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February 21, 2023
ITEM TITLE
Agreement: Approve a Master License Agreements with Dish Wireless, LLC to Install and Operate Macro Cell Wireless Telecommunication Facilities on City Property
Report Number: 23-0047
Location: Citywide
Department: Economic Development
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity qualif ies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines.
Recommended Action
Approve the resolution authorizing the City Manager to enter into a Master License Agreement with Dish Wireless, LLC to install and operate Macro Cell Wireless Telecommunications Facilities on City Property.
SUMMARY
The proposed Master License Agreement allows for Dish Wireless, LLC to install and operate Macro Cell Wireless Telecommunication Facilities on City Property. The proposed Master License Agreement includes mutually beneficial and agreed upon terms that are consistent with those provided to other wireless carriers that are subject to the City’s review and approval.
ENVIRONMENTAL REVIEW
The proposed activity ha s been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the state CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Notwithstanding the foregoing, it has also been determined that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
N/A
DISCUSSION
Macro Cell towers were first approved by the City Council on September 16, 1999 where the City Council approved Master License Agreements (MLA) with AT&T and Cox PCS Assets, LLC for the installation and operation of as many as 50 wireless telecommunication sites on property owned or controlled by the City.
The City also approved an ML A with Pacific Bell Wireless, LLC for as many as 25 sites in July 2007 and T - Mobile for 25 sites in December 2007. In 1998, when the City began negotiations, City Council directed staff to negotiate rates that would provide wireless carriers an incentive to come to Chula Vista. It was the desire of the City Council to see Chula Vista commercial and residential customers have the opportunity to be early adopters of the technology and benefit from the competition of multiple carriers. Staff reached out to industry representatives, held workshops and invited the carriers to the City to structure “master” agreements that would provide prompt entry at below-market rates. More than two decades later, now that the latest telecommunication technology is readily ava ilable to Chula Vista consumers and the market is abundant with options, staff recommends balancing the goals of ensuring that the City continues to attract state of the art competitive service options for consumers with market rate lease payments for City sites.
Additionally, over a relatively short period of time, the technology has evolved from a unique business tool, used by a few people, primarily in commercial areas, to a common business and household convenience used almost everywhere by almost every one. That has put tremendous demand on sites in predominantly residential areas with few site options. The increase in sites to cover the varied topography of a growing city increases exponentially by: 1) the limitations that each site can carry during p eak periods, 2) the increased intensity of bandwidth use for items such as video, internet and music uses versus the original voice functions, and 3) the desire to accommodate more carriers with the expectation of fostering greater consumer choice, competition for price and service quality. The public demand for these services continues to grow and all of these issues place a greater demand on sites, particularly in residential neighborhoods.
Federal and State law does not allow cities to deny permits bas ed on health or solely on aesthetics issues.
City staff has worked with industry for many years on a “Master License Agreement” approach to reduce the pressure on siting these facilities in less appropriate areas.
The MLA provide s the City with an opport unity to work cooperatively with the carrier to expedite their projects, provide the coverage needed to meet public demand, provide incentives to pursue sites that have the least impact to residents and meet the aesthetic and safety goals of the community, while capturing revenue that helps the City fund public services at no additional cost to the ratepayer. Above all, the wireless industry values rapid deployment, and works with the City to accommodate the community’s objectives based predominantly on ou r ability to demonstrate a record of timely review and construction approvals that support that goal. The City Attorney’s Office, Finance, Development Services , Engineering and Risk Management have provided critical assistance in developing and securing the MLA terms needed to protect the public interest while meeting the objectives of the communications industry.
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Macro Cell Wireless Telecommunication Facilities:
The evolution of technology coupled with the demand of the public for additional bandwidth has led the telecommunications industry to the deployment of Macro Cell W ireless Telecommunication F acilities throughout the community. The appropriate placement of these facilities will help address the public demand for these services, particularly in residential neighborhoods. Like the development of the Macro MLA the City has worked collaboratively with the telecommunications industry to expedite their projects, provide the coverage needed to meet public demand, provide incentives to pursue sites that have the least impact to residents and meet the aesthetic and safety goals of the community, while c apturing revenue that helps the City fund public services at no additional cost to the ratepayer.
Master License Agreement:
The proposed MLA for wireless facilities on City property allows the carrie r and third-party providers to install Macro Cell Wireless Telecommunication Facilities on property owned and/or controlled by the City and to operate within the scope of the MLA for a period five (5) years with four (4) additional five-year optionable extensions. All of applicant’s construction, install ation, maintenance, and removal of the small cell facilities will be at their sole responsibility and cost.
The applicant is required to comply with all local, state , and federal applicable laws. The Schedule of Premises (SOP) shall be administratively approved for each site and contain specific conditions that must be satisfied and maintained in order to use the wireless facility. The Schedule of Premises will be submitted to the Development Services Department and circulated to all other appropriate departments. If the applicant causes any damage to the public right of way or City property, they are required to repair it promptly at their sole cost. The applicant will not be allowed to activate their site until the City signs off on final construction.
The original MLA, the Schedule of Premises for each site , and City Municipal Code provide for a number of risk mitigation measures for the City including: indemnity; insurance requirements; limitation on remedies available to the applicant in the event of a City breach; and reservation of the City’s emergency and police powers.
Impacts on City Property:
The installation will vary depending on the particular location and technology deployed. As mentioned, all installations will be required to receive all applicable permits and carriers will work closely with Development Services and Engineering to assure that they do not interfere with City operations or facility maintenance. The installations will require maintenance and administration on a limited basis. All proposed facilities would be required to secure all necessary land use, building and engineering permits.
Financial Benefits:
The telecommunication provider will be compensating the City for use of each site by paying an annual license fee to the City General Fund for each Macro Cell Wireless Telecommunication Facility attachment installed. The annual license fee is $41,251 dollars. The annual fee increases by 3% a year.
Staff will also work with carrier to implement basic facility improvements or enhancements at each site to help them compliment the facilities’ function when the construction and demolition or site programming P a g e | 4
warrant it. For example, it is common for fencing and screening in City parks to be installed, replaced or upgraded when antennae are added. These improvements are typically in addition to the lease payments.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council me mbers and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property -related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
The current year fiscal impact is unknown because no applications have been received. Any applications received and brought online this fiscal year will result in unanticipated revenue to the General Fund.
ONGOING FISCAL IMPACT
If the carrier installs twenty Macro Cell Wireless Telecommunication Facilities on City property, the City’s General Fund would realize $825,000 annually with revenues escalating by 3% annually.
ATTACHMENTS
1. Master License Agreement with Dish Wireless, LLC
Staff Contact: Kevin Pointer, Principal Economic Development Specialist Eric Crockett, Deputy City Manager