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BACKGROUND Starting in 1983, the City and Hacienda entered into a series of "Maintenance Agreements" setting forth certain maintenance obligations for infrastructure within the Hacienda Business Park. The infrastructure includes public streets, landscaping, traffic signals, bus shelters, street signage, streetlights, etc. With regard to streetlights specifically, the agreements provide that the Hacienda Business Park Owners Association ("Hacienda") shall own and maintain all of the poles located in the public right-of-way throughout Hacienda. Approximately a year ago, Hacienda was approached by Philips Lighting North America Corporation ("Philips") with a proposal to improve cellular coverage and capacity throughout Hacienda by introducing small-cell technology within the streetlights in the public right-of-way. Philips and Hacienda subsequently entered into an agreement whereby Philips has agreed to remove up to one hundred of the existing streetlight poles and replace them with new "smart poles." Like the existing poles, the new smart poles will utilize LED lighting but with the added benefit of being able to conceal small- cell-wireless systems within the smart poles. (Small-cell-wireless systems supplement existing macro cell facilities by filling gaps in cellular coverage and also by providing increased network capacity where coverage already exists.) DISCUSSION Per the Lease Agreement between Philips and Hacienda, Philips has the right to replace up to 100 existing streetlight poles with "smart poles" and to lease the space within those smart poles to wireless providers such as AT&T, Verizon, Tmobile and Sprint. Once the smart pole is installed, title to the smart pole will revert back to Hacienda but Philips will hold leasing rights to the interior of the pole. Per the agreement between Philips and Hacienda, Philips shall pay Hacienda $200 per month for each streetlight that it removes and replaces with a "smart pole" plus an additional three percent per annum on a compounded basis. The proposed Amendment (see Attachment A) will amend four maintenance agreements between the City and Hacienda dated: November 22, 1983; November 1, 1986; May 1, 1988; and September 1, 1988. The Board for the Hacienda Business Park Owners Association met on August 22, 2017, and approved the proposed Amendment. If approved by the City Council, the Amendment will accomplish the following: o Extend the four maintenance agreements to December 13, 2041, to coincide with the contemplated termination date of the Lease Agreement between Philips and Hacienda. 6 Provide that all lease revenue paid to Hacienda by Philips will be equally split between the City and Hacienda. In other words, the City will receive $100 per pole per month from Hacienda, plus annual increases. Hacienda will make payment to the City within 30 days of Hacienda's receipt of payment from Philips. Page 2 of 3