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