REPORT TO THE CITY COUNCIL
September 17, 2020
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
BY: ANDREW J. BENELLI, PE, City Engineer/Assistant Director
Public Works Department, Traffic Operations and Planning Division
SUBJECT
Title
***RESOLUTION - 24th Amendment to the Annual Appropriation Resolution (AAR) No. 2020-159 to appropriate $346,600 for 5G Cellular Plan Review and Inspection. (Requires five affirmative votes) (Subject to Mayor’s veto).
Body
RECOMMENDATION
Staff recommends that the City Council adopts the 24th Amendment to the Annual Appropriation Resolution (AAR) No. 2020-159 to appropriate $346,600 for 5G Cellular Plan Review and Inspections.
EXECUTIVE SUMMARY
The City has agreements with Verizon Wireless and AT&T that allow them to install cellular antennas on City owned street light poles. Verizon needs to have the 5G system in operation by the end of the year. The City has received the $346,600 in fee revenue from Verizon, but the revenue and appropriations for this additional staff work were not included in the FY 21 budget. The Public Works Department does not currently have funds or staff resources allocated and available to pay for the effort needed to meet Verizon’s schedule. The attached AAR will incorporate this new revenue collected from Verizon into the Public Works budget to fund the necessary staff resources.
BACKGROUND
Many wireless cell phone providers are in the process of updating their networks to a 5G operating platform. The 5G system provides much faster service and is one of the factors that will speed up the creation of the Internet of Things, which promises to connect more devises including smart homes and driverless cars. The 5G system requires more antennas than the current wireless service. The City has executed agreements with AT&T and Verizon to allow them to install antennas on street light poles. Verizon has submitted plans for over 300 sites. In addition to the installation of the antennas, Verizon is also installing fiber optic cables to each site. Verizon has requested that the City fast-track the reviews and inspections so that they can get the system operational before the end of the year.
The City fee for reviewing the plans and inspecting each site is $1,100. The attached Resolution and AAR will allocate the fee revenue that was collected from Verizon to Public Works and will allow for additional staff resources to help Verizon meet their goal of having the 5G system operational by January 1, 2021.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378 this item does not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Not applicable because this is not a competitive bid. Verizon is using local contractors to install the 5G equipment.
FISCAL IMPACT
Fee revenue for plan review and construction inspection is normally deposited into the General Fund. The fees paid by Verizon are in excess of the revenue that was projected for FY 2020. The excess revenue was not anticipated or allocated in the FY 2020 Budget or FY 2021 Budget.
Attachment:
24th Amendment to the AAR