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HomeMy WebLinkAbout2010/03/09 Item 4 CITY COUNCIL AGENDA STATEMENT SUBMITTED BY: ~\~ CITY OF .,. (HULA VISTA MARCH 9, 2010, ItemL RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING A MASTER COMMUNICATIONS SITE LICENSE AGREEMENT WITH CLEAR WIRELESS LLC, (CLEARWIRE) FOR THE INSTALLATION AND OPERATION OF AS MANY AS 25 WIRELESS TELECOMMUNICATIONS FACILITIES OR SUBST ANTIALL Y SIMILAR FACILITIES ON CITY- OWNED AND/OR CONTROLLED PROPERTY, SUBJECT TO ALL NECESSARY APPROVALS, FOR A PERIOD OF 10 YEARS WITH AN OPTION TO RENEW FOR AS MANY AS FOUR ADDITIONAL 5-YEAR TERMS; AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT ~ DIRECTOR OF CONSERVATION & ENVIRONMENT A SERVICES . ASSISTANT CIT~GER ~ CITY MANAGE- or 4/5THS VOTE: YES D NO II] ITEM TITLE: REVIEWED BY: SUMMARY Conservation & Environmental Services Department (CES) is submitting a Master Communications Site License Agreement (MLA) for the City Council's review and consideration. Adoption of the proposed resolution would establish a MLA between the City and Clear Wireless LLC, a Nevada limited liability company (Clearwire) for the installation of as many as 25 total wireless telephone facilities (WTF) on property owned and/or controlled by the City. The proposed MLA includes mutually beneficial and agreed upon terms that are consistent with those provided to other wireless carriers including, but not limited to, establishing a new MLA for one ten-year term with up to four additional five-year options that are subject to the City's review and approval. The MLA also provides an additional rent reduction incentive for a smaller site option. The City retains its preferred technical conditions and will receive an annual fee adjustment of 3% that maintains the 4-1 MARCH 9, 2010, ItemJ Page 2 of6 fees at market value and makes them comparable to other City MLA carriers relative to the size and impact of their facilities. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity, approval of a Master Licensing Agreement, for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060 (c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Although environmental review is not necessary at this time, each individual wireless telecommunication facility will have environmental review once the projects are further defined, and a CEQA determination will be completed prior to installation of any new facilities. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The City Council approved Resolution 18601 on March 18, 1997, conceptually approving the marketing of City properties for use by telecommunications companies. On September 16, 1999, the City Council approved Master License Agreements (MLA) with AT&T and Cox PCS, Assets, LLC for installation and operation of as many as 50 wireless communication sites on property owned and/or controlled by the City. The City also approved an MLA with Pacific Bell Wireless, LLC for as many as 25 sites in November 2002, with Cricket for as many as 35 sites in February 2006, with the New Cingular (AT&T) for as many as 25 sites in July 2007, with T-mobile for 25 sites in December 2007, and a "Network License and Encroachment Agreement" with NextG for up to 100 facilities on City streetlights in October 2009. In 1998, when the City began negotiations, Council originally directed staff to negotiate rates that would provide wireless carriers an incentive to come to Chula Vista. It was Council's desire at that time to see Chula Vista commercial and residential consumers have the opportunity to be early adopters of the technology and benefit from the competition of multiple carriers. Staff reached out to the industry, held workshops, and invited them to the City to structure "master" agreements that would provide prompt entry at below-market rates. Eleven years later, now that the technology is readily available and provides competitive options, Council has asked staff to ensure that the City is receiving market rates for its sites. Additionally, over a relatively short period of time, the technology has evolved from a unique business tool, used by a few people, primarily in commercial areas, to a common 4-2 MARCH 9, 2010, Item~ Page 3 of6 business and household convenience used almost everywhere. That has put tremendous demand on sites in predominantly residential areas with few site options. The increase in sites to cover the varied topography of a growing city increases exponentially by: 1) the limitations that each site can carry during peak periods, 2) the increased intensity of bandwidth use for items such as music, video, and internet uses versus the original voice functions, and 3) the desire to accommodate more carriers with the expectation of fostering greater consumer choice and competition for price and service quality. The public demand for these services continues to grow and all of these issues place a greater demand on sites, particularly in residential neighborhoods. Federal and state law does not allow cities to deny permits based on health or solely on aesthetics issues. The Council and staff have worked with industry for many years on a "master license agreement" approach to reduce the pressure on siting these facilities in less appropriate areas. The MLAs provide the City with an opportunity to work cooperatively with the carriers to expedite their projects, provide adequate volume and coverage needed to meet public demand, provide incentives to pursue sites that have the least impact to residents, and meet the aesthetic and safety goals of the community while capturing revenue that helps the City fund public services at no additional cost to the ratepayer. Above all, the wireless industry values rapid deployment and works with the City to accommodate the community's objectives based predominantly on our ability to demonstrate a record of timely zoning and construction approvals that support that goal. The City Attorney's Office, Finance, Planning, and Risk Management have provided critical assistance to CES in developing and securing the MLA terms needed to protect the public interest while meeting the objectives of the communications industry. Clearwire is a telecommunications service provider that is seeking to expand and improve its coverage in the region and establish a Chula Vista network to compliment their regional network and affiliation with Sprint. Some of their sites may be co-located on existing Sprint sites. Staff is recommending that the City execute an MLA between the City and Clear Wireless LLC, Clearwire (Attachment 1) which outlines mutually beneficial terms based predominantly on the terms and conditions currently in place with other City MLA partners. MASTER LICENSE AGREEMENT: The MLA allows Clearwire to install as many as 25 total WTF's on property owned and/or controlled by the City and to operate within the scope of this MLA for a period often (10) years. The MLA allows for as many as four additional five-year terms, each with the written request of Clearwire and the subsequent written approval of the City Manager. Prior to the renewal of each five-year term, the annual license fee is subject to renegotiation to ensure that the City is receiving market value for its facilities. Clearwire has completed that negotiation on what staff considers to be mutually beneficial terms. Clearwire' s annual license fees vary based on the footprint of the site impacted as well as the size and number of antennae and cabinets. The annual fee for each WTF site that includes up to (2) large or small cabinet and up to (12) twelve antennas is as follows: 4-3 MARCH 9, 2010, Item Lj.. page4d6 Escalator of 30/0 Up to 2 Small Cabinets or I Large Cabinet & Year 12 Antennae* 31-Dee Annual Monthly ~~ IIIiII!IIBII ~I IEImII 2014 2015 2016 ';2017 :.,.. 2018 :;,.2019' 1 2020 21,000 ;~~~,*'~':,;~~'2i;'6~O 22,279 .i-. /",",,::22,947 23,636 ~}~~,! ,):~,:':;t~24~345 25,075 ~'t,,;!;'::'~0:~ttS:827.~ 26,602 2,217 \,;~;,(fJ.'.~'j;~;,Z1~400 ':C ~.;j,::,;J'ff2,283 1,750 :' ",'_,_cfl;iIo3 1,857 ::,;"if,'; 1.912 1,970 - .,-2.029 2,090 Up to I Cabinet & 9 Antennae** Annual Monthly ~ ~ I......' I. III .- Up to I Cabinet & 6 Antcnnae*** Annual Monthly 28,222 2,352 14,008 ,:: '.',-,':' 14,428 14,861 . . ;\:; 15,037 15,766 ".:: 16,239 16,726 ":"'::--'17;228 17,745 " - ~? 18,277 18,826 " - .- "909 1,238 10,596 ::::,:;:",10.914 11,241 ::; ',:, :<'.: :11;579 11,926 ,,;::-:: ";.: 12,284 12,652 "H:jf~>:i"%:~:,13~032' 13,423 ~>?fi:f~~i\'i3;82S ; 14,240 .. 1,314 , --1.353 1,394 ,. ;~,?:1~436 1,479 -'.- .:'.1,523 1,569 I I I . 994 .. 1,024 1054 . ': 1086 1119 1187 . Maximum 10'xI0' area or enclosure ( 1 Large cabinet; approximately 51"W x 78"H x 42"0) ** Maximum 7'xT area or enclosure one cabinet ... Approximately 26"x 55"x 26" area (small cabinet) 2010 Annual Fee of$21,000 separately ~ 12 Antennae@$13,535& 100sq ft foot print@$7,654 $4,500 Annual Fee for 3 antennae and I cabinet of27 cubic feet or less Clearwire has agreed to annual 3% rate adjustment and the chart line items reflect the 3% annual increase. In some instances, 'Clearwire will require a site for antennas or cabinets only. Staffhas also accommodated Clearwire's request for a rent option for a smaller site configuration that they expect to use ftequently. The annual license fee for those facilities will be less than a full site as identified in the table above. The MLA would also continue to include a clause that reduces these rates by as much as 40% with Clearwire if they propose projects that underground the cabinets and pedestals or take other similar measures to reduce the impacts to land use. Council approved a similar clause in the previous MLA's and subsequent renewals. Clearwire is required to comply with all local, state and federal applicable laws. The Schedule of Premises shall be administratively approved for each site and contain specific conditions that must be satisfied and maintained in order to use the wireless facility. The Schedule of Premises will be submitted to the Zoning Administrator and circulated to the Director of Conservation & Environmental Services and all other appropriate departments. Clearwire shall continue to pay the appropriate full staff costs for processing each submittal. All of Clearwire' s construction, installation, maintenance and removal of the WTF facilities will be at their sole responsibility and cost. If Clearwire causes any damage to the public right of way or City property, they are required to repair it promptly at their sole cost. Clearwire will not be allowed to activate their site until the City signs off on final construction. The original MLA, the Schedule of Premises for each site and City Municipal Code provide for a number of risk mitigation measures for the City including: indemnity; insurance requirements; limitation on remedies available to Clearwire in the event of a City breach; and reservation of the City's emergency and police powers. 4-4 MARCH 9, 2010, Item-.!1 Page 5 of6 IMPACTS ON CITY PROPERTY: The installation will vary depending on the site Clearwire needs. As mentioned, all installations will be required to receive all applicable permits and Clearwire will work closely with Planning, Public Works, CES, and a representative from the host department to assure that they do not interfere with City operations or facility maintenance. The three primary types of installations are building mounted, ground mounted, and light standard mounts. Building mounted installations generally involve mounting antennas on the facade or on the roof of the building, in addition to accommodating equipment cabinets on the ground or on the roof. Ground mounted applications involve construction of a "monopole" or more stealth applications where the monopole is camouflaged as an artificial pine, broadleaf or palm tree, flagpoles or complimentary structures such as clock towers or facility signs. In this case the cabinets are generally mounted on a concrete slab adjacent to the antenna structure. The largest size cabinet systems use an area of approximately 10 by 10 feet. Both applications will require some trenching and cabling. The installations will require maintenance and administration on a limited basis. All proposed facilities would be required to secure all necessary land use, building and engineering permits. Staff will encourage Clearwire to take advantage of reductions in monthly site payments by undergrounding the cabinets and other structures whenever possible. FINANCIAL BENEFITS: Staff also works with Clearwire and other carriers to implement basic facility improvements or enhancements at each site to help them compliment the facilities' function when the construction and demolition or site programming warrant it. For example, it is common for WTF equipment shelters to provide extra storage for Recreation or the Library, a pad for water fountains, vending machines or other amenities not currently available in that part ofthe facility. It is also common for light standards to be replaced or upgraded when antennae are added. These improvements are typically in addition to the lease payments. With the addition of a Clearwire MLA, the City now has an estimated 80% of the regional mobile communications business under an MLA agreement that contains terms that the City believes are important to protecting the public interest. CES will be working with the City Attorney and Finance Department to actively engage the remaining major carrieres) in MLA discussions over the next few months. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500-foot rule found in California Code of Regulations section I 8704.2(a)(l) is not applicable to this decision. CURRENT YEAR FISCAL IMP ACT Staff anticipates that Clearwire will install up to 5 sites on City property this fiscal year generating up to an estimated $75,000 in pro-rated annual lease payments for the current fiscal year. Clearwire will also make a deposit of approximately $5,000 for development review per site to pay the cost of staff processing for each site, which would generate another $25,000 in potential staff reimbursement costs. 4-5 MARCH 9, 2010, Item~ Page 6 of6 ONGOING FISCAL IMPACT Staff projects that Clearwire may establish five (5) to (10) sites per year over the next three to four years depending on the telecommunications market and Clearwire's success in Chula Vista. If all 25 sites are installed on property owned and/or controlled by the City over the next few years, the MLA would generate up to an estimated $525,000 in annual lease fees. Additionally, the City is reimbursed for staff time spent on review and approval of each site application submitted for the planning process. The staff time reimbursements for the remaining 20 sites would be approximately $100,000. There will be some staff time associated with monitoring and ensuring compliance with the MLA, which is budgeted as part of the CES Department annual responsibility. The City Attorney's Office plays a key role in developing and renewing contracts under changing telecommunications law, and the Finance Department also plays a key role in assisting CES in estimating, tracking, and collecting annual revenues. ATTACHMENTS Master CommUnications Site License Agreement Prepared by: Michael Meacham, Director, Conservation & Environmental Services 4-6 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MASTER COMMUNICATIONS SITE LICENSE AGREEMENT WITH CLEAR WIRELESS LLC, (CLEARWIRE) FOR THE INSTALLATION AND OPERATION OF AS MANY AS 25 WIRELESS TELECOMMUNICATIONS FACILITIES OR SUBST ANTIALL Y SIMILAR FACILITIES ON CITY-OWNED AND/OR CONTROLLED PROPERTY, SUBJECT TO ALL NECESSARY APPROVALS, FOR A PERIOD OF 10 YEARS WITH AN OPTION TO RENEW FOR AS MANY AS FOUR ADDITIONAL 5- YEAR TERMS WHEREAS, Conservation & Environmental Services Department (CES) is submitting a Master Communications Site License Agreement (MLA) for the City Council's review and consideration; and WHEREAS, adoption of the proposed resolution would establish a MLA between the City and Clear Wireless LLC, a Nevada limited liability company (Clearwire) for the installation of as many as 25 total wireless telephone facilities (WTF) on property owned and/or controlled by the City; and WHEREAS, the proposed MLA includes mutually beneficial and agreed upon terms that are consistent with those provided to other wireless carriers including, but not limited to, establishing a new MLA for one ten-year term with upto four additional five- year options that are subj ect to the City's review and approval; and WHEREAS, the City retains its preferred technical conditions and will receive an annual fee adjustment of 3% that maintains the fees at market value and makes them comparable to other City MLA carriers relative to the size and impact of their facilities; and WHEREAS, the City Council approved Resolution 18601 on March 18, 1997, conceptually approving the marketing of City properties for use by telecommunications companies; and WHEREAS, in 1998, when the City began negotiations, Council had directed staff to negotiate rates that would provide wireless carriers an incentive to come to Chula Vista; and 4-7 Resolution No. 2007- Page 2 WHEREAS, staff reached out to the industry, held workshops, and invited them to the City to structure "master" agreements that would provide prompt entry; and WHEREAS, over a relatively short period of time, the technology has evolved from a unique business tool, used by a few people, primarily in commercial areas, to a common business and household convenience used almost everywhere; and WHEREAS, the MLAs provide the City with an opportunity to work cooperatively with the carriers to expedite their projects, provide adequate volume and coverage needed to meet public demand, and provide incentives to pursue sites that have the least impact to residents, which meet the aesthetic and safety goals of the community while capturing revenue that helps the City fund public services at no additional cost to the ratepayer; and WHEREAS, Clearwire is a telecommunications service provider that is seeking to expand and improve its coverage in the region and establish a Chula Vista network to compliment their regional network and affiliation with Sprint; and WHEREAS, Clearwire has completed that negotiation on what staff considers to be mutually beneficial terms; and WHEREAS, Clearwire is required to comply with all local, state and federal applicable laws; and WHEREAS, with the addition of a Clearwire MLA, the City now has an estimated 80% of the regional mobile communications business under an MLA agreement that contains terms that the City believes are important to protecting the public interest. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it hereby approves a Master Communications Site License Agreement with Clear Wireless LLC, (CLEAR WIRE) for the installation and operation of as many as 25 wireless telecommunications facilities or substantially similar facilities on city.:-- owned and/or controlled property, subject to all necessary approvals, for a period'oflO years with an option to renew for as many as four additional 5-year te iYo-----.- Presented by Michael T. Meacham Director, Conservation & Env. Services 4-8 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON AP O,YA-C- Y /' THE CITY COUNC Ba C. Miesfeld City Attorney Dated: MASTER COMMUNICATIONS SITE LICENSE AGREEMENT BETWEEN CLEAR WIRELESS, LLC AND THE CITY OF CHULA VISTA 4-9 MASTER COMMUNICATIONS SITE LICENSE AGREEMENT THIS MASTER COMMUNICATIONS SITE LICENSE AGREEMENT ("License") dated as of 2009 for the purpose of reference only and effective the date on which the last party hereto affixes his/her signature ("Effective Date"), is entered into between Clear Wireless LLC, a Nevada limited liability company (Clearwire"), and the CITY OF CHULA VISTA, A MUNICIPAL CORPORATION ("City") with reference to the following facts: A. Clearwire wishes to attach, install, erect, operate, and maintain up to twenty-five (25) various unmanned wireless telecommunications facilities, or substantially similar facilities, on public property under the ownership and/or control of the City for purposes of providing wireJess communications services. B. City is willing to allow Clearwire to attach, install, erect, operate and maintain the Facilities subject to the tenus and conditions set forth herein and in the site specific Schedule of Premises. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to the following covenants, terms, and conditions: 1. DEFINITIONS: 1, I Cleanvire('s) Improvements: "Clearwire('s) Improvements" shall mean those unmanned wireless telecommunications facilities comprised of radio frequency transmitting and receiving equipment, antennas, cables, conduits, wires, batteries, utility lines, transmission lines, radio frequency transmitting and receiving antennas and supporting structures and improvements, which are approved by the City and which are located or proposed to be located per this License, on Licensed Premises. A typical example of the facilities comprising the Cleatwire Improvements is set forth in Exhibit A, attached hereto. Clearwire Improvements shall exclude light standards or poles located in City rights- of-way, whether or not said light standards or poles are installed by City or Clearwire. Such excluded improvements shall be owned by City. 1.2 Commencement Date: "Commencement Date" shall mean that date associated with a specific schedule and specified therein. 1.3 Fair Market Rental Rate (FMRR): "Fair Market Rental Rate" shall mean the dollar amount of rent that a willing licensee would pay and a willing licensor would accept for the use of a Licensed Premises to install similar telecommunications equipment in similar locations for the same Renewal Tenu. 1.4 Hazardous Materials: "Hazardous Materials" shall mean any hazardous waste or hazardous substance as defined in any federal, state, or local statute, ordinance, rule, or regulation applicable to the Property, including, without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (Title 42 United States Code sections 9601- 9675), the Resource Conservation and Recovery Act (Title 42 United States Code sections 6901- 6992k), the Carpenter Presley-Tanner Hazardous Substance Account Act (Heahh and Safety Code sections 25300-25395.15), and the Hazardous Waste Control Law (Heahh and Safety Code sections 25100-25250.25). Hazardous Materials shall also include, but not be limited to, asbestos or asbestos containing materials, radon gas, and petroleum or petroleum fractions, whether or not defined as hazardous waste or hazardous substance in any such statute, ordinance, rule, or regulation. 1.5 Licensed Premise(s) or Premise(s): "Licensed Premise(s)" or "Premise(s)" shall mean portions of City owned or controlled property(ies) described in a Schedule(s) (as defined below) approved by the City and attached hereto and shall include any appurtenant property the City owns, or controls on which Clearwire installs utility and transmission lines with City's prior approval. / 1.6 Pre-existing Communications: "Pre-existing Communications" shall be defined as those Page I of23 4-10 communications configurations, equipment and frequencies which exist on City's property or are in use by the City within or around the City as of the Effective Date of this License or as of a Commencement Date of an applicable Schedule. 1.7 Regulations: "Regulations" shall mean all Federal, State, and Local laws, regulations, ordinances, and guidelines, including, but not be limited to, those relating to the form, size, strength and construction materials specified for City street lights. 1.8 Renewal Term: "Renewal Term" shall mean a five (5) year term subsequent to the period lasting ten (l0) years from the Effective Date, during which the License has been extended, whether automatically or by request. 1.9 Schedule: "Schedule" shall mean the document(s) titled "Schedule of Licensed Premises," attached hereto, or those subsequently added hereto, each incorporated herein by this reference, as Exhibit "B", which shall include a detailed description of the Clearwire Improvements or light standards allowed on the Licensed Premises, their configuration, and the site specific conditions necessary for approval ( "Conditions of Approval"). 1.10 Supporting Structures: "Supporting Structures" shall mean any light standard, mast ann, pole, or other pbysical improvement associated with the support therefor. 2. PREMISES AND UCENSED USES 2. I Grant of License. Subject to the following terms and conditions and each Schedule's site specific Conditions of Approval, City hereby grants to Clearwire a non-exclusive license to the Premises as depicted in the Schedules attached hereto and incorporated herein from time to time. Each Schedule executed hereunder shall be substantially in the fonn of Exhibit B. 2.2 Use. The Premises may be used by Clearwire solely for the transmission and reception of non- franchised wireless telecommunication signals on various frequencies and the construction, maintenance and operation of City-approved Clearwire Improvements. 2.2.1 Nuisance. Clearwire shall not use the licensed Premises in any manner, which, in the reasonable opinion of the City, creates a nuisance or disturbs the quiet enjoyment of the surrounding area by persons in said area. City reserves its rights to exercise its police powers and authority as they may apply to nuisance response and abatement, as provided by City ordinance exclusive of any contract provisions. 2.2.2 Utility Users' Tax. Clearwire acknowledges and agrees that the wireless communication services utilizing the Clearwire Improvements licensed hereunder are subject to the City's utility users' tax ("Utility Tax") pursuant to City's Municipal Code. Clearwire agrees to collect the tax from service users and remit such tax to the City in accordance with the City's Municipal Code. 2.2.3 Hazardous Materials. Clearwire shall not bring any Hazardous Materials onto the Licensed Premises except for those contained in Clearwire's back-up power batteries (e.g. lead-acid batteries) and properly stored, reasonable quantities of common materials used in telecommunications operation (e.g. cleaning solvents). Clearwire shall handle, store and dispose of all Hazardous Materials it brings onto the Licel1sed Premises in accordance with all federal, state and local laws and regulations. City makes no representation or warranty regarding the existence of hazardous materials 011 some or all of the Licensed Premises, which are being licensed to Clearwire in an "AS IS" condition. Clearwire is solely responsible for investigation of any and all Licensed Premises as it sees fit to determine the suitability of the Premises for its intended use. Page 2 of 23 4-11 0' _.J Pre-Construction; Testing. Clearwire shall have the right (but not the obligation) at any time following the full execution of this License and prior to the Commencement Date under each Schedule to enter the Premises for the purpose of making necessary inspections, engineering surveys (and soil tests where applicable) and other reasonably necessary tests (collectively "Tests") to determine the suitability of the Premises for Clearwire Improvements and for the purpose of preparing for the construction of Clear wire Improvements at no expense to City. During any Tests or pre-construction work, Clearwire shall have the insurance coverage set forth in Section 5. Clearwire shall provide the City with prior notice of any proposed Tests or pre-construction work and will coordinate the schednling of same with City. Clearwire, at Clearwire's sole cost and expense, will restore the Licensed Premises to the same condition as existed prior to any such tests or pre- construction work by Clearwire. 2.4 Installation of Cleanvire Improvements. 2.4.1 In General. This License grants to Clearwire the right to construct, maintain and operate Clearwire Improvements on the Licensed Premises, subject to the terms and conditions set forth herein and those Conditions of Approval found in each Schedule. All Clearwire construction and installation work shall be performed at Clearwire's sole cost and expense and in a good and workmanlike manner. Title to Clearwire Improvements shall be held solely by Clearwire, and all Clearwire Improvements shall remain the personal property of Clearwire and shall not be treated as real property or become a patt of any Premises even though affixed thereto. All street light standards on property owned or controlled by the City, whether installed pursuant to this License by City or Clearwire, shall be owned by the City. Prior to installation and operation of each set of Clearwire Improvements, Clearwire must obtain any and all required federal, state and local pennits required for such installation and operation. City pem1its required include, without limitation, building permits and an approved Schedule. City shall exercise its best efforts to process Clearwire Improvement applications within forty-five (45) calendar days after the submittal of a completed application. In addition, all work shall be scheduled in advance and coordinated with parks operations personnel, onsite recreational staff, Public Works, Engineering or other City staff as appropriate prior to commencement of the work to minimize the potential for conflicts with recreation and other City programs or activities occurring on tl1e site. Clearwire agrees that tl1e site will not be activated until the City has signed off on final construction, which sign off shall not be unreasonably withheld or delayed. Absent such sign off, Clearwire shall have recourse to an appeal to the City Manager, whose decision shall be final. a. Addition of Schedules. Both parties agree that Schedules may be added or deleted by administrative action by City from time to time subject to and in accordance with the provisions of this License, including but not limited to, Section 10.14, regarding Governmental Approvals. No more than 25 Schedules may be in effect at anyone time. Both parties also agree that the City may add to, delete or modify the Conditions of Approval at any time during the term of tl1is License to advance a legitimate and reasonable governmental interest. I. Reimbursement of Related Costs. Clearwire agrees to reimburse City for the reasonable costs, including reasonable administrative overhead, of processing the approval of each Schedule. The process for reimbursement shall be conducted in the same or similar manner as the City's processing of a non-administrative conditional use permit. 2.4.2 Location of Cleanvire Improvements. The location of Clearwire Improvements on Licensed Premises shall be subject to the Zoning Administrator's prior approval. In deciding whether to approve a location, the Zoning Administrator will take into consideration City's goal to assure Page 3 0123 4-12 that wireless telecommunication networks are completed with the fewest possible facilities, in the least visible fashion, and with the least disruptive impact on neighborhoods and communities within the City of Chula Vista. For example, denying or conditionally approving a location to preserve and enhance the aesthetic qualities of the City of Chula Vista shall not be deemed unreasonable. City approval shall be deemed given once the Zoning Administrator has approved the Schedule of Licensed Premises with associated Conditions of Approval. If a schedule is denied, Clearwire shall have recourse to appeal to the City Manager, whose decision will be final. It is understood that both parties will work together to find the optimum location for Clearwire's Improvements on the Licensed Premises that have d,e least impact to City and private property. 2.4.3 Utilities. Clearwire shall have the right to install utilities that are necessary for the operation of Clearwire Improvements, at Clearwire expense, and to improve the present utilities on or near the Premises (including, but not limited to the installation of emergency back-up power). Such utilities shall be subject to City approval and removal in the same manner as other Clearwire Improvements as provided herein. Clearwire shall fully and promptly pay for all utilities furnished to the Premises for the use, operation and maintenance of Clearwire Improvements. Payment of all costs for said utilities. deactivation and removal, including any costs, which would survive the term of said License or Schedule, shall be the exclusive obligation of Clearwire. Clearwire Improvements shall include separate utility meters. 2.4.4 Street Light Standards. In the case of installations on street light standards or mast arms, Clearwire shall comply with all applicable Regulations for the installation of streetlights. a. Replacement. If the installation is to be done via replacement of an existing standard and/or mast arm, said replacement shall meet all applicable Regulations existing as of the date of the application for the permit to replace said standard and/or mast arm or on the date of replacement if a permit is not required. The design of the pole, method of attachment for Clearwire's Improvements and all od,er connections shall meet the specifications reasonably required by the Zoning Administrator and such replacement shall be completed to the satisfaction of the Zoning Administrator b. Amendment of Regulations Subsequent to Installation. Consistent with the City's lawful exercise of police powers, Regulations may be amended at the City's sole and absolute discretion, including, but not limited to, allowing for additional space for internal wiring of City and/or Clearwire or, altered foundation requirements to accommodate joint City and Clearwire uses. or other technical reasons. I. Cost of Compliance. City shall pay costs of compliance with amended regulations in proportion to the modifications associated with City's use of the standards or mast arms owned by the City. Clearwire shall pay all costs in proportion to the modifications associated with Clearwire's Improvements. ii. Provision of Alternative Location. In the event that such amended Regulations materially adversely impact the functioning of existing Clearwire Improvements, then City shall use reasonable efforts to provide a suitable alternate location. C. Return of City Equipment. Upon reasonable notice and written request by the Zoning Administrator, Clearwire shall provide a replacement pole that is pre-approved by the City Engineer and shall deliver the existing pole to the City Corporation Yard or some other suitable site within the City designated by the City Engineer. Page 4 of23 4-13 2.5 Access. 2.5.1 Clearwire and Clearwire employees, agents, contractors and subcontractors shall have access to the Premises twenty-four, (24) hours per day, seven (7) days per week, at no charge to Clearwire, subject to the conditions set fOtth in each Schedule. City hereby licenses to C1earwire ail rights of ingress and egress held by City to the extent required to construct, maintain, install and operate Clearwire Improvements on the Premises. Clearwire's exercise of such rights shall not cause undue inconvenience to City, nor interfere with City's paramount right of access. 2.5.2 In connection with installations on light standards, mast arms or poles, Clearwire shall provide at least seven (7) days written notice to the City Engineer of installation date and time. Clearwire shall pay any and all costs associated with City shut off and reconnect of power to Premises, installation oversight and/or inspections City reasonably deems necessary. 2.5.3 In connection with ClealWlre's maintenance of Clearwire Improvements on street light standards, mast anns or poles, Clearwire shall provide at least twenty four, (24) hours notice to the City Engineer and pay City any and all costs associated with City shut off and reconnect of power to Premises, maintenance oversight andlor inspections if City deems reasonably necessary. In case of need for emergency maintenance of Clearwire Improvements, Clearwire shall use its best effOlis to give prior notice to City Engineer but shall notify City of such work as promptly as reasonably possible after the work is commenced. 2.5.4 In connection with City's maintenance of street lights which share a standard or mast arm with such Clearwire's Improvements, City shall use its best efforts to provide Clearwire at least twenty four (24) hours notice' of said maintenance. If City desires to have a technician of Clearwire on site during said maintenance, Clearwire shaH provide said technician upon at least twenty-four (24) hours notice. In the event that City needs to perfonn emergency maintenance of City's street lights that share a standard or mast ann with Clearwire's Improvements, prior notice shall not be required; however, City shall notify Clearwire of slIch work as promptly as reasonably possible after the work is commenced. 2.6 Interference with Communications. 2.6.1 Pre-existing Communications. Clearwire Improvements at any gIven Premises shall not interfere with Pre-existing Communications. a. Frequency Compatible. Any Clearwire Improvements on the Premises shall be frequency compatible with all Pre-existing Communications. 1. In the event Clearwire Improvements electronically or physically interfere with Pre-existing Communications, Clearwire shall take all necessary steps, at its own cost and expense, to eliminate such interference, whether so required by the FCC or not. 2.6.2 Interference With Clearwire Improvements Subsequent to lnstallation. The City shall not knowingly interfere with the location, configuration, frequency or operation of Cleaf\vire Improvements, except as follows: a. Installation, Repair, Maintenance, andlor Replacement. During the duration, and for a reasonable period of time thereafter, of the installation, repair, maintenance, andlor replacement of public improvements, City may cause interference with the location, configuration, frequency or operation of Clearwire Improvements. Page 50f23 4-14 I. Interfel'ence Other than Temporary. In the event any equipment installation by City made subsequent to the installation of Clearwire's Improvements causes interference with the location, configuration, 1Tequency or operation of Clearwire Improvements beyond the duration oftime permitted in Section 2.6.2(a), City shall use its best efforts to eliminate such interference, to the extent reasonably possible, after obtaining written notice from Clearwire of such interference, whether required by the FCC or not. ii. Pre-Existing Communications that do not materially change their power level, frequency or location shall not be deemed to interfere with Clearwire's Improvements. b. Emergencies. Notwithstanding any other provision in this License to the contrary, in the event of an emergency, City shall have the right to take such action that it determines, in its sole discretion, is necessary under the circumstances to address the emergency, even though such actions may cause interference with Clearwire Improvements andlor the operation thereof. If City must take action which causes or may cause interference. City shall endeavor to (a) give Clearwire oral notice of such action as quickly as practicable and (b) to the extent practicable under the circumstances, upon written notice by Clearwire of the existence of interference, minimize the duration and extent of such interference. 2.6.3 Subsequent Installations by Other City Licensees. Subsequent to the installation of Clearwire Improvements, City shall not permit its licensees or future licensees to install new equipment on the Licensed Premises or property contiguous thereto owned or controlled by City, if such equipment is likely to cause interference with Clearwire's operations. Clearwire shall cooperate in good faith with City to determine whether such interference is likely to be caused by the prospective future licensee. 2.6.4 Cooperation Between Parties to Mitigate Interference. In the event that Clearwire's Improvements interfere with Pre-existing Communications or City's or other licensees subsequent installations interfere with Clearwire Improvements, the Parties' shall cooperate with each other to identifY and remedy any such interference. For purposes of this Section 2.6.4, the existence of electronic and physical interference shall "be evaluated by standards set by tile FCC, if available, or by agreement of City and Clearwire or Clearwire and other licensees, as applicable. In the event interference by newly installed facilities is likely, City shall direct the party installing such facilities to meet and confer with Clearwire in order to develop an approach or design that eliminates or materially reduces the potential for interference. 2.6.5 Changes to Frequencies. Clearwire agrees to notifY the Director of Public Works of the City immediately of any changes in Clearwire frequencies to be used at the Premises. 2.7 Removal of Clearwire Improvements; Damage or Destruction. 2,7.1 Upon expiration. cancellation or termination of this License or any Schedule hereunder, Clearwire shall be responsible for: (i.) removing from the Premises subject to such expiration, cancellation, or termination, at its sole cost, all Clearwire Improvements, except those that the parties agree shall not be removed or shall be transferred to City; (ii.) repairing, at its sole cost, all damage caused by such removal; and (Ui.) surrendering the Premises to City in the Premises' original condition, ordinary wear and tear and damages caused by third parties excepted. Said return of Premises in their original condition shall include Clearwire's remediation of allY hazardous or toxic material discharge at the Licensed Premises caused by Clearwire or its Page 6 of23 4-15 agents and shall be to the reasonable sati;;faction of the City. a. Timeframe for Removal. Clearwire shall remove, at its sole expense, all Clearwire Improvements from the Premises within 30 calendar days of the date this License or the date on which less than five (5) associated Schedules expire(s) or otherwise terminate(s). In the event that five (5) or more Schedules expire or terminate contemporaneously, then Clearwire shall have a reasonable amount of additional time to remove the affected Clearwire Improvements, provided Clearwire initiates and diligently proceeds with removal. Any Clearwire Improvements remaining on affected Premises beyond the time period available for removal as set forth above shall, at the sole discretion of the City, either (i.) in whole or in part become City property or (ii.) in whole or in pal1 be removed and disposed of by City, with the reasonable costs of said removal and disposal, including reasonable administrative overhead, to be reimbursed to City by Clearwire within ten (10) calendar days after Clearvvire receives City's request for reimbursement together with reasonable evidence of the cost. 2.8.2 Damage to Supporting Structures. If a SuppOIiing Structure on a Premises is damaged from any cause, the following provisions related to obligations for repair, replacement, and costs shan apply: a. City Obligations. City shall have the obligation and use its best efforts, upon receiving written notice of the damage from Clearwire, to repair or replace, within a reasonable period of time, the damaged Supporting Structures if such damage renders Clearwire unable to conduct normal operations and a temporary site is not available, provided none of the following apply: I. The damage is caused by the acts or omissions of Clearwire or its agents or the presence and/or operation of Cleatwire's Improvements. 11. Clearwire chooses to terminate the llse of any Licensed Premises suffering such datnage. III. City, determines, in good faith, that the facility is no longer required or desirable to serve the public health, safety and welfare and that the City has no existing or foreseeabJe intention of replacing or repairing the facility. IV. The damage or destruction occurs during the last twelve (12) months of the Term or any Renewal Term, and Clearwire does not, within ten (10) calendar days after receiving City notice of such destruction, exercise an option to extend or renew which may then be available regarding the subject Premises hereunder. b. Clearwire Obligations. In the event of damage to Supp0l1ing Structures, Clearwire shall have the following obligations: i. Notice. Clearwire shall notify the City in writing of any damage to the Supporting Structures that render Clearwire unable to conduct normal operations. ii. Costs of Removal of Clearwire Improvements. In the event that Clearwire chooses to terminate the use of any License Premises suffering such damage, Clearwire shall notify the City Engineer of its decision within ten (10) calendar days after it provides notice of such damage and Clearwire shall comply with all terms ofthis License conceming removal Page 7 of23 4-16 of Clearwire improvements, including the removal or replacement of wiring, foundation or other associated facilities that may be required to accommodate the replacement City facilities and to return the Licensed Premises to its original condition. iii. Replacement of Supporting Structures. In the event that the damage is caused by Clearwire or its agents' acts or omissions, Clearwire shall have the obligation to repair or replace, at its sole cost, or pay to the City the reasonable costs of such repair orreplacement, at the option of the City. c. Abatement of Associated Fees. If City has the obligation to repair or replace pursuant to Section 2.8.2(a), the fee for such Licensed Premises shall abate in full from the date such damage occurs until Clearwire is able to commence normal operations. d. Temporary Supporting Structure. If Clearwire is rendered unable to conduct nannal operations due to damage or destruction, City shall use reasonable efforts to identify and make available to Clearwire, within ten (J 0) calendar days following the damage or destruction, a temporary site owned or controlled by City, which in Clearwire's judgment is equally suitable for Clearwire's intended uses and in the City's opinion shall not have an adverse impact on the public health, safety, and welfare. Clearwire may construct and operate substitute Clearwire's Improvements thereon until the Licensed Premises are fully repaired and available to Clearwire. e. Failure to Comply With Respective Obligations Following Damage. If either Pal'ty fails to comply with its respective obligations under this Section, including commencement and completion of repair or replacement, the Party not so obligated shall have the right, but not the obligation, to repair or replace the Supporting Structures. All such work shall be performed using only contractors approved by the City. The Party repairing or replacing such" Supp0l1ing Structures pursuant to this provision shall be entitled to reimbursement from the other Party of all reasonable costs and expenses associated with such repair or replacement. i. Reimbursement shall be due and payable within thirty (30) calendar days after receipt of a written request for reimbursement, which shall include sufficient evidence of such costs and expenses. If reimbursement is due to Clearwire, it shall have the right to offset license fees under all Schedules by the amount of any reimbursement owing but not timely paid. If the City timely decides in good faith not to repair or replace pursuant to subsection 2.8.2(a)(iii), then all such work by Clearwire shall be at its sole expense, but Clearwire shall have the option to remove or leave in place any new or replacement light standard, mast arm or pole upon expiration or tel111ination of the applicable Schedule. 2,9 Associated Taxes/Assessments: Clearwire shall pay personal property taxes and possessory interest taxes, if any, assessed against the Clearwire Improvements or the Premises a.tising from the installation of the Clearwire Improvements. Clearwire recognizes and understands that this license may create a possessory interest subject to property taxation and that Clearwire may be subject to the payment of property ta.""<es levied on such interest. Clearwire further agrees that such tax payment shall not reduce any fee paid to or owed to City hereunder and that such tax shall be paid by Clearwire before becoming delinquent. City shall have no responsibility or liability for any such tax. Page 8 of23 4-17 3. TERM 3.] Term. 3.Lt Initial Term. The initial term of this License shall be ten (10) years, such term stalting on the Effective Date or from the Commencement Date of an associated Schedule, unless it is earlier terminated by either party in accordance with the provisions herein. 3.1.2 Extensions of Term; The initial term may be extended for a maximum of four (4) successive five (5) year terms, subject to City's approval, which shall not be unreasonably withheld, and the termination provisions herein (each extension "Renewal Term"). Each Renewal Tel111 shall be subject to the same telIDS and conditions as set fOltb herein, except with respect to the Annual Fee, which may be adjusted as provided in Section 4.], below. a. Automatic Extension. This License shall be extended automatically for each successive Renewal Tenll, unless Clearwire provides City with written notice of its intention not to renew at least ninety (90) calendar days prior to the expiration of the then current tenn.. b. Fees Associated with Automatic Extension. In the event that an extension is automatic, Clearwire shall be responsible for all fees as ifClearwire had requested such extension. 3.1.3 Maximum Life of License. In no event shall tenn of this License, including all Renewal Terms, exceed thirty (30) years from the Effective Date ofthis License. 4. COMPENSATION 4. I Payment. 4.1.1 Annual Fees. In consideration for the use of each Licensed Premises, Clearwire agrees to pay City an Annual Fee for each Licensed Premises as fonows: a. From Effective Date. Annual Fees for the first ten (10) years from Effective Date shall be in the amounts identified in Exhibit C, attached hereto. b. Subsequent Years. Annual Fees for each year subsequent to the first 10 years shall be equal to 103% of the preceding year's fees. c. Implementation Date of Annua( Fee. The Annual Fee for each Licensed Premises shall be set at the rate in effect for the calendar year in which the Commencement Date for such Schedule occurs and shall be adjusted on Janual")l ! of each year thereafter during the term of the Schedule in accordance with the terms herein. 4.].2 Fee Adjustments. a. The City may, at its sole discretion, decrease any of the fees listed in Exhibit C for tuture terms by up to 40% in the event that Clearwire undergrounds cabinets or pedestals in a manner that by the City's sole judgment reduces the impact to land use andlor aesthetics. b. Adjustment to Fair Market Rental Rate. Subsequent to the initial ten (10) year term and upon written request of City or Clearwire, the Annual Fee for any Renewal Term shall be adjusted to an amount equal the then FMRR. The FMRR shall be in the same amount for each of the Licensed Premises. I. Failure to Agree on FMRR. If the City and Clearwire are unable to agree on the Page 9 of 23 4-18 FMRR within one hundred eighty (180) calendar days prior to expiration of the term preceding a Renewal Term, then at the written request of either Party, both Parties shall attempt in good faith to agree upon and appoint a real estate appraiser with at least five years' experience in appraising similar licenses in the general area in which the Licensed Premises are located and shall set the fees for the Renewal term at the FMRR determined by the appraiser. ii. Failure to Agree on Appraiser. If the Parties are unable to agree upon an appraiser within fifteen (15) calendar days after either Party requests adjustment, then the Parties hereto agree that an appraiser shall be promptly chosen in accordance with the rules of the American Arbitration Association. Ill. Appraisal. The appraiser shall investigate and report to the Parties in writing his or her determination of the FMRR within thirty (30) calendar days of his/her appointment. The appraiser may in his or her sole discretion choose to meet with the Parties, take testimony, and extend the time for determining the FMRR by not more than fifteen (15) calendar days. The appraiser's determination shall be final, absent fraud. If Clearwire is dissatisfied with the determination of FMRR, then Clearwire shall have, as its sole and exclusive remedy, the right to rescind its option to renew and allow this License and the then-existing Schedules to expire at the later of the end of the then CUlTent term 01' ninety (90) calendar days after the appraiser issues his or her report on determination of the FMRR ("Delayed Expiration Date"). The Annual Fee during any Delayed Expiration Date shall be the FMRR, prorated for such time period. If the appraiser has not determined the FMRR prior to the expiration of the then current term, Clearwire shall pay the Annual Fee in an amount equal to the prior year's rate pending such determination. The Annual Fee sball be adjusted to the FMRR upon notice of determination and Clearwire shall promptly remit the difference between the Annual Fee paid and the FMRR determined by the appraiser. In the event that Clearwire rescinds its option to renew under this Section, then the City shall make a rebate in accordance with Section 4.1.4. IV. Minimum Fee. Notwithstanding the foregoing, in no event shall tile Annual Fee for Licensed Premises adjusted hereunder for any Renewal Term be less than 103% of the Annual Fee for the Licensed Premises in the last year of the preceding term. v. Cost Sharing. The Parties shall share equally the costs and fees of the appraiser. 4.1.3 Payment Due Date. The Annual Fee for each Schedule shall be payable in advance on each. January 1 st of each year during the term of this License. a. Partial Payments. In the event that a Schedule is approved on a date other than January I" or a schedule naturally expires on a date other than December 31 st, payment shall be due on the Commencement Date or January I", respectively, in prorated amount based on a three hundred sixty (360) day calendar year with months of thirty (30) days. b. Late Payments. [f payment is not received by January I" or the ,'espective Commencement Date, a late fee of 5% of the balance due will be assessed. In addition, interest will accrue on the balance owed at a rate of [2% per annum until paid. 4. [.4 Fee Abatement. If a Schedule is terminated and the effective date of such termination is prior to December 31" of any year for any reason other than Clearwire's default, City shall refund to Clearwire the unearned portion of the Annual Fee for the calendat. year in which termination occurs, provided that City may reduce any such refund by (i.) any termination fee owing to City Page 10 of23 4-19 under Section 8.2.3(a); (ii.) those sums, if any, due fi'om Clem'wire under Section 2.7; or (iii) amounts due pursuant to Section 2.4. I (a)(i). City shall refund such monies due by either remitting full payment within sixty (60) calendar days after the effective date of termination or applying a credit for the full amount of the refund to the next Annual Fees due from Clearwire. 4.1.5 Place of Payment. Payments shall be made to The City of Chula Vista, Finance Department, 276 Fourth Avenue, Chula Vista, CA 91910, or to such other place as City may from time to time designate by written notice to Clearwire. Payments shall be accompanied by a description of payment, which identifies the sites for which payment is being made including the Site Number on the Schedule of Premises and the address. 5.!.1 CGL. Insurance Services Office Commercial General Liability coverage (occurrence Form CGOOO 1). 5, INSURANCE, Clearwire shall procure prior to the commencement of any Schedule and shall maintain, during the term of this License, including the period between the expiration hereof and the removal ofthe Clearwire's Improvements and/or other equipment from the Premises or appurtenant property, policies of insurance in the amounts and types identified below. Claims-made policies are not acceptable. 5.1 Minimum Scope of Insurance: Coverage must be at least as broad as: 5.1.2 Auto. Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). 5.1.3 WC. Workers' Compensation insurance as required by the State of Cali fomi a and Employer's Liability Insurance. 5.14 All Risk. The policy shall be .;"'ritten on a standard "all risk" contract, excluding earthquake and flood. 5.2 Minimum Limits of Insurance: Limits of insurance shall be no less than those included in the table below: i. General Liability: $1,000,000 per occurrence for bodily injury, personal injury, (including (Including operations, death), and property damage. If Commercial General Liability insurance products and completed with a general aggregate limit is used, the general aggregate limit must be operations, as twice the required occurrence limit. applicable) ii. Automobile Liability: $1,000,000 per accident for bodily injury, including death, and property damage. iii. Workers' Sta!1.itory Compensation $1,000,000 each accident Employer's Liability: $1,000,000 disease-policy limit $1,000,000 disease-each emplovee iv. All Risk 90% of the actual cash value of all personal property contained within or upon the Licensed Premises and $50,000 for damage to the Licensed Premises. 5.3 Deductibles and Self-Insured Retentions: Any deductibles or selt~insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or Clearwire will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Page 11 of23 4-20 5.4 Other Insurance Provisions: The general liability, automobile liability, all risk, and where appropriate, the worker's compensation policies are to contain, or be endorsed to contain, the foHowing provisions: 5.4.1 Additional Insureds. City ofChula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect all policies of insurance, including those with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf ofClearwire, where applicable, and, with respect to liability arising out of work or operations perfol'med by or on behalf of Clearwire, including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the contractor's insurance using ISO CG 2010 (I 1/85) or its equivalent. Specifically, the endorsement must not exclude Products/Completed Operations coverage. 5.4.2 Primary Insurance. Clearwire's General Liability insurance coverage must be primary insurance as it pertains to the City. its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers. officials, employees, or volunteers is wholly separate from the insurance of any contractors and in no way relieves any contractor from its responsibility to provide insurance. 5.4.3 Cancellation. The insurance policies required must be endorsed to state that coverage will not be canceled or reduced by either party, except after thirty (30) days prior wl"itten notice to the City by certified mail, return receipt requested. The words "will endeavor" and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives" shall be deleted from all ce'1ificates. 5.4.4 Active Negligence. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insureds in any case where an agreement to indemnifY the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. 5.4.5 Waiver of Subrogation. Clearwire's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage for the term required by this Agreement. 5.4.6 Severability ofrnterest. "Cross liability," "severability of interest" or "separation of insured" endorsements/clauses shall include. 5.5 Acceptability of Insurers: Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of no less than A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers ("LESLI") with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Fund when not specifically rated. 5.6 Verification 01' Coverage: Clearwire shall furnish the City with original certificates and amendatory endorsements affecting coverage required by this Section 5. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the License requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance poticies, including endorsements evidencing the coverage required by these specifications. 5.7 Contractors and Snbcontractors: Clearwire shall require that all contractors and subcontractors obtain insurance meeting the criteria set forth herein and shaU furnish to the City copies of all certificates evidencing such policies of insurance. Page 12 of23 4-21 5.8 Not a Limitation of Other Obligations: Insurance provisions under this Section 5 shall not be construed to limit the Clearwire's obligations under this Agreement, including Indemnity. 6.1 General Provision: Clearwire shall defend, indemnifY, protect and hold harmless the City, its elected and appointed officers and employees (each a 'City Party'), from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of or related to the installation, operation, maintenance, repair, and replacement of the Clearwire Improvements or other acts or omissions of Clearwire, its agents, employees, contractors, subcontractors, or others acting under the direction or control of CJearwire. 6. INDEMNITY. 6.2 Approvals: The obligation to defend, indemnifY, protect, and hold City Pal1ies harmless from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) shall include those claims against City Parties arising out of or related to, whether directly or indirectly, from (a) City's approval and issuance of Schedule and (b) City's approval or issuance of any other permit or action, whether discretionary or non-discretionary, in connection with the use contemplated herein. 6.3 Liens and Stop Notices: Clearwire shall keep the Licensed Premises free of any mechanic's liens arising out of or related to Clearwire's Improvements and immediately secure the release of any stop notices. Clearwire shall defend, indemnity, protect, and hold harmless, the City Parties from and against any and all liability, claims, costs, and damages, including but not limited to, attorney fees, arising from or attributable to a failure to pay claimants. Clearwire shall be responsible for payment of all persons entitled to assert liens and stop notices. 6.4 Hazardous Materials: Clearwire agrees to defend, indemnify, and hold harmless, the City, its agents, officers and employees from and against any and all costs, damages, claims, and liabilities, including reasonable attorney fees, foreseeable or unforeseeable, directly or indirectly, arising from or related to the Hazardous Materials releases or contamination of the Licensed Premises. 6.5 Costs of Defense and Award: Included in the obligations in Sections 6.1 through 6.4, above, is Clearwire's obligation to defend, at Clearwire's own cost, expense and risk, any and all aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City Parties. Clearwire shall pay and satisfY any judgment, award or decree that may be rendered against City Parties for any and all legal expense and cost incurred by each of them in connection therewith. 6.6 City Parties' Sole Negligeuce or Sole Willful Misconduct: The indemnity provisions in this License shall not include any claims or liabilities arising from or related to the sole negligence or sole willful misconduct of the City Parties. 6.7 Insurance Proceeds: Clearwire's obligation to indemnify shall not be restricted to IIlsurance proceeds, if any, received by the City Parties. 6.8 Enforcement Costs: Clearwire agrees to pay any and all costs City incurs enforcing the indemnity and defense provisions set forth in this Section 6. 6.9 Survival: Clearwire's obligations under this Section 6 shall survive the tennination of this Agreement. 7. SECURITY. Page 13 of23 4-22 7.1 Performance Bond(s). City may require to furnish a bond, or alternative form of security acceptable to City, for faithful pe.formance by Clearwire of its obligations under this License. 7.2 Term. The Performance Bond(s) shall remain in full force and effect tor at least thirty (30) calendar days following the tennination of the License or until City, in its sole discretion, determines that Clearwire has fulfilled all of its obligations under this License, whichever is later. 7.3 Certificate of Agency. All bond(s) signed by an agent must be accompanied by a certified copy of such agent's autl10rity to act. 7.4 Ltcensing and Rating. The bond(s) shall be duly executed by responsible surety companies admitted to do business in the State of California, licensed or authorized in the jurisdiction in which the project is located to issue bonds for the limits required by this agreement, listed as approved by the United States Department of Treasury Circular 570, and whose underwriting limitadon is sufficient to issue bonds in the amount required by this agreement and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations, secured through an authorized agent with an office in California, and have a minimum AM Best rating of "A-". 7.5 Form. All bonds shall be in the form prescribed by City Attorney and any bond required shall include the condition that the bond shall not be terminated or cancelled except upon ninety (90) calendar days prior written notice by certified mail to City. 7.6 Amount. The amount of such bonds shall not to exceed $25,000, for tl1e first five sites, and $10.000 for each additional five sites thereafter. 7.7 Insolvency or Bankruptcy. If the su.rety on any bond furnished by Clearwire is declared bankrupt or becomes insolvent or its right to do business is tenninated in California, Clearwire shall within seven (7) calendar days thereafter substitute another bond and surety, acceptable to the City. 8. TERMINATION. 8.1 Termination of License for Convenience: Either Party may terminate this License at any time following the inidal ten (10) year term for any reason by delivering to the other Party, written notice of the intent to terminate ("Notice of Termination"). If this License is terminated pursuant to this provision, the effective date of termination shall be one (1) year from the date of delivery of the Notice of Termination. 8.1.1 Fees. In the event that either Party terminates this License pursuant to this provision, Annual Fees shall continue to be due and shall be prorated in the event that the effective date of termination is a date other than December 31" of the year of the effective date of termination. 8.1.2 No Additional Schedules. Following the delivery of the Notice of Termination, no additional Schedules shall be approved or attached to this License, at the sole discretion of the City. 8.2 Termination of Scbedule(s): Clearwire shall have the right to terminate Schedule(s) with thirty (30) calendar days prior written notice delivered to City or any shorter notice expressly set forth below, provided such termination does not result in the abolition of all Clearwire Improvements/Schedules under this License, if any of the following conditions apply: 8.2.1 Prior to Commencement Date. Clearwire delivers to City such 3D-day written notice prior to the Commencement Date of the Schedule(s) to be terminated. 8.2.2 Inability to Obtain Approval(s). Clearwire determines at any time after the Commencement Page 14 of23 4-23 Date under stich Schedule that any governmental or non-governmental license, permit, consent, approval, easement necessary or restriction waived to enable C!earwire to install and operate Clearwire Improvements cannot be obtained at a reasonable expense or within a reasonable period of time. 8.2.3 Premises Not Appropriate. Clearwire determines at any time after the Commencement Date of such Schedule that the Premises are not appropriate or suitable for Clearwire operations for economic, environmental or technological reasons, including without limitation, any ruling or directive of the FCC or other governmental or regulatory agency, or problems with signal strength or inte.ference not encompassed by Section 2.6. a. Tennination Fee. In the event that Clem-wire exercises the right to tem1inate pursuant to Section 8.2.3, Clearwire shall pay City, or City may deduct from any rebate due Clearwire, at City's sole option, a termination fee twenty-five (25) percent of the then Annual Fee for the associated Licensed Premises. 8.2.4 Inability to Remedy Intelference. Any Pre.existing Communications, or any communications facilities or other structures of any kind now or hereafter located on or in the vicinity of the Licensed Premises, intelfere with the location, configuration, frequency or operation of Clearwire Improvements and Clearwire is unable to cOlTect such interference through reasonably feasible means. 8.2.5 City Default. City commits a default under this License with respect to such Schedule and fails to cure such default within thirty (30) calendar days of the delivery to City of a notice to cure, or if such cure cannot with reasonable means be completed within such period, the City fails to commence such cure within thirty (30) calendar days of delivery to City of the notice to cure and diligently pursue such cure,to completion. 8.2.6 Damage to Licensed Premises. The Licensed Premises under such Schedule is damaged from any cause other than actions or omissions of Clearwire, its agents, employees, contractors, or subcontractors, such that, in Clearwire judgment, it hinders Clearwire's normal operations and City does not provide to Clearwire a temporary site for Clearwire's Improvements within ten (10) calendar days following the delivery to City of a notice of such damage and request for an alternative site to be used during the repair and restoration of the Licensed Premises. a. No Liability. Other than the provision of a temporary site for Clearwire's Improvements and the abatement of fees provided for in Section 2.8.2(d) and (c), respectively, tbe Parties agree that City shall have no liability for any loss, damage, expenses or claims, direct or consequential, from (L) Clearwire's inability to use the Licensed Premises for its intended purpose, (ii.) Clearwire's use of any related access roads, (iii.) Clearwire's operation of the Clearwire Improvements, or (iv.) the termination of the License by either Party. 8.3 Termination by City: City shall have the right to terminate a Schedule if any of the following occur: 8.3.1 Clearwire Default. Clearwire commits a default under this License Agreement with respect to such Schedule and fails to cure such default within (i) ten (10) business days after Clearwire receives written notice of the default where the default is a failure to pay the annual fee for the subject Premises when due, or (ii) thirty (30) calendar days after Clearwire receives written notice of any other default; however, if the period reasonably necessary to cure takes longer than thirty (30) calendar days and Clearwire commences to cure the default within such thirty (30) calendars and diligently pursues such cure to completion, then such default shall not result in termination of the associated Schedule. A violation of the Schedule's Conditions of Approval shall be deemed a default for purposes of this subsection. Page 15 of23 4-24 b. Damage to Licensed Premises. The Premises are wholly or partially damaged or destroyed so as to interfere with CleaIwire's normal operations, City has no obligation to repair tinder 2.8.2(a), and neither party elects to repair. c. Threat to Public. The City Manager detenllines in good faith that there exists an immediate and substantial threat to public health and safety due to particular circumstances affecting the Premises that cannot be rectified through means less onerous than termination (such as temporary emergency cessation of use by Clearwire pending corrective work), in which case the City may terminate the Schedule immediately and shall notify Clearwire as soon thereafter as reasonably possible. 8.4 Termination Due to Transfer of Licensed Premises: A Schedule shall automatically terminate as of the date that possession of a Licensed Premises, 0'. portion thereof, is delivered to any governmental authority pursuant to the exercise of its powe,. of eminent domain, if, in Clearwire's good faith opinion, such transfer renders the Licensed Premises, or p0l1ion thereof, unsuitable for Cleanvire's normal operations. 8.5 Rights of Parties Following Termination: Upon tennination of this License or any Schedule(s), neither Party shall have any further rights, obligations or liabilities to the other, except those under the License or applicable Schedule which: (i.) by express provisions or their sense and context are intended to survive termination; (iL) are related to the period prior to termination; or (iii.) where tennination is by reason of breach or default of the other party. 9. NOTICE AND APPROVALS 9.] Writing: Any demand upon or notjce required or permitted to be given by one Party to the other Party shall be in writing. 9.2 Effective Date: Except as otherwise provided by law, any demand upon or notice required or pennitted to be given by one Party to the other Party shall be effective: (i) on personal delivery, (ii) on the second business day after mailing by certified or registered U.S. Mail, return receipt requested, or (iii) on the succeeding business day after mailing by Express Mail or after deposit with a private delivery service of general use (e.g., Federal Express) postage or fee prepaid as appropriate. 9.3 Recipients: All demands or notices required or pel1llitted to be given shall be sent to all of the following: 9.3.1 City Manager, City ofChula Vista 276 Fourth Avenue Chula Vista, California 91910 Phone: (6] 9) 69 I -503 I Fax: (6] 9) 585-5884 9.3.2 Clear Wireless, LLC. Attn: Lease Administrator 4400CarillonPoint Kirkland, Washington, 98033 9.3.3 Clear Wireless, LLC. Clear Wireless Chico 2485 Notre Dame, Suite 750 Chico, CA 95928 530.893.3051 (phone) Page 16 of23 4-25 9.4 Change of Address(es): Notice of change of address shall be given in the manner set fOJ1h in this Section 9.5 Approvals: For administrative purposes, any actIvity covered by this License, which requires permission or consent shall be sent in accordance wid1 and to the same individuals identified in the Notice provisions, above. 10 MISCELLANEOUS 10.1 Headings: All section headings are for convenience only and shall not affect the interpretation of this License. 10.2 Gender & Number: Whenever the context requires, the use herein of (i) the neuter gender includes the masculine and the feminine genders and (ii) the singular number inclndes the plural number. 10.3 Reference to Sections: Each reference in this License to a section refers, unless otherwise stated, to a section in this License. 10.4 Incorporation of Recitals: All recitals herein are incorporated into this License and are made a paJ1 hereof. 10.5 Covenants and Conditions: All provisions of this License expressed as either covenants or conditions on the part of the City or the Clearwire, shall be deemed to be both covenants and conditions. 10.6 Integration: This License, the Exhibits, Recitals, and references incorporated into this Agreement fully express all understandings of the Parties concerning the matters covered in this License. No change, alteration, or modification of the terms or conditions of this License, and no verbal understanding of the Parties, their officers, agents, or employees shall be valid unless made in the form of a written change agreed to in writing by both Parties or an amendment to this License agreed to by both Parties. All prior negotiations and agreements are merged into this License. ] 0.7 Severability: The unenforceability, invalidity, or illegality of any provision of this License shall not render any other provision of this License unenforceable, invalid, or illegal. 10.8 Drafting Ambiguities: The Parties agree that they are aware that d1ey have the right to be advised by counsel with respect to the negotiations, terms and conditions of this License, and the decision of whether or not to seek advice of counsel with respect to this License is a decision which is the sole responsibility of each Party. This License shall not be constroed in favor of or against either Party by reason of the extent to which each Party participated in the drafting of the License. ] 0.9 Conflicts Between Terms: If an apparent conflict or inconsistency exists between the main body of this License and the Exhibits, the main body of this License shall control. If a conflict exists between an applicable federal, state, or local law, rule, regulation, order, or code and this License, the law, rule, regulation, order, or code shall control. Varying degrees of stringency among the main body of this License, the Exhibits, and laws, roles, regulations, orders, or codes are not deemed conflicts, and the most stringent requirement shall control. Each Party shall notifY the other immediately upon the identification of any apparent conflict or inconsistency concerning this License. 10.10 Prompt Performance: Time is of the essence of each covenant and condition set forth in this License. 10.11 Good Faith Performance: The parties shall cooperate with each other in good faith, and assist each Page 17 of23 4-26 other in the performance of the provisions of this License. 10.12 Further Assurances: City and Clearwire each agree to execute and deliver such additional documents as may be required to effectuate the purposes of this License. 10.13 Exhibits: Each of the following Exhibits is attached hereto and incorporated herein by this reference: Exhibit A - Sample Improvements Exhibit B - Schedule of Premises Exhibit C - Annual Fees 10.14 Compliance with Controlling Law: Clearwire shall comply, at its sole cost and expense, with all laws, ordinances, regulations, and policies of federal, state, and local governments now in effect or which may hereafter be in effect applicable to this License ("Laws"). Clearwire shall be responsible for obtaining any pelmits and approvals from any agency having jurisdiction over Clearwire's activities, and any rights of Clearwater granted through this License are conditioned upon Clearwire, or Clearwire's assigns, complying with all Laws, including those requiring and maintaining governmental permits and approvals which enable Clearwire, or its assigns, to construct Clearwire's Improvements and operate mobile/wireless communications facilities thereon. City shall have no responsibility or liability for compliance with any such Laws. 10.15 Jurisdiction, Venue, and Attorney Fees: The venue for any suit or proceeding concerning this License, the interpretation or application of any of its terms, or any related disputes shall be in the County of San Diego, State of California. The prevailing Party in any such suit or proceeding shall be entitled to a reasonable award of attorney fees in addition to any other award made in such suit or proceed ing. ,. 10.16 Municipal Powers: Nothing contained in this License shall be construed as a limitation upon the powers of the City as a chartered city of the State of California. 10.17 Administrative Claims Requirements and Procedures: No suit or arbitration shall be brought arising out of this License, against the City unless a claim has lirst been presented in writing and liled with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Clearwire shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this License. 10.18 Third-Party Relationships: Nothing in this License shall create a contractual relationship between City and any third party. 10.19 Non-Assignment: Clearwil'e shall not assign any rights or obligations under this License, whether by express assignment, sale of the company, or any monies due or to become due, without the City's prior written approval. Any such assignment in violation of this provision, including those by operation of law, shall constitute a material breach and, at the discretion of the City, immediately terminate this License. Approval of any such proposed assignment may be withheld in the sole and absolute discretion of the City. In no event shall any putative assignment create a contractual relationship between the City and any putative assignee. 10.19.1 Notwithstanding Section 10.19, above, Clearwire may, without City's approval and in Clearwire's sole discretion, from time to time, do any of the following: Page 18 of23 4-27 a. Grant to any person or entity a security interest in some or all of CIearwire's Improvements and/or other property used or to be used in connection with this License. b. Assign (i) to any entity which has, directly or indirectly, a 30% or greater interest in Clearwire (a "parent") or in which Clearwire or a Parent has a 30% or greater interest (an "Amliate"); (ii) to any entity with which Clearwire and/or any Affiliate may merge 0" consolidate; (iii) to a buyer of substantially all of the outstanding ownership units or assets of Clearwire or any Affiliate; or (iv) to the holder or transferee of the Federal Communications ("FCC") license under which Clearvvire's Improvements are operated, upon FCC approval of any such transfer. Any such assignment shall not be effective until the assignee signs and delivers to City a document in which the assignee assumes responsibility for all C1earwire's obligations under this License arising from and after the effective date of assignment. 10.20 Successors in Interest: This License and all rights and obligations created by this License shall be in force and effect whether or not any Parties to the License have been succeeded by another entity, and all rights and obligations created by this License shall be vested and binding on any Party's successor in interest. 10.21 No Waiver: No failure of either the City or the Clearwire to insist upon the strict performance by the other of any covenant, term or condition of this License, nor any failure to exercise any right or remedy consequent upon a breach of any covenant, term, or condition of this License, shall constitute a waiver of any stich breach of such covenant, term or condition. No waiver of any breach shall affect or alter this License. and each and every covenant, condition, and term hereof shall continue in full force and effect to any existing or subsequent breach. 10.22 Waiver of Property, Relocation and Condemnation Rights: Cleatwire acknowledges and agrees that this License does not confer aI'y of the following: a property right or interest (other than a possessory interest for the purpose t..xation (e.g. under Section 107 of the California Revenue and Taxation Code), a right to relocation, or relocation assistance. 10.23 Limitation on City Liability: Notwithstanding any provision in this License to the contrary, Clearwire's sole remedies for the City's breach of the License shall be (i.) termination of the License or one or more Schedules, as appropriate; (il.) specific performance or it\iunction; or (iii.) the right to withhold amounts in contest which are otherwise due and payable to City hereunder with respect to one or more Licensed Premises; provided that the foregoing limitation on liability does not apply to City's rebate obligation under Section 4.1.4. In no event shall Clearwi,'e be entitled to monetary damages, other than the payment of the rebate amount, against the City for breach of contract hereunder. 10.23 Signing Authority: The representative for each Party signing on behalf of a corporation, partnership, joint venture or governmental entity hereby declares that authority has been obtained to sign on behalf of the corporation, partnership, joint venture, or entity and agrees to hold the other Party or Parties hereto harmless if it is later detennined that such authority does not exist. (NEXT PAGE IS SIGNATURE PAGE] Page 19 of23 4-28 SIGNATURE PAGE TO MASTER COMMUNICATIONS SITE LICENSE AGREEMENT IN WITNESS WHEREOF, the City of Chula Vista and Clear Wireless have executed this License thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms. THE CITY OF CHULA VISTA, CLEAR WIRELESS LLC., A Municipal Corporation a Nevada Limited Liability Company By: BY:0~~ ';... Its: Its: ()~ ~1 L-..~ Dated: Dated: ?--'~-/O Attest: Susan Bigelow. City Clerk Approved as to form and legality: BART MEISFELD, City Attorney By: Deputy City Attorney Exhibit List to Agreement (I) Exhibit A Sample Improvements (2) Exhibit B Schedule of Premises (3) Exhibit C Annual Fees Page 20 of23 4-29 EXHIBIT A Sample Cleatwire Improvements [To be Inserted] Page21of23 4-30 EXHfBIT B SCHEDULE OF PREMISES (.4ttached as PDF in Draft) Page 22 of 23 4-31 EXHIBIT C ANNUAL FEES 2014 ;;~i;;J1JI5'Li1~j 2016 25,075 16,726 iIf~jij1~~ti ~4:~F~f~~~$}Q~7i/ ~X(~t;.~~WZ~j'~8~ 2018 26,602 2,217 17,745 :~F~&:~Q1~~~]~ ;~~~1i~~~{~~j!($.Q~ ~~~(h~~~#%,ii~~}2a~i~ fiiltiI~~i~~'8r~1,t1:,~: 2020 28,222 2,352 18,826 * Maximum 1 O'x 10' area or enclosure ( 1 Large cabinet; approximately 51"W x 78"H x 42"D ) u Maximum 7'xl' area or enclosure one cabinet *** Approximately 26"x 55"x 26" area (small cabinet) 2010 Annual Fee of$21,OOO separatoly ~ 12 Antennae@ $13,535 & 100sq ft foot print @ $7,654 $4,500 Annual Fee for 3 antennae and 1 cabinet of27 cubic feet or less Page 23 of23 4-32