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HomeMy WebLinkAboutReso 2009-239RESOLUTION N0.2009-239 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING NETWORK LICENSE AND ENCROACHMENT PERMIT AGREEMENT WITH NEXTG NETWORKS, INC., FOR THE INSTALLATION AND OPERATION OF AS MANY AS 100 WIRELESS MICRO TELECOMMUNICATIONS FACILITIES OR SUBSTANTIALLY SIMILAR FACILITIES ON CITY-OWNED OR CONTROLLED PROPERTY, SUBJECT TO ALL NECESSARY APPROVALS, FOR A PERIOD OF 10-YEARS WITH AN OPTION TO RENEW FOR TWO ADDITIONAL FIVE-YEAR TERMS WHEREAS, the City Council approved Resolution 18601 on Mazch 18, 1997, conceptually approving the marketing of City properties for use by telecommunications companies; and WHEREAS, on September 16, 1999, the City Council approved Master License Agreements (MLA) with AT&T and Cox PCS, Assets, LLC for installation and operation of as many as fifty (50) wireless communication sires on property owned or controlled by the City; and WHEREAS, the City also approved an MLA with Pacific Bell Wireless, LLC for as many as twenty-five (25) sites in November 2002, with Cricket for as many as thirty-five (35) sites in February 2006, and with the New Cingular (AT&T) for as many astwenty-five (25) sites in July 2007; and WHEREAS, in December 2007, the City completed an MLA with T-mobile for up to twenty-five (25) sites; and WHEREAS, there are approximately 25 sites on property owned or controlled by the City under those leases generating approximately $400,000 in annual lease revenue with approximately another 13 sites currently in consideration; and WHEREAS, NextG is applying for a license agreement that would cover up to 100 "micro" sites on City owned or controlled property that serve to fill in the azeas of poor signal coverage or high volume for existing carriers; and WHEREAS, in 1998, when the City began negotiations, Council originally directed staff to negotiate rates that would provide wireless carriers an incentive to come to Chula Vista; and WHEREAS, it was Council's desire at that time to see that Chula Vista commercial and residential consumers have the opportunity to be early adopters of the technology and benefit from the competition of multiple carriers; and Resolution No. 2009-239 Page 2 WHEREAS, staff reached out to the industry, held workshops and invited them to the City to structure "master" agreements that would provide prompt entry at below-market rates; and WHEREAS, eleven (11) years later, now that the technology is readily available and provides competitive options, Council has asked staff to ensure that the City is receiving market rates for its sites; and WHEREAS, over a relatively short period of time, the technology has evolved from a unique business tool, used by a few people, primazily in commercial areas, to a common business and household convenience used almost everywhere; and WHEREAS, the increase in usage has put tremendous demand on sites in predominantly residential areas with few site options; and WHEREAS, the increase in sites to cover the vazied topography of a growing city increases exponentially by: 1) the limitations that each site can carry during peak periods, 2) the increased intensity of bandwidth use for items such as music, video, and Internet uses versus the original voice functions, and 3) the desire to accommodate more carriers with the expectation of fostering greater consumer choice, competition for price and service quality; and WHEREAS, the public demand for these services continues to grow and all of these issues place a greater demand on sites, particulazly in residential neighborhoods; and WHEREAS, federal and state law does not allow cities to deny permits based on health or solely on aesthetics issues, or to deny permits for which there aze no reasonable alternatives; and WHEREAS, the Council and staff have worked with industry for many yeazs on "Master License Agreement" approach to reduce the pressure on siting these facilities in less appropriate areas; and WHEREAS, the MLAs or in this case the Network License provides the City with an opportunity to work cooperatively with the carriers to expedite their 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 costs to the ratepayer; and WHEREAS, above all, the wireless industry values rapid deployment and works with the City to accommodate the community's objectives based predominantly on our ability to demonstrate a record of timely zoning and construction approvals that support that goal; and Resolution No. 2009-239 Page 3 WHEREAS, NextG is an existing network provider operating in San Diego, Carlsbad, Poway and other cities that is seeking to expand and improve its coverage in a region where it is not a direct service provider; and WHEREAS, staff is recommending that the City execute an Agreement between the City and NextG Networks, Inc. that outlines mutually beneficial terms and conditions currently in place with other City wireless communication partners; and WHEREAS, the proposed Agreement allows NextG to install as many as one hundred (100) total WTF's on property owned or controlled by the City and to operate within the scope of this Agreement for a period often years; and WHEREAS, the Agreement allows for the original ten year term to be extended for two (2) additional five-year terms, subject to the written approval of both Parties; and WHEREAS, NextG and the City have completed negotiations on what staff considers to be mutually beneficial teens; and WHEREAS, the sites are micro sites that are typically attached to City street light standards; and WHEREAS, NextG has obtained a secondary non-metered energy rate from SDG&E that does not require a separate meter further reducing the physical and visual impacts to the right-of- way (ROW) from an additional meter pedestal; and WHEREAS, there is no cost to the City for energy or other utilities related to NextG's installations; and WHEREAS, NextG is required to comply with all applicable local, state and federal laws; and WHEREAS, the permits shall be administratively approved for each site and shall contain specific conditions that must be satisfied and maintained in order to use the wireless facility; and WHEREAS, the Schedule of Premises will be submitted to the Zoning Administrator and circulated to the Director of Conservation & Environmental Services (CES) and all other appropriate departments; and WHEREAS, NextG shall continue to pay the appropriate full staff costs for processing each submittal; and WHEREAS, all of NextG's construction, installation, maintenance and removal of the WTF facilities will be at their sole responsibility and cost; and Resolution No. 2009-239 Page 4 WHEREAS, if NextG causes any damage to the public right-of--way or City property, they are required to repair it promptly at their sole cost; and WHEREAS, NextG will not be allowed to activate their site until the City signs off on final construction; and WHEREAS, the original Agreement, 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, assumption of risk, and security in the form of a performance bond; and WHEREAS, all installations will be required to receive all applicable permits, and NextG will work closely with Development Services, Public Works, and CES to assure that they do not interfere with City operations or facility maintenance; and WHEREAS, NextG equipment installations will require some trenching and cabling which employs amicro-trenching system of approximately one inch and is very similaz to the traffic signal control loop installations commonly seen in City intersections; and WHEREAS, NextG will fill and seal their trenches to the satisfaction of the City Engineer; and WHEREAS, the installations will require maintenance and administration on a limited basis; and WHEREAS, all proposed facilities would be required to secure all necessary land use, building, and engineering permits. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby: 1. Approve a Telecommunications Network License and Encroachment Permit Agreement with NextG Networks, Inc., for the installation and operation of as many as one hundred (100) wireless micro telecommunications facilities or substantially similar facilities on City-owned or controlled property, subject to all necessary approvals, for a period of 10 years with the option to extend the contract for two (2) additional five year terms. Presented by Michael Meac am - ----- Conservation and Environmental Services Director Approved as to form by i /<~G%/~ B C. Miesfeld City Attorney Resolution No. 2009-239 Page 5 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 6th day of October 2009 by the following vote: AYES: Councilmembers: Bensoussan, Castaneda, Ramirez, Thompson and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None l Cheryl Cox, May r ATTEST: ` ~P~~ ~ ~~ Donna R is C C, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2009-239 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 6th day of October 2009. Executed this 6th day of October 2009. Donna R. Norris, CMC, City Clerk