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HomeMy WebLinkAboutReso 2006-320 e e e RESOLUTION NO. 2006-320 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE MASTER LICENSE AGREEMENT WITH SPRINT PCS FOR THE INSTALLATION AND OPERATION OF AS MANY AS 50 WIRELESS TELECOMMUNICATIONS FACILITIES OR SUBSTANTIALLY SIMILAR FACILITIES ON CITY-OWNED AND CONTROLLED PROPERTY, SUBJECT TO ALL NECESSARY APPROVALS, FOR A PERIOD OF FIVE YEARS WITH AN OPTION TO RENEW FOR AS MANY AS TWO ADDITIONAL FIVE-YEAR TERMS; AND AUTHORIZING THE MAYOR TO EXECUTE THE AMENDMENT WHEREAS, the City Council approved Resolution No. 18601 on March 18, 1997 conceptually approving the marketing of City properties for use by telecommunications companies; and WHEREAS, on September 16, 1999 the City Council approved a Master License Agreement (MLA) with Cox PCS Assets, LLC, for installation and operation of up to 50 wireless communication sites (WTF) on property owned or controlled by the City; and WHEREAS, the MLA provides the City with an opportunity to work cooperatively with the carriers to expedite its projects, provide adequate volume and 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; and WHEREAS, staff has been working on an amendment to the MLA (Amendment) to: reflect the carrier's name change from Cox PCS Assets, LLC to Spring PCS Assets, LLC (Sprint); extend the MLA for five years; increase the fees paid by Sprint; and add two Sprint affiliates; and WHEREAS, Sprint is an existing mobile phone service provider that is seeking to expand and improve its coverage in the region and accommodate affiliates customer base and technologies; and WHEREAS, the Amendment allows Sprint to continue to install up to 50 total WTF's on property owned and/or controlled by the City and to operate within the scope of the MLA, as amended, for a period of five additional years; and WHEREAS, Sprint had approximately eight (8) sites installed during the first term and approximately another seven (7) that are installed or at various stages of the plan review process since the end of the first term; and Resolution No. 2006-320 Page 2 WHEREAS, the Amendment allows for up to two additional five-year terms, each with .__ the written request of Sprint and the subsequent written approval of the City Manager; and WHEREAS, Sprint has also agreed to increase the fee by 15% as to all sites established after November 2004; and and WHEREAS, Sprint is required to comply with all applicable local, state and federal laws; WHEREAS, the Schedule of Premises shall be administratively approved for each site and contain specific conditions that must be satisfied and maintained in order to use the wireless facility; and WHEREAS, all of Sprint's construction, installation, maintenance and removal of the WTF facilities will be at their sole responsibility and cost; and WHEREAS, if Sprint causes any damage to the public right of way or City property, they are required to promptly repair it at their sole cost; and WHEREAS, Sprint will not be allowed to activate their site until the City signs off on final construction; and WHEREAS, 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 Sprint in the event of a City breach; and reservation of the City's emergency and police powers; and -.. WHEREAS, all installations will be required to receive all applicable permits and they will work closely with Planning, General Services, Engineering, Conservation & Environmental Services and a representative from the host department to assure that they do not interfere with City operations or facility maintenance; and WHEREAS, Sprint will be compensating the City for use of each site by paying an annual license fee to the City General Fund for each system installed; and WHEREAS, Sprint's annual license fee for a typical application including both antennas and cabinets is approximately $23,000; and WHEREAS, the annual fee increases by 3% a year beginning January 2006 and is subject to renegotiation prior to the renewal of each five-year term to ensure the City is receiving market rate rent; and WHEREAS, if Sprint were to execute all the remaining sites (approximately 35) it would generate approximately $800,000 in additional revenue per year and be subject to the annual 3% increase each January. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the amendment to the Master License Agreement with Sprint PCS for the installation and operation of up to 50 wireless telecommunications facilities or substantially similar facilities on City-owned and controlled property, subject to all necessary approvals, for a period of 5 years with an option to renew for up to two additional 5-year terms; and authorizes the Mayor to execute the Amendment. -- e e e Resolution No. 2006-320 Page 3 Presented by Approved as to form by ~{W~ ~X'~~~~ MIChael Meacham-H--- -------- Ann Moore Conservation and City Attorney Environmental Services Director PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista, California, this 24th day of October 2006 by the following vote: AYES: Councilmembers: Castaneda, Chavez, McCann, Rindone, and Padilla NAYS: Councilmembers: None ABSENT: Councilmembers: None ATTEST: ..-.:.- lufu_f ~ ~ Susan Bigelow, MMC, City k STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2006-320 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 24th day of October 2006. Executed this 24th day of October 2006. ~ ~i4~a~ Susan Bigelow, MMC, CIty erk