DATE: JUNE 14, 2022
DEPARTMENT: OFFICE OF THE CITY MANAGER
FROM: ANDREW MYRICK, SR ECONOMIC DEVELOPMENT MGR
TITLE: UNDERLINE SMALL CELL MASTER LICENSE AGREEMENT
RECOMMENDED MOTION:
A motion to approve the attached Resolution approving a Master License Agreement with Underline Monterey, LLC for the installation of Small Wireless Facilities within the public right-of-way.
RECOMMENDATION:
Staff recommends that the Council approve the attached Resolution and Agreement.
BACKGROUND:
In December 2021, the City Council entered into a License Agreement with Underline Monterey, LLC (“Underline”) which allows Underline to construct a private fiber network and provide broadband service throughout the City of Salinas. Underline continues to acquire supplies and perform engineering work and currently plans to begin work on the project later this year.
In addition to installing fiber, a critical component of Underline’s network will involve the placement of Small Wireless Facilities at various locations throughout the city. Small Wireless Facilities (also known as “small cells” or “SWFs”) generally include small antennas mounted on existing structures, rather than the larger antennas that are mounted onto dedicated towers.
There are many potential locations for SWFs throughout the City – one of the most common are the City-owned street lights in the public right-of-way. The City has already approved Master License Agreements with two other companies (AT&T and Extenet) to install SWFs on City-owned street lights within the public right-of-way. Further, the City Council has previously approved design standards, permitting processes, and fees for the review, inspection, and monitoring of these facilities via Resolutions 21580 and 21581. As such, City staff already has processes in place to review any proposed SWFs and has already completely processed over 50 applications from other licensees to install SWFs on street lights.
Proposed License Agreement
The terms of this Agreement with Underline are broadly the same as those provided to other companies, and may be summarized as follows:
Applicability – The Agreement would cover SWFs mounted on City-owned infrastructure within the right-of-way. Facilities that are not SWFs, are not mounted on City-owned infrastructure (such as poles owned by PG&E), and/or are not located in the right-of-way (such as City-owned buildings) are not covered by this Agreement.
Term – The primary term of the Agreement is ten years; the Agreement would automatically renew for one additional five-year term (15 years total) unless Underline elects to terminate the Agreement after the initial ten-year term. Following this period, Underline may extend the term of the Agreement in three-year increments so long as it complies with the terms of its previously approved Network Deployment and License Agreements. The City otherwise retains the ability to terminate the Agreement early for cause.
Permitting/Design – 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. Additionally, Underline would have the option of submitting “standard plans,” allowing for the reuse of pre-approved designs across multiple applications. This has the advantage of reducing the need to review individual facility designs and will save time for both Underline and City staff.
Other Requirements – The Agreement provides standards for site maintenance, operation, removal, and insurance. The City will also collect $270 annually in Monitoring Fees for each site.
CEQA CONSIDERATION:
The proposed Agreement is exempt from the California Environmental Quality Act (CEQA) per Section 15302 and 15303 (Class 2 and Class 3) of the CEQA Guidelines, as the FCC has already deemed the installation of SWFs in the ROW to be approved, and as the Agreement does not permit any activity beyond those already permitted by the FCC and City regulations, there is no potential for these regulations to cause a significant effect on the environment.
STRATEGIC PLAN INITIATIVE:
This item will support the Council’s goal of Economic Development by facilitating the construction of a new broadband network in the City of Salinas.
DEPARTMENTAL COORDINATION:
The Economic Development Division has coordinated with the Public Works Department and Information Technology Division in the preparation of this item.
FISCAL AND SUSTAINABILITY IMPACT:
This item is expected to have no fiscal impact on the City’s finances; although some minor revenues would be collected, these would be offset by the cost of providing the services for which they are collected.
ATTACHMENTS:
Proposed RESOLUTION, including Exhibit A
Exhibit A – Proposed Master License Agreement, including Exhibits 1-5 Exhibit 1 – Definitions
Exhibit 2 – LICENSOR’s Current Design Regulations
Exhibit 3 – Current LICENSOR Fees
Exhibit 4 – Required Permit Information
Exhibit 5 – Form of Site License
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