HomeMy WebLinkAbout8.1 Telecom Mkting & Mgmt Servicesor
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/ii � 111
DATE:
TO:
FROM:
SUBJECT
STAFF REPORT
CITY COUNCIL
November 5, 2013
Honorable Mayor and City Councilmembers
Joni Pattillo City Manager""'
CITY CLERK
File #
Proposal for Telecom Marketing and Management Services
Prepared by Paul McCreary, Parks and Community Services Director
EXECUTIVE SUMMARY:
The City Council will consider a proposal received by Horizon Tower, LLC to provide consulting
services for marketing and management of telecommunications sites on City property.
FINANCIAL IMPACT:
Each telecommunications lease has the potential to generate for the City an estimated $175,000
to $200,000 over a ten year period.
RECOMMENDATION:
Staff recommends the City Council approve the concept of securing a consultant to market and
manage telecommunications services on City property, and direct Staff to negotiate an
Agreement with Horizon Tower, LLC.
Submitted B Reviewed By
Director of Parkland Assistant City Manager
Community Services
DESCRIPTION:
The City frequently receives inquiries from cellular service providers about locating
telecommunications equipment on City property. Currently the City has one lease for a cellular
antenna behind the Shannon Community Center that serves Sprint PCS. Citywide there are
currently approximately 16 telecommunications towers and, as the City grows, the demand is
increasing to locate additional antennas in the eastern part of Dublin. Additionally, due to the
dramatic increase in the use of data - driven smartphones, there is an industry -wide trend toward
densification of service in existing areas.
Page 1 of 3 ITEM NO. 8.1
With the demand growing for telecommunications sites in Dublin, Staff believes that this is an
opportunity to create additional revenue streams for the City. However, the telecommunications
industry is complex and continues to rapidly change. Therefore, Staff published a Request for
Proposals (RFP) to find an expert to: 1) market the City's properties as potential telecom sites;
2) negotiate lease agreements for City Council consideration, and 3) manage the improvements
and the relations with lessees during the term of the agreements. It is anticipated that retaining
the services of a telecommunications consultant will help the City maximize the revenue
potential of telecom sites and be a more efficient use of staff time.
As part of the RFP process, Horizon Tower, LLC of Danville was the only firm to submit a
proposal to the City to provide the marketing and management services outlined in the RFP
(Attachment 1). Horizon is a wireless infrastructure company that has been in business since
2004. Horizon's staff has over fifty years of combined wireless site development experience in
the planning, design, construction and project management of telecom sites. They have
experience negotiating telecom lease agreements including lease amendments and
adjustments; site equipment specifications; stealth applications for suitable design parameters
for zoning approval and building permit compliance; legal compliance and all environmental
compliance. Horizon has experience working in partnership with a variety of public agencies
such as City of Oakley, City of Fontana, the State of California and various school districts.
Under the proposal received from Horizon, Horizon would work with Staff to identify potential
sites for telecommunications leases. Fallon Sports Park is one site that Horizon would highly
recommend for telecommunications equipment due to service gaps in Positano and Jordan
Ranch. A preliminary review shows that Fallon Sports Park has the potential for up to four
carriers. Staff also believes that there could be renewed interest in the Public Safety Complex,
as there were several wireless carriers using that site when it was the former home to the
National Food Lab. There has also been interest by the current lessee at Shannon Park to
expand capacity. That agreement expires in 2014. If retained, Horizon would also negotiate
with the lessee at Shannon Park for any modifications to the site and future amendments to the
agreement, which is almost 15 years old.
Agreements would be negotiated so that all capital costs for the improvements be paid for by
the lessees, as well as all operating, maintenance and repair costs. Agreements would have a
defined term with options for renewal and escalating lease payments. Horizon would only have
the ability to negotiate agreements for the City using a standard agreement agreed to by the
City as a template. All draft agreements would be presented to the City Council for
consideration and approval.
The proposed financial arrangement between the City and Horizon would be a tiered revenue
share structure for all telecom lease revenue generated by the partnership. It is set up to
incentivize Horizon to negotiate the best possible lease terms on behalf of the City. Following
shows the percent share of the monthly lease payments that Horizon would receive for their
services:
Gross Monthly Lease Payment
per Telecom Antenna
Horizon Fee
Years 1 to 5
Horizon Fee
Years 6 &
Beyond
Net to City over
10 years
Less than $2,000 /month
20%
15%
Up to $186,000
$2,000 to $2,399 /month
25%
20%
Up to $208,000
$2,400 /month and greater
30%
25%
Over $210,000
Page 2 of 3
Horizon would not be paid any retainer fee and, as noted, there would be no capital outlay for
the City. Therefore the City would not be out any funds to enter into an Agreement with Horizon
and have them market potential sites.
Staff has followed up with references provided by Horizon Tower and found the firm to have a
reputation for professionalism, demonstrated technical knowledge of the industry, creativity and
follow- through. All references would work with Horizon Tower again on future projects.
If the City Council concurs with the concept of securing the services of Horizon, Staff will
negotiate a Consulting Services Agreement with Horizon for approval by the City Council at a
future meeting.
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
A copy of the Staff Report was sent to Horizon Tower, LLC.
ATTACHMENTS: 1. Proposal from Horizon Tower, LLC
Page 3 of 3
. A-
HORIZON TOWER, LLC
Request for Proposal
_ t
t
A"
Response to Request for Proposal {RFP} for Telecom
Marketing and Management Services with
the City of Dublin
John Kapulica, Horizon Tower, LLC
117 Town & Country Drive, Suite A, Danville, Ca 94526
9 925 -314 -1113 71925-314-1114 P71 john @horizontower.com
www.horizontower.com
RFP Closing Date: September 25, 2013 at 4:45pm
IL-
HORIZON A TOWER, LLC
Table of Contents:
A. Narrative
Pg
3 -5
B.
Horizon Background
Pg
5 -6
C.
Horizon Personncl/Resumes
Pg
6 -8
D.
Other Consultants
Pg
8
E.
Statement of Qualifications
Pg
8 -10
F.
Statement of Proposed Financial Arrangement
Pg
10
G.
Appendix I (Letter of Recommendation)
Pg
11
H.
Appendix 2 (Proposed Contract)
Pg
12 -23
I.
Appendix 3 (Existing Telecom Site Map — City of Dublin)
Pg
24
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HORIZON IATOWER, LLC
RFP Response by Horizon Tower LLC — City of Dublin Telecom Management Proposal
Paul McCreary, Parks community Services Director
City of Dublin
Parks and Community Services Department
100 Civic Plaza
Dublin, Ca 94568
A. Narrative:
Because of the explosive growth of data and voice usage on smart phones and other devices, the
wireless industry is struggling to meet the demand imposed by new 415G technology platforms.
Carriers are racing to upgrade and grow their networks to manage heavy data demand brought on
by unprecedented mobile device sales over the last few years (i.e., Apple Whones, Samsung
Galaxy, Motorola Droid and other tablets and devices, such as the Wad). As a result, the demand
for new infrastructure continues to grow at a rapid pace.
Local jurisdictions, like the City of Dublin ( "the City "), are strategically positioned to help
alleviate the constraints to wireless networks (brought on by the increased data usage), by
offering city owned properties as suitable solutions for new telecom sites to carriers such as,
Verizon, AT &T, Sprint, T- Mobile and others.
As a locally based wireless infrastructure company since 2004, Horizon Tower, LLC
( "Horizon ") will provide assistance and direction to the City of Dublin for telecom marketing,
leasing and management services by providing consulting expertise in the following areas:
Site Selection:
Horizon will advise the City on the most suitable city owned properties
and locations that would qualify as potential candidates for wireless
carriers. Horizon works extensively with wireless carriers in our local
markets and will act as an intermediary between the City and the wireless
carriers in analyzing /identifying and promoting the use of city owned
properties as suitable candidates for wireless carriers and the installation
of their Telecom Equipment. In addition, Horizon utilizes licensed and
technologically advanced mapping tools that identify existing telecom
sites and propagation analysis for both existing and new sites. These tools
will be valuable in helping to identify and market suitable city owned
properties.
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Site Marketing and Leasing Services:
Upon successful identification of suitable city owned properties, Horizon
will engage the wireless carriers on behalf of the City in anticipation of
cross referencing current and future needs of the carriers with a reap of the
predetermined city properties and advise the City on suitable matches with
carrier needs.
Horizon's staff, with over fifty years of combined wireless site
development experience in the planning, design, construction, and project
management of cell sites will consult and advise the City on all aspects of
Telecom Lease Agreements and negotiations, including lease amendments
and adjustments; site equipment specifications; stealth applications for
suitable design parameters for zoning approval and building permit
compliance; legal compliance and all environmental compliance matters.
Telecom Management Services:
Horizon will provide services to the City for Telecom Management
Services in a diligent, careful and at the highest professional grade
consistent with our reputation in the industry for the scope of work
depicted below:
(i) Inventory and Assessment: Horizon shall maintain a database
with reporting features that will provide inventory of all
telecom leases and telecom equipment on City property.
Horizon will also provide mapping features to assist in
propagation and coverage details of each telecom site.
(ii) Telecom Equipment Installation Review: Horizon shall
monitor the installation of all telecom equipment with City
staff and mandate site walks with all carriers throughout the
construction and installation process for compliance with
installation plans and specifications and conformity with
telecom leases.
(iii) Compliance Enforcement: Horizon shall, with support from
the City, enforce all FCC, FAA, NEPA, SHPQ and local and
regional ordinances related to use of the telecom equipment
and conformity with telecom leases.
(iv) Interference: Horizon shall, with support from the City,
enforce all interference problems that may arise from multiple
carriers at co- location facilities on City owned property and
ensure conformity of the telecom lease provisions addressing
interference issues.
(v) Books and Records: Horizon shall maintain a database of all
telecom leases and equipment, as well as documentation
provided by telecom carriers related to: Preliminary site
data/information; Ground Lease/Easement/Grant Deed/W -9;
Memorandum of Leases (MOL's); Option renewal/
commencement letters; Title procurement, SNDA /Lien
releases; 1 Alt -C Boundary survey; Phase UPhase H reports;
NEPA/SHPO reports, Geotechnical report; LUP /Zoning
approval (photosims); FAA /FCC analysis and registration,
AM certification; Site Plans (Construction Drawings);
Towerl Foundation /Building Drawings; Power & Telco
Account /Light Monitoring (where applicable); Permit(s) /
Approval / Cert. Of Occucpancy; As Built Survey/Drawings
and all related telecom lease correspondence,
(vi) Telecom Lease Relations: Horizon shall act as an
intermediary between the City and the telecom carriers for all
matters related to the telecom lease and telecom siting.
(vii) Lease Revenues: Horizon shall work with City staff and
accounting personnel providing detailed reports on telccom
lease revenues, escalations, delinquencies, late charges, etc., on
behalf of the City. Full reporting using QuickBooks of all
relevant accounting will be available for City review.
(viii) Insurance: Horizon shall work with City staff on verifying all
insurance requirements per telecom lease provisions, including
having the City and Horizon Tower being named as additional
insured with certificates for all installation work on City
property.
(ix) Notices: Horizon and the City will be listed as appropriate
contacts on telecom leases. All notices shall be followed up on
by Horizon Tower with the City, including all notices on new
or pending sites that Horizon markets to the telecom carriers.
(x) Performance of Services: See opening paragraph above.
B. Horizon Background
Horizon Tower as a local consultant, developer, owner and operator of wireless infrastructure in
Northern California since its inception in January, 2004, specializes in a `grass roots' approach to
conducting business services to the wireless community. Horizon specializes in all phases of
consulting and project management in the wireless industry, including, but not limited to:
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• Site Selection/Site Acquisition
• Land Use Planning/Design and Zoning Administration
• Site Surveying/Architectural & Engineering
• Utility and Telco /Fiber connectivity & Coordination
• Telco Backhaul Services
• Construction Management Services
• Site Management/Maintenance & Logistics
Reliable Infrastructure Partners
Horizon prides itself on providing the highest caliber service to its clients and with over 50 years
of combined staff experience in the industry, we are confident in meeting the highest
expectations of our clients. Over the years, Horizon has found a niche in working with local
governments and jurisdictions in providing site development services for wireless carriers and
offering carriers a predictable, efficient path to infrastructure expansion on city owned
properties. Horizon provides a full turn -key operation that incorporates leasing, zoning,
compliance, development funding, construction and site maintenance — all executed in a timely
and professional manner allowing for clarity and efficiency for potential infrastructure
development. Some of these telecom projects include partnerships with local municipalities,
such as: City of Oakley, City of Fontana, the State of California (DGS) and local school districts,
such as Lodi Unified School District. These projects have allowed Horizon the unique ability to
partner with local municipality and government bodies to enhance the use of city /government
owned properties and as a result we feel our experience and existing carrier relationships will
help leverage opportunities with the city of Dublin. (Please refer to section E. Statement of
Qualifications for references and details regarding these projects).
C. Horizon Person net/Res um es
The key personnel that will interact with the City of Dublin staff on a regular basis are identified
below along with brief resumes. Susan Densmore, as Director of Development will be the initial
point of contact for all matters related to this project.
JOHN KAPULICA
CEO
ROGER MATSUi I SUZIE DENSMORE
CFO— FINANCE DIRECTOR DIRECTOR OF DEVELOPMENT
PONT OF COf*TACT
JOHN UNGER
CONSTRUCTION MANAGER
Now
PAUL. BUSCHINI
OPERATIONS MANAGER
FINANCE SUPPORT
John Kapulica I Chief Executive Officer
Mr. Kapulica has been engaged in real estate acquisition and development for over twenty years,
seventeen of which have been dedicated to the wireless communications industry. In 1995, Mr.
Kapulica joined JM Consulting Group to assist in the launch of Pacific Bell Mobile Services'
(now AT &T) GSM network in the San Francisco Bay Area and has since been engaged in every
aspect of the wireless development business with direct responsibility for the deployment of
hundreds of sites for all the national carriers through various entities and startups, including:
Communication Systems Development, CSD, Inc_, TowerCom West Coast, LLC., Standard
Tower, LLC., and most recently Horizon Tower, LLC, which he formed along with private
equity partner Duff Ackerman & Goodrich (DAG, LLC ) in 2004 and continues to serve as its
CEO. Mr. Kapulica received a Bachelor of Science degree in Business Administration from San
Francisco State University and holds a Master of Science degree in Finance from Golden Gate
University.
Roger Matsui] Chief Financial Officer
Mr. Matsui is an experienced financial executive with a deep background in the cellular tower,
private equity, and broker /dealer sectors. From 2002 through 2012 Mr. Matsui served as Chief
Financial Officer for private equity firm Duff Ackerman & Goodrich (DAG, LLC) with
responsibility for fund administration and accounting. In 2004 DAG LLC invested in Horizon
Tower and Mr. Matsui took on the added responsibility of serving as Horizon Tower's Chief
Financial Officer. Prior to joining DAG LLC, Mr. Matsui was the Chief Financial Officer for
Sutro & Co. from 1996 to 2002. Sutro was a full service regional broker /dealer with 16 branch
offices in the western United States prior to being acquired by RBC, Dain Rauscher. Mr. Matsui
is a member of the California Society of Certified Public Accounting and received his MBA
from California State University, Hayward.
Suzie Densmore I Director, Site Development /Acquisition
Ms. Densmore joined Horizon in 2006. She has worked in the wireless telecommunications
industry for more than 13 years. Her experience spans two national, publicly traded tower asset
companies as well as two west coast based regional tower companies. During her tenure in the
industry, Ms. Densmore has participated in the development, management, acquisition or
securitization of over 2,000 tower sites. At Horizon, Ms. Densmore oversees all facets of tower
development and acquisitions including project management, portfolio management and due
diligence. Ms. Densmore is also responsible for development and maintenance of the
Company's database systems used to track site development, accounting, maintenance and other
aspects of the Company's operations.
Paul Buschini I Operations Manager
Mr. Buschini joined Horizon in 2004. He brings over 15 years of project management and
operations experience to Horizon. Prior to joining Horizon, Mr. Buschini spent five years with
TowerCom alongside Mr. Kapulica, where he played an instrumental role in its project
VZ
management group. At Horizon, Mr. Buschini is responsible for all operational aspects of
towers including oversight of receivables and payables, and in -house accounting /finance support
to the CFO. Additionally, Mr. Buschini assists the Company's tower development and
acquisition efforts including vendor management, site evaluation, inspection and maintenance
FAA/FCC compliance and environmental compliance.
John Unger I Construction Manager
Mr. Unger brings over 15 years.of wireless construction experience to Horizon Tower and was
originally part of the initial launch for Pacific Bell Mobile Services in Pleasanton, California,
serving the East Bay community. Mr Unger has a deep understanding of every aspect of the
design and construction of wireless telecom facilities for AT&T, Verizon, T Mobile and
Sprint/Nextel. Previously Mr. Unger served as Construction Manager for AT &T Wireless and
with tower developer SpectraSite.
D. Other Consultants (Not applicable)
E. Statement of Qualifications
Below please find a list of relevant projects that IIorizon has completed which are similar in
scope and nature to the Dublin RFP. All projects were co- location facilities (4- carrier minimum)
and strategically located on government property. The City of Fontana project was an extensive
arrangement to remove 4 existing wireless carriers (4 individually carrier owned mono- poles) on
private property and re- located and consolidated on 1 new structure on City owned property.
(See appendix for recommendation letter).
City of Oakley
Project Name: Oakley CA2009
Barbara Mason, Redevelopment /Economic Development Director
925 - 625 -7016
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State of California
Project Name: Glen Ellen SDC CA4001 (currently under development)
Tony Psihopaidas, Manager, State Owned Leasing and Development
916- 375 -4040
City of Fontana
Project Name: Fontana CA2000
Debbie M. Brazill, Deputy City Manager
(909) 350 -6727
[See attached letter of recommendation (Appendix 1)]
Lodi Unified School District
Project Name: Lodi High CA4002
Art Hand, Jr. Asst. Superintendant, Facility & Planning
C/o Barry DaCruz, Mika Telecom Group
209 -992 -1134
F. Statement of Proposed Financial Arrangement
Horizon proposes a tiered revenue share structure for all telecom lease revenue generated by the
partnership and under the proposed terms of contract* and per the scope of services depicted in
this RFP as follows:
Gross Lease Payment
Years 1 -5
Years 6 & Beyond
Less than $2,000 /mo
20%
15%
$2,000- $2,399/mo
25%
20%
$2,400 /mo & greater
30%
25%
*See Appendix 2 for proposed form of contract
Brim
Appendix 1 — City of Fontana Letter of Recommendation
November 29, 2006
To Whom It May Concern;
Please accept this letter as a reference and recommendation for the services Horizon
Tower provided the City of Fonlana and the Fontana Redevelopment Agency in the
relocation/redevelopment of cell sites at our.lessie Turner Community facility.
to [lie Sprint; of 2005, the City of Fontana was confronted with the task of relocating
three national wireless carriers residing on three separate mono -palms to another location
due to the redevelopment of the existing parcel where the sites were located. With
Horizon 'rower's expertise and knowledge of the industry, they were able to step in and
present a viable Collocation S4lnt1O11 for all parties involved, including the design of a
new stealth structure that met environmental, zoning and jurisdictional concerns.
Horizon Tower's professionalism and ability to coordinate and manage an unforeseen
move to a temporary facility, in addition to the permanent facility, depicted their
willingness to work with all parties. The carriers' issues were accommodated as well as
the City's lilnclines and Horizon 'rower completed the entire project in an expedient,
fiscally responsible and professional manner.
We would recommend working with Horizon Tower on any difficult or sensitive project
involving Fireless telecommunication infrastructure. Their expertise and desire to work
within everyone's parameters made what could have been a problematic situation into a
positive collocation solution for all involved.
Please do not hesitate to contact me at 909- 350 -6727 should you have any questions.
Since ely,
Debbie M. Brazils
Deputy City Manager
cc: 3olu1 Kapulica, Horizon Tower, LLC
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Appendix 2 — Proposed form of Partnership contract
TELECOMMUNICATIONS SITE MANAGEMENT AGREEMENT
This Telecommunications Site Management Agreement (this "Agreement') is entered
into as of the _ day of , 2013 by Horizon Tower, LLC, a Delaware limited liability
company, with its principal place of business at l 17 Town and Country Drive, Suite A, Danville,
CA 94526 (the "Manager ") and the City of Dublin, California (the "Owner ").
Section 1. Appointment. Owner hereby engages Manager as an independent contractor for
the purpose of performing the Services (as defined in Section 4 of this Agreement) with respect
to the sites identified on Exhibit A attached hereto (each a "Location" and collectively the
'Trope ").
Section 2. Term of Agreement, Termination.
A. Term. This Agreement shall continue for an initial term of five (5) years (the
"Initial Tenn ") commencing on the date hereof, unless sooner terminated in accordance with the
provisions of this Agreement. Thereafter this Agreement will automatically renew for
consecutive five (5) year terms (each a "Renewal Term" and, together with the Initial Term, the
"Term ") unless terminated by either party providing written notice to the other party at least
ninety (90) days prior to the expiration of the then current term. .
B. Termination. This Agreement shall terminate, prior to the expiration of the Term,
upon the occurrence of any of the following, subject to the provisions of this Agreement:
(i) Mutual Agreement. The mutual written agreement of Owner and
Manager.
(ii) Material Default. The Owner or Manager breaches its representations or
warranties, or defaults in the performance of its covenants or agreements contained in this
Agreement, and such breach or default is material in the context of this Agreement, and fails to
cure such breach or default within thirty (30) days, or such longer period as is reasonable under
the circumstances provided the defaulting party is diligently pursuing a cure of such breach or
default, of receiving written notice of such breach or default from the other party, provided,
however, that the cure period for monetary defaults shall be ten (10) days from the due date of
the applicable payment.
C. Duties Upon End of Term. Following the expiration of the Term, Manager shall
deliver to Owner all original Telecom Lease Agreements and technical studies and diagrams, and
all funds in Manager's possession which belong to Owner (if any) or received by Manager with
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regard to the Property less Manager's compensation and reimbursements as provided in Exhibit
B. Manager shall also, for a period of thirty (30) days after such expiration or termination, be
available during business hours to respond to any questions of Owner regarding the operation
and maintenance of the Property.
Section 3. Compensation. Manager shall be paid a management fee ( "Management Fee ")
for performing the Services as provided in Exhibit B attached hereto.
Section 4. Manager's Services. Manager shall perform the following services (collectively,
"Services ") for Owner with respect to the Property:
A. Site Marketing and Leasing Services:
(i) Marketin . Managers shall market the Property to prospective wireless
telecom tenants (each a "Telecom Lessee ") for use as a telecommunications transmitting and
receiving location and the installation, operation, and maintenance of telecommunications
equipment and systems, including, but not limited to, towers, poles, transmitters, receivers,
antenna support masts, cabling, wiring, and accessories (collectively, "Telecom E ui ment ").
Manager shall have the exclusive right to market the Property to prospective Telecom Lessees
for installation, operation and maintenance of such Telecom Equipment. Manager shall riot be
required to provide any Services with respect to existing tenants on the Property as of the date
hereof. Manager may, at its own expense, engage consultants, independent contractors, brokers
or others to assist in marketing the Property.
(ii) Telecom Lease Agreements. Managers shall prepare and negotiate, on
Owner's behalf, a lease agreement, including amendments and extensions thereof (each a
"Telecom Lease Agreement "), with respect to the installation and operation of Telecom
Equipment at the Property. Manager shall negotiate each Telecom Lease Agreement based on
the form attached hereto as Exhibit C. Manager shall have no authority and Manager shall not
represent to third parties that Manager has authority to execute any document on behalf of
Owner, to bind Owner to any Telecom Lease Agreement, or other agreement. Owner agrees that
it will conduct itself in all respects in connection with the performance of this Agreement in good
faith and in a commercially reasonable manner, and, without limiting the foregoing, will not
unreasonably delay, withhold, or condition its consent to enter into any Telecom Lease
Agreement.
(iii) Lease Specifications. Managers shall periodically consult with Owner
regarding future installation plans and specifications to address issues related to space
requirements, Telecom Equipment location, roof top configuration, building aesthetics, and other
structural or engineering requirements and make recommendations to Owner as to approval or
disapproval thereof, as well as the appropriate rates and terms for Telecom Lease Agreements.
(iv) Legal Compliance. To the extent necessary, Manager shall require each
Telecom Lessee to provide Manager with evidence it has received all necessary approvals for
compliance with zoning ordinances, building codes and all other applicable laws regarding
Telecom Equipment installation, operation, maintenance, repair and /or replacement.
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B. Telecom Management Services.
(i) Inventory and Assessment. Maintain a current inventory of Telecom
Leases and Telecom Equipment located at the Property. Update such inventory schedule and
provide to Owner upon request.
(ii) Telecom Equipment Installation Review. Monitor installation of Telecom
Equipment with Owner's engineer for compliance with the installation plans and specifications
of the Telecom Lease Agreement.
(iii) Compliance Enforcement. In cooperation with Owner, to enforce
compliance by each Telecom Lessee at the Property with its Telecom Lease Agreement. Upon
receipt of approval from Owner, use contractors and external resources to confirm that each
Telecom Lessee is operating and maintaining its Telecom Equipment in compliance with the
terms of its Telecom Lease Agreement and the technical recommendations and requirements
specified by the Federal Communications Commission ( "FCC "), Federal Aviation
Administration ( "FAA ") and other relevant regulatory agencies. Fees charged by the external
contractors and resources will be the responsibility of the Owner.
(iv) Interference. Monitor and resolve any interference problems among
Telecom Lessees and among Telecom Lessees and third parties.
(v) Books and Records. Maintain books and records with respect to the
Telecom Equipment, the Telecom Lease Agreements, and Telecom Lessees as necessary to
satisfy governmental reporting requirements.
(vi) Telecom Lessee Relations. Serve as the interface between Owner and the
Telecom Lessees.
(vii) Collection and Remittance. Collect monthly Telecom Lessee rental
payments (fine "Telecom Lessee Rents ") under the Telecom Lease Agreements and remit all
Telecom Lessee Rents to Owner after deduction of the Management Fee then due to Manager
hereunder in accordance with Exhibit B attached hereto; support such remittances with schedules
detailing the Telecom Lessees, the calculation of the Telecom Lessee Rents due and collected
and the extent of any delinquencies thereof; and of Management Fees earned and paid; send such
remittances and schedules to Owner on the fifteenth (15th) day of the month following the month
in which Telecom Lessee Rents are received by Manager. Owner shall hold any security
deposits and other deposits from Telecom Lessees in accounts designated by Owner. [Manager
shall, with the prior written approval of Owner, promptly and diligently assist Owner to enforce
Owner's rights under any Telecom Lease Agreements by way of litigation or other extraordinary
enforcement actions, if necessary.
(viii) Insurance. Verify compliance by Telecom Lessees with insurance
requirements set forth in Telecom Lease Agreement.
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(ix) Notices. Inform Owner of any material notices which Manager receives in
connection with any Location or Property, the Telecom Lessees, or Telecom Lease Agreements,
including material notices received from any governmental body, insurance carrier, or Telecom
Lessee.
efforts to:
(x) Performance of Services. Manager shall use commercially reasonable
(a) perform the Services in a diligent, careful, and professional manner;
and
(b) maximize revenues and minimize expenses and losses, and the
Services shall be of a scope and duality not less than those generally
performed by first class, professional telecommunications site
managers.
Section 5. Manager's Exclusivity; Owner's Indemnity. Owner has appointed Manager as
its exclusive manager and marketer of the Property. Owner shall not undertake any marketing or
other activities related to the Property (including the retention of any broker or other manager)
and shall refer to Manager all inquiries it receives from potential Telecom Lessees. Manager
further acknowledges and agrees that Owner may communicate to Manager its objectives with
respect to the general leasing of the Property and the Manager shall use its commercially
reasonable efforts to accomplish such objectives. Owner hereby warrants and represents that
Owner has no arrangements with any broker(s) which would entitle such broker(s) to a
commission or referral fee for any Telecom Lease Agreements, and Owner agrees to indemnify,
defend, and hold harmless Manager against any claims of any broker, manager, or other person
claiming such an arrangement, including attorney's fees and expenses.
Section 6. Inquiries and Negotiations. Without limiting Manager's marketing obligations
set forth herein to identify prospective Telecom Lessees, all inquiries concerning proposed
Telecom Lease Agreements shall be referred to Manager. All negotiations of proposed Telecom
Lease Agreements shall be conducted by or under the direction of the Manager.
Section 7. Owner's Responsibilities Related to Leasing.
A. Access and Information. Owner shall provide Manager, its agents,
subcontractors, and employees with 24 hour access 7 -days a week to each Property, subject to
Owner's security requirements, to install, maintain, inspect, operate, dismantle, assemble, alter,
repair, and monitor any Telecom Equipment of Telecom Lessees in a Property and to work with
on -site Property personnel to show each Property to prospective Telecom Lessees. Owner shall
respond promptly to the reasonable requests of Manager regarding the Property, shall provide
Manager with any information, documents or materials related to the Property and shall keep
Manager informed of any material events which may impact the Property.
B. _Lease Approval. Each proposed Telecom Lease Agreement shall be subject to
Owner's approval. Manager shall provide Owner with a draft of each Telecom Lease Agreement
to permit Owner to evaluate the terms thereof and the potential Telecom Lessee. Owner shall
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promptly notify Manager of its intention to accept or reject each proposed Telecom Lease
Agreement. Owner reserves the right to accept or reject any offer to lease any portion of the
Property to any proposed Telecom Lessee, provided that there is a commercially reasonable
justification for doing so and provided that Owner provides Manager with a written justification
therefore. Any attorneys or consultants engaged by owner in connection with the review of any
proposed Telecom Lease Agreement shall be at Owner's sole cost and expense.
C. Condition of the Property. During the Term of this Agreement Owner shall keep
the Property, other than the Telecom Equipment, in good condition and repair, reasonable wear
and tear excepted and shall keep the Property free from excess vegetation and debris. Owner
shall be responsible for the maintenance or repair of any equipment, machinery, or mechanical
systems, including any heating, ventilating, or air conditioning systems, relating to the building
operation (collectively the "Building Systems") that are or may be made available to Telecom
Lessees pursuant to their respective Telecom Lease Agreements.
D. Addition or Removal of Locations. During the Term, Owner may add additional
Locations to Exhibit A by providing written notice thereof to Manager. Upon receipt of such
notice, Manager shall commence performing the Services for such Location. If during the Term,
Owner sells, assigns or transfers all of its right, title and interest in and to any Location to a third
party (whether pursuant to a taking under the power of eminent domain or otherwise) or
otherwise ceases to have an interest in a Location, this Agreement shall terminate (as to that
Location only), and on the date of such assignment or transfer the Owner shall promptly deliver
to Manager an amended Exhibit A reflecting the removal of such Location from the scope of this
Agreement and shall pay Manager the Management Fee described on Exhibit B, Section 1(i) for
the remaining term any Telecom Lease Agreements at such Location. Upon the termination of
this Agreement as to a Location, the Manager shall be released and discharged from all liability
hereunder with respect to such Location for the period from and after the applicable termination
date and the Manager shall have no further obligation to perform any Services with respect
thereto from and after such date.
Section S. Books, Records, and Reporting. Manager shall keep and maintain books,
records and accounts in connection with the Services to be provided. and management of the
Property. Owner shall have the right during usual business hours upon reasonable notice to
examine and audit all such books, records and accounts, and Owner may make copies of any
documents and records pertaining to any time period during the Term. If any audit shows that
Owner or Manager, as applicable, has been underpaid, then the other party shall promptly pay to
the party that has been underpaid the amount due. Before any records or documents relating to
the Property are destroyed during the Term, Manager shall notify Owner, whereupon Owner
shall have thirty (30) days to take possession of such records and documents. In no event shall
Manager destroy records or documents during the Term relating to the Property without Owner's
written approval.
Section 9. Owner's Obligation. Owner shall provide Manager with such cooperation and
information as is reasonably necessary for the effective performance of the Services.
Section 10. Indemnity.
amo
A. Manager's Indemnity. Manager shall indemnify, defend, and hold harmless
Owner from and against, any and all claims, liabilities, damages, and costs (including without
limitation, reasonable attorneys' fees) arising out of any fraud, gross negligence, or willful
misconduct on the part of Manager.
B. Owner's Indemnity. Owner shall indemnify, defend, and hold harmless Manager
from and against any and all claims, liabilities, damages, and costs (including without limitation,
reasonable attorneys' fees) arising out of. (i) any Fraud, gross negligence, or willful misconduct
on the part of Owner; (ii) any Telecom Lease Agreement; and (iii) Owner's ownership or leasing
of the Property. Owner shall look solely to the Telecom Lessee in the event of any damage to
the Properties by reason of such Telecom Lessee's breach of any Telecom Lease Agreement and
shall hold Manager and its Affiliates harmless from and against any liability in respect thereof.
Section 11. Representations and Warranties. Each party makes the following
representations and warrants to the other: (i) it is duly organized, validly existing, and in good
standing under the laws of the state of its formation, and is, or will be at the appropriate time,
qualified to do business in any jurisdiction in which such qualification is necessary for the
performance by such party of its obligations hereunder; (ii) it has the necessary power and
authority required to execute, deliver, and perform this Agreement, and has sufficient staff and
other resources to carry out its duties hereunder in a prompt, efficient, diligent, and professional
manner; (iii) the execution, delivery, and performance of this Agreement has been duty
authorized by all necessary action on the part of such party, and once executed, this Agreement
will be valid and binding upon such party; and (iv) this Agreement does not conflict with the
organizational documents of such party or constitute a default under any material instrument or
agreement by which such party is bound.
Section 12. Insurance Requirements. Manager shall maintain during the term of this
Agreement a policy of Commercial General Liability Insurance naming Owner as an additional
insured and providing $1,000,000 in coverage per occurrence and $2,000,000 in aggregate.
Manager shall furnish Owner, at the time of execution of this Agreement, with copies certificates
of insurance evidencing its insurance coverage as required under this Agreement. Manger shall
deliver to Owner upon request evidence that Owner has been added as additional insured. Ali
Manager's policies shall be at Manager's sole cost. Owner shall maintain insurance on the
Property in such amounts as may be reasonably required by the Telecom Lessees under the
Telecom Lease Agreements.
Section 13. Miscellaneous.
A. Relationship of Parties. The parties intend that Manager's legal status with
respect to Owner shall be that of an independent contractor. Nothing in this Agreement shall
constitute a partnership, joint venture, agency, or other similar relationship.
B. Notice. Any notice in this Agreement permitted to be given, made or accepted by
either party to the other, must be in writing and may be given or served by depositing the same in
the United States mail, postpaid, certified, return receipt requested, addressed to the party to be
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notified, or by delivering same by hand or overnight courier to an officer or agent of such party.
Notice deposited in the United States mail shall be deemed given three (3) days after it is
deposited. Notice given in any other manner shall be effective when received at the address of
the addressee. For purposes hereof the addresses of the parties, until changed as hereafter
provided shall be as follows:
if to Owner:
if to Manager:
with a copy (which shall
not constitute notice) to:
Horizon Tower, LLC
117 Town and Country Drive, Suite A
Danville, CA 94526
Attn: Property Manager
Edinger Associates PLLC
18751 Street, N.W.
Washington, DC 20006
Attn: Brook A. Edinger
C. Assignment. None of the rights, interests, duties, or obligations created by this
Agreement may be assigned, transferred, or delegated in whole or in part by any party hereto
without the prior written consent of the other party, which consent shall not be unreasonably
withheld, conditioned, or delayed, except that either party may assign this Agreement to a person
or entity acquiring substantially all of its assets or equity and who agrees to assume this
Agreement in writing.
D. Entire Agreement and Amendment. This Agreement (including exhibits hereto)
contains the entire agreement between Owner and Manager, and no oral statements or prior
written matter not set forth herein shall be of any force and effect. No variation, modification or
changes hereof shall be binding on either party hereto sinless set forth in a document executed by
such parties.
E. No Recording. Neither Owner nor Manager shall file or record any instrument or
document relative to this Agreement in any public records.
F. Governing Laws and Venue. The laws of the State California shall govern the
validity, enforcement, and interpretation of this Agreement.
G. Waiver. No failure by Owner or Manager to insist on the strict performance of
any obligation, covenant, agreement, term, or condition of this Agreement, or to exercise any
right or remedy available upon a breach of this Agreement, shall constitute a waiver, and no
breach shall be waived, altered or modified, except by written instrument.
H. Owner's Representatives; Consents and Approvals. Owner's consents and
approvals may be given only by Owner or its representatives from time to time designated by
Owner to Manager in writing. Owner may from time to time designate representatives to
SCIE
approve matters, receive reports, materials, or other items, or otherwise take action on behalf of
Owner, and Manager shall cooperate with such representatives, to the same extent as if dealing
directly with Owner.
1. Confidential information. Manager agrees to hold in confidence and not use or
disclose to others any confidential or proprietary information of Owner heretofore or hereafter
disclosed to Manager, including but not limited to any data, information, plans, programs,
processes, costs, operations, or Telecom Lessee lists which may come within the knowledge of
Manager in the performance of its services, except where Owner specifically authorizes
disclosure.
J. Severahility. If any provision hereof is in conflict with any statute or law of the
governing jurisdiction or any other statute or rule of law of any other applicable jurisdiction or is
otherwise unenforceable, such provision shall be deemed to be void only to the extent of such
conflict or unenforceability and shall be separate from and shall not invalidate any other
provisions of this agreement.
K. Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original and all of which together shall constitute one and the same
instrument.
[SIGNATURE PAGE FOLLOWS]
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SIGNATURE PAGE TO
TELECOMMUNICATIONS SITE MANAGEMENT AGREEMENT
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
set forth above:
MANAGER:
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HORIZON TOWER, LLC
By:
Name:
Title:
CITY OF DUBLIN, CALIFORNIA
By:
Name:
Title:
EXHIBIT A
LIST OF LOCATIONS
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MANAGER'S COMPENSATION
Management Fee, Owner shall pay to Manager a fee (the "Management Fee ") in the
amounts described below. The Management Fee shall be paid monthly in arrears. The
Manager is authorized to deduct the Management Fee from monthly rental payments it
collects under the Telecom Lease Agreements. The Manager shall provide the Owner a
monthly statement detailing the monthly rental payments due to be collected each month
and a calculation of the Management Fee:
(i) Thirty percent (30 %) of the total rental payments to be collected during the initial
term of each Telecom Lease Agreement; and
(ii) Twenty -Five percent (25 %) of the total rental payments to be collected during all
renewal or extension terms of each Telecom Lease Agreement or the term of any
replacement contract entered into in lieu of an extension or renewal of a Telecom
Lease Agreement, regardless of any termination of this Agreement.
2. Project Fees. Owner shall pay Manager for providing services which are outside of the
scope of the Services described in this Agreement in the amount of $150.00 per hour,
plus actual expenses incurred by Manager. Prior to undertaking any project at an hourly
rate, Manager will provide Owner, or its representative, with an estimate of the hours
required to complete the project and the scope of work to be performed. The Manager is
authorized to deduct the Project Fees from monthly rental payments it collects under the
Telecom Lease Agreements.
3. Additional Com ensation. Upon termination of this Agreement, Manager shall provide
Owner with a list setting forth the names of the persons or entities to whom Manager has
shown the Property for possibly occupancy by such party or with whom Manager has
commenced negotiations of the terms of a potential Telecom Lease Agreement. Such list
shall be submitted by Manager to Owner within twenty (20) business days of the
termination of this Agreement. If Owner enters into any Telecom Lease Agreement with
any party on such list within one hundred fifty (150) days from the termination date of
this Agreement, Manager shall be entitled to receive from Owner the Management Fee as
set forth in this Agreement on account of such Telecom Lease Agreement.
4. Expenses. Manager shall be responsible to pay its own costs and expenses. associated
with providing the Services and Owner shall be responsible for paying all costs and
expenses associated with the Property including any improvements to the Property, any
fees or expenses related to zoning applications, filing fees and similar expenses.
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TELECOM LEASE AGREEMENT TEMPLATE
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Appendix 3 — Existing Telecom Site Map — City of Dublin
See attached
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