REPORT TO COUNCIL
SUBJECT
Title
Set a Public Hearing to Consider the Proposed Rate for Small Cell Attachments to City Owned Electric Wooden Utility Poles
Report
BACKGROUND
Pursuant to Public Utilities Code, Division 4.8, Publicly Owned Utilities, PART 2. Utility Poles and Support Structures, Section 9510-9520 ( Assembly Bill (AB) 1027), publicly owned electric utilities are required to make appropriate space and capacity of utility poles available to third party communication companies. Third party communications companies have requested to attach small cells to City owned electric wooden utility poles. Small cells differ from traditional towers or rooftop installations and are typically installed at the top of utility poles, rather than below the utility’s primary and secondary electric equipment. They use low-powered nodes and would be installed at multiple locations throughout the City. By locating small cells within closer proximity to potential users than traditional towers, they will provide faster data speeds to their customers.
AB 1027 imposes conditions on how usage fees may be applied and indicates publicly owned electric utilities should recover actual costs without subsidizing for-profit cable television corporations, video service providers, and telephone corporations.
DISCUSSION
In response to third party communication companies’ requests staff conducted a cost study on small cell attachments, and pursuant to AB 1027, the City is required to set a public hearing to present its findings on the proposed small cell rate and at which time oral or written presentations relating to the fee or term or condition of access may be made. At least thirty (30) days after the public hearing Council may take action related to setting the rates for small cell attachments. Action may be in the form of an ordinance, resolution, or approval of contract.
The small cell cost study followed the same methodology as the 2016 approved pole cable attachment rates. It is based on Silicon Valley Power’s annual cost of ownership, which is the sum of capital costs and annual operation costs of the pole or support structure used for pole attachments and has a 2.5% escalator per year.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
There is no additional cost to set the public hearing other than staff time and expense. Future Council action to set the small cell attachment rate will provide a mechanism for cost recovery for the Department of Electric Utility.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
Pursuant to AB 1027, at least fourteen (14) days before the public hearing date, the City shall mail a notice of the time and place of the public hearing, including a general explanation of the matter to be considered, and a statement that the data indicating the cost is available for review to a person or entity who files a written request with the City for a mailed notice of the upcoming public hearing. In addition, at least ten (10) days before the public hearing, SVP shall make the data indicating the cost available on the SVP’s website at www.siliconvalleypower.com <http://www.siliconvalleypower.com>. In addition, the City will post notice of the public hearing in the City’s adjudicated newspaper, Santa Clara Weekly.
RECOMMENDATION
Recommendation
Set June 12, 2018 as a public hearing to consider the proposed rate for small cell attachments to City owned electric wooden utility poles.
Staff
Reviewed by: John C. Roukema, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager