services that are unnecessarily duplicative of services provided Landlord by Tenant. If Tenant requests Landlord to assist it in such defense then Tenant shall pay all expenses incurred by Landlord in response thereto, including defending itself with regard to any such actions, suits or proceedings. These expenses shall include all out- of-pocket expenses such as reasonable attorney fees and shall also include the reasonable costs of any services rendered by the Landlord's attorney, and the actual and documented expenses of Landlord's agents, employees or expert witnesses, and disbursements and liabilities assumed by Landlord in connection with such suits, actions or proceedings, but shall not include attorneys fees for services that are unnecessarily duplicative of services provided Landlord by Tenant. f. Insurance. During the term of this Lease, Tenant shall maintain, or cause to be maintained, in full force and effect and at its sole cost and expense, the following types and limits of insurance: 12 April 26, 2005 Item # \ '1 35 of 45 i. Workers' compensation insurance meeting applicable statutory requirements and employer's liability insurance with minimum limits of One Hundred Thousand Dollars ($100,000) for each accident. ii. Comprehensive commercial general liability insurance with minimum limits of Three Million Dollars ($3,000,000) as the combined single limit for each occurrence of bodily injury, personal injury and property damage. The policy shall provide blanket contractual liability insurance for all written contracts, and shall include coverage for products and completed operations liability, independent contractor's liability; coverage for property damage from perils of explosion, collapse or damage to underground utilities, commonly known as XCU coverage. iii. Automobile liability insurance covering all owned, hired, and non- owned vehicles in use by Tenant, its employees and agents, with personal protection insurance and property protection insurance to comply with the provisions of state law with minimum limits of Two Million Dollars ($2,000,000) as the combined single limit for each occurrence for bodily injury and property damage. iv. At the start of and during the period of any construction, builders all-risk insurance, together with an installation floater or equivalent property coverage covering cables, materials, machinery and supplies of any nature whatsoever which are to be used in or incidental to the construction. Upon completion of the construction, Tenant shall substitute for the foregoing insurance policies of fire, extended coverage and vandalism and malicious mischief insurance. The amount of insurance at all times shall be representative of the insurable values installed or constructed. v. All policies other than those for Workers' Compensation shall be written on an occurrence and not on a claims made basis. vi. The coverage amounts set forth above may be met by a combination of underlying and umbrella policies so long as in combination the limits equal or exceed those stated. vii. Tenant shall furnish certificates of insurance to Landlord before commencement of any work on the Leased Premises or Owned Premises. 13 April 26, 2005 Item # \ '1 36 of 45 g. Additional Insureds. All policies, except for business interruption and worker's compensation policies, shall name Landlord and all associated, affiliated, allied and subsidiary entities of Landlord, now existing or hereafter created, and their respective officers, boards, commissions, employees, agents and contractors, as their respective interests may appear as additional insureds (herein referred to as the "Additional Insureds"). Each policy which is to be endorsed to add Additional Insureds hereunder, shall contain cross-liability wording, as follows: "In the event of a claim being made hereunder by one insured for which another insured is or may be liable, then this policy shall cover such insured against whom a claim is or may be made in the same manner as if separate policies had been issued to each insured hereunder." h. Evidence of Insurance. Certificates of insurance for each insurance policy required to be obtained by Tenant in compliance with this Section, shall be filed and maintained with Landlord annually during the term of this Lease. Tenant shall promptly advise Landlord in writing of any claim or litigation that may result in liability to Landlord. i. Cancellation of Policies of Insurance. All insurance policies maintained pursuant to this Lease shall contain the following endorsement: "At least sixty (60) days' prior written notice shall be given to Landlord by the insurer of any intention not to renew such policy or to cancel, such notice to be given by U.S. registered mail to the Landlord or certificate holder named in this policy." j. Deductibles. Tenant agrees to indemnify and save harmless Landlord, the Indemnitees and Additional Insureds from and against the payment of any deductible and from the payment of any premium on any insurance policy required to be furnished by this Lease. k. Contractors. Tenant and Landlord shall each require that each and every one of its contractors and their subcontractors who perform work on the Owned Premises or Leased Premises to carry, in full force and effect, workers' compensation, comprehensive public liability and automobile liability insurance coverages of the type which the insured is required to obtain under the terms of this Section with appropriate limits of insurance. 19. Hazardous Substance Indemnification. Tenant represents and warrants that its use of the Premises herein will not generate any hazardous substance, and it will not store or dispose on the Premises nor transport to or over the Premises any hazardous substance in violation of any applicable local, state or federal law or regulation. Tenant shall be allowed to store on the Premises the number of batteries as shown in Exhibits Band C of this Lease. The batteries shown on the Exhibits are to be used for emergency backup power. No additional batteries may be stored on the Premises without the prior written approval of Landlord. Tenant further agrees to hold Landlord harmless from and indemnify Landlord against any release of any such hazardous 14 37 of 45 April 26, 2005 Item # 1'1 substance and any damage, loss, or expense or liability resulting from such release including reasonable attorneys' fees, costs and penalties incurred as a result thereof except any release caused by the negligence of Landlord, its employees, agents or contractors. "Hazardous substance" shall be interpreted broadly to mean any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic material, hazardous or toxic or radioactive substance or other similar term by any federal, state or local environmental law, regulation or rule presently in effect or promulgated in the future, as such laws, regulations or rules may be amended from time to time; and it shall be interpreted to include, but not be limited to, any substance which after release into the environment will or may reasonably be anticipated to cause sickness, death or disease. 20. Radio Frequency (RF) Indemnification. Tenant shall comply with all present and future applicable laws, orders, and regulations relating to Radio Frequency ("RFs") to the extent required by current or future Federal Communications Commission regulations. 21. HoldinQ Over. Any holding over after the expiration of the term hereof with the consent of Landlord shall be construed to be a tenancy from month to month at two times the rents herein specified (prorated on a monthly basis) and shall otherwise be for the term and on the conditions herein specified, so far as applicable. 22. Subordination to Mortoaoe. Any mortgage now or subsequently placed upon any property of which the Premises are a part shall be deemed to be prior in time and senior to the rights of Tenant under this Lease. Tenant subordinates all of its interest in the leasehold estate created by this Lease to the lien of any such mortgage. Tenant shall, upon receipt of Landlord's written request, execute any additional documents reasonably necessary to effectuate this subordination. 23. AOQreQate Payment. With the execution of this Lease, Tenant shall pay Landlord the sum of Five Thousand Dollars ($5,000). This Aggregate Payment is a one-time payment and is in addition to Rent. 24. Acceptance of Premises. By taking possession of the Premises, Tenant accepts the Premises in the condition existing as of the Commencement Date. Landlord makes no representation or warranty with respect to the condition of the Premises and, except as provided by applicable law, Landlord shall not be liable for any latent or patent defect in the Premises. 25. Notices. All notices, requests, demands, and other communications hereunder shall be in writing and shall be deemed given as of the date of such seryice or mailing if personally delivered, mailed, certified mail, retum receipt requested or sent by a nationally recognized ovemight courier; to the following addresses: 15 April 26, 2005 Item # \1 38 of 45 If to Landlord, to: James L. Bowersox City Manager City of Poway P.O. Box 789 Poway, California 92074-0789 With a copy to: Tina M. White Revenue & Business Activity Manager City of Poway P.O. Box 789 Poway, California 92074-0789 If to Tenant, to: Sprint PCS Assets, L.L.C. 4683 Chabot Drive, Suite 100 Pleasanton, California 94588-2715 Attn: Lease Management With a copy to: Sprint Law Department 6391 Sprint Parkway MailStop: KSOPHT0101-22020 Overland Park, Kansas 66251-2020 Attn: Sprint Real Estate Attorney 26. Assiqnment. Tenant may assign this Lease and all or any rights, benefits, liabilities and obligations hereunder, to: (i) any person or entity which is a parent, subsidiary or affiliate of Tenant; (ii) any person or business entity that controls or is controlled by or under common control with Tenant; or (Iii) any person or business entity that is merged or consolidated with Tenant or purchases a majority or controlling interest in the ownership or assets of Tenant. Upon notification to Landlord by Tenant of any such assignment, Tenant will be relieved of all future performance, liabilities and obligations under this Lease to the extent of such assignment. Tenant may not otherwise assign or sublet this Lease without Landlord's written consent, which consent shall not be unreasonably withheld, conditioned or delayed. 27. Successors and Assigns. This Lease shall be binding upon and inure to the benefit of the parties, their respective successors, personal representatives and assigns. 28. Miscellaneous. a. Landlord and Tenant represent and warrant to each other that each, respectively, has full right, power, and authority to execute this Lease. b. This Lease constitutes the entire agreement and understanding of the parties and supersedes all offers, negotiations, and other agreements of any kind. There are no representations or understandings of any kind not set forth herein. Any 16 39 of 45 April 26, 2005 Item # \1 modifications of or amendment to this Lease must be in writing and executed by both parties. c. This Lease shall be construed in accordance with the laws of the State of California. d. If any term of this Lease is found to be void or invalid, such invalidity shall not affect the remaining terms of this Lease, which shall continue in full force and effect. e. Landlord represents and warrants to Tenant that: (i) it solely owns the Owned Premises as a lot in fee simple, unencumbered by any liens, restrictions, mortgages, covenants, conditions, easements, leases, agreements, of record or not of record, which would adversely affect Tenant's intended use and enjoyment of the Premises under this Lease; and (Ii) as long as Tenant is not in default, Landlord grants to Tenant sole, actual, quiet and peaceful use, enjoyment and possession of the Premises. f. Limitation on Applicabilitv. Notwithstanding any language in this Lease, the terms and conditions herein shall apply only to the Reservoir and the Premises described above. Nothing in this Lease shall be interpreted to affect the parties' right and obligations regarding other properties, sites, facilities or proposed projects of Tenant. This Lease was executed as of the date first set forth above. LANDLORD: City of Poway TENANT: Sprint PCS Assets, L.L.C. By: By: Michael P. Cafagna, Mayor Approved as to form: By: Tamara A. Smith, City Attorney Attest: By: L. Diane Shea, City Clerk 17 April 26, 2005 Item # \'1 40 of 45 EXHIBIT A LEGAL DESCRIPTION OF OWNED PREMISES 41 of 45 April 26, 2005 Item # l'1 EXHIBIT B SITE PLAN OF RESERVOIR 42 of 45 April 26, 2005 Item # \'1 '........~ I "I I ' "~'.. . 0 ." ,. . 'i - CO~'\I!: .w, .: p:'~~~:U c; ;'~~- 1 il !.~1'8 R; 0 ~ f' II; ~ g .1"1 '- N IICclil21 c.o ~ ~t II ~ h Iii g I . .1.....1 I' _!),:z;. \ .! ~i 2~1: I a~e2 eti. ! hn tlz I i..13 I' ! r..!i f: It " ~ I'I~ ~< ".l~ .1 ~; 11 ~ i ~ m .;1 .1 ~! ~; 'f" !i~~ !il H ~~ II! Iii In !I !I -_.~_._.._..-.. ---, -.-. _.__..----.._.._.._~~ I, ~~ .~ ...... rh. . ./.... ~rOQ- _. ,. . ~&::::----...... ' ;'ih... . / " " . _~ "_ - <o!E,:) "1--- ,"-"-::::0.'-'_ ;' ......... . -..~- ; ..~~:::::--::: I I ...,s~.... ! -". \' f !, / \ 01 /j' . i ,I) \ . : Ii 'i I .' '.LroQOO/ ~.~ '~~ ; ~ ',> ''''" ...~. "'y/ l 1 ! - \ \ \ \ \ \ \ . i '"', . . , !h ! "~ ~!i Uh ~~ 3I<<1~d.O-.iZI'" 43 of 45 EXHIBIT "8" I) . . ~ II, ~ z ~ I:: . iad ~~! !<( ~ , . :---...... ...... -..... .,......... "'-. ..... ...... -..... .:---...... ..... ", ~. "- "- "- "- '''-" ',,- ',,- '. '. . , -r o~ '. "! ~. E~ ~ ~ '. '-> .. 0--"- u. - - ... . ~t;~~... g Ii ;; ~ ~ ~ z :5 .. W l- ii " e _." " ~ . EXHIBIT C DESCRIPTION OF ANTENNA FACILITIES 44 of 45 April 26, 2005 Item # \'1 ~ ~. f ~ ~ II i ~~~.;i" ~ - .....0 liis 0 0:: i . !II:~ 1<11 ~ ~ Cl JI~ !; h~uld s ~ i 11r ;1'~'.1 g ~ 'I \~" II , L . ,. ""1 1- "z .!~! ~~ I iai ~~Il! I:d l.I .:f-"'f.f;I! ~ ""'"f~. . ~ aJ" 5. ~ ~ '.~ 2z~ N ;~~ . ; Joe, · <t " Ii 5 I . a . ~J~U.=U~.~df r ~ ". "! . ~ ~I ........~ ".';~~ ~ --"- ---" '~ .~ . :. .::. -, no_ ".S:; ~ : ' , ''^'" -- :- ... ',~ ", ~' ~~,,~, .- , ',' ".. ~ .~ ':.w. . ~I dIu 1('51 ~ nil. e md EEl I ~ hi! ~ i!l~ el l~'i ~.. fl3ee ~~ hm --t. , 1M fll' . "ri ~ UI~ ! U!li EE> ,;{ I ,~_.----'-r' ; .+" . . . i . g 'r . , . I' _~M- 'OW lSYll ..ll-.!ll P ~il ~ i i ,~~l: "! ~ ~ s . i~i q Hi~ ~ I ~ ! H c Ii 8~8 ~ ": 5 ~ :. ~ J z z ~~i ~ t i:~~!" ~ . & . . ~ ~ ~ Ii I i M~ i~i M~ Id I i ~ c <S><S><S>0<S><S> <S><S><S>~~~ 45 of 45 EXHIBIT lie" April 26, 2005 Item # .. II ~ Ii I 11 . .. :l o >- c .. .. z " :e .. 5 G " . l! . i o < ~ \'1