PYRAMID GROUP INTERNATIONAL, INC. (4)

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® Pyramid Group International, Inc. 3 SCOPE OF SERVICES 3.1 TASK 1. MASTER LICENSE AGREEMENT Pyramid will develop a Master License Agreement that sets forth the basic terms and conditions upon which sites at City parks are leased to cell tower companies or wireless providers. The agreement terms in the Master License Agreement will not conflict with the requirements in the City of Santa Ana Municipal Code. 3.2 TASK 2. SITE LICENSE AGREEMENTS In addition to the development of a Master License Agreement, Pyramid will develop a Site License Agreement (SLA) for each site at City parks with a cell communications tower. The agreement terms in the SLAB will not conflict with the requirements in the City of Santa Ana Municipal Code. 3.3 TASK 3. SUPPORT WITH NEGOTIATIONS Pyramid will assist the City in the negotiations of existing agreements as well as new agreements. The Pyramid Team will negotiate on behalf of the City or alongside City staff. In the negotiations, Pyramid's approach will be based on the premise that, ultimately, it is not how much space is leased from the City, but instead, it is the value derived from such space. and, the terms of each SLA. Also, cell towers co -location will be addressed in the Agreements allowing for the use of one structure to mount or deploy mobile telecommunications antennae belonging to more than one wireless service provider within a single location. With cell towers co -location, the City can benefit from having multiple carriers located on one site/one tower. Thus, Pyramid will make sure to include subleasing or colocation language in the Agreements to capture the revenue share from co -location which the City is entitled to. Furthermore, Pyramid will strive for the protection of City's rights under its current cell tower lease agreements as they undergo revisions/renewals, and will negotiate more favorable lease agreements with the existing leasees. Like any basic negotiation, price is determined by supply and demand. In optimizing the value of each site, Pyramid will take into consideration the following: • Lease Rates: Lease rates trend higher in more populated areas, some urban areas command completely different lease rates, even though they are similar in demographics. Pyramid will research the lease rates for cities similar to Santa Ana. • Permits: Zoning and permitting requirements play a very important factor in the value of a site. The more liberal the permitting standard, the easier it is to find several sites that meet a cell phone carrier or tower company's criteria. Subsequently, a cell phone carrier/tower company will need to pay more for a lease in an area that has more stringent standards than it would in one that has more lax standards, regardless of the size of the population. Construction Limitations: An optimal site will have level terrain, with minimal or no ground or airwave obstructions (i.e. tree cover). The more obstacles, the more expensive it is for a tower company to construct on a site. A tower company/carrier will sometimes be willing to pay higher rent for a more suitable site, in order to avoid more