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Lease Agreement with T-Mobile <br />AUGUST 24, 2011 <br />Page 2 <br />For security purposes this area will be enclosed with a wrought iron fence with vine landscaping <br />and full visibility of the grounds to allow maintenance of the equipment. On the Yard's adjacent <br />wall perimeter a steel security door will be constructed to the standard of the Yard's main <br />Administration building entrance to allow access only into the leased portion. All <br />telecommunications equipment is to meet Federal Communications Commission specifications <br />and current tower industry construction standards. As well, community outreach to notify <br />residents and businesses has been completed. <br />By constructing the T-Mobile telecommunications site at the Corporate Yard, the City will secure <br />a revenue stream with property improvements. If this lease is not approved, the Provider may <br />seek to install its cell tower in the public right of way pursuant to the City's rules and regulations. <br />Sitting in the right of way will provide no revenue from the telecommunications facility." <br />The City will generate $28,800 annually with annual 4% rent increases on Commencement Date <br />anniversary, for the initial term of ten (10) years with three (3) additional five (5) year term <br />extensions. In addition, T-Mobile also agrees to pay City a one-time, non-recurring, non- <br />refundable payment of $10,000 within thirty (30) days after the Commencement Date to <br />reimburse City for Assured Guaranty required $5,000 fee for its legal review and processing to <br />obtain approval of the sublease; the remaining portion for associated City staff time. <br />ENVIRONMENTAL IMPACT <br />In accordance with the California Environmental Quality Act, the project went through Site Plan <br />Review. The project is located on City Yard property, a Conditional Use Permit is not required, <br />but because a lease is required with the City, prior practice on other City property cell sites has <br />been to make an environmental determination of Categorical Exemption. The Categorical <br />Exemption No. 2009-132 (City Yard) will be filed for this project and is provided under Section <br />15303, Class 3. The recommended action is exempted from further review. <br />FISCAL IMPACT <br />Funds received by the City including $28,800, and the $10,000 one-time payment will be placed <br />into the Rental of Property account (no. #011-02002-57960). <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Francisco Gutierrez ?- <br />Executive Director <br />Finance & Management Services Agency J <br />ed <br />Exhibits: Certificate of City of Santa Ana in Regard to the Sublease of Property <br />Quint & Thimming, Bond Counsel, Opinion Letter <br />Consent of Assured Guaranty Municipal Corp., Land Lease Agreement Consent <br />Land Lease Agreement between The City of Santa Ana and T-Mobile West Corp. <br />T-Mobile, Site Plan & Virtual Site View (LA33826B), Santa Ana Corporate Yard <br />8OB-2