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19-0917_NEW CINGULAR WIRELESS PCS, LLC_Agenda Report_E9TO : FROM : SUBMITTED BY: PREPARED BY : DATE : SUBJECT: City of San Juan Capistrano Agenda Report Honorable Mayor and Members of the City Council ~njamin Siegel, City Manager Steve May, Public Works and Utilities Director .,,<{fUA.,_ Joe Parco, City Engineer George Alvarez, Project Manager September 17, 2019 9/17/2019 E9 Facility License Agreement for the Installation of Wireless Facilities on City-Owned Infrastructure in the Public Right-of-Way RECOMMENDATION : 1. Approve a Municipal Facility License Agreement template for the installation of wireless facilities attached to City infrastructure in the public right-of-way; 2. Authorize the City Manager or designee to make minor revisions to the template, including carrier-specific insurance terms, with the approval of the City Attorney, with any material revisions to be brought back to City Council for consideration; and, 3. Authorize the City Manager to execute the Municipal Facility License Agreement with individual carriers on a case-by-case basis. EXECUTIVE SUMMARY : Over the past year, a number of wireless providers have expressed the desire to install new wireless communication facilities within the public right-of-way. The permitting process for such installations was established by the City's wireless Ordinance 1066 adopted by the City Council on April 16, 2019 (Attachment 1 ). Applicants have also expressed the desire to place these facilities on City-owned street light poles. The requests are due to the increasing consumer demand for wireless capacity and faster speeds, and are anticipated to increase in the future with the expected deployment of next generation (5G) wireless infrastructure . To provide a consistent and comprehensive response to these requests, staff and the City Attorney have developed a Municipal Facility License Agreement (MFLA) template for use when a wireless provider seeks to install new wireless communication facilities on City-owned infrastructure in the public City Council Agenda Report September 17, 2019 Page 2 of 4 right-of-way. Applicants who sign the MFLA must also go through the permitting process established by the City's wireless Ordinance 1066. It is recommended that the City Council approve this Municipal Facility License Agreement template, and authorize the City Manager to make minor revisions to the template on a case-by-case basis. DISCUSSION/ANALYSIS : A number of wireless providers have approached the City desiring to install wireless facilities within the City's public right-of-way, which would enhance wireless services throughout the community. Under federal law, the City cannot prohibit or effectively prohibit the provision of personal wireless services. Further, under California Public Utilities Code Section 7901, telecommunications companies have the right to be in the public right-of-way. The "small cell" wireless facilities consist of an antenna and equipment typically placed on existing infrastructure (or replacement poles) located within the public right-of-way, such as City-owned street light poles. Providers are experiencing increased customer demand, particularly with respect to data capacity and speed. Examples of the need for additional wireless capacity include expansion of the smartphone market, increased e-commerce, and the growing use of wireless sensors and monitoring of utility distribution, such as smart gas meters. The proposed MFLA would allow the City to enter into license agreements with individual wireless carriers in order for those carriers to attach to the City-owned poles. Given the short deadlines, or "shot clocks," by which federal law requires the City to act on each wireless application (60 days for installations on existing structures; 90 days for installations on new structures), it is generally infeasible to take each license agreement to the City Council for approval. Additionally, each applicant is expected to apply for multiple locations in the city. Therefore, staff proposes the use of a template MFLA, which can be signed substantially in this form by the City Manager or designee. Should any applicant wish to negotiate material revisions to the MFLA, those revisions would be brought before the City Council for approval. Staff is recommending that minor changes could be approved by the City Manager, subject to review and approval by the City Attorney and, in some instances, the City's Risk Manager. For example, each carrier has slightly different insurance requirements and one MFLA template cannot reconcile the various requirements. This MFLA template reflects the City's standard insurance requirements from Risk Management, with the understanding that City Manager, City Attorney, and Risk Manager could review and approve some carrier specific requirements. Additionally, this MFLA can be used by each carrier, and it provides the necessary flexibility under which they can add locations under the same MFLA as their coverage needs change. On April 16, 2019, the City Council adopted an urgency ordinance (Attachment 1) that amended San Juan Capistrano Municipal Code Title 7 to add a new Chapter 10, "Wireless Facilities in Rights-of-Way." This urgency ordinance provides the regulatory framework and standards for permitting the installation of wireless facilities in the City's public right- of-way. On April 16, 2019, the City Council also adopted a resolution to establish design City Council Agenda Report September 17, 2019 Page 3 of 4 and development standards for wireless facilities. The proposed MFLA would be used in conjunction with the permitting process set forth in that urgency ordinance, and would apply when the City owns the pole or infrastructure to which the wireless carrier proposes to attach the antenna. The MFLA contains a standard term of ten years with two five-year renewals. The MFLA also provides the flexibility for the carriers to add, remove, or relocate facilities in the city by applying for a supplement for each location. The MFLA requires the carriers to provide insurance and explains the parties' rights and obligations with respect to use of and damage to any City infrastructure. The MFLA also includes an annual rent payment for use of the City infrastructure. Under a Federal Communications Commission (FCC) declaratory order and regulations that went into effect on January 14, 2019, the FCC declared that all fees (including permit fees and rental fees for use of government-owned infrastructure, such as streetlights) must be based on a reasonable approximation of the City's costs, such that only objectively reasonable costs are factored into those fees, and fees are no higher than the fees charged to similarly situated competitors in similar situations. The FCC established a "safe harbor" amount of $270 per facility per year for recurring fees, such as the rent for attachment to municipal infrastructure. While the legal validity of this FCC Order is currently being litigated, the effectiveness of the FCC Order has not been stayed pending the resolution of the litigation. Therefore, City staff is accounting for this uncertainty in the fee terms of the MFLA. Staff recommends for all periods when the FCC Order is in effect, the annual rent per location be the $270 established by the FCC (increased annually by three percent). For any period the FCC Order is not in effect (for example, because it is vacated or invalidated by the court), then the rent would increase to a default $1,500 per facility per year. This rate reflects the rate charged by other cities in Southern California before the January 14, 2019, FCC Order. City staff and the City Attorney have met with and held conference calls with industry representatives, who have expressed interest in submitting applications to the City. The purpose of the meetings was to discuss the proposed MFLA regarding compensation, terms of the agreement, and conditions to install wireless facilities in the public right-of- way. Comments received by the providers were considered by staff and the City Attorney's Office and were incorporated into the final MLFA, as appropriate. FISCAL IMPACT: The recommended action would have no immediate fiscal impact to the City. The Municipal Facility License Agreement specifies the compensation for use of City infrastructure. The initial amount of compensation would be $270 per installation per year. The total amount of compensation per year would be based on the number of permits issued. A fee deposit would be collected from a wireless carrier at the time an application is submitted to cover the costs of City review and processing of the application. Once the application has been approved, a separate fee would be collected to inspect the work in the public right-of-way. City Council Agenda Report September 17, 2019 Page 4 of 4 ENVIRONMENTAL IMPACT : The recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to section 15060(c)(3) of CEQA Guidelines, because the action would not be considered project as defined in Section 15378 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, and the action would have no potential for resulting in physical change to the environment, directly or indirectly. PRIOR CITY COUNCIL REVIEW: On April 16, 2019, the City Council adopted urgency Ordinance 1066 to amend the San Juan Municipal Code, Title 7, to add a new Chapter 10, "Wireless Facilities in Rights-of- Way," and adopted a resolution establishing design and development standards for wireless facilities in the public right-of-way. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: This action does not require commission, committee, or board review . NOTIFICATIONS: Cory Autrey, AT&T Judy Woolen, AT&T Brian MacKey, Md7 Saul Panduro, Verizon ATTACHMENTS : Attachment 1 -Urgency Ordinance 1066 Attachment 2 -Municipal Facility License Agreement ORDINANCE NO. 1066 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO TO AMEND THE SAN JUAN CAPISTRANO MUNICIPAL CODE, TITLE 7, TO ADD A NEW CHAPTER 10, "WIRELESS FACILITIES IN RIGHTS-OF- WAY." WHEREAS, pursuant to the laws of the State of California, the City of San Juan Capistrano ("City") has the authority to adopt such ordinances as it deems necessary and appropriate to assure good government in the City, to protect and preserve the City's rights, property and privileges, and to preserve peace, safety and good order; and WHEREAS, the City deems it to be necessary and appropriate to provide for certain standards and regulations relating to the location, placement, design, construction and maintenance of telecommunications towers, antennas and other structures within the City's rights-of-way, and providing for the enforcement of said standards and regulations, consistent with federal and state law limitations on that authority. WHEREAS, the City deems it necessary and appropriate to enact regulations for wireless facilities in the right-of-way by urgency ordinance under Cal. Gov. Code Section 36937(b) because the matters herein concern "the immediate preservation of the public peace, health or safety" of the City's citizens. NOW, THEREFORE, BE IT ENACTED AND ORDAINED by the City Council: SECTION 1: The foregoing Recitals are adopted as findings of the City Council as though set forth in fully within the body of this ordinance. SECTION 2: Urgency Findings. (a) The City adopts this ordinance as an urgency measure pursuant to Government Code Section 36937(b) to protect the public peace, health and safety. (b) Since the City Council last amended the portions of the City Municipal Code ("Code") applicable to wireless facilities, the deployment of wireless facilities in right-of-way has increased nationwide and significant changes in federal laws that affect local authority over wireless facilities and other related infrastructure deployments have occurred, including, but not limited to, the following: (I) On August 2, 2018, the Federal Communications Commission ("FCC") adopted a Third Report & Order and Declaratory Ruling in the rulemaking proceeding titled Accelerating Wireline and Wireless Broadband Deployment by Removing Barriers to Infrastructure Investment, 33 FCC Red. 7705 (rel. Aug. 3, 2018) (the "August Order"), that, among other things, contained a declaratory ruling prohibiting express and de facto moratoria for all personal wireless services, telecommunications services and their related facilities under 47 U.S.C. § 253(a) and directed the Attachment 1, Page 1 of 15 Wireless Telecommunications Bureau and Wireline Competition Bureau to hear and resolve all complaints on an expedited basis. The declaratory ruling in the August Order was made effective upon release of the August Order which occurred on August 3, 2018; and (2) On September 26, 2018, the FCC adopted a Declaratory Ruling and Third Report and Order in the same rulemaking proceeding, 33 FCC Red 9088, FCC 18-133 (rel. Sep. 27, 2018) (the "September Order"), which, among many other things, created new shorter "shot clocks" for small wireless facilities (as defined in the September Order); altered existing "shot clock" regulations to require local public agencies to do more in less time; established a national standard for an effective prohibition related to small wireless facilities that replaced the existing "significant gap" test adopted by the United States Court of Appeals for the Ninth Circuit and provided that a failure to act within the applicable timeframe presumptively constitutes an effective prohibition. The September Order was made effective 90 days after publication in the Federal Register, that is, on January 14, 2019. The September Order also established that local governments should publish aesthetic standards by April 15, 2019 and that the standards must be in place before an application is submitted in order for the standards to apply to that proposed wireless facility. (c) In light of the FCC Orders, the City deems it to be necessary and appropriate to provide for certain standards and regulations relating to the location, placement, design, construction, and maintenance of telecommunications antennas and infrastructure within the City's right-of-way, and providing for the enforcement of said standards and regulations, consistent with federal and state law limitations on that authority. (d) Further, numerous carriers have expressed interest in submitting applications for the installation of wireless facilities in the right-of-way. Most portions of the FCC Orders are already in effect, so if the City does not immediately amend the Code, there is a risk that the City may not be able to enforce provisions of its Code or comply with the new federal regulations. (e) The City's right-of-way is a valuable resource, and the regulation of wireless installations in the right-of-way is necessary to protect and preserve aesthetics in the community. (f) If not adequately regulated, the installation of wireless facilities within the right- of-way can pose a threat to the public health, safety, and welfare, including disturbance to the right-of-way through the installation and maintenance of wireless facilities; traffic and pedestrian safety hazards due to the unsafe location of wireless facilities; impacts to trees where proximity conflicts may require unnecessary trimming of branches or require removal of roots due to related undergrounding of equipment or connection lines; land use conflicts and incompatibilities including excessive height or poles and towers; creation of visual and aesthetic blights and potential safety concerns arising from excessive size, heights, noise, or lack of camouflaging of wireless facilities, including the associated pedestals, meters, equipment and power generators, all of which may negatively impact the City and its citizens. Attachment 1 , Page 2 of 15 (g) Therefore, the City deems it necessary and appropriate to enact regulations for wireless telecommunications facilities in the right-of-way by urgency ordinance under Cal. Gov. Code Section 36937(b) because the matters herein concern "the immediate preservation of the public peace, health or safety" of the City's citizens. SECTION 3: Title 7 of the San Juan Capistrano Municipal Code ("Code") shall be amended to add a new Chapter 10, entitled "Wireless Facilities in Rights-Of-Way" as follows: CHAPTER 10 WIRELESS FACILITIES IN RIGHTS-OF-WAY Section 7-10.01. Purpose. The purpose of this Article is to establish a process for managing, and uniform standards for acting upon, requests for the placement of wireless facilities within the rights-of-way of the City consistent with the City's obligation to promote the public health, safety, and welfare, to manage the rights-of-way, and to ensure that the public is not incommoded by the use of the rights-of-way for the placement of wireless facilities. The City recognizes the importance of wireless facilities to provide high-quality communications service to the residents and businesses within the City, and the City also recognizes its obligation to comply with applicable Federal and State law regarding the placement of personal wireless services facilities in its rights-of-way. This ordinance shall be interpreted consistent with those provisions. Section 7-10.02. meanings: Definitions. The terms used in this Article shall have the following Application: A formal request, including all required and requested documentation and information, submitted by an applicant to the City for a wireless encroachment permit. Applicant: A person filing an application for placement or modification of a wireless facility in the right-of-way. Base Station: shall have the meaning as set forth in 47 C.F.R. Section 1.6100(b)(l), or any successor prov1s1on. Eligible Facilities Request: shall have the meaning as set forth in 47 C.F.R. Section 1.6100(b)(3), or any successor provision. FCC: The Federal Communications Commission or its lawful successor. Municipal Infrastructure: City-owned structures, objects, and equipment in the rights- of-way, including, but not limited to, street lights, traffic control structures, banners, street furniture, bus stops, billboards, or other poles, lighting fixtures, or electroliers located within the rights-of-way. Attachment 1, Page 3 of 15 Permittee: any person or entity granted a wireless encroachment permit pursuant to this Article. Personal Wireless Services: shall have the same meaning as set forth in 47 U.S.C. Section 332( c )(7)(C)(i). Personal Wireless Services Facility: means a wireless facility used for the provision of personal wireless services. Rights-of-Way ("ROW"): Means the surface of and the space above and below the public streets, roads, and alley right-of-way, and public utility easements or other public ways of any type whatsoever, now or thereafter located and existing within the City of San Juan Capistrano limits, whether or not improved. Small Cell Facility: shall have the same meaning as "small wireless facility" in 4 7 C.F .R. 1.6002(1), or any successor provision (which is a personal wireless services facility that meets the following conditions that, solely for convenience, have been set forth below): (1) The facility- (i) is mounted on a structure 50 feet or less in height, including antennas, as defined in 47 C.F.R. Section 1.1320(d), or (ii) is mounted on a structure no more than 10 percent taller than other adjacent structures, or (iii) does not extend an existing structure on which it are located to a height of more than 50 feet or by more than 10 percent, whichever is greater; (2) Each antenna associated with the deployment, excluding associated antenna equipment (as defined in the definition of antenna in 47 C.F.R. Section 1.1320(d)), is no more than three cubic feet in volume; (3) All other wireless equipment associated with the structure, including the wireless equipment associated with the antenna and any pre-existing associated equipment on the structure, is no more than 28 cubic feet in volume; ( 4) The facility does not require antenna structure registration under 4 7 C.F .R. Part 17; (5) The facility is not located on Tribal lands, as defined under 36 C.F.R. Section 800.16(x); and (6) The facility does not result in human exposure to radiofrequency radiation in excess of the applicable safety standards specified in 4 7 C.F .R. Section 1. l 307(b ). Support Structure: Any structure capable of supporting a base station. Tower: Any structure built for the sole or primary purpose of supporting any FCC- licensed or authorized antennas and their associated facilities, including structures that are constructed for personal wireless services including, but not limited to, private, broadcast, and public safety services, as well as unlicensed wireless services and fixed wireless services such as microwave backhaul, and the associated site. This definition does not include utility poles. Attachment 1 , Page 4 of 15 Underground areas: Those areas where there are no electrical facilities or facilities of the incumbent local exchange carrier in the ROW; or where the wires associated with the same are or are required to be located underground; or where the same are scheduled to be converted from overhead to underground. Electrical facilities are distribution facilities owned by an electric utility and do not include transmission facilities used or intended to be used to transmit electricity at nominal voltages in excess of 35,000 volts. Utility Pole: A structure in the ROW designed to support electric, telephone and similar utility lines. A tower is not a utility pole. Wireless Encroachment Permit: A permit issued pursuant to this Article authorizing the placement or modification of a wireless facility of a design specified in the permit at a particular location within the ROW; and the modification of any existing support structure to which the wireless facility is proposed to be attached. Wireless Facility, or Facility: The transmitters, antenna structures and other types of installations used for the provision of wireless services at a fixed location, including, without limitation, any associated tower(s), support structure(s), and base station(s). Wireless Infrastructure Provider: A person that owns, controls, operates or manages a wireless facility or portion thereof within the ROW. Wireless Regulations: Those regulations adopted pursuant to Section 5 and implementing the provisions of this Article. Wireless Service Provider: An entity that provides personal wireless services to end users. Section 7-10.03. Scope. (a) In general. There shall be a type of encroachment permit entitled a "wireless encroachment permit," which shall be subject to all of the same requirements as an encroachment permit would under in addition to all of the requirements of this Article. Unless exempted, every person who desires to place a wireless facility in the rights-of-way or modify an existing wireless facility in the rights-of-way must obtain a wireless encroachment permit authorizing the placement or modification in accordance with this Article. Except for small cell facilities, facilities qualifying as eligible facilities requests, or any other type of facility expressly allowed in the right-of-way by state or federal law, no other wireless facilities shall be permitted pursuant to this Article. (b) Exemptions. This Chapter does not apply to: (1) The placement or modification of facilities by the City or by any other agency of the state solely for public safety purposes. (2) Installation of a "cell on wheels," "cell on truck" or a similar structure for a temporary period in connection with an emergency or event, but no longer than required for the emergency or event, provided that installation does not involve excavation, movement, or removal of existing facilities. Attachment 1 , Page 5 of 15 (3) Installation of a wireless facility on the strand between two utility poles, provided that the cumulative volume of all wireless facilities on the strand shall not exceed one cubic foot and provided further that the installation does not require replacement of the strand, or excavation, modification or replacement of the utility poles. (c) Other applicable requirements. In addition to the wireless encroachment permit required herein, the placement of a wireless facility in the ROW requires the persons who will own or control those facilities to obtain all permits required by applicable law, and to comply with applicable law, including, but not limited, applicable law governing radio frequency (RF) emissions. (d) Pre-existing Facilities in the ROW. Any wireless facility already existing in the ROW as of the date of this Article's adoption shall remain subject to the provisions of the City Code in effect prior to this Article, unless and until an extension of such facility's then- existing permit is granted, at which time the provisions of this Article shall apply in full force going forward as to such facility. The review of any request for a renewal of a permit for such pre-existing facilities shall be conducted pursuant to this Article, rather than the portion(s) of the City Code under which it was previously reviewed. (e) Public use. Except as otherwise provided by California law, any use of the right-of-way authorized pursuant to this Chapter will be subordinate to the City's use and use by the public. Section 7-10.04. Administration. (a) The City Engineer or its designee is responsible for administering this Article. As part of the administration of this Article, the City Engineer may: (1) Interpret the provisions of this Article; (2) Develop and implement standards governing the placement and modification of wireless facilities consistent with the requirements of this Article, including regulations governing collocation and resolution of conflicting applications for placement of wireless facilities; (3) Develop and implement acceptable designs and development standards for wireless facilities in the rights-of-way, taking into account the zoning districts bounding the rights-of-way; (4) Develop forms and procedures for submission of applications for placement or modification of wireless facilities, and proposed changes to any support structure consistent with this Article; (5) Determine the amount of and collect, as a condition of the completeness of any application, any fee established by this Article; (6) Establish deadlines for submission of information related to an application, and extend or shorten deadlines where appropriate and consistent with state and federal laws and regulations; (7) Issue any notices of incompleteness, requests for information, or conduct or commission such studies as may be required to determine whether a permit should be issued; Attachment 1, Page 6 of 15 (8) Require, as part of, and as a condition of completeness of any application, notice to members of the public that may be affected by the placement or modification of the wireless facility and proposed changes to any support structure; (9) Subject to appeal as provided herein, determine whether to approve, approve subject to conditions, or deny an application; and (10) Take such other steps as may be required to timely act upon applications for placement of wireless facilities, including issuing written decisions and entering into agreements to mutually extend the time for action on an application. (b) Appeal. (1) Any person adversely affected by the decision of the City Engineer pursuant to this Article may appeal the City Engineer's decision to the City Manager, which may decide the issues de novo, and whose written decision will be the final decision of the City. An appeal by a wireless infrastructure provider must be taken jointly with the wireless service provider that intends to use the personal wireless services facility. (2) Where the City Engineer grants an application based on a finding that denial would result in a prohibition or effective prohibition under applicable federal law, the decision shall be automatically appealed to the City Manager. All appeals must be filed within two (2) business days of the written decision of the City Engineer, unless the City Engineer extends the time therefore. An extension may not be granted where extension would result in approval of the application by operation of law. (3) Any appeal shall be conducted so that a timely written decision may be issued in accordance with applicable law. Section 7-10.05. General Standards for Wireless Facilities in the Rights-of-Way. (a) Generally. Wireless facilities in the ROW shall meet the minimum requirements set forth in this ordinance and the wireless regulations, in addition to the requirements of any other applicable law. (b) Regulations. The wireless regulations and decisions on applications for placement of wireless facilities in the ROW shall, at a minimum, ensure that the requirements of this section are satisfied, unless it is determined that applicant has established that denial of an application would, within the meaning of federal law, prohibit or effectively prohibit the provision of personal wireless services, or otherwise violate applicable laws or regulations. If that determination is made, the requirements of this Article may be waived, but only to the minimum extent required to avoid the prohibition or violation. (c) Minimum Standards. All applicants shall design and locate the wireless facilities in accordance with the standards and wireless regulations set forth separately though the resolution adopted by the City Council. Section 7-10.06. Applications. (a) Submission. Unless the wireless regulations provide otherwise, applicant shall submit a paper copy and an electronic copy of any application, amendments, or supplements to an Attachment 1, Page 7 of 15 application, or responses to requests for information regarding an application to: City Engineer, at 32400 Paseo Adelanto, San Juan Capistrano, CA 92675. (b) Pre-application meeting. Prior to filing an application for a wireless encroachment permit, an applicant is encouraged to schedule a pre-application meeting with the City Engineer to discuss the proposed facility, the requirements of this Article, and any potential impacts of the proposed facility. (c) Content. An application must contain: An applicant shall submit an application on the form approved by the City Engineer, which may be updated from time-to-time, but in any event shall require the submission of all required fee(s), documents, information, and any other materials necessary to allow the City Engineer to make required findings and ensure that the proposed facility will comply with applicable federal and state law, the City Code, and will not endanger the public health, safety, or welfare. If no form has been approved, applications must contain all information necessary to show that applicant is entitled to the wireless encroachment permit requested, and must specify whether the applicant believes state or federal law requires action on the application within a specified time period. (d) Fees. A fee in the form of a deposit shall be submitted with any application for a wireless encroachment permit. The amount of the fee deposit is based on the estimated work to complete the plan checking and field review of each of the sites where wireless facilities are planned. The City Council is hereby authorized to determine, or cause to be determined, the amount, type, and other terms of such fee(s) from time to time by means of resolution. Notwithstanding the foregoing, no application fee shall be refundable, in whole or in part, to an applicant for a wireless encroachment permit unless paid as a deposit and not fully spent. Unspent amounts shall be refunded. (e) Waivers. Requests for waivers from any requirement of this section shall be made in writing to the City Engineer or his or her designee. The City Engineer may grant or deny a request for a waiver pursuant to this subsection. The City Engineer may grant a request for waiver if it is demonstrated that, notwithstanding the issuance of a waiver, the City will be provided all information necessary to understand the nature of the construction or other activity to be conducted pursuant to the permit sought. All waivers approved pursuant to this subsection shall be ( 1) granted only on a case-by-case basis, and (2) narrowly-tailored to minimize deviation from the requirements of the City Code. (f) Incompleteness. For personal wireless facilities and eligible facilities requests, applications will be processed, and notices of incompleteness provided, in conformity with state, local, and federal law. If such an application is incomplete, the City Engineer may notify the applicant in writing, and specifying the material omitted from the application. Section 7-10.07. Findings; Decisions; Consultants. (a) Findings Required for Approval. (1) Except for eligible facilities requests, the City Engineer, as the case may be, shall approve an application if, on the basis of the application and other materials or evidence provided in review thereof, it finds the following: (i) The facility is not detrimental to the public health, safety, and welfare; (ii) The facility complies with this Article and all applicable design and development standards; and, (iii) The facility meets applicable requirements and standards of state and federal law. Attachment 1, Page 8 of 15 (2) For eligible facilities requests, the City Engineer, as the case may be, shall approve an application if, on the basis of the application and other materials or evidence provided in review thereof, it finds the following: (i) That the application qualifies as an eligible facilities request; and (ii) That the proposed facility will comply with all generally-applicable laws. (b) Decisions. Decisions on an application by the City Engineer shall be in writing and include the reasons for the decision. (c) Independent Consultants. The City Engineer, as the case may be, is authorized, in its discretion, to select and retain independent consultant(s) with expertise in telecommunications in connection with the review of any application under this Article. Such independent consultant review may be retained on any issue that involves specialized or expert knowledge in connection with an application, including, but not limited to, application completeness or accuracy, structural engineering analysis, or compliance with FCC radio frequency emissions standards. The cost for the independent consultant shall be borne by the applicant as outlined in section 7-10.08 (d) Fees. Section 7-10.08. Conditions of Approval. (a) Generally. In addition to any supplemental conditions imposed by the City Engineer, as the case may be, all permits granted pursuant to this Article shall be subject to the following conditions, unless modified by the approving authority: (1) Code Compliance. The permittee shall at all times maintain compliance with all applicable federal, state and local laws, regulations and other rules, including, without limitation, those applying to use of rights-of-way. (2) Permit Duration. A wireless encroachment permit shall be valid for a period of ten (10) years, unless pursuant to another provision of the Code or these conditions, it expires sooner or is terminated. At the end of ten (10) years from the date of issuance, such Permit shall automatically expire, unless an extension or renewal has been granted. A person holding a wireless encroachment permit must either (1) remove the facility within thirty (30) days following the permit's expiration (provided that removal of support structure owned by City, a utility, or another entity authorized to maintain a support structure in the right of way need not be removed, but must be restored to its prior condition, except as specifically permitted by the City); or (2) at least ninety (90) days prior to expiration, submit an application to renew the permit, which application must, among all other requirements, demonstrate that the impact of the wireless facility cannot be reduced. The wireless facility must remain in place until it is acted upon by the City and all appeals from the City's decision exhausted. (3) Timing of Installation. The installation and construction authorized by a wireless encroachment permit shall begin within one (1) year after its approval, or it will expire without further action by the City. This period may be extended at the Director's discretion if good cause is shown. The installation and construction authorized by a wireless encroachment permit shall conclude, including any necessary post-installation repairs and/or restoration to the ROW, within thirty (30) days following the day construction commenced. (4) Commencement of Operations. The operation of the approved facility shall commence no later than one (1) month after the completion of installation, or the Attachment 1, Page 9 of 15 wireless encroachment permit will expire without further action by the City. This period may be extended at the Director's discretion if good cause is shown. (5) As-Built Drawings after installation of the facility. As-builts shall be in an electronic format acceptable to the City.] (6) Inspections; Emergencies. The City or its designee may enter onto the facility area to inspect the facility upon forty-eight ( 48) hours prior notice to the permittee. The permittee shall cooperate with all inspections and may be present for any inspection of its facility by the City. The City reserves the right to enter or direct its designee to enter the facility and support, repair, disable, or remove any elements of the facility in emergencies or when the facility threatens imminent harm to persons or property. The city shall make an effort to contact the permittee prior to disabling or removing any facility elements, but in any case shall notify permittee within twenty-four (24) hours of doing so. (7) Contact. The permittee shall at all times maintain accurate contact information for all parties responsible for the facility, which shall include a phone number, street mailing address and email address for at least one natural person. (8) Insurance. Permittee shall obtain and maintain throughout the term of the permit commercial general liability insurance with a limit of $5 million per occurrence for bodily injury and property damage and $6 million general aggregate including premises operations, contractual liability, personal injury, and products completed operations. The relevant policy(ies) shall name the City, its elected/appointed officials, commission members, officers, representatives, agents, and employees as additional insureds. Permittee shall use its best efforts to provide thirty (30) days' prior notice to the City of to the cancellation or material modification of any applicable insurance policy. (9) Indemnities. The permittee and, if applicable, the owner of the property upon which the wireless facility is installed shall defend, indemnify and hold harmless the City, its agents, officers, officials, and employees (i) from any and all damages, liabilities, injuries, losses, costs, and expenses, and from any and all claims, demands, law suits, writs of mandamus, and other actions or proceedings brought against the city or its agents, officers, officials, or employees to challenge, attack, seek to modify, set aside, void or annul the city's approval of the permit, and (ii) from any and all damages, liabilities, injuries, losses, costs, and expenses, and any and all claims, demands, law suits, or causes of action and other actions or proceedings of any kind or form, whether for personal injury, death or property damage, arising out of or in connection with the activities or performance of the permittee or, if applicable, the property owner or any of each one's agents, employees, licensees, contractors, subcontractors, or independent contractors. In the event the city becomes aware of any such actions or claims the city shall promptly notify the permittee and, if applicable, the private property owner and shall reasonably cooperate in the defense. The City shall have the right to approve, which approval shall not be unreasonably withheld, the legal counsel providing the City's defense, and the property owner and/or permittee (as applicable) shall reimburse City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. Attachment 1, Page 10 of 15 (10) Adverse Impacts on Adjacent Properties. Permittee shall undertake all reasonable efforts to avoid undue adverse impacts to adjacent properties and/or uses that may arise from the construction, operation, maintenance, modification, and removal of the facility. (11) Noninterference. Permittee shall not move, alter, temporarily relocate, change, or interfere with any existing structure, improvement, or property without the prior consent of the owner of that structure, improvement, or property. No structure, improvement, or property owned by the City shall be moved to accommodate a permitted activity or encroachment, unless the City determines that such movement will not adversely affect the City or any surrounding businesses or residents, and the Permittee pays all costs and expenses related to the relocation of the City's structure, improvement, or property. Prior to commencement of any work pursuant to a wireless encroachment permit, the Permittee shall provide the City with documentation establishing to the city's satisfaction that the Permittee has the legal right to use or interfere with any other structure, improvement, or property within the right-of-way to be affected by Permittee's facilities. (12) No Right, Title, or Interest. The permission granted by a wireless encroachment permit shall not in any event constitute an easement on or an encumbrance against the right-of-way. No right, title, or interest (including franchise interest) in the right- of-way, or any part thereof, shall vest or accrue in Permittee by reason of a wireless encroachment permit or the issuance of any other permit or exercise of any privilege given thereby. (13) No Possessory Interest. No possessory interest is created by a wireless encroachment permit. However, to the extent that a possessory interest is deemed created by a governmental entity with taxation authority, Permittee acknowledges that City has given to Permittee notice pursuant to California Revenue and Taxation Code Section 107 .6 that the use or occupancy of any public property pursuant to a wireless encroachment permit may create a possessory interest which may be subject to the payment of property taxes levied upon such interest. Permittee shall be solely liable for, and shall pay and discharge prior to delinquency, any and all possessory interact taxes or other taxes, fees, and assessments levied against Permittee's right to possession, occupancy, or use of any public property pursuant to any right of possession, occupancy, or use created by this permit. (14) General Maintenance. The site and the facility, including, but not limited to, all landscaping, fencing, and related transmission equipment, must be maintained in a neat and clean manner and in accordance with all approved plans. All graffiti on facilities must be removed at the sole expense of the permittee within forty-eight ( 48) hours after notification from the City. ( 15) RF Exposure Compliance. All facilities must comply with all standards and regulations of the FCC and any other state or federal government agency with the authority to regulate RF exposure standards. After transmitter and antenna system optimization, but prior to unattended operations of the facility, permittee or its representative must conduct on-site post-installation RF emissions testing to demonstrate actual compliance with the FCC OET Bulletin 65 RF emissions safety rules for general population/uncontrolled RF exposure in all sectors. For this testing, the transmitter shall be operating at maximum operating power, and the Attachment 1 , Page 11 of 15 testing shall occur outwards to a distance where the RF emissions no longer exceed the uncontrolled/general population limit. (16) Testing. Testing of any equipment shall take place on weekdays only, and only between the hours of 8:30 a.m. and 4:00 p.m., except that testing is prohibited on holidays that fall on a weekday. In addition, testing is prohibited on weekend days. (17) Modifications. No changes shall be made to the approved plans without review and approval in accordance with this Article. (18) Agreement with City. If not already completed, permittee shall enter into the appropriate agreement with the City, as determined by the City, prior to constructing, attaching, or operating a facility on Municipal Infrastructure. This permit is not a substitute for such agreement. (19) Conflicts with Improvements. For all facilities located within the ROW, the permittee shall remove or relocate, at its expense and without expense to the city, any or all of its facilities when such removal or relocation is deemed necessary by the city by reason of any change of grade, alignment, or width of any right-of-way, for installation of services, water pipes, drains, storm drains, power or signal lines, traffic control devices, right-of-way improvements, or for any other construction, repair, or improvement to the right-of-way. Relocation shall occur within 90 days after receiving notification from the City. (20) Abandonment. If a facility is not operated for a continuous period of ninety (90) days, the wireless encroachment permit and any other permit or approval therefor shall be deemed abandoned and terminated automatically, unless before the end of the ninety (90) day period (i) the City Engineer has determined that the facility has resumed operations, or (ii) the City has received an application to transfer the permit to another service provider. No later than ninety (90) days from the date the facility is determined to have ceased operation or the permittee has notified the City Engineer of its intent to vacate the site, the permittee shall remove all equipment and improvements associated with the use and shall restore the site to its original condition to the satisfaction of the City Engineer. The permittee shall provide written verification of the removal of the facilities within thirty (30) days of the date the removal is completed. If the facility is not removed within thirty (30 )days after the permit has been discontinued pursuant to this subsection, the site shall be deemed to be a nuisance, and the City may cause the facility to be removed at permittee's expense or by calling any bond or other financial assurance to pay for removal. If there are two (2) or more users of a single facility or support structure, then this provision shall apply to the specific elements or parts thereof that were abandoned, but will not be effective for the entirety thereof until all users cease use thereof. (21) Encourage Co-location. Where the facility site is capable of accommodating a co- located facility upon the same site in a manner consistent with the permit conditions for the existing facility, the owner and operator of the existing facility shall allow co-location of third party facilities, provided the parties can mutually agree upon reasonable terms and conditions. (22) Records. The permittee must maintain complete and accurate copies of all permits and other regulatory approvals issued in connection with the facility, which includes without limitation this approval, the approved plans and photo simulations Attachment 1, Page 12 of 15 incorporated into this approval, all conditions associated with this approval and any ministerial permits or approvals issued in connection with this approval. In the event that the permittee does not maintain such records as required in this condition or fails to produce true and complete copies of such records within a reasonable time after a written request from the city, any ambiguities or uncertainties that would be resolved through an inspection of the missing records will be construed against the permittee. (23) Attorney's Fees. In the event the City determines that it is necessary to take legal action to enforce any of these conditions, or to revoke a permit, and such legal action is taken, the Permittee shall be required to pay any and all costs of such legal action, including reasonable attorney's fees, incurred by the City, even if the matter is not prosecuted to a final judgment or is amicably resolved, unless the City should otherwise agree with Permittee to waive said fees or any part thereof. The foregoing shall not apply if the Permittee prevails in the enforcement proceeding. (b) Eligible Facilities Requests. In addition to the conditions provided in Section 7-10.08(a) of this Article and any supplemental conditions imposed by the City Engineer as the case may be, all permits for an eligible facility requests granted pursuant to this Article shall be subject to the following additional conditions, unless modified by the approving authority: ( 1) Permit subject to conditions of underlying permit. Any permit granted in response to an application qualifying as an eligible facilities request shall be subject to the terms and conditions of the underlying permit. (2) No permit term extension. The city's grant or grant by operation of law of an eligible facilities request permit constitutes a federally-mandated modification to the underlying permit or approval for the subject tower or base station. Notwithstanding any permit duration established in another permit condition, the city's grant or grant by operation of law of a eligible facilities request permit will not extend the permit term for the underlying permit or any other underlying regulatory approval, and its term shall be coterminous with the underlying permit or other regulatory approval for the subject tower or base station. (3) No waiver of standing. The city's grant or grant by operation of law of an eligible facilities request does not waive, and shall not be construed to waive, any standing by the city to challenge Section 6409(a) of the Spectrum Act, any FCC rules that interpret Section 6409(a) of the Spectrum Act, or any modification to Section 6409(a) of the Spectrum Act. (c) Small Cell Facilities Requests. In addition to the conditions provided in Section 7- 10.08(a) of this Article and any supplemental conditions imposed by the City Engineer as the case may be, all permits for a small cell facility granted pursuant to this Article shall be subject to the following condition, unless modified by the approving authority: (1) No waiver of standing. The city's grant of a permit for a small cell facility request does not waive, and shall not be construed to waive, any standing by the city to challenge any FCC orders or rules related to small cell facilities, or any modification to those FCC orders or rules. Section 7-10.09. Breach; Termination of Permit. Attachment 1, Page 13 of 15 (a) For breach. A wireless encroachment permit may be revoked for failure to comply with the conditions of the permit or applicable law. Upon revocation, the wireless facility must be removed; provided that removal of a support structure owned by City, a utility, or another entity authorized to maintain a support structure in the right-of-way need not be removed, but must be restored to its prior condition, except as specifically permitted by the City. All costs incurred by the City in connection with the revocation and removal shall be paid by entities who own or control any part of the wireless facility. (b) For installation without a permit. An wireless facility installed without a wireless encroachment permit (except for those exempted by this Article) must be removed; provided that removal of support structure owned by City, a utility, or another entity authorized to maintain a support structure in the right of way need not be removed, but must be restored to its prior condition, except as specifically permitted by the City. All costs incurred by the City in connection with the revocation and removal shall be paid by entities who own or control any part of the wireless facility. (c) Municipal Infraction. Any violation of this Article will be subject to the same penalties as a violation of the San Juan Municipal Code Section 7-4.03. Section 7-10.010. Infrastructure Controlled By City. The City, as a matter of policy, will negotiate agreements for use of Municipal Infrastructure. The placement of wireless facilities on those structures shall be subject to the agreement. The agreement shall specify the compensation to the City for use of the structures. The person seeking the agreement shall additionally reimburse the City for all costs the City incurs in connection with its review of, and action upon the person's request for, an agreement. Section 7-10.011. Nondiscrimination. In establishing the rights, obligations and conditions set forth in this article, it is the intent of the City to treat each applicant or right-of-way user in a competitively neutral and nondiscriminatory manner, to the extent required by law, and with considerations that may be unique to the technologies, situation and legal status of each particular applicant or request for use of the rights-of-way. SECTION 4: The City Manager, or his or her delegate, is directed to execute all documents and to perform all other necessary City acts to implement effect this Ordinance. SECTION 5: CEQA. This Ordinance is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act ("CEQA") Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. The Ordinance does not authorize any specific development or installation on any specific piece of property within the City's boundaries. Moreover, when and if an application for installation is submitted, the City will at that time conduct preliminary review of the application in accordance with CEQA. Alternatively, even if the Ordinance is a "project" within the meaning of State CEQA Guidelines section 153 78, the Ordinance is exempt from CEQA on multiple grounds. First, the Ordinance is exempt CEQA because the City Council's adoption of the Ordinance is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. (State CEQA Guidelines,§ 1506l(b)(3)). That is, approval of the Ordinance will not result in the actual installation of any facilities in the City. In order to install a facility in accordance with this Ordinance, the wireless provider would have Attachment 1, Page 14 of 15 to submit an application for installation of the wireless facility. At that time, the City will have specific and definite information regarding the facility to review in accordance with CEQA. And, in fact, the City will conduct preliminary review under CEQA at that time. Moreover, in the event that the Ordinance is interpreted so as to permit installation of wireless facilities on a particular site, the installation would be exempt from CEQA review in accordance with either State CEQA Guidelines section 15302 (replacement or reconstruction), State CEQA Guidelines section 15303 (new construction or conversion of small structures), and/or State CEQA Guidelines section 15304 (minor alterations to land). The City Council, therefore, directs that a Notice of Exemption be filed with the County Clerk of the County of Orange within five working days of the passage and adoption of the Ordinance. SECTION 6: Severability. If any section, subsection, provision, sentence, clause, phrase or word of this Ordinance is for any reason held to be illegal or otherwise invalid by any court of competent jurisdiction, such invalidity shall be severable, and shall not affect or impair any remaining section, subsection, provision, sentence, clause, phrase or word included within this Ordinance, it being the intent of the City that the remainder of the Ordinance shall be and shall remam m full force and effect, valid, and enforceable. SECTION 7: In accordance with California Government Code Section 36937(b), this ordinance shall become effective immediately upon its passage and adoption. PASSED AND ADOPTED BY THE COUNCIL OF SAN JUAN CAPISTRANO this 16th day of April 2019, by the following vote: Brian L. Maryott, Mayor ATTEST: Maria Morris, City Clerk Attachment 1 , Page 15 of 15 MUNICIPAL FACILITY LICENSE AGREEMENT THIS MUNICIPAL FACILITY LICENSE AGREEMENT (the "Agreement") is dated as of 20_ (the date fully executed by all parties, referred to herein as "Effective Date"), and entered into by and between the City of San Juan Capistrano, a California municipal corporation (the "Licensor"), and ("Licensee"). Licensor and Licensee are referred to herein collectively as the "Parties" or individually as a "Party." Recitals A. WHEREAS, the Licensor is the owner of certain Municipal Facilities (as defined below) located in the Rights-of-Way (as defined below) of the City of San Juan Capistrano ("City"); B. WHEREAS, Licensee is authorized to conduct business as a telephone corporation in the State of California; C. WHEREAS, Licensee desires to use space on certain of the Licensor's Municipal Facilities in the Rights-of-Way to construct, attach, install, operate, and maintain of its Equipment (as defined below); D. WHEREAS, Licensor is willing to allow Licensee to use and physically occupy portions of the Municipal Facilities in the Rights-of-Way subject to the terms and conditions of this Agreement. Agreement 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. The following definitions shall apply generally to the provisions of this Agreement: 1.1 "Equipment" means the equipment cabinets, antennas, utilities, and fiber optic cables, wires, and related equipment, whether referred to individually or collectively, to be installed on a Municipal Facility and operated by Licensee under a particular Supplement. 1.2 "Hazardous Substance" means any substance, chemical or waste that is identified as hazardous or toxic in any applicable federal, state or local law or regulation, including, but not limited to, petroleum products and asbestos. 1.3 "Laws" means any and all applicable statutes, codes, constitutions, ordinances, resolutions, regulations, judicial decisions, rules, tariffs, administrative orders, court orders, or other requirements of the Licensor or other governmental agency having joint or several jurisdiction over the parties to this Agreement as such laws may be amended from time to time. Attachment 2, Page 1 of 26 1.4 "License Fee" means the compensation paid under any Supplement for use of the Municipal Facilities. 1.5 "Make-Ready Work" means the work required on or in a Municipal Facility to create space for the Equipment, and/or replacing and/or reinforcing the existing Municipal Facility to accommodate Equipment including, but not limited to, rearrangement or transfer of existing Equipment and the facilities of other entities, and Municipal Facility relocation and replacement if applicable. 1.6 "Municipal Facilities" means City-owned structures, objects, and equipment in the rights-of-way, including, but limited to, street lights, traffic signal control structures, banners, street furniture, bus stops, billboards, or other poles, lighting fixtures, or electroliers located within the rights-of-way. 1.7 "Person" means and includes any individual, partnership of any kind, corporation, limited liability company, association, joint venture, or other organization, however formed, as well as trustees, heirs, executors, administrators, or assigns, or any combination of such persons. 1.8 "PUC" means the California Public Utilities Commission. 1.9 "Right(s)-of-Way" or "ROW" means the surface of and the space above and below the public streets, roads, and alley right-of-way, and public utility easements or other public ways of any type whatsoever, now or thereafter located and existing within the City of San Juan Capistrano limits, whether improved on not improved. 1.10 "Services" means the transmission and reception of communications signals for the provision of personal wireless services, telecommunications services and mobile data services as defined in federal law, but specifically excluding cable services and/or video services as defined by the Digital Infrastructure and Video Competition Act (as codified in Public Utilities Code section 5800 et seq.). 1.11 "Supplement" shall mean each separate authorization, granted by Licensor to Licensee with regard to a specific Equipment installation, the form of which is attached hereto as Exhibit A, each and every of which shall be subject to the terms and conditions of this Agreement. 1.12 "Transfer" means any transaction in which the rights and/or obligations held by Licensee under this Agreement or a Supplement are transferred, directly or indirectly, in whole or in part to a party other than Licensee. 2. TERM; SUPPLEMENT TERM. 2.1 Term. The initial term of this Agreement shall be for a period of ten (10) years (the "Initial Term"), commencing on the Effective Date and ending on the tenth (10th) anniversary thereof, unless sooner terminated as stated herein. Provided that Licensee is not in default of the Agreement or any Supplement following written notice and the expiration of any applicable cure period, this Agreement shall be automatically renewed for two (2) successive five (5) year renewal terms (each, a "Renewal Term"), unless either party gives the other party written notice of the intent not to renew this Agreement at least six (6) months prior to the expiration of the Initial Term -2 - Attachment 2, Page 2 of 26 or any Renewal Term, as applicable. The Initial Term and all Renewal Terms shall be collectively referred to herein as the "Term." Any holding over after the termination or expiration of the Term shall constitute a default by Licensee, notwithstanding that Licensor may elect to accept one or more payments of fees from Licensee after such default occurs. 2.2 Supplement Term. Unless otherwise specified in a Supplement, the initial term for each particular Supplement shall begin on its effective date ("Supplement Effective Date") and shall end upon the expiration of the Term, unless such individual Supplement is earlier terminated or this Agreement is extended or terminated, as provided for herein (the "Supplement Term"). All of the provisions of this Agreement shall be in effect during the Supplement Term. The expiration or termination of the Agreement shall immediately terminate all Supplements. Any holding over after the expiration of the Supplement Term shall constitute a default by Licensee, notwithstanding that Licensor may elect to accept one or more payments of fees from Licensee after such default occurs. 3. REPRESENTATION CONCERNING SERVICES; No AUTHORIZATION TO PROVIDE OTHER SERVICES. Licensee represents, warrants, and covenants that its Equipment installed pursuant to this Agreement and each Supplement will be utilized solely for providing the Services, and Licensee is not authorized to and shall not use its Equipment installed on Municipal Facilities to offer or provide any other services not specified herein without Licensor consent. At any time that Licensee ceases to operate as a provider of Services under federal or state law, it shall provide written notice of the same to Licensor within seven (7) days of such cessation, at which time the Licensor shall have the option, in its sole discretion and upon six (6) months' written notice to Licensee, to terminate this Agreement and to require the removal of Licensee's Equipment from the ROW and from Municipal Facilities, including the cost of any site remediation, at no cost to the Licensor, without any liability to Licensee related directly or indirectly to such termination. 4. SCOPE OF AGREEMENT. Licensee may only use Municipal Facilities pursuant to an approved Supplement. Any and all rights expressly granted to Licensee under this Agreement shall be exercised at Licensee's sole cost and expense, and shall be subject to the restrictions set forth herein 4.1 Attachment to Municipal Facilities. Subject to the conditions herein, Licensor hereby authorizes and permits Licensee to locate, place, attach, install, operate, maintain, control, remove, reattach, reinstall, relocate, and replace Equipment on identified Municipal Facilities located in the ROW for the purpose of providing Services. 4.1.1 Licensee will submit to the authorized representative of the Licensor an application substantially in the form of Exhibit B ("Application") hereto including a proposed design for any proposed Equipment installations that identifies both the Equipment and the Municipal Facilities Licensee proposes to use. One Application is required per Municipal Facility, but Licensee may submit a batch of up to five (5) applications that have the same design, have the same pole type, and are not in discouraged or prohibited locations (as identified in the City of San Juan Capistrano's Design and Development Standards for Wireless Facilities in the Right-of- Way). -3 - Attachment 2, Page 3 of 26 4.1.2 Licensor may approve, approve with conditions, or disapprove an Application in its sole discretion; provided however, that Licensor shall not unreasonably delay its decision. Any approved Equipment shall be included as part of the applicable Supplement. 4.1.3 If Licensee submits an Application to use a Municipal Facility that is structurally inadequate to accommodate its proposed Equipment, Licensor may permit the replacement of the Municipal Facility (a "Replacement Facility") with one that is acceptable to and approved by the Licensor as part of the applicable Supplement. Any Replacement Facility shall be installed and maintained in accordance with Section 6 of this Agreement. 4.1.4 Unmetered electricity where possible. Licensee shall be solely responsible for obtaining and maintaining the provision of electricity to the Equipment, including, but not limited to, making payments to electric utilities. Where commercially feasible and available, Licensee shall secure unmetered electricity services. 4.2 Additional Authority. Nothing in this Agreement shall limit in any way Licensee's obligation to obtain any additional required regulatory approvals or permits from any City department, board, commission, or other governmental agency that has regulatory authority over the Licensee's proposed activities involving use of the Municipal Facilities in the ROW. 4.3 No Interference. Licensee acknowledges and agrees that the primary purpose of the Municipal Facilities is to serve the Licensor and the public. In the performance and exercise of its rights and obligations under this Agreement, Licensee shall not interfere in any manner with Licensor's own services or the existence and operation of any and all public and private rights-of- way, sanitary sewers, water mains, storm drains, gas mains, poles, aerial and underground electrical and telephone wires, traffic signals, communication facilities owned by the Licensor, electroliers, cable television, location monitoring services, public safety and other then existing telecommunications equipment, utilities, or municipal property, without the express written approval of the owner or owners of the affected property or properties, except as permitted by applicable laws or this Agreement. If such interference should occur, Licensee shall discontinue using the Equipment, methodology, or technology that causes the interference until such time as Licensee takes corrective measures to eliminate such interference. In the event that such interference does not cease promptly, Licensee acknowledges that continuing interference may cause irreparable injury and harm, and therefore, in addition to any other remedies, and without limitation of any other remedy, Licensor shall be entitled to seek temporary and permanent injunctions against the breach of this Subsection. Notwithstanding the foregoing, Licensor and Licensee agree to work in good faith with each other and any other affected party to resolve any interference to or by Licensee. 4.4 Permits; Default. In addition to any other remedies available hereunder, whenever Licensee is in default of this Agreement or an applicable Supplement, after notice and applicable cure periods, Licensor may deny further encroachment, excavation, or similar permits for work in connection with installations under this Agreement until such time as Licensee cures all of its defaults. 4.5 Compliance with Laws. Licensee shall comply with all Laws in the exercise and performance of its rights and obligations under this Agreement. -4 - Attachment 2, Page 4 of 26 4.6 Non-Exclusive Use Rights. Notwithstanding any other provision of this Agreement, any and all rights expressly or impliedly granted to Licensee under this Agreement shall be non-exclusive, and shall be subject and subordinate to (1) the continuing right of the Licensor to use, and to all my any other person or persons to use, any and all parts of the ROW or Municipal Facilities, exclusively or concurrently with any other person or persons, and (2) the public easement for streets and any and all other deeds, easements, dedications, conditions, covenants, restrictions, encumbrances, and claims of title (collectively, "Encumbrances") which may affect the ROW or Municipal Facilities now or at any time during the term of this Agreement, including, without limitation any Encumbrances granted, created, or allowed by the Licensor at any time. 5. COMPENSATION. Licensee shall be solely responsible for the payment of all fees in connection with Licensee's performance under this Agreement, including, but not limited to, those set forth below. 5.1 One Time Fees. The Licensor activities described in Section 5 .1 are "One-Time Fees" that reimburse the City for its costs associated with reviewing and approving applications to attach Equipment on identified Municipal Facilities located in the ROW, this Agreement and Supplements to this Agreement for additional locations. The Licensor shall track its time spent reviewing the Licensee submittals for Licenses, Supplements and associated permit activities described below, and charge its hourly rate for any time spent above the amount to be recovered from any deposit. The fee amounts shall be assessed and administered consistent with standard Licensor practice and fee schedule(s) for an encroachment permit and inspections as currently adopted and subsequently amended or replaced, in a manner consistent with applicable law. 5.1.1 Permit Fees. Licensee shall be responsible for paying all costs associated with City review, processing and inspection as part of all permit applications filed for the installation, modification, maintenance and removal of Equipment on identified Municipal Facilities located in the ROW. 5.1.2 License and Supplement Fee. Licensee shall be responsible for paying all costs associated with City review and processing of this Agreement and any Supplements thereto (or any amendment thereto) and/or the other administrative review, consultation, and inspection described in this Agreement, including review of Company submittals. 5.2 License Fees. 5.2.1 Rent. Licensee acknowledges that the FCC has adopted a Declaratory Ruling (FCC 18-133) that relates to the rent which went into effect on January 14, 2019 but that Declaratory Ruling is currently the subject of litigation. Paragraphs 5.2.2, 5.2.3 and 5.2.4 govern the payment of rent and how it may be impacted by the Declaratory Ruling and the resolution of related litigation during the Term and any renewal terms. 5.2.2 During any period in which the FCC Declaratory Ruling (FCC 18-133) is in effect and during any period in which the Alternate Rent provisions in paragraph 5.2.3 are not applicable, the Licensee shall pay Rent as described in this paragraph. Licensee shall pay to the Licensor the base amount of two hundred and seventy dollars ($270.00) per calendar year for each -5 - Attachment 2, Page 5 of 26 location covered by a Supplement. The base amount under all Supplements shall be subject to an annual adjustment of three percent (3%) applied on each anniversary of the Effective Date. Any new Supplements entered into during a given year shall commence at the rent, as adjusted by this Section to reflect the then-current rate. (the "Rent"). Rent for the first calendar year of a Supplement for each location shall be pro-rated based on the number of days covered from the Supplement Effective Date to the next anniversary of the Effective Date of the Agreement. There shall be no refunds of Rent paid due to the termination or expiration of the Agreement or any Supplement for any reason. 5.2.3 Alternate Rent. In the event the relevant provisions of the FCC Declaratory Ruling cease to be effective, (for example, because they are stayed after having gone into effect, or they are vacated or invalidated and have not been replaced by the FCC with an alternative provision setting a specific amount as Rent), the Licensee shall automatically and immediately be obligated to pay Alternate Rent as described in this paragraph and paragraph 5.2.5, if applicable. For each location covered by a Supplement, Licensee shall pay to the Licensor alternate rent in the base amount of one thousand five hundred dollars ($1,500.00) per calendar year. The base amount under all Supplements shall be subject to an annual adjustment of three percent (3%) applied on each anniversary of the Effective Date. ("Alternate Rent"). Alternate Rent for the first calendar year of a Supplement for each individual location shall be pro-rated based on the number of days covered from the Supplement Effective Date to the next anniversary of the Effective Date of the Agreement. There shall be no refunds of Alternate Rent paid due to the termination or expiration of the Agreement or any Supplement for any reason. If the relevant part of the FCC Order governing rents is partially vacated or partially invalidated, at Licensee's request, the parties can meet and confer in good faith on whether any modification to this provision is warranted to reflect the outcome (i.e. the partial vacation or partial invalidation of the relevant part of the FCC Order). 5.2.4 The Licensor agrees that irrespective of whether the relevant provisions of the FCC Declaratory Ruling (FCC 18-133) cease to be effective, no Alternate Rent shall be due for any periods during which the relevant provisions of the FCC Declaratory Ruling were in effect. However, if Licensee has paid Rent pursuant to the provisions of Section 5 .2.2 above for a calendar year, and the relevant provisions of the FCC Declaratory Ruling subsequently cease to be effective during the same calendar year, the Licensee shall pay the difference between the Rent and the Alternate Rent for the period from the date the relevant provisions of the FCC Declaratory Ruling ceased to be effective, until December 31 of that year ("Rent Adjustment"). Such Rent Adjustment shall be paid to Licensor along with the next License Fee payment. 5.2.5 Receipt of any Rent or Alternate Rent by the Licensor, with knowledge of any breach of this Agreement by Licensee, or of any default on the part of Licensee in the observance or performance of any of the conditions or covenants of this Agreement, shall not be deemed a waiver of any provision of this Agreement. -6 - Attachment 2, Page 6 of 26 5.3 Payment. 5.3.1 Licensee shall make the first payment of the License Fee under any Supplement within forty-five (45) days of the Supplement Effective Date (as defined therein). The amount of the first payment of the License Fee for any Supplement shall be prorated to cover the period from the Supplement Effective Date of the applicable Supplement to the next anniversary of the Effective Date of this Agreement. Thereafter, the License Fee shall be paid in advance for each Municipal Facility used on or before each anniversary of the Effective Date. Acceptance by Licensor of any payment of the License Fee shall not be deemed a waiver by Licensor of any breach of this Agreement occurring prior thereto, nor will the acceptance by Licensor of any such payment preclude Licensor from later establishing that a greater amount was actually due or from collecting any balance that is due. As a prerequisite to the payment of License Fee, Licensor hereby agrees to provide to Licensee certain documentation (the "License Documentation") evidencing Licensor's interest in, and right to receive payments under, this Agreement, including without limitation: (i) a complete and fully executed Internal Revenue Service Form W-9, or equivalent, in a form acceptable to Licensee, for any party to whom License Fee payments are to be made pursuant to this Agreement; and (ii) other documentation requested by Licensee in Licensee's reasonable discretion. From time to time during the Term of this Agreement and within thirty (30) days of a written request from Licensee, Licensor agrees to provide updated License Documentation in a form reasonably acceptable to Licensee. 5.3.2 The License Fee shall be paid by check made payable to the City and mailed or delivered to the Finance Department, at the address provided for in Section 10 below. The place and time of payment may be changed at any time by Licensor upon thirty (30) days' written notice to Licensee. Mailed payments shall be deemed paid upon the date such payment is officially postmarked by the United States Postal Service. If postmarks are illegible to read, the payment shall be deemed paid upon actual receipt. Licensee assumes all risk of loss and responsibility for late payment charges if payments are made by mail. Notwithstanding the foregoing, upon agreement of the parties, Licensee may pay the License Fee by electronic funds transfer, and if agreed, the Licensor will provide to Licensee bank routing information for such purpose upon request of Licensee. 5.4 Delinquent Payment. A five percent (5%) late fee shall be added to the License Fee if not received by Licensor within ten (10) calendar days after the due date. In addition, all unpaid fees shall accrue interest on the amount due at the rate of one percent (1 %) until paid in full. All late fees and interest payments shall be treated as part of, and subject to the same terms as, the License Fee under this Agreement. 5.5 Additional Remedies. The late fee set forth in Section 5.4 above is not exclusive, and does not preclude the Licensor from pursuing any other or additional remedies in the event that payments become overdue by more than thirty (30) days. 6. CONSTRUCTION. Licensee shall comply with all applicable federal, state, and local codes related to the construction, installation, operation, maintenance, and control of Licensee's Equipment installed on Municipal Facilities. Licensee shall not attach, install, maintain, or operate any Equipment on Municipal Facilities without the prior written approval of an authorized representative of the Licensor for each location as evidenced in a signed Supplement. Licensee -7 - Attachment 2, Page 7 of 26 shall keep the Municipal Facilities free and clear from any liens arising out of any work performed, material furnished, or obligations incurred by or for Licensee. 6.1 Installation and Operation. Within thirty (30) days of the completion of each installation, Licensee shall promptly furnish to Licensor As-Built drawings of the current location of the Equipment in or on the Municipal Facility. That information must be provided in a format that is compatible with Licensor's information technology, including but not limited to ESRI compatible GIS shapefiles, which Licensor shall provide to Licensee upon request. 6.2 Design Standards. Licensee shall design, construct, and install the Equipment and any Replacement Facility in compliance with the design standards set forth pursuant to Section 7- 10.0S(c) of the City of San Juan Capistrano Municipal Code, or any applicable successor provision(s), and the City permit and conditions of approval. All future Supplements and modifications to existing Equipment shall be subject to then-current design standards in the City of San Juan Capistrano. By entering into this Agreement, Licensee agrees that the design standards required by this Section are technically feasible and reasonably directed at accomplishing the aesthetic goals of Licensor. 6.3 Obtaining Required Permits. Licensee acknowledges that in addition to a signed Supplement, each installation of Equipment and maintenance thereof shall also be subject to then- current City permitting requirements as set out in the City's Municipal Code. Licensee agrees to comply with the current applicable ordinances regarding such installations and maintenance as well as any future regulations that may be adopted by the City related to such installations and maintenance. Licensee shall apply for the appropriate permits and pay any standard and customary permit fees. 6.4 Relocation and Displacement of Equipment. 6.4.1 This Agreement creates no right for Licensee to receive any relocation assistance or payment for any reason under the Relocation Assistance Act, the Uniform Relocation Assistance Act, or under any existing or future law upon any termination of tenancy. 6.4.2 Licensee understands and acknowledges that Licensor may require Licensee to relocate one or more of its Equipment installations. Licensee shall at Licensor's direction and upon one hundred twenty (120) days' prior written notice to Licensee, relocate such Equipment at Licensee's sole cost and expense whenever Licensor reasonably determines that the relocation is needed for any of the following purposes: (a) if required for the construction, modification, completion, repair, relocation, or maintenance of a Licensor or other public agency project; (b) because the Equipment is interfering with or adversely affecting proper operation of Licensor-owned Municipal Facilities; or (c) to protect or preserve the public health or safety, including, but not limited to, the safe or efficient use ofrights-of-way. In any such case, Licensor shall use reasonable efforts to afford Licensee a reasonably equivalent alternate location. If Licensee shall fail to relocate any Equipment as requested by the Licensor within the prescribed time, Licensor shall be entitled to remove or relocate the Equipment at Licensee's sole cost and expense, without further notice to Licensee. Licensee shall pay to the Licensor actual costs and expenses incurred by the Licensor in performing any removal work and any storage of Licensee's -8 - Attachment 2, Page 8 of 26 property after removal within forty-five (45) days of the date of a written demand, and supporting documentation, for this payment from the Licensor. 6.4.3 To the extent the Licensor has actual knowledge thereof, the Licensor will attempt, within two business days, to inform Licensee of the displacement or removal of any Municipal Facility on which any Equipment is located. 6.5 Relocations at Licensee's Request. In the event Licensee desires to relocate any Equipment from one Municipal Facility to another, Licensee shall so advise Licensor. Licensor will use reasonable efforts to accommodate Licensee by making another reasonably equivalent Municipal Facility available for use in accordance with and subject to the terms and conditions of this Agreement. Licensor may require Licensee to submit an application and/or enter into a new Supplement for the prospective relocation site. Licensee shall be liable for all costs of relocation, including any costs which Licensor may incur. 6.6 Make Ready 6.6.1 Make Ready Work and Costs. (a) Licensee shall bear responsibility for all Make-Ready Work. If a Person other than Licensee or Licensor would have to rearrange or adjust any of its facilities in order to accommodate new Equipment, Licensee shall be responsible, at Licensee's sole expense, to coordinate such activity. Licensee shall be responsible for directly paying such other Person for its charges for the same. If Licensee is requested by another Person, in comparable circumstances, to relocate or adjust any Equipment to accommodate that Person's facilities, subject to Licensor's written approval of such relocation, Licensee shall reasonably cooperate with such request. (b) Construction, installation, and operation of the Equipment shall be conditioned on the completion of all Make-Ready Work needed to establish full compliance with NESC, and with Licensor's regulatory rules and engineering standards; provided, however, that Licensee shall not be responsible for any third-party or Licensor costs necessary to correct third party or Licensor attachments that are non-compliant at the time of Licensee's Application. 6.6.2 Notificati on of Completion of In stallation . Within twenty (20) business days of completing the installation of Equipment on each Municipal Facility, Licensee shall notify Licensor of such completion. 6.7 Replacement Facilities 6.7.1 Ownership of Replacement Fac ili ties Licensor shall own any approved Replacement Facility. Where needed, Licensee shall cooperate with Licensor to transfer ownership and any associated warranties of any Replacement Facility from Licensee to Licensor without charge to Licensor. -9 - Attachment 2, Page 9 of 26 6.7.2 Replacement Facility ln tallation If Licensee is performing Make-Ready Work, Licensee shall be responsible for providing and installing any approved Replacement Facility. 6.8 Damage, Maintenance & Repair. 6.8.1 Licensee shall, at its sole cost and expense and to the satisfaction of the Licensor: (a) remove, repair, or replace any of its Equipment that is damaged or becomes detached; and/or (b) repair any damage to ROW, Municipal Facilities, or other property, whether public or private, caused by Licensee, its agents, employees, or contractors in their actions relating to attachment, operation, repair, or maintenance of Equipment. Licensee shall complete such removal, repair, or replacement within thirty (30) days' of written notice. 6.8.2 Licensor shall maintain and keep the Municipal Facilities authorized to be used by Licensee pursuant to any Supplement (other than any Replacement Facilities) in good condition in accordance with Licensor's standard maintenance requirements. Such maintenance of Municipal Facilities shall be at Licensor's sole cost and expense, except to the extent this Agreement provides otherwise. In the event that a Replacement Facility needs to be cleared from the ROW, Licensor shall conduct this work. In the event a Replacement Facility needs to be replaced or repaired, Licensee shall conduct this work at Licensee's own expense. In this case Licensee will notify Licensor, City Engineer at (949) 443-6353 before beginning the work. 6.8.3 If Licensee does not remove, repair, replace, or otherwise remediate such damage to its Equipment, a Replacement Facility, or to the ROW, Municipal Facilities or other property as required in this Section 6.8, the Licensor shall have the option to perform or cause to be performed removal, repair, or replacement on behalf of Licensee and shall charge Licensee for the actual costs incurred by the Licensor. If such damage causes a public health or safety emergency, as reasonably determined by Licensor, Licensor may immediately perform reasonable and necessary repair or removal work on behalf of Licensee and will notify Licensee as soon as practicable; provided, however, that such repair work shall not include any technical work on Licensee's Equipment. Licensor shall have no obligation to maintain or safeguard the Equipment. 6.8.4 Upon the receipt of a demand for payment by the Licensor pursuant to this Section 6.8, Licensee shall within forty-five ( 45) days of such receipt reimburse the Licensor for such costs. 6.8.5 The terms of this Section 6.8 shall survive the expiration termination of this Agreement. 6.9 Change in Equipment. If Licensee desires to install Equipment which is different in any material way from the then-existing and approved Equipment, then Licensee shall first obtain the written approval for the use and installation of such Equipment from an authorized representative of the Licensor. Any such approval shall take the form of an amendment to the applicable Supplement. In addition to any other submittal requirements, and if requested by Licensor, Licensee shall provide "load" (structural) calculations for all Equipment changes. In addition to the foregoing, Licensee shall comply with any other applicable City permitting or approval process for the Equipment change. Notwithstanding the foregoing, Licensor's approval -10 - Attachment 2, Page 1 O of 26 for modifications or an amendment to the applicable Supplement shall not be required in connection with routine maintenance or modifications that consist of upgrades or replacement of "like-kind" Equipment which is substantially similar (or smaller in size) in appearance, dimensions, weight, and RF emissions to the then-existing and approved Equipment. 6.10 Unauthorized Equipment. If Licensor discovers any Equipment has been installed on Municipal Facilities without authorization pursuant to a Supplement, Licensor may send an invoice to Licensee for a sum equal to five (5) times the then-current License Fee as compensation for the unauthorized attachments, and, within sixty (60) days from the date of such invoice, Licensee shall (i) pay the invoiced amount to Licensor and submit an Application for the unauthorized Equipment, or (ii) produce documentation showing Licensor's prior approval of the Equipment identified in the invoice. If, in accordance with this Section, Licensee fails to pay all fees and submit the Application or submit documentation satisfactorily showing Licensor's prior approval within sixty (60) days of Licensor's invoice, Licensor may remove the unauthorized Equipment at Licensee's expense. If Licensor removes such unauthorized Equipment, such Equipment shall become the property of Licensor, who shall have sole rights over such Equipment's disposition. Licensor's removal of unauthorized Equipment shall not release Licensee from its obligation to pay those invoiced fees accruing pursuant to this Section. 6.11 Termination of a Supplement. 6.11.1 Licensee shall have the right to terminate any Supplement on thirty (30) days' notice to Licensor. In the event of such termination, removal of Equipment associated with the terminated Supplement shall be governed by Section 6.12 below and Licensor shall retain any License Fee paid, without refund or setoff. 6.11.2 Licensor shall have the right to terminate any Supplement in any of the following circumstances: (a) if, after initial installation, Licensor determines the covered Equipment has been inoperative, or abandoned, for ninety (90) consecutive days; (b) if Licensee's operation under a particular Supplement is deemed by Licensor to endanger or pose a threat to the public health, safety, or welfare or interfere with the normal day-to-day operation of any Licensor department or service; or ( c) Licensor is mandated by law, a court order or decision, or the federal, state, or local government to take certain actions that will cause or require the removal of an Equipment. Licensor shall provide written notice to Licensee regarding its intent to terminate the applicable Supplement pursuant to this Section, after which Licensee shall have thirty (30) days to cure, or longer pursuant to the mutual agreement of Licensor and Licensee if the reason for termination cannot be cured within thirty (30) calendar days. If Licensee does not cure within thirty (30) days following notice, or such other time period as established by mutual agreement of Licensor and Licensee, Licensor may then terminate the applicable Supplement upon written notice to Licensee. 6.12 Removal of Equipment. Within sixty (60) days after the expiration or earlier termination of a Supplement or this Agreement, Licensee shall promptly, safely, and carefully remove the Equipment covered by the terminated or expired Supplement from the applicable Municipal Facility and ROW. Within sixty (60) days after the expiration or earlier termination of this Agreement, Licensee shall promptly, safely, and carefully remove all Equipment from all applicable Municipal Facilities and ROW. If Licensee fails to complete removal work pursuant to -11 - Attachment 2, Page 11 of 26 this Section, then the Licensor, upon written notice to Licensee, shall have the right at the Licensor's sole election, but not the obligation, to perform this removal work and charge Licensee for the actual costs and expenses, including, without limitation, reasonable administrative costs. Licensee shall pay to the Licensor actual costs and expenses incurred by the Licensor in performing any removal work and any storage of Licensee's property after removal within sixty (60) days of the date of a written demand for this payment from the Licensor. After the Licensor receives the reimbursement payment from Licensee for the removal work performed by the Licensor, the Licensor shall promptly make available to Licensee the property belonging to Licensee and removed by the Licensor pursuant to this Section at no additional liability to the Licensor. If the Licensor does not receive reimbursement payment from Licensee within such sixty (60) days, or if Licensor does not elect to remove such items at the Licensor's cost after Licensee's failure to so remove pursuant to this Section, or if Licensee does not remove Licensee's property within thirty (30) days of such property having been made available by the Licensor after Licensee's payment of removal reimbursement as described above, any items of Licensee's property remaining on or about the ROW, Municipal Facilities, or stored by the Licensor after the Licensor's removal thereof may, at the Licensor's option, be deemed abandoned and the Licensor may dispose of such property in any manner by allowed for by Law. Alternatively, the Licensor may elect to take title to the abandoned property, and Licensee shall submit to the Licensor an instrument satisfactory to the Licensor transferring to the Licensor the ownership of such property. The provisions of this Section shall survive the expiration or earlier termination of this Agreement. 6.13 Risk of Loss. Licensee acknowledges and agrees that Licensee, subject to the terms of this Agreement, bears all risks of loss, damage, relocation, or replacement of its Equipment and materials installed in the ROW or on Municipal Facilities pursuant to this Agreement from any cause, and Licensor shall not be liable for any cost of replacement or of repair to damaged Equipment, including, without limitation, damage caused by the Licensor's removal of the Equipment, except to the extent that such loss or damage was caused by the willful misconduct or gross negligence of the Licensor, including, without limitation, each of its elected officials, department directors, managers, officers, agents, employees, and contractors, subject to the limitation of liability provided in Section 7 .3 below. 6.14 Hazardous Substances. Licensee agrees that Licensee, its contractors, subcontractors, and agents, will not use, generate, store, produce, transport, or dispose any Hazardous Substance on, under, about or within the area of a ROW or Municipal Facility in violation of any Law. Except to the extent of the gross negligence or intentional misconduct of Licensor, Licensee will pay, indemnify, defend, and hold Licensor harmless against and to the extent of any loss or liability incurred by reason of any Hazardous Substance produced, disposed of, or used by Licensee pursuant to this Agreement. Licensee will ensure that any on-site or off- site storage, treatment, transportation, disposal or other handling of any Hazardous Substance will be performed by persons who are properly trained, authorized, licensed and otherwise permitted to perform those services. 6.15 Inspection. Licensor may conduct inspections of Equipment on Municipal Facilities. Except in circumstances where Licensor has special reason to be concerned about potential violations or in case of an emergency, Licensor will give Licensee thirty (30) days' prior written notice of such inspections, and Licensee shall have the right to be present at and observe any such inspections. Licensee shall pay Licensor for its actual and reasonable costs for safety -12 - Attachment 2, Page 12 of 26 inspections performed for the purpose of determining if a safety violation of which Licensor has provided notice to Licensee has been corrected by Licensee. 6.16 Access. Licensee shall have access to the Equipment for non-emergency purposes, between the hours of 8:00 am and 4:00 pm, Monday through Friday consistent with the Municipal Code's limitation on construction noise and/or activity. If Licensee requires non-emergency access outside of these hours, Licensee shall make a request during business hours by calling the following telephone number: 949-493-1171. In the event of an emergency at any time, Licensee will, if time permits, attempt to provide prior telephonic notice to the Licensor at the following telephone number: 949- 493-1171. 7. INDEMNIFICATION AND WAIVER. Licensee agrees to indemnify, defend, protect, and hold harmless the Licensor, its council members, officers, employees, agents and contractors from and against any and all claims, demands, losses, including pole warranty invalidation, damages, liabilities, fines, charges, penalties, administrative and judicial proceedings and orders, judgments, and all costs and expenses incurred in connection therewith, including reasonable attorney's fees and costs of defense (collectively, the "Losses") to the extent arising from, resulting from, or caused by Licensee's activities undertaken pursuant to this Agreement, including, without limitation, the construction, design, use, or operation of the Equipment or provision of the Services, except to the extent arising from or caused by the gross negligence or willful misconduct of the Licensor, its council members, officers, employees, agents, or contractors. 7.1 Waiver of Claims. Licensee waives any and all claims, demands, causes ofaction, and rights it may assert against the Licensor on account of any loss, damage, or injury to any Equipment or any loss or degradation of the Services as a result of any event or occurrence which is beyond the control of the Licensor. 7.2 Waiver of Subrogation. Licensee hereby waives and releases any and all rights of action for negligence against Licensor which may hereafter arise on account of damage to Equipment, Municipal Facilities, or to the ROW, regardless of whether or not, or in what amounts, such insurance is now or hereafter carried by the Licensee. This waiver and release shall apply between the parties and shall also apply to any claims under or through either party as a result of any asserted right of subrogation. All such policies of insurance obtained by Licensee concerning the Municipal Facilities, Equipment, or the ROW shall waive the insurer's right of subrogation against the Licensor. 7.3 Limitation on Consequential Damages. Neither party shall be liable to the other, or any of their respective agents, representatives, employees for any lost revenue, lost profits, loss of technology, rights or services, incidental, punitive, indirect, special or consequential damages, loss of data, or interruption or loss of use of service, even if advised of the possibility of such damages, whether under theory of contract, tort (including negligence), strict liability or otherwise. 8. INSURANCE. Licensee shall obtain and maintain at all times during the Term (a) Commercial General Liability insurance with a limit of ten million ($10 million) per occurrence for bodily injury and property damage and eleven million ($ 11 million) general aggregate -13 - Attachment 2, Page 13 of 26 including premises-operations, contractual liability, personal injury, and products completed operations; and (b) Commercial Automobile Liability insurance covering all owned, non-owned, and hired vehicles with a limit of five million ($5 million) each accident for bodily injury and property damage. The required insurance policies shall name the Licensor, its elected/appointed officials, commission members, officers, representatives, agents, and employees as additional insured as respects any covered liability arising out of Licensee's performance of work under this Agreement. Coverage shall be in an occurrence form and in accordance with the limits and provisions specified herein. Upon receipt of notice from its insurer, Licensee shall use its best efforts to provide the Licensor with thirty (30) days prior written notice of cancellation. Licensee shall be responsible for notifying the Licensor of such change or cancellation. Licensee's indemnity and other obligations shall not be limited by the foregoing insurance requirements. If Licensee fails, for any reason, to obtain or maintain insurance coverage required by this Agreement or fails to furnish certificates of insurance as detailed in Section 8.1, such failure shall be deemed a material breach of this Agreement, giving Licensor, in its discretion, the option to terminate this Agreement and obtain damages therefor. 8.1 Filing of Certificates and Endorsements. Prior to the commencement of any work pursuant to this Agreement, Licensee shall file with the Licensor the required certificate(s) of insurance with blanket additional insured endorsements, which shall state the following: (a) the policy number; name of insurance company; name and address of the agent or authorized representative; name and address of insured; project name; policy expiration date; and specific coverage amounts; (b) that Licensee's Commercial General Liability insurance policy is primary as respects any other valid or collectible insurance that the Licensor may possess, including any self-insured retentions the Licensor may have; and any other insurance the Licensor does possess shall be considered excess insurance only and shall not be required to contribute with this insurance; and (c) that Licensee's Commercial General Liability insurance policy waives any right of recovery the insurance company may have against the Licensor. The certificate(s) of insurance with endorsements and notices shall be mailed to the Licensor at the address specified in Section 9 below. 8.2 Workers' Compensation Insurance. Licensee shall obtain and maintain at all times during the Term of this Agreement statutory workers' compensation and employer's liability insurance in an amount not less than one million ($1 million) and shall furnish the Licensor with a certificate showing proof of such coverage. 8.3 Insurer Criteria. Any insurance provider of Licensee shall be admitted and authorized to do business in the State of California and shall carry a minimum rating assigned by A.M Best & Company's Key Rating Guide of "A" Overall and a Financial Size Category of"VII." 8.4 Severability of Interest. "Severability of interest" or "separation of insureds" clauses shall be made a part of the Commercial General Liability and Commercial Automobile Liability policies. -14 - Attachment 2, Page 1'4 of 26 9. NOTICES. 9.1 Method and Delivery of Notices. All notices pursuant to this Agreement shall be in writing and delivered personally or transmitted (a) through the United States mail, by registered or certified mail, postage prepaid; or (b) by means of prepaid overnight delivery service, addressed as follows: If to the Licensor: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn. Finance Department If to Licensee: [LICENSEE INFORMATION] 9.2 Date of Notices; Changing Notice Address. Notices shall be deemed given upon receipt in the case of personal delivery, three days after deposit in the mail, or the next business day in the case of overnight delivery. Either party may from time to time designate any other address for this purpose by written notice to the other party delivered in the manner set forth in this Section. 10. DEFAULT; CURE; REMEDIES. 10.1 Licensee Default and Notification. This Agreement is granted upon each and every condition herein, and each of the conditions is a material and essential condition to the granting of this Agreement. Except for causes beyond the reasonable control of Licensee, if Licensee fails to comply with any of the conditions and obligations imposed hereunder, and if such failure continues for more than thirty (30) days after written demand from the Licensor to commence the correction of such noncompliance on the part of Licensee, the Licensor shall have the right to revoke and terminate this Agreement by written notice to Licensee, if such failure is in relation to the Agreement as whole, or any individual Supplement, if such failure is in connection solely with such Supplement, in addition to any other rights or remedies set forth in this Agreement or provided by law. 10.2 Cure Period. If the nature of the violation is such that it cannot be fully cured within forty ( 45) days due to circumstances not under Licensee's control, the period of time in which Licensee must cure the violation shall be extended for such additional time reasonably necessary to complete the cure, provided that: (a) Licensee has promptly begun to cure; (b) Licensee is diligently pursuing its efforts to cure; and (c) Licensee provides a timeline to complete its cure efforts and responds within forty-eight (48) hours of any status request by Licensor. Licensor may not maintain any action or effect any remedies for default against Licensee, unless -15 - Attachment 2, Page 15 of 26 and until Licensee has failed to cure the breach within the time periods provided in these Sections 10.1 and 10.2. 10.3 Licensor Default. If Licensor breaches any covenant or obligation of Licensor under this Agreement in any manner, and if Licensor fails to commence to cure such breach within forty (45) days after receiving written notice from Licensee specifying the violation (or if Licensor fails thereafter to diligently prosecute the cure to completion), then Licensee may enforce any and all of its rights and/or remedies provided under this Agreement or by Law. 11. ASSIGNMENT AND CUSTOMER EQUIPMENT. This Agreement shall be binding upon, and inure to the benefit of, the successors and assigns of the parties. 11.1 Licensee shall not assign this Agreement or its rights or obligations to any firm, corporation, individual, or other entity, without the prior written consent of Licensor, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, upon thirty (30) days' prior written notice but without the need for Licensor's consent, Licensee may assign or transfer the rights and privileges granted herein to any parent or subsidiary of Licensee, to an entity with or into which Licensee may merge or consolidate, to an entity which Licensee is controlled by, or is under common control; or in connection with the sale or other transfer of such entity or to any purchaser of all or substantially all of Licensee's assets in the FCC market area where the Equipment is located, provided that the successor is bound by all the terms and conditions of this Agreement and provides written confirmation to Licensor that it is then fully liable to the Licensor for compliance with all terms and conditions of this Agreement. The Licensee shall reimburse the Licensor for all direct and indirect costs and expenses reasonably incurred by the Licensor in considering a request to transfer or assign this Agreement. 11.2 Licensee need not own all components of Equipment subject to this Agreement, and may permit its customers to maintain ownership of Equipment components. However, (1) all Equipment must be wholly under the control and management of Licensee; and Licensee shall be liable for all acts or omissions, and all harms associated with the Equipment whether the same are its acts or omissions, or the acts or omissions of the owner of the Equipment; and (2) Licensee acknowledges and agrees that no rights of ownership in Equipment by Licensee's customers shall permit any such customer to enter upon, or use the any portion of the Municipal Facilities or the Equipment, in any other manner or at any other place, including to add to, or modify or install Equipment, which shall be Licensee's sole responsibility. Further, Licensee may not install Equipment it does not own on Municipal Facilities, unless the entity for on whose behalf the Equipment has been installed acknowledges and agrees, in a form acceptable to the Licensor, that the Licensor has not granted it a consent to be in the ROW for any purpose; that it is bound by Licensee's representations, obligations and duties hereunder; that it shall have no rights or claims against the Licensor of any sort related to the Equipment or Municipal Facilities; that its Equipment may be subject to taxes, fees or assessments as provided in the Laws or the Agreement, and that Licensor may treat any Equipment owned by such entity as if it were owned by Licensee for all purposes (including, but not limited to, removal and relocation); and the Equipment may only be used for the purposes and uses permitted herein. Such acknowledgement may be provided for all Equipment on Municipal Facilities, and need not be provided separately, site by site. -16 - Attachment 2, Page 16 of 26 12. RECORDS; AUDITS. 12.1 Records Required by Code. Licensee will maintain complete records pursuant to all applicable Laws. 12.2 Additional Records. The Licensor may require such additional reasonable non- confidential information, records, and documents from Licensee from time to time as are appropriate in order to reasonably monitor compliance with the terms of this Agreement. 12.3 Production of Records. Licensee shall provide such records within twenty (20) business days of a request by the Licensor for production of the same, unless additional time is reasonably needed by Licensee, in which case, Licensee shall have such reasonable time as needed for the production of the same. If any person other than Licensee maintains records on Licensee's behalf, Licensee shall be responsible for making such records available to the Licensor for auditing purposes pursuant to this Section. 12.4 Public Records. Licensee acknowledges that information submitted to Licensor may be open to public inspection and copying under the Law. 13. MISCELLANEOUS PROVISIONS. The provisions that follow shall apply generally to the obligations of the parties under this Agreement. 13.1 Waiver of Breach. The waiver by either party of any breach or violation of any provision of this Agreement shall not be deemed to be a waiver or a continuing waiver of any subsequent breach or violation of the same or any other provision of this Agreement. 13.2 Severability of Provisions. If any one or more of the provisions of this Agreement shall be held by a court of competent jurisdiction in a final judicial action to be void, voidable, or unenforceable, such provision(s) shall be deemed severable from the remaining provisions of this Agreement and shall not affect the legality, validity, or constitutionality of the remaining portions of this Agreement. Each party hereby declares that it would have entered into this Agreement and each provision hereof regardless of whether any one or more provisions may be declared illegal, invalid, or unconstitutional. 13.3 Contacting Licensee. Licensee shall be available to the staff employees of any Licensor department having jurisdiction over Licensee's activities twenty-four (24) hours a day, seven days a week, regarding problems or complaints resulting from the attachment, installation, operation, maintenance, or removal of the Equipment. The Licensor may contact by telephone the Licensee's network control center operator at telephone number -------- 13.4 Governing Law; Jurisdiction. This Agreement shall be governed and construed by and in accordance with the laws of the State of California, without reference to its conflicts of law principles. If suit is brought by a party to this Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of Orange County, California. 13.5 Change Of Law. During the Initial term , in the event that any legislative, regulatory, judicial, or other action ("New Law") affects the rights or obligations of the Parties or -17 - Attachment 2, Page 17 of 26 any term of the Agreement, the Parties agree that the Agreement shall nonetheless remain in effect until the end of the Initial Term unless mutually agreed to in writing by the Parties. 13.6 Force Majeure. Except for payment of amounts due, neither Party shall have any liability for its delays or its failure of performance due to: fire, explosion, pest damage, power failures, strikes or labor disputes, acts of God, the elements, war, civil disturbances, acts of civil or military authorities or the public enemy, inability to secure raw materials, transportation facilities, fuel or energy shortages, or other causes reasonably beyond its control, whether or not similar to the foregoing. 13.7 Attorneys' Fees. Should any dispute ansmg out of this Agreement lead to litigation, the prevailing party shall be entitled to recover its costs of suit, including (without limitation) reasonable attorneys' fees. 13.8 "AS IS" condition of Municipal Facilities. Municipal Facilities licensed to Licensee pursuant to this Agreement are licensed to and accepted by Licensee "as is" and with all faults. The Licensor makes no representation or warranty of any kind as to the present or future condition of or suitability of the Municipal Facilities for Licensee's use and disclaims any and all warranties express or implied with respect to the physical, structural, or environmental condition of the Municipal Facilities and their merchantability or fitness for a particular purpose. Licensee is solely responsible for investigation and determination of the condition and suitability of any Municipal Facility for Licensee's intended use. 13.9 Representations and Warranties. Each of the parties to this Agreement represents and warrants that it has the full right, power, legal capacity, and authority to enter into and perform the party's respective obligations hereunder and that such obligations shall be binding upon such party without the requirement of the approval or consent of any other person or entity in connection herewith, except as provided in Section 4.2 above. This Agreement shall not be revocable or terminable except as expressly permitted herein. 13.10 Amendment of Agreement. This Agreement may not be amended except pursuant to a written instrument signed by both parties. 13.11 Entire Agreement. This Agreement contains the entire understanding between the parties with respect to the subject matter herein. There are no representations, agreements, or understandings (whether oral or written) between or among the parties relating to the subject matter of this Agreement which are not fully expressed herein. In witness whereof, and in order to bind themselves legally to the terms and conditions of this Agreement, the duly authorized representatives of the parties have executed this Agreement as of the Effective Date. 13.12 Non-Exclusive Remedies. No provision in this Agreement made for the purpose of securing enforcement of the terms and conditions of this Agreement shall be deemed an exclusive remedy or to afford the exclusive procedure for the enforcement of said terms and conditions, but the remedies herein provided are deemed to be cumulative. 13.13 No Third-Party Beneficiaries. It is not intended by any of the provisions of this Agreement to create for the public, or any member thereof, a third-party beneficiary right or remedy, or to authorize anyone to maintain a suit for personal injuries or property damage pursuant -18 - Attachment 2, Page 18 of 26 to the provisions of this Agreement. The duties, obligations, and responsibilities of the Licensor with respect to third parties shall remain as imposed by state law. 13.14 Construction of Agreement. The terms and provisions of this Agreement shall not be construed strictly in favor of or against either party, regardless of which party drafted any of its provisions. This Agreement shall be construed in accordance with the fair meaning of its terms. 13.15 Effect of Acceptance. Licensee (a) accepts and agrees to comply with this Agreement and all Laws; (b) agrees that this Agreement was entered into pursuant to processes and procedures consistent with Law; and ( c) agrees that it will not raise any claim to the contrary or allege in any claim or proceeding against the Licensor that at the time of acceptance of this Agreement any provision, condition or term of this Agreement was unreasonable or arbitrary, or that at the time of the acceptance of this Agreement any such provision, condition or term was void or unlawful or that the Licensor had no power or authority to make or enforce any such provision, condition, or term. 13.16 Time is of the Essence. Time is of the essence with regard to the performance of all of Licensee's obligations under this Agreement. 13.17 Taxes. Licensee shall be responsible for payment of all fees and taxes charged in connection with the right, title, and interest in and construction, installation, maintenance, and operation of Equipment for the purposes set forth herein. 13.18 Tax Notice. Licensor hereby provides notice pursuant to California Revenue and Taxation Code Section 107.6, and Licensee acknowledges, that this Agreement may create a possessory interest and Licensee may be subject to property taxes levied on such interest, as described in California Revenue and Taxation Code Section 107 .6. Licensee shall pay directly to the appropriate authority, when due, all real and personal property taxes, fees, and assessments, assessed against the area licensed and the Equipment. 13.19 Counterparts. This Agreement (and any Supplement) may be executed in multiple counterparts, including by electronic means, each of which shall be deemed an original, and all such counterparts once assembled together shall constituted one integrated instrument. [signature page to follow J -19 - Attachment 2, Page 19 of 26 SIGNATURE PAGE TO MUNICIPAL FACILITY LICENSE AGREEMENT IN WITNESS THEREOF, the parties hereto have caused this Agreement to be legally executed as of the Effective Date. ATTEST: Clerk _____ _, APPROVED AS TO FORM CITY ATTORNEY'S OFFICE BY: --------~ City Attorney Exhibits: Exhibit A -Supplement Exhibit B -Application Licensor: CITY OF SAN JUAN CAPISTRANO By: _______________ ~ Name: --------------- Title: --------------~ Licensee: By: -------- Its: Name: Title: --------------~ -20 - Attachment 2, Page 20 of 26 EXHIBIT A FORM OF SUPPLEMENT SUPPLEMENT This Supplement ("Supplement"), is approved by Licensor this __ day of ____ ~ 20 __ (the date executed by all parties, referred herein as "Supplement Effective Date"). 1. Supplement. Licensee has submitted an application for approval to use a Municipal Facility pursuant to that certain Municipal Facility License Agreement between Licensor, ----~and Licensee, , dated 20_ ("Agreement"). Licensor has reviewed the Application to Use Municipal Facility and grants approval subject to the terms of this Supplement. All of the terms and conditions of the Agreement are incorporated hereby by reference and made a part hereof without the necessity of repeating or attaching the Agreement. In the event of a contradiction, modification, or inconsistency between the terms of the Agreement and this Supplement, the terms of this Supplement shall govern. Capitalized terms used in this Supplement shall have the same meaning described for them in the Agreement unless otherwise indicated herein. IF THE SUPPLEMENT IS NOT COUNTER-SIGNED BY LICENSEE AND RETURNED TO LICENSOR WITHIN 30 DAYS AFTER LICENSOR HAS GRANTED APPROVAL, THE SUPPLEMENT SHALL BE VOID AND OF NO LEGAL EFFECT. IF LICENSEE STILL WANTS TO USE THE MUNICIPAL FACILITY, LICENSEE WILL BE REQUIRED TO SUBMIT A NEW APPLICATION AND ASSOC IA TED FEES. 2. ice nsed Area Description and Location. Licensee shall have the right to use the space on the specific Municipal Facility (the "Licensed Area") depicted in Attachment l attached hereto to install Equipment as further listed in Attachment 2 attached hereto. 3. guipment. The Equipment to be installed at the Licensed Area is described in Attachment 2 and depicted in Attachment 1. 4. Term. The term of this Supplement shall commence on the Supplement Effective Date and continue for the Term of the Agreement. 5. License Fee. The initial License Fee for this Supplement shall be as follows per year: _____________ . License Fee is subject to annual increase and is payable in accordance with Section 5 of the Agreement. [signature page follows] A-1 Attachment 2, Page 21 of 26 IN WITNESS THEREOF, the parties hereto have caused this Supplement to be legally executed in duplicate, effective upon execution by both parties. Licensor: CITY OF SAN JUAN CAPISTRANO Licensee : By: ____ _ Its: Accepted : By:~~~~~~~~~~~~~~~~~ Name: ~~~~~~~~~~~~~~~~ Title: ~~~~~~~~~~~~~~~~ Date: Attachments: Attachment 1 -Licensed Area Attachment 2 -Equipment List and Description A-2 Attachment 2, Page 22 of 26 Attachment 1 Licensed Area [site plan showing licensed area of applicable Municipal Facility and showing proposed Equipment installation] A-3 Attachment 2, Page 23 of 26 Attachment 2 Equipment List and Description A-4 Attachment 2, Page 24 of 26 EXHIBITB APPLICATION TO USE MUNICIPAL FACILITY Applicant: ____________ Date:-------------- Licensee: _____________ ---'Application/License#: _______ _ Type of Alteration Small Cell Equipment Small Cell Small Cell Location of Any Heights (provide both (1) and Base And Base Municipal Required the overall height of pole Equipment Equipment Additional Equipment Facility structure with added Weights Dimensions facilities; and (2) the height of individual facilities) [street light] [Pole [Installed on Pole, specify [traffic light] Reiriforceme attachment height, weight [other, specify] nt] and dimensions] [Pole [Installed on/in Ground Replace men (Vault), specific t] dimensions] [None] [Other Location] [Not Applicable/Needed] APPLICANT SHALL PROVIDE THE FOLLOWING AS APPLICABLE: • Site plan and engineering design and specifications for installation of Equipment, including the location of radios, antenna facilities, transmitters, equipment shelters, cables, conduit, point of demarcation, backhaul solution, electrical distribution panel, electric meter, and electrical conduit and cabling. Where applicable, the design documents should include specifications on design, pole modification, and ADA compliance. Also indicate whether unmetered electricity is available at the site. • Include a load bearing study that determines whether the pole requires reinforcement or replacement in order to accommodate attachment of proposed Equipment. • If the proposed installation will require reinforcement or replacement of an existing pole, provide applicable design and specification drawings. • The number, size, type, and proximity to the facilities of all communications conduit(s) and cables to be installed. • Description of the utility services required to support the facilities to be installed. • List of the contractors and subcontractors, and their contact information, authorized to work on the project. • A fee deposit in an amount determined by City staff, pursuant to Section 5.1 of the Agreement. APPLICANT REPRESENTATIVE: -------------~ B-1 Attachment 2, Page 25 of 26 PRINT NAME: ----------------~ TITLE: -------------------- TELEPHONE: EMAIL: -------------------- B-2 Attachment 2, Page 26 of 26