CITY COUNCIL ACTION REQUEST
DEPARTMENT(S)
Library
CEQA
Not a Project, File No.
PP17-003,
Agreements/Contracts
(New or Amended)
resulting in no physical
changes to the
environment.
COORDINATION
City Attorney's Office,
City Manager’s
Budget Office,
Planning, Building
and Code
Enforcement
Department
Director Approval
/s/
Jill Bourne
COUNCIL DISTRICT(S)
Citywide
CMO Approval
4/28/2
5 SUBJECT: Agreement with T-Mobile West, LLC for Macro Cell Site Permitting
RECOMMENDATION
Adopt a resolution authorizing the City Manager or her designee to negotiate and execute a Funding and Reimbursement Agreement between the City of San José and T-Mobile West, LLC to cover permitting costs and process improvements related to macro cell sites, including up to five options to extend the term of the agreement for up to five years.
BASIS FOR RECOMMENDATION
On November 13, 2017, City Council approved the City’s Broadband and Digital Inclusion Strategy and directed the City Manager to engage in value exchange agreements to accelerate broadband deployments in San José with the goals of economic development, digital inclusion, and support for Smart Cities and the Internet of Things.
T
his proposed agreement with T-Mobile West, LLC (T-Mobile) enables process improvements critical for accelerating macro site deployment, complementing small cells and next generation mobile technology, and further advances the 2017 Broadband and Digital Inclusion Strategy. The communications technology marketplace continues to demand more connected devices, higher data volumes, and increased speed to meet customer expectations. The private sector is meeting these demands by investing in the mobile network infrastructure through a variety of methods.
B
usiness terms of this agreement:
• Initial term of 10 months.
• Permitting for an estimated 91 macro site improvements and nine new macro sites. • Upon execution of the agreement, T-Mobile will make an estimated $250,000 payment to the City. This funding will be managed by the Citywide Broadband Office in the Library Department, for project management and macro site permitting process improvements in collaboration with other City departments.
• Permit fees will be paid on a rolling basis as permit applications are received, reviewed, issued (or canceled), and finalized after inspection.
• Upon execution of any term extension option, T-Mobile will make a lump sum payment for the number of months in the extension term at an estimated $25,000 for each month of term extension.
• City will make a good faith effort to meet or exceed the 30-day permitting service level for macro sites, targeting to achieve an average of 15 modification permits reviewed per 15 business days and three new site permits reviewed and prepared for the next Planning Commission meeting within 30 business days’ time.
COUNCIL AGENDA: 05/13/25
FILE: 25-4 85
ITEM: 2.9
Macro sites are primarily located on private property. Permitting is conducted through the Planning, Building, and Code Enforcement Department for all privately owned property, while the permitting for City-owned property is processed through the Department of Public Works. This agreement proposes to form a Macro Site Team. This team will be coordinated and overseen by the City’s Broadband Officer in the Library Department. The City’s Broadband Officer will serve as the single point of contact with T-Mobile, and other carriers, and will provide the strategy for process improvements and deployment to streamline macro site permits. The Broadband Analyst in the Library Department will oversee and coordinate the permitting and inspections process as well as examine possible streamlining improvements to the macro site permitting process—both with the Macro Site Team and T-Mobile’s engineering and construction vendors. The Macro Site Team will be comprised of staff from Planning, Building, and Code Enforcement, Fire, Public Works, and City Manager’s Office of Economic Development and Cultural Affairs Real Estate Services, and will report progress through the Broadband Officer.
Approving this amendment will enable City staff to negotiate final terms with T-Mobile, ensuring that the agreement advances San José’s leadership in broadband deployment by fostering private- sector investment and improving wireless connectivity for residents, businesses, and visitors.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
COST AND FUNDING SOURCE
Revenue for the initial term of this agreement is estimated at $250,000, with options to extend the term that include additional revenue estimated at $25,000 for each month of term extension. All proceeds from the agreement will be used to pay for project management, including permit and inspection coordination led by the Broadband team in the Library Department. Corresponding budget actions to recognize the funds and appropriate will be done in a future budget process.
FOR QUESTIONS CONTACT: Abigail Shull, Interim Division Manager, Digital Empowerment and Public Technology at [email protected]