HomeMy WebLinkAbout2007-05-22; City Council; 19013; NextG Networks of California AgreementCITY OF CARLSBAD - AGENDA BILL
AB#
MTG.
DEPT.
19,013
5/22/07
CA
First Amendment to Telecommunications
Network License and Encroachment
Agreement between the City of Carlsbad
and NextG Networks of California, Inc.
DEPT. HEAD
CITY ATTY. @¥
CITYMGR. , --
RECOMMENDED ACTION:
Approve Resolution No. 2007-123 authorizing the City Manager to execute the
First Amendment to the License and Encroachment Agreement between the City of Carlsbad
and NextG Networks of California, Inc. ("Agreement") approved on June 6, 2006, allowing
NextG to deploy additional Nodes, for a total not to exceed 100 Nodes, on City infrastructure or
in the public right-of-way.
ITEM EXPLANATION:
NextG Networks of California, Inc. ("NextG") builds, owns and leases fiber optic distributed
antenna systems to wireless telecommunications providers to improve the provider's network
coverage and capacity. NextG's networks are protocol and frequency agnostic which allows for
the ability to carry cellular, PCS, WiFi, or any combination of wireless frequencies and
standards. NextG's networks can serve a variety of wireless telecommunications service
providers thereby promoting collocation and providing aesthetically pleasing designs for their
installations on existing infrastructure when possible.
On June 6, 2006, the City entered into a License and Encroachment Agreement with NextG to
allow use of public infrastructure (street lights and traffic signals) in the public right-of-way to
install their wireless equipment (Nodes) at approximately 52 locations within the City. NextG
has complied with the terms of the Agreement to date and is now requesting that the
Agreement be amended to allow for additional Nodes (not to exceed a total of 100 Nodes under
the Agreement and this First Amendment) to be installed within the City.
The Agreement allowed NextG to install, and it did install, Nodes on traffic signals within the
City. The Traffic Engineer/City Engineer is concerned that installing Nodes on traffic signal may
compromise the structural integrity and design loads of the poles. Additionally, the cohabitation
of NextG's wires next to the City's wires within the signal traffic pole maybe a cause for
potential malfunction or failure if NextG negligently installs or maintains the Node. In such
circumstances however, NextG agrees to indemnify the City for all damages associated with its
deployment on City infrastructure.
NextG has attempted to modify its network to avoid using traffic signals in the City. However, in
those areas where a traffic signal would have been used for a Node location, NextG will now
install its own galvanized pole in the public right-of-way adjacent to a City traffic signal. The pole
will be approximately 27 feet tall with an additional 24" "whip" antenna mounted on top for a
DEPARTMENT CONTACT: Paul Edmonson 760-434-2891 pedmo@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
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CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
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combined height of 29 feet. The pole will have a support box mounted approximately 8 feet
above the ground. There will not be anything else attached to the pole (e.g. a light). NextG is
requesting that the total number of Nodes allowed under the Agreement be expanded to a
maximum of 100.
FISCAL IMPACT:
The Telecommunications License and Encroachment Agreement executed previously with
NextG allowed them to install up to 52 individual Nodes at specific locations identified
throughout the City. This First Amendment to the Agreement expands the total number of
Nodes to a maximum of 100, but maintains the original financial arrangements as outlined in
the June 6, 2006 Agreement. Under those terms, the City will receive a one-time administrative
fee of $300 per additional Node, or up to $14,400 for an additional 48 Nodes.
In addition, the City will receive compensation for use of its infrastructure at a rate of $500 per
Node per year for the additional Nodes requested. However, the City will not receive
infrastructure compensation for any pole that NextG installs within the public right-of-way
adjacent to a City traffic signal. Increases to compensation for use of infrastructure will be
adjusted annually based on the increase to the CPI-AII Urban Consumers for San Diego MSA,
but will not be less than 3% per year. Additionally, a gross sales revenue payment will be made
to the City. This payment will be based on NextG's gross sales revenue generated from its
facilities, including those Nodes that are not attached to City infrastructure, located in Carlsbad.
This payment will provide the City with a minimum payment of $500 per Node mounted on City
infrastructure, per year, or up to 5% of the annual sales revenue generated in Carlsbad,
whichever is greater. The minimum payment for gross sales revenue for the additional 48
Nodes, assuming all 48 Nodes are attached to City infrastructure is $24,000 each year.
Based on installation of 100 Nodes:
One Time Fee (1-52 Nodes): $15,600
One Time Fee (53-100 Nodes): $14.400
Total One Time Fees: $30,000
Infrastructure Compensation (1-52 Nodes): $26,000 annually
Infrastructure Compensation (53-100 Nodes): $24,000 annually
Minimum Gross Revenue (1-52 Nodes): $26,000 annually
Minimum Gross Revenue (53-100 Nodes): $24.000 annually
Minimum Annual Revenue (100 Nodes): $100,000
ENVIRONMENTAL IMPACT:
The Planning Director has determined that the project is exempt from the California
Environmental Quality Act, pursuant to Section 15061 (b)(3) of the CEQA Guidelines. Section
15061(b)(3) exempts projects or activities where it can be seen with certainty that there is no
possibility that the activity may have a significant effect on the environment. Furthermore, the
California Public Utilities Commission has determined that NextG's activities (i.e. placement of
wireless facilities upon City infrastructure) are projects which are categorically exempt from
CEQA.
PageS
EXHIBITS:
1. Resolution No. 2007-123 of the City of Carlsbad, California authorizing the
City Manager to execute documents associated with the First Amendment to the
Telecommunications Network License and Encroachment Agreement with NextG Networks
of California Inc.
2. First Amendment to Telecommunications Network License and Encroachment Agreement -
NextG Networks of California, Inc. with attachments.
1 RESOLUTION NO. 2007-123
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING THE FIRST
3 AMENDMENT TO THE TELECOMMUNICATIONS
4 NETWORK LICENSE AND ENCROACHMENT
AGREEMENT BETWEEN THE CITY OF CARLSBAD AND
5 NEXTG NETWORKS OF CALIFORNIA, INC. AND
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL
6 RELATED DOCUMENTS.
7
WHEREAS, The City of Carlsbad is responsible for management of its8
infrastructure within the public right-of-way and performs a wide range of vital tasks
necessary to preserve the physical integrity of public streets and ways, to control the
11 orderly flow of vehicles, to promote the safe movement of pedestrians, and to manage a
12 number of gas, water, sewer, electric, cable television, telephone and
telecommunications facilities that are located in, under and over the streets and public
14 right-of ways; and
15 WHEREAS, NextG Networks of California Inc. (NextG) builds, owns, and leases
16
fiber optic distributed antenna systems to improve wireless coverage and capacity for
17
telecommunications carriers; and18
WHEREAS, on June 6, 2006, NextG entered into a Telecommunications Network
2Q License and Encroachment Agreement with the City for installation of up to 52 network
21 Nodes; and
22 WHEREAS, for the purposes of expanding their network, NextG has requested
23 an Amendment to that Agreement in order to locate, place, attach, install, operate,
control and maintain a total of up to 100 Nodes in the public right-of-way, and on
25 facilities owned by the City, as well as facilities owned by third parties therein.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the City Council does hereby approve the First Amendment to the
Telecommunications Network License and Encroachment Agreement between the City
of Carlsbad and NextG Networks of California, Inc.
3. That the City Manager is authorized to execute this First Amendment to
the Telecommunications Network License and Encroachment Agreement, and all
related documents.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 22nd day of May 2007, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Nygaard
NOES: None
ABSENT: Council Member Packard
LORRAINE
(SEAL)
FIRST AMENDMENT TO TELECOMMUNICATION NETWORK
LICENSE AND ENCROACHMENT AGREEMENT
WITH NEXTG NETWORKS OF CALIFORNIA, INC.
This agreement is made and entered into as of the date signed by the City ("Effective
Date"), and shall be identified as the First Amendment to Telecommunications Network
License and Encroachment Agreement ("First Amendment"), entered into by and between the
City of Carlsbad, a California municipal corporation (the "City") and NextG Networks of
California, Inc, a Delaware corporation ("NextG," collectively, the "Parties").
RECITALS
A. WHEREAS, the Parties entered into an Agreement (on file with the Clerk of
the City of Carlsbad) dated June 6th 2006, whereby NextG acquired a license to occupy
portions of the public rights-of-way upon City owned infrastructure for providing
telecommunication services for its customers;
B. WHEREAS, the Agreement provides in Section 4 that the deployment of any
new Nodes beyond the original 52 Nodes will be processed as an amendment to the
Agreement.
C. WHEREAS, NextG and the City hereby agree to amend the Agreement as
more particularly described herein. In the event of any conflict between the Agreement and
the First Amendment, the terms of this First Amendment shall control.
AGREEMENT
NOW, THEREFORE, in consideration of the Recitals stated above, and incorporated
herein by this reference and the mutual obligations of the Parties expressed herein, the City
and NextG agree as follows:
1. SCOPE OF AMENDMENT. That all the terms and conditions of the original
Agreement between the City and NextG are of full force and effect except as expressly and
specifically amended herein.
2. AS-BUILT DESCRIPTION OF PREVIOUS DEPLOYMENT. That Exhibit B-l, attached
hereto, represents the as-built exhibit of the first phase of NextG's deployment in the City.
The Node quantity and location supercedes and replaces any previous references made in
Section 4 of the Agreement to Node quantities, and Exhibit B-l hereby supercedes and
replaces the Agreement's Exhibit B.
3. DESCRIPTION OF NEW DEPLOYMENT. That Exhibit B-2, attached hereto,
represents the new deployment planned by NextG in the City. The Parties acknowledge that
Exhibit B-2 is for illustrative purposes only. The City Engineer, Planning and other
Department review has not taken place at the time this Amendment was entered into. Thus,
City reserves all rights to require NextG to amend and relocate some or all of its proposed
First Amendment to Telecommunication Network License and Encroachment Agreement
City of Carlsbad - NextG Networks of California, Inc.
Page 1 of 3
Node locations and in particular, the proposed Nodes which use Municipal Facilities. City
Council's approval of this Amendment is not an approval for any specific Node location in
City.
4. FIELD MODIFICATIONS ALLOWED. The City Engineer (or his or her designee)
will review the installation at the locations described in Exhibit B-2 as they are constructed by
NextG ("City's Designee"), so long as NextG maintains sufficient monies in its "charge"
account with City for the City's Designee to debit against for his/her time reviewing NextG' s
installations. In the alternative, City inspection crews will inspect NextG's installations on a
call-out basis. NextG will call for inspections by City inspectors pursuant to City's standard
practices for installation inspections. The Parties understand that adjustments may need to be
made from time-to-time in the field related to the location and quantity of the Nodes described
in Exhibit B-2. Although the location of the Nodes will be substantially as described in B-2,
the City's Engineer or his/her designee and NextG may make reasonable adjustments to the
deployment plan (in both location and quantity) in order to accomplish the Parties' objectives.
Notwithstanding the foregoing sentence, the City's Engineer will have the final decision in
the placement of any Node on any Municipal Facilities.
5. COMPENSATION AND PERFORMANCE BOND. NextG agrees to compensate the
City for the additional Nodes described in Exhibit B-2 as specified in Section 6 of the
Agreement. Since the total deployment is below the threshold of 100 Nodes, Section 20 of
the Agreement does not require any additional Performance Bond to be posted.
IN WITNESS WHEREOF the parties hereto for themselves, their heirs, executors,
administrators, successors, and assigns do hereby agree to the full performance of the
covenants herein contained and have caused this Agreement to be executed by setting
hereunto their signatures on the day and year respectively written herein below.
CITY: THE CITY OF CARLSBAD
DATE:
layor or-£ity Manager
LICENSEE: NEXTG NETWORKS OF CALIFORNIA,
INC.
DATE: f, ICX^I By:
Raymond K. (Mby, CFO
First Amendment to Telecommunication Network License and Encroachment Agreement
City of Carlsbad - NextG Networks of California, Inc.
Page 2 of 3
Exhibits:
Exhibit B-1: Location of Existing Nodes deployed in City
Exhibit B-2: Location of Nodes to be deployed as part of this First Amendment
APPROVED AS TO FORM:
RONALD R.BALL, City Attorney
T)eputy City Attorney
First Amendment to Telecommunication Network License and Encroachment Agreement
City of Carlsbad - NextG Networks of California, Inc.
Page 3 of 3
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CITY OF CARLSBAD
TELECOMMUNICATIONS NETWORK
LICENSE AGREEMENT
EXHIBIT B-2
SUPPLEMENTAL DETAIL
10-MAY-2007
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Remote Site Locations
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1 -0 -3 34 U 1 N/A NlA 33.188510 -117.337380 Sui SloP on CIlbld VIII8a8Or-SOydllromHlahllnd St.Northakll Call8bld
2 -I -3 34 U.1 NlA NlA 33.11I3 -117.32022 NEComer 01EICamino Rill &Chlltnul Ave.Calbad
3 -0 -3 34 U 1 NlA NlA 33.152170 -117.328820 AtStoP SIan 81HlI1Ilda.JUlt PIli HiGhlandOr.&Hllilldl Or.IDltt OMlbld
4 -0 -3 34 U 1 N/A N/A 33.157750 -117.3OMI10 OnTlmlrack .1ee mlI..t 01PonUIClOuIhlidaof8trHt CIMblld
-D h NewPollio bllOC8lId SO'north ofTrafflcLiIIhton NSoomer ofEICImino 11111&II 3 34 1 NIA NlA 33.148880 -117.287750 ClnnonRd.CaMblld
8 -0 -3 34 U 1 N/A NlA 33.134410 -117.302480 OnFlradlYRd..38mIIIlIE 01Cannon Call8bld
9 i 3 34 'U 1 NlA NlA 33.124010 -117.302420 11t.SlrelUlahtWIltofTtlfflcLIGhton8WComerofPllomlrAlrDOrtRd.&CoIlIIIIBlvd.OMlbad-
10 0-1 -3 34 U 1 NlA NlA 33.120030 -117.287240 OnPllomerAIIIIOtIRd,.18mlill EofPllomIrOlkt WIYNorthIIdl OM8b8d
11 -0 -3 34 U 1 NlA NlA 33.130820 -117.287850 OnEICiminoRII'JUltNorthofPllomlrAD!Rd.C8I18bId
13 -0 -3 34 U 1 N/A NlA 33.11744 -117.23309 11t.8trHUIaht lOutIIofT"lIIo Uah!on 8W oomar 01Mllroll &CIIII1II0 OM8b8d
14 "-3 34 U 1 NlA NlA 33.11227 -117.228540 NewPoll 10belocllld 5011.northof TralllaUohton NS oomtr 01Mllrou &Alai CaMbld
111 mff -3 34 U 1 N/A NlA 33.10809 -117.239011 New Pollio bI Ioc8Itd 50ft.lOuIh01TralllcLlohton 8W comer ofAIoI &EIFuent.CIlbld
18 -3 34 U 1 N/A NlA 33.108480 -117.248440 NWComerofAlai&ClZldaroOr.OMlbld.
17 'N17M-D -3 34 U 1 NlA NlA 33.11833 -117.248S0 New Pol.10bI 100000d8OIt.Northof T"lIIc lIahton N8 oomar ofPoIn8l\ll &81Fu.nte Ca8b8d
18 N18M-D -3 34 U 1 N/A N/A 33,114000 -117.281700 11tSlrelUklht welt 01TtltIIa Ilohton 8W Comer of Polna.1tI &Alleant.CI8b8d
19 If -3 34 U 1 NlA NlA 33.105100 -117.2eeeoo 11t81r11111ahtwelt 01TralllclIahton 8W Comer 01Avll"Pkwv&81tek RIllCt.Ca8b8d
20 -D -3 34 U 1 N/A NlA 33.113440 -117.288880 100vd8WIll01BI8ckRillRd.onlouIhIIdI ofPolnllltl ClMblld
21 -D -3 34 U 1 NlA N/A 33.107200 -117.301310 On PoIn8lWI 100 Yd8E.ofSnaDdl'lGonOr.CIlbld
rN22M-0 NewPollio bI 100IItd5011.welt01Tralllclightonthl NWComer01UiCaltl &Vlljl
22 -3 34 U 1 N/A N/A 33.088520 -117.252850 C"UIII WIV ClMbid
23 IN2SM-C -3"34 U 1 N/A NlA 33.088880 -117.244500 NewPollio beIoCIIIdSOft.I'"01TralllclIohton SEComerofUiColtl &Romertl8t.CIlbld
NewPoll to be IoCIIId8OIt.WlIt01TtltIIa lightonNW Comer 01L.COltl &C.ndlnei.
24 I -3 ,34'U 1 N/A NlA 33.088510 -117.239420 8t.Cwblld
28 -3 34 U 1 NlA NlA 33.094000 -117.224830 OnII.nchoS.nll F.Rd..4mISouth01SanEllloRd.ClMblld
29 -0 -3 34 8.5 1 NlA NlA 33.071280 -117.22487 7812 CortI PIRCI Calbld
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CI>2004 NIlVTEQ.AllNgI1tlrel'Md.Thladlte indudellnformrion Itk.n withpermlllion fromCenadlen.uthoriliel \111Her M~lty the Queen In Algi'll of Clt\IIdI,CI>CopyNght 2004 by TeleAlIa North Ameriee,11Ie.Allrightl re..rved.
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Item Number:
Latitude:
Longitude:
Street Address:
City,State:
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Pole Location Description:
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Power on Pole:[Secondary
Telco on Pole:[NO
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Pole Access:[Onroad
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Node:
Item Number:
Latitude:
Longitude:
Street Address:
City,State:
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Pole ID:
Antenna Height:
[!]If no secondary,how far to secondary?
B If no telco,how far to pole with tel co?
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Node:
Item Number.
Latitude:
Longitude:
Street Address:
City,State:
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8 If no secondary,how far to secondary?
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Item Number:
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Pole Access:road
Photo of Pole:
Pole marked:lYes,surveyortape
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Pole ID:
Antenna Height:
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Item Number:
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City,State:
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8 If no secondary,how far to secondary?
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8 If no secondary,how far to secondary?
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Item Number:
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Project:
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Item Number:
Latitude:
longitude:
Street Address:
City,State:
Pole ID:
Antenna Height:
B
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Pole:
Comments:
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Photo of Pole:iyesL-
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Item Number:
Latitude:
longitude:
Street Address:
CityI State:
8 If no secondary,how far to secondary?
B If no telco,how far to pole with telco?
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Pole location Description:
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Comments:
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Item Number:
Latitude:
Longitude:
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Pole ID:
Antenna Height:
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Item Number:
Latitude:
Longitude:
Street Address:
CityI State:
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~If no telco,how far to pole with telco?
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111
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Customer:
Project:
Node:
Item Number:
Latitude:
Longitude:
Street Address:
City,State:
'~'T,vPoleID:
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Customer:
Project:Node:
Item Number:
Latitude:
Longitude:
Street Address:
City,State:
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Customer:
Project:
Node:
!tern Number:
Latitude:
Long itude:
Street Address:
City,State:
Pole ID:
Antenna Height:
B If no secondary,how far to secondary?
B If no telcor how far to pole with telco?
B
B
B
B
If yes,photo #s?
Pole Location Description:
Equipment on
Pole:
Comments:
39
Power on Pole:ISecondo')'.
Telco on Pole:
Pole Type:IConcrete Streetlight
Pole Access:road
Photo of Pole:l:0=
Pole marked:IYes,surveyortape
Page 1 of 1
Lisa Hildabrand - Re: Next G
From: Paul Edmonson
To: Cynthia Haas; Lisa Hildabrand
Date: 05/22/2007 8:54 AM
Subject: Re: Next G
All Receive • Agejga Item #_
For Information of
THE CITY COUNCIL
CM «^" CA *- CC *
CM Asst.
Lisa,
The original license agreement encourages co-location on existing City infrastructure Node
locations. So in that context, yes, NextG could (and we would encourage because we would
gain additional fees/5% $ for the co-location) "sell" the rights to co-locate another carriers
antenna on an existing pole (although, as I understand it the two carriers would actually
share the same 24" antenna; the co-location requires the second carrier's electronics to be
added to the box mounted on the pole). If NextG wanted to sell space on the pole to add
a non telecom related item (e.g. a sign advertising something) on the City's infrastructure, the
answer would be "no." NextG would not have the authority because that non-telecom sell
would exceed NextG's permissions.
As for the first amendment that narrows the use of City infrastructure to street lights, the
above continues to apply. However, if NextG installed its own pole in the PROW for its Node,
and North County Transit (NTC) wanted to place a bus stop sign on that same pole and was
willing to pay NextG a fee to have that sign mounted on said pole, we probably could prevent
that from happening. Not because of our agreement with NextG but because such an use (via
a NextG and NCT agreement) would exceed the authority granted to NextG in its CPCN from
the CPUC. NextG's rights from the CPUC is related to telecom and not advertising bus stop
locations. From a practical standpoint, who would complain? The same analysis would apply
to other type of "sales" of pole space.
Bottom line, NextG can "sell" space so long as it is for telecom use.
Paul
>» Cynthia Haas 05/22/2007 7:59 AM >»
I think its just for the nodes....but since Paul is the most familiar with the agreement and
spearheaded the negotiations, I think he should opine on this one.
Cynthia
>» Lisa Hildabrand 05/21/2007 6:17 PM >»
Hi-
A question came up in briefings about whether Next G can sell the rights to put other things
on the poles they install once they are there? For example, can they put other antenna on
them?
Lisa \MAY 2 2 2007
CITY OF CARLSBAD
CITY CLERK'S OFFICE
file://C:\Documents and Settings\LHild\Local Settings\Temp\GW}00001.HTM 05/22/2007
From:
Subject:
Lisa Hildabrand
Fwd: Re: Next G
All Receive -Agenda Item #
For Information of
THE CITY COUNCIL
CM «-^ CA
From CM _ Asst.
>» Paul Edmonson 05/16/2007 9:30 PM >»
Lisa,
NextG's poles (in lieu of traffic signals) are not part of the total 100 (both Agmt and 1st Amendment
combined). NextG is a full facility base teleco and have the ability to install poles in the ROW, subject to
the City's regulation of time, place and manner (47 USC 332(c)(7)). Said differently, we can not limit
NextG's number, all we can do is make it attractive for them to use our infrastructure (even if only limited
to streetlight poles) per the license agreement. That said, I believe NextG will be placing 6 independent^
poles in the City's ROW for this build out. To reduce the potential for visual blight, Council always retains
the ability to override the City/Traffic Engineer's opinon.
Paul
Paul G. Edmonson
Deputy City Attorney
Office of City Attorney
1200 Carlsbad Village Drive
Carlsbad, CA 92008-1949
tel: 760.434.2891
fax: 760.434.8367
Email: pedmo@ci.carlsbad.ca.us
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