REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Execute a Small Cell Attachment Agreement with GTE Mobilenet of California Limited Partnership, D/B/A Verizon Wireless.
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
GTE Mobilenet of California Limited Partnership, D/B/A Verizon Wireless (Verizon), has requested to install small cell equipment within the public right-of-way on City-owned streetlights. The City of Santa Clara owns over 8,500 streetlights in the right-of-way.
Small cell antenna installations are wireless telecommunication devices that consist of radio receivers, antennas, and other equipment. Small cells use less power than a typical cell tower and need to be spaced closer together in order to deliver high-capacity data services. A typical small cell installation is used to enhance services in areas of high data usage or are otherwise in need of support to meet capacity needs.
In September 2018, the Federal Communications Commission (FCC) passed a declaratory ruling titled “Accelerating Wireless Broadband Deployment by Removing Barriers to Infrastructure Investment” to support the proliferation of small cell technology. The ruling restricts the authority of state and local governments to regulate small wireless facilities, including limiting fees that can be assessed by municipalities and creating a shot clock for review of new small cell application(s).
DISCUSSION
The proposed agreement with Verizon is very similar to an agreement with New Cingular Wireless (also known as AT&T) that the City Council authorized in 2020. The Small Cell Attachment Agreement (Agreement), Attachment 1, contains uniform terms and conditions applicable to all Verizon wireless facilities on City-owned streetlights and outlines the process for Verizon to license individual streetlights. The Agreement was developed in accordance with best utility practices and is designed to assist the City to comply with the FCC’s Declaratory Ruling. Verizon is still subject to obtaining all necessary applications and permits (such as building applications and encroachment permits). The Agreement directs Verizon to comply with all applicable City, state, and federal law and any applicable Silicon Valley Power guidelines, including the City’s Wireless Telecommunication Facilities ordinance (SMC Section 18.66) and SVP’s Standard OH 1570 “Small Cell/DAS Attachments to SVP Streetlights” (“OH 1570”), Attachment 2. OH 1570 contains, among other things, aesthetic design requirements (including antenna and equipment concealment), height limits, and testing.
This Agreement does not identify specific locations for the small cell installations. In fact, Verizon is required to submit an application for each site and the City may deny the location on a number of grounds, including, but not limited to, (1) Verizon’s proposed plans and telecommunication specifications; (2) compliance with any applicable Laws; (3) impacts on the City’s street light operations; (4) any potential hazards or unsafe conditions that could result from the installation and operation of the facilities; and (5) any potential visual or aesthetic impacts. The Agreement completely reserves the City’s right to disapprove a site based on these factors. Should an application deviate from the guidelines, Verizon could request a variance.
It is important to note that Verizon is currently working with the City to pursue approximately 20 installations in and around Levi’s Stadium in advance of the 2026 Superbowl. The City will review these locations based on the above factors and, as mentioned above, Verizon must comply with OH1570 as further described on the SVP Small Cell Deployment webpage:
<https://www.siliconvalleypower.com/svp-and-community/projects/small-cell-deployment>
In addition to a City encroachment permit, OH1570 requires Verizon to follow a community outreach process for each proposed site. This process requires Verizon to do all of the following:
• Prepare mailing list and to notify all property owners and residents within 300 feet of the proposed facility via registered mail or certified mail.
• Provide the City with the following:
o A copy of the letters and exhibits that were mailed to property owners and occupants within 300 feet of proposed facility.
o An aerial map showing the location of the proposed facility and an outline of the properties that are within 300 feet of the outreach area.
o A list of all property owners, tenants, and occupants that were to receive the notification, including their address.
o An affidavit stating all property owners/occupants on the mailing list were sent letters. Such affidavit must indicate the date the letters were deposited with United States Postal Service.
• Answer questions and address comments of property owners. The property owners shall be given 21 calendar days from the notification date to contact Verizon with any questions or concerns.
• Provide a response (via email or letter) and attempt to resolve any issues prior to permit issuance
• Keep a record of the complete text of each recipient’s comments, requests, questions, and Verizon’s responses and provide to City upon request.
• Upon completion of the notification period, Provide the City with a compilation of all inquiries received (if any), including breakdown of the comments and concerns. The list shall be accompanied by an affidavit stating all inquiries received have been complied with and provided to the City, or that no inquiries were received for the proposed facility
• Work with the City to address any concerns to the maximum extent possible.
The proposed Agreement has a term of 10 years, with an option to renew for 1 additional term extension of 5 years for a maximum of 15 years. The Agreement also grants non-exclusive attachment rights, outlines an application process, and contains a street light reservation process. The Agreement addresses installation, removal, operation, and maintenance of the small cell facilities as well as emergency replacement and Verizon’s responsibility for costs associated with the small cell installation. Fees will be collected per small cell installation including attachment rates, application fees, electric service, and buildout costs.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to section 15303 (New Construction or Conversion of Small Structures) of Title 14 of the California Code of Regulations: as the proposed project involves the installation of small cell antennas on existing street light poles and in some cases involves the replacement of existing light poles.
FISCAL IMPACT
There is no cost to the City for the proposed agreement. The required expenses incurred by City departments will be recovered through associated fees as specified in the Agreement or, where applicable, the City of Santa Clara Municipal Fee Schedule.
Verizon will pay an annual communications equipment license fee which is initially set at $270 per street light pole. This fee may be changed if the City completes a cost study that the cost incurred by City to maintain the street light poles with attachments and for Verizon’s use of street light pole is greater than $270 per pole. It is estimated that between 10 to 24 installations will be requested for an annual revenue of $2,700 to $6,480. The communication equipment license fees will be recorded in the Electric Utility Operating Fund.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
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.
RECOMMENDATION
Recommendation
1. Determine the proposed action is exempt from CEQA pursuant to section 15303 (Class 3 - New Construction or Conversion of Small Structures) of Title 14 of the California Code of Regulations; and
2. Authorize the City Manager to execute the Small Cell Attachment Agreement (Agreement) with GTE Mobilenet of California Limited Partnership, D/B/A Verizon Wireless; and
3. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement as amended to (a) maintain consistency with local, state, or federal regulations or make other necessary or advisable changes; (b) adjust future fees and rates; and (c) exercise an option to extend the term through March 31, 2040, subject to the review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Proposed Small Cell Attachment Agreement with GTE Mobilenet of California Limited Partnership, D/B/A Verizon Wireless
2. SVP Standard - Small Cell DAS Attachments to SVP Streetlights OH 1570