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
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