REPORT TO THE CITY COUNCIL
July 16, 2020
FROM: BRYON HORN, Chief Information Officer
Information Services Department
SUBJECT
Title
Actions Pertaining to Small Cell Fees:
1. Adopt a finding that this approval is statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15273(a)
2. ***RESOLUTION - Adopting the 557th Amendment to the Master Fee Schedule Resolution No. 80-420 to add a conduit/conductor fee related to Small Cell Deployment. (Subject to Mayor’s veto)
Body
RECOMMENDATION
Staff recommends that the City Council adopt a finding that this approval is statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15273(a); adopt the 557th Amendment to the Master Fee Schedule (MFS) Resolution No. 80-420 adding a conduit/conductor fee related to small cell deployments. The addition of this fee to the MFS will allow the City of Fresno (City) to charge the appropriate fees, where applicable, related to the shared use of existing City conduit(s)/conductor(s).
EXECUTIVE SUMMARY
The City has been diligently working with carriers on a Master License Agreement (MLA) that meets the needs of the City and carriers, and to comply with the requirements of Federal Communications Commission (FCC) Order 18-33. As part of that process, staff recommends adoption of a fee to help accommodate the carrier’s access to utility power, where available. Where applicable, this conduit/conductor can be used at a fee of $400 per year, per pole to provide electricity to equipment placed on City infrastructure/poles.
BACKGROUND
On September 27, 2018, the FCC issued FCC Order 18-33 placing strict limits on state and local government’s ability to manage and control government assets relating to small cell infrastructure in the ROW. Since then, the City has been diligently working with carriers on a MLA that would meet the needs of the City as well as comply with the requirements of the FCC Order 18-33. Part of that process has been the development of appropriate and allowable fees. Where feasible, the City’s conduit/conductor is available for use to help accommodate the carrier’s access to utility power.
The MLA allows third party (carrier) telecommunications equipment to be placed on City poles. The installed telecommunications equipment requires power for operation. Carriers must furnish and install their own power source to provide electricity to equipment placed on City poles. There are some instances where conduit(s) or conductor(s) exists to allow easier access to utility power.
Although the carrier will be paying for its own power, this conduit/conductor allows it to utilize the City’s excess access to utility power, which minimizes the amount of construction needed to supply power to the small cell equipment. Conduit/conductor may not be feasible and/or available in all situations. Where feasible, appropriate and desirable, a carrier may non-exclusively lease excess access to power (i.e. conductor(s) and/or conduit(s)) from the City, for the purpose of providing power to the carrier’s equipment.
Staff proposes a new fee of $400, per pole, per year, to recover the City’s additional operating costs associated with sharing the existing conduit(s) or conductor(s) with the carrier. Conduit(s) or conductor(s) can be located up to one half mile between the streetlight pole on which the carrier’s equipment is located and the PG&E point of service. The proposed fee includes additional maintenance and repair work the City will be required to perform between the pole and the point of service. The fee is based on the hours estimated to be spent, by a City electrician, performing this work. The conduit/conductor fee will be charged in accordance with the revised Master License Agreement which has been submitted for Council review and approval.
ENVIRONMENTAL FINDINGS
While the attached Resolution describes addition of a conduit/conductor fee related to access to the City’s existing capacity, for the purposes of the California Environmental Quality Act (CEQA) Guidelines, the proposed addition is more specifically and accurately described as a charge. CEQA Guidelines Section 15273(a) states that “CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges by public agencies, which the public agency finds are for the purpose of: (1) Meeting operating expenses, including employee wage rates and fringe benefits.”
Here the City finds that the charge proposed as an addition to Resolution No. 80-420 is for the express purpose of covering operating costs associated with sharing the existing conduits or conductors with potential carriers. The charge will cover maintenance and repair work and is based upon the estimated hours to be spent by a City electrician performing the work. In this way, the charge is for the purpose of meeting operating expenses, which include necessary maintenance, and will be used to pay for the time spent by City employee’s performing the work. As such the charge is statutory exempt from the requirements of CEQA pursuant to CEQA Guidelines Section 15273. Staff is directed to file a Notice of Exemption following approval of this item.
LOCAL PREFERENCE
Local preference was not considered because this Resolution does not include a bid or award of a construction or service contract.
FISCAL IMPACT
Any conduit/conductor fees collected shall be revenue for the General Fund.
Attachments:
557th Amendment to the Master Fee Schedule Resolution
Master Fee Schedule Exhibit A