STAFF REPORT
Meeting Date:
June 9, 2026
CONSENT
10 SUBJECT: APPROVE REVOCABLE NON-EXCLUSIVE LICENSE AGREEMENT WITH
SOUTHERN CALIFORNIA GAS COMPANY FOR EXISTING FACILITIES OF
DATA COLLECTOR UNITS ON CITY-OWNED STREETLIGHTS
RECOMMENDATION: It is recommended that the City Council:
1. Approve and authorize the City Manager to execute a Revocable Non-Exclusive License Agreement with Southern California Gas Company for the placement of Data Collector Units (“DCUs”) on City-owned streetlights;
2. Accept the one-time payment of $10,136 and deposit it into the Street Lighting and Utility Fund (134); and
3. Find that the proposed action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15301 and 15061(b)(3), because the agreement authorizes the continued operation and maintenance of existing utility communication equipment attached to existing streetlight infrastructure with no expansion of existing use.
SUMMARY OF THE MATTER
This report recommends that the City Council approve a Revocable Non-Exclusive License Agreement with Southern California Gas Company (“Gas Company”) to allow the continued placement and operation of ten (10) existing Data Collector Units (“DCUs”) on City-owned streetlights for a term of twenty (20) years.
The DCUs were originally installed on streetlights owned by Southern California Edison (“SCE”) prior to the City’s acquisition of the streetlight system. Because the City now owns the streetlights, the Gas Company’s prior agreement with SCE is no longer valid and a new agreement with the City is required.
Staff recommends approval of the agreement because it allows the existing facilities to remain on existing infrastructure and avoids the installation of additional standalone utility poles within the public right-ofway that could otherwise occur under the Gas Company’s franchise authority.
Under the proposed agreement, the Gas Company will provide the City with a one-time payment of $10,136, which will be deposited into the Street Lighting and Utility Fund (134).
DISCUSSION
APPROVE REVOCABLE NON-EXCLUSIVE LICENSE AGREEMENT WITH SOUTHERN
CALIFORNIA GAS COMPANY FOR EXISTING FACILITIES OF DATA COLLECTOR UNITS
ON CITY-OWNED STREETLIGHTS
June 9, 2026
The Gas Company owns ten (10) DCUs that are attached to City-owned streetlights previously owned by SCE. In April 2010, the California Public Utilities Commission (“CPUC”) authorized the upgrade of approximately 6 million existing natural gas meters to be automatically read with an electronic communication device. These devices, called DCUs automatically read and securely transmit hourly gas usage information on a “next day” basis. This in turn provides more frequent and detailed information to help customers better manage energy use and costs. As part of the meter upgrades, the Gas Company now maintains fourteen (14) DCU’s in the City of Laguna Beach. Three (3) are attached to standalone Gas Company poles, one (1) is attached to an SDG&E streetlight, and ten (10) are attached to City-owned streetlights.
Because the City purchased streetlights from SCE, the Gas Company’s previous agreement with SCE is no longer valid. The Gas Company has requested that their existing infrastructure remain on the City-owned streetlights and establish an attachment agreement with the City of Laguna Beach. With no agreement in place, the Gas Company would pursue installations on new standalone poles in the public right-of-way pursuant to their Franchise Agreement. Staff does not recommend this option because it will result in additional facilities in the right-of-way.
The proposed license agreement is a revocable, non-exclusive license. It will allow the Gas Company to continue to maintain their DCU’s on the City’s streetlights for a period of twenty (20) years. The Gas Company is required to maintain their facilities in good condition and make any repairs to the streetlight for damage caused by their facilities. Because the proposed agreement is non-exclusive, it does not prevent the City from entering into similar agreements with any other utilities in the future. The proposed one-time payment of $10,136 is based on the following negotiated amount: a $39/pole/year attachment fee and an $11.68/pole/year electrical fee. At the end of twenty years, the agreement automatically terminates unless extended by mutual agreement
FINANCIAL ANALYSIS
The recommended action would result in a payment of $10,136 from the Gas Company to the City. These funds should be deposited into the Street Lighting and Utility Fund (134).
ENVIRONMENTAL ANALYSIS
The proposed actions are exempt under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15061(b)(3) and 15308. Or in the alternative that the proposed action is not a “project” under CEQA pursuant to CEQA Guidelines section 15378.
ATTACHMENTS
1. Revocable Non-Exclusive License Agreement (Pgs. 3-14) Submitted By: Mark McAvoy Approved: Gavin Curran, for
APPROVE REVOCABLE NON-EXCLUSIVE LICENSE AGREEMENT WITH SOUTHERN
CALIFORNIA GAS COMPANY FOR EXISTING FACILITIES OF DATA COLLECTOR UNITS
ON CITY-OWNED STREETLIGHTS
June 9, 2026
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Thomas Perez, City Engineer Michelle Bannigan, Director of Administrative Services
Patrick Donegan, Assistant City Attorney
APPROVE REVOCABLE NON-EXCLUSIVE LICENSE AGREEMENT WITH SOUTHERN
CALIFORNIA GAS COMPANY FOR EXISTING FACILITIES OF DATA COLLECTOR UNITS
ON CITY-OWNED STREETLIGHTS
June 9, 2026