Agenda Item No: K.3
AGENDA REPORT
DATE: February 4, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-19 IT Master License Agreement – New Cingular Wireless PCS, LLC.
Authorizing Execution of a Master License Agreement for Small Cell Wireless Facilities in the Public Right-of-Way Between the City of Fairfield and New Cingular Wireless PCS, LLC.
Funding Source: N/A
Contact: Savita Chaudhary, (707) 428-7582
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The City Council will consider authorizing the execution of a Master License Agreement (MLA) for Small Cell Wireless Facilities (SWF) in the Public Right -of-Way between the City of Fairfield and New Cingular Wireless PCS, LLC.
DISCUSSION
The California Public Utilities Commission (CPUC) has historically determined that wireless providers are a utility and, therefore, have all the rights of use of the public right-of-way (PROW) as any other telecommunications utility under the Public Utilities Code section 7901. The PROW contains existing overhead infrastructure, such as utility poles, traffic signal poles, and streetlight poles that can support wireless telecommunication facilities. As an example, small cell wireless facilities can be, and are being, installed on wooden poles owned by PG&E and AT&T, and the City has limited discretion over such installations, outside of the City’s Aesthetic Guidelines.
Due to increasing wireless data consumption, wireless providers are rapidly in vesting in the necessary infrastructure to meet expanding data demands and deploy fifth -generation wireless systems (5G) technology, or “small cell” antennas.
Small Cell Wireless Facilities (Small Wireless Facilities) are relatively low -power, short -range wireless communication systems that cover a more limited geographic range than traditional “macro” wireless facilities. Small Cell Wireless Facilities (SWF) are designed to accommodate emerging technologies, which transmit higher volumes of data at higher speeds than existing networks. These facilities supplement, rather than replace, larger facilities. The word “small” in “small cell” refers to its service area, and because of the short range of these facilities, projected network buildouts require the installation of SWFs at more locations and closer in proximity to each other than is the case with traditional wireless facilities.
On September 26, 2018, the Federal Communications Commission (FCC) adopted its (Small Cell Order) relating to small cell wir eless technology and the placement of SWF in the PROW. The rules adopted in the Report and Order interpret the federal Telecommunications Act of 1996.
Existing federal and state laws grant wireless providers certain rights to deploy small wireless communication facilities within the City’s PROW, and the Small Cell Order places limitations on local jurisdictions’ ability to deny, condition, or restrict small wireless installations.
In response to the adoption of the Small Cell Order, on May 18, 2021, the c ity council adopted Ordinance No. 2021-09, establishing regulations governing wireless telecommunication facilities, and Resolution No. 2021-99, which approved small cell design and deployment standards in the city.
This MLA provides a general framework within which New Cingular Wireless LLC. will install and maintain its wireless communications facilities.
The Agreement would cover installations mounted on City-owned infrastructure within the right- of-way. Facilities that are not small wireless facilit ies, are not mounted on City -owned infrastructure (such as poles owned by PG&E), and/or are not located in the right-of-way are not covered by this Agreement. As part of this framework, the City has no obligation to allow these facilities to be installed on decorator streetlights nor upon any traffic signal infrastructure.
Certain other specific physical design aspects of the infrastructure, aesthetics, locations , and detailed approvals of the installation will occur through the issuance of one or more ind ividual site licenses and/or encroachment permits by the City.
Facilities allowed under this Agreement would still be required to obtain all required Permits and must meet the standards specified in the City’s adopted Design Standards and in compliance with the provisions of all City codes, ordinances, standards, and specifications. This has the advantage of reducing the need to review individual facility designs and will save time for both New Cingular Wireless LLC. and City staff. The Agreement provides standards for site maintenance, operation, removal, and insurance.
The wireless providers benefit from licensing existing City -owned infrastructure to install SWFs by reducing costs associated with negotiating individual pole licenses and by accelerating the deployment of advanced wireless facilities with a streamlined process. The City benefits as well by (1) establishing a more robust wireless broadband network available to the City’s residents and businesses , (2) maintaining greater control over aesthet ics and potential liability from wireless facilities on City-owned poles, and (3) receiving license revenues.
FINANCIAL IMPACT
Approval of the Master License Agreement for Small Cell Wireless Facilities in the Right -of-Way with New Cingular Wireless LLC. has no impact on the General Fund. New Cingular Wireless will pay the City a $270 annual license fee for each approved site license. This licensing fee will increase by 3% annually on January 1 over the prior year. There is also a one -time site license administrative fee for the processing and issuance of each site license and/or encroachment permit based on the adopted annual fee schedule by the City Council. The term under this MLA will terminate ten years from the effective date and may be extended to two successive five-year renewal terms.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
The proposed approval of the Master License Agreement for small cell wireless facilities is not a project within the meaning of CEQA Guidelines Section 15378 because it has no potential to result in physical change in the environment, directly or indirectly. The agreement is exempt from the California Environmental Quality Act (CEQA) per Sections 15301 (Existing Facilities) as minor additions to existing facilities and/or 15303 (New Construction or Conversion of Small Structures) for new, small facilities or structures.
ALTERNATIVE ACTION
One alternative would be to negotiate a streetlight pole use agreement with utility companies on a case-by-case basis for each location. However, due to the number of applications that could potentially be submitted, there would still be a risk that the parties involved could not come to terms within the short-clock time that the FCC allows for permit approval.
Another alternative would be to permit the use of the poles without an agreement and only reference the Fairfiel d Municipal Code (FMC) and the Design Guidelines. This would relinquish some control that the City could have over the installation, maintenance, and removal of the equipment on the streetlight poles.
Entering into an MLA will allow the City to have mo re control over the installation of small cells by mutual agreement with the utilities. It will be more efficient to enter into a master agreement instead of individual agreements for each installation.
COORDINATED WITH
City Attorney’s Office and Public Works.
STAFF CONTACT
Savita Chaudhary, Assistant City Manager
(707) 428-7582
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed Agreement