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RESOLUTION of the City of San Leandro City Council to Approve a Master License Agreement for Small Cell Wireless Facilities Installation and for Use of City Associated Facilities; Authorizing the City Manager to Execute the Agreement; Establishing the Small Cell Administrative and License Fees; And Authorizing the Director of Finance to Amend the Master Fee Schedule
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WHEREAS, The City of San Leandro (“City”) owns street light poles, traffic signal poles, and other similar facilities (each, a “City Pole”) within the public right-of-way and owns or controls public right-of-way within the City of San Leandro located in Alameda County, State of California; and
WHEREAS, the City also owns, operates, and maintains conduits, pull-boxes, power circuits, panels, and other related facilities located in the public right-of-way within the City (individually and collectively, “Associated Facilities”) that are suitable for installing equipment associated with enhancing wireless telecommunications services; and
WHEREAS, in response to new advances in wireless “5G” technology and corresponding regulatory proposals, the City has an interest in managing the licensing of existing City Poles and Associated Facilities within the public right-of-way for wireless telecommunications facilities; and
WHEREAS, the City has also received inquiries from multiple wireless communications service providers interested in deploying new “small cell” facilities by utilizing City Poles and Associated Facilities within the City right-of-way, which would provide enhanced wireless services and prepare for 5G deployment throughout the community; and
WHEREAS, wireless providers are proposing to place a single “small cell” antenna and related equipment on existing City Poles located within the public rights-of-way and utilize City Associated Facilities to provide electrical power for such small cell sites; and
WHEREAS, under California Public Utilities Code Section 7901, wireless providers have the authority to install and maintain telephone lines in the public right-of-way to provide wireless telecommunications services; and
WHEREAS, the City has the authority under California Public Utilities Code Section 7901.1 to exercise reasonable control as to the time, place, and manner in which roads, highways, and waterways are accessed; and
WHEREAS, the City previously approved and executed a Master License Agreement with ExteNet Systems LLC for small cell pole attachments on City Poles in exchange for compliance with design, installation, access, removal, and other conditions relating to the use of City Poles and for certain license fees and administrative payments; and
WHEREAS, other Bay Area cities have also entered into, or are in the process of negotiating, similar master license agreements with wireless carriers, including South San Francisco, San Jose, San Francisco, and Palo Alto; such master license agreements typically include similar design, installation, access, removal, and other conditions, and they impose license fees in the range of $1000-$2000; and
WHEREAS, the proposed Master License Agreement (“MLA”) incorporates similar design, installation, access, removal, fees, and other conditions set forth in the City’s MLA with ExteNet, and further requires carriers to obtain separate licenses for the use of City Poles and access to City Associated Facilities to deploy small cell facilities; and
WHEREAS, the proposed MLA would not directly grant any rights to use an individual City Pole and Associated Facilities, but rather the MLA establishes the procedures, terms, and conditions under which licensees obtain individual Pole and Associated Facilities licenses; and
WHEREAS, the MLA is a comprehensive document that contains uniform terms and conditions applicable to all wireless facilities installed on City Poles and access to utilize City Associated Facilities; and
WHEREAS, wireless providers desiring access to City-owned poles and Associated Facilities must enter into the MLA with the City to obtain a Master License for an initial period of five (5) years and with subsequent renewals; the Master License would in turn entitle wireless providers to obtain Pole and Associated Facilities licenses on a first-come, first-served basis for the duration of the Master License term with the option for subsequent automatic renewals or voluntary termination; and
WHEREAS, this framework creates a single set of rules for all providers that reduces the administrative burden on the City and promotes a level playing field among competitor licensees; and
WHEREAS, among the key terms and conditions of the MLA are:
• Master License Term - The term of the Master License is five (5) years. During this period, licensees can seek individual licenses under the terms offered in the MLA. After the initial five-year term, the Master License will automatically renew for subsequent 1-year terms, subject to each parties’ option not to renew for any reason, with prior written notice to the other party.
• Pole and Associated Facilities License Term - The term for each Pole License is coterminous with the initial term or subsequent renewal terms of the Master License. In other words, each Pole License and Associated Facilities License will remain effective as long as the Master License remains in effect. If the Master License is terminated or not renewed, all Pole and Associated Facilities Licenses granted pursuant to the Master License will terminate regardless of their effective dates.
• License Fee - Annual License Fee per City-owned pole will be $500 each, and the fee per City Associated Facility will be $1,000 each, both subject to an annual 3% increase. The Master License further reserves the City’s right to adjust the License Fee for each fiscal year, subject to City Council approval.
• Administrative Fee - The initial deposit to cover the cost of processing the Master License is $4,000. For each Pole or Associated Facilities License, the Licensee will be required to pay an initial Administrative Payment in the amount of $1,865, which includes a non-refundable Administrative Fee (which is subject to increase annually according to the City’s adopted Fee Schedule). The Licensee will be required to make subsequent payments to cover the administrative costs associated with the review and processing of the Pole or Associated Facilities Licenses if there is a reasonable need for additional funds. The City reserves the right to cease all processing of Licensee’s application until such time as the subsequent funds are received; and
WHEREAS, in addition to License Fees for Pole and Associated Facilities licenses, wireless providers will be responsible for paying a Master License Application Processing fee and respective Administrative Fees for Pole and Associated Facilities license applications, which will be calculated based upon the respective staff hourly rate defined in the Master Fee Schedule; and
WHEREAS, the License Fee for Pole and Associated Facilities, Application Processing Fees, and Administrative Fees would be set forth in the City’s Master Fee Schedule; and
WHEREAS, the goal of the MLA is to align the City’s available infrastructure assets with wireless provider’s demand for access; develop uniform and predictable processes for evaluating individual pole license applications; maintain the City’s municipal functions related to public health and safety; establish maintenance requirements and standards for the licensee; and preserve the community’s aesthetic characteristics.
NOW, THEREFORE, the City Council of the City of San Leandro RESOLVES, as follows:
(1) The Master License Agreement for Small Cell Pole Attachment Installation and for Use of City Associated Facilities with wireless services providers is Approved; and
(2) The City Manager is authorized to execute the Master License Agreement in substantially similar form as that attached hereto as Exhibit A, and any other related documents on behalf of the City, subject to approval as to form by the City Attorney; and
(3) The Pole License Fee, the Associated Facilities License Fee, and the Administrative Fee in the amount as required by the Master License Agreement are Approved; and
(4) The City Manager is authorized to take any other related actions consistent with the intention of this Resolution.
Attachment(s) to Resolution
• Master Pole Attachment and Associated Facilities License Agreement for Small Cell Pole Attachment and Use of City Associated Facilities