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HomeMy WebLinkAboutItem 3a: Right-of-Way Use Agreement: Nextg Networks of CaliforniaSUMMARY BACKGROUND STAFF REPORT Development Services Department DATE: November 17, 2009 TO: Mayor and City Council FROM: Jason Kruckeberg, Development Services DirectorUt-K Philip A. Wray, Deputy Director of Development Services, SUBJECT: AUTHORIZE THE CITY MANAGER TO ENTER INTO A RIGHT -OF -WAY USE AGREEMENT WITH NEXTG NETWORKS OF CALIFORNIA, INC. FOR THE USE OF CITY STREETLIGHT POLES AND UNDERGROUND CONDUITS FOR THE INSTALLATION OF COMMUNICATION EQUIPMENT. Recommendation: Approve The City has been approached by NextG Networks of California, a telecommunications company, with a request to install and operate their equipment on City streetlight poles and in underground conduits. They have requested to enter into a Right -of -Way Use Agreement with the City for the use of City facilities and pay an agreed upon amount for each pole or conduit. Staff believes the City will benefit from the placement of equipment on City poles with improved aesthetics, greater control over locations and revenue generation. Staff recommends that the City enter into a Right -of -Way Use Agreement with NextG Networks of California. NextG is a fiber -based telecommunications company that builds and leases networks to wireless carriers. NextG does not provide wireless service directly to the public. They propose to install their facilities within the City of Arcadia's public right -of -way including above and below ground fiber optics lines and small antennas and equipment boxes on utility poles. Their equipment can be installed on any utility pole with little difficulty and in other cities they have used both city -owned poles and utility company poles. The location of the equipment on a given pole varies depending on the type of pole and if and where other utilities are connected. NextG approached the City with a request to use City streetlight poles and underground conduit to house their facilities. They have requested to enter into a Right -of -Way Use Agreement with the City for the use of City facilities, and they have offered a use fee of Staff Report November 17, 2009 Page 2 $500 per year for each pole used and a fee of $1.00 per foot of underground conduit. They have approved agreements with several other cities in the San Gabriel Valley using the same use rates. DISCUSSION NextG must obtain a City encroachment permit for the installation of equipment on any pole whether or not it is City- owned. Staff reviews each request using the criteria in the City's recently adopted wireless communications ordinance through the Encroachment Permit process. The ordinance has very comprehensive review criteria, and includes notification of surrounding landowners and review of the time, place, and manner of the installation. Staff believes there are several benefits to placing the equipment on City facilities. The antenna on the streetlight pole is more aesthetically pleasing than on the utility company pole, the City has more control over NextG's choice of City pole locations, and each location will generate revenue for the City. NextG is currently requesting the use of three streetlights and one conduit run, but there could be more in the future. Each site will require an Encroachment Permit, but this Agreement would not need to be revisited. On November 3, 2009, staff presented this request to the City Council at a study session and requested direction. The City Council agreed with the idea of having more control over where the equipment is placed and directed staff to proceed with an agreement. An agreement has been reached with NextG and is recommended for approval. Equipment examples have been purposely omitted from the agreement in anticipation of the technology changes in the future. In response to Council direction, staff will strive to achieve the latest and most aesthetically pleasing applications available. FISCAL IMPACT The Right -of -Way Use Agreement sets use rates of $500 per year for each pole used and a $1.00 per foot of underground conduit. There is no negative fiscal impact to this request. RECOMMENDATION That the City Council authorize the City Manager to enter into a Right-Of-Way Use 1 YY{A Use Agreement with NextG Networks of California, Inc. for the use of city streetlight poles an underground conduits for the installation of communication equipment. Approved by: Donald Penman, City Manager JK:PAW:pa