REPORT TO THE CITY COUNCIL
FROM: BRYON HORN, Chief Information Officer
Information Services Department
SUBJECT
Title
Actions pertaining to Master License Agreement for Small Cell Infrastructure with Verizon Wireless:
1. Adopt a finding of Categorical Exemption pursuant to CEQA Guidelines Section 15301/Class 1 for the Proposed Project pursuant to the California Environmental Quality Act (CEQA);
2. Approve a Master License Agreement with MSA Limited Partnership, d/b/a Verizon Wireless for placement of telecommunication equipment on City assets as defined by Federal Communications Commission (FCC) Order 18-133.
Body
RECOMMENDATION
Staff recommends that City Council approve and allow the City Manager or designee to enter into the attached Master License Agreement (MLA) with MSA Limited Partnership, d/b/a Verizon Wireless (Verizon Wireless). The MLA allows third party carriers to install telecommunication equipment on City assets.
EXECUTIVE SUMMARY
Staff recommends approval of the MLA with Verizon Wireless, and authority for the City Manager or designee to enter into such agreements. The MLA allows for the City to collect fees in accordance with FCC 18-133; $270 per site annually. The MLA sets a one-time $200 payment per site to use the existing spare conductor/conduit capacity. Verizon will pay PG&E directly for their metered electricity. The current Verizon small cell/5G site licenses will be transfer from the XG Communities agreement to this MLA.
Council approved a similar agreement with AT&T on June 11, 2020 which was used as a basis to construct the MLA with Verizon Wireless. The AT&T agreement is still in effect. This MLA is specific to Verizon’s terms and conditions as reflected.
BACKGROUND
On June 11, 2020, Council approved an MLA which clarified provisions for defects on poles. AT&T entered into an agreement under these provisions. The MLA with Verizon currently under consideration contains similar provisions as the MLA utilized with AT&T as follows:
• Initial term of 10 years, which is an industry standard.
• Assigns an annual fee of $270 per attachment, pursuant to FCC (18-133).
• Provides a fallback annual fee of $1,250 per pole in the event that the FCC order is vacated or invalidated.
• Sets a one-time $200 payment per site to use the existing spare conductor/conduit capacity.
• Requires carriers to pay all costs of attaching equipment.
• Changes the site termination notice from 60 days to 180 days unless there is a City project which will allow a 60 day notice by the City.
• Offers protections for all parties to ensure that the City has the means to protect public assets.
• All licensed premise(s) are required to follow the City’s standards and guidelines for the installation of the telecommunication equipment.
• Allow for an inspection recovery cost up to $300 per site if the licensed premise is found to be damaged.
On September 27, 2018, the FCC issued FCC Order 18-133 placing strict limits on state and local government’s ability to manage and control government assets relating to small cell infrastructure. FCC Order 18-133 also limits the compensation cities can receive for such implementations to $270 per pole per year. Since then, the City has been diligently working with carriers to enter into agreements that meet the needs of the City as well as comply with the requirements of the FCC Order 18-133 allowing carriers to place equipment on city-owned poles.
ENVIRONMENTAL FINDINGS
This project falls within the Categorical Exemption set forth in CEQA Guidelines Section 15301/Class 1 because this matter pertains to the licensing of existing structures and minor alteration thereof. Further, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2, apply to this project.
LOCAL PREFERENCE
Local preference was not considered because this item does not include a bid or award of a construction or service contract.
FISCAL IMPACT
No funds shall be expended for this agreement. The revenues from this agreement (currently estimated at $100,000 annually) have been assumed in the General Fund five-year projections.
Attachment: Master License Agreement with MSA Limited Partnership, d/b/a Verizon Wireless