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Home My WebLink About2016-06-28; City Council; 22325; REQUEST FOR AUTHORIZATION TO EXECUTE THE THIRD AMENDMENT TO THE TELECOMMUNICATIONS NETWORK LICENSE AND ENCROACHMENT AGREEMENT WITH CROWN CASTLE NG WEST INC.Item No. 3 - AB #22,325 June 28, 2016 Page 1 of 7 CITY OF CARLSBAD-AGENDA BILL 3 -) AB# 22,325 REQUEST FOR AUTHORIZATION TO EXECUTE THE THIRD DEPT. DIRECfOR u-'1 MTG. 06-28-16 AMENDMENT TO THE TELECOMMUNICATIONS CITY ATTY. ~ li~ NETWORK LICENSE AND ENCROACHMENT AGREEMENT DEPT. PW-GS CITY MGR. tiL-WITH CROWN CASTLE NG WEST, INC. RECOMMENDED ACTION: Adopt a Resolution authorizing the City Manager to execute the Third Amendment to the Telecommunications Network License and Encroachment Agreement with Crown Castle NG West, Inc. ITEM EXPLANATION: On June 6, 2006 the city entered into a License and Encroachment Agreement with NextG Networks of California, Inc., predecessor in interest to Crown Castle NG West, Inc., to allow use of public infrastructure (street lights and traffic signals) in the public right-of-way to install their wireless equipment at approximately 52 locations (nodes) within the city. On May 5, 2007 the city executed the First Amendment to the Agreement which allowed for up to 100 nodes to be installed within the city. On Sept. 6, 2013 the city executed the Second Amendment to the Agreement which added another 50 nodes for a total of 150 within the city. The current Agreement is set to expire on June 30, 2016, and the parties are currently in negotiations to extend the Agreement. To allow time to complete negotiations, Crown Castle and city staff desire to amend the Agreement by extending the license for an additional 120 days at a rate of $95/month per node. FISCAL IMPACT: The term of the extension will be four months beginning July 1, 2016 and ending Oct. 31, 2016. The rent amount of $95/month per location (node) reflects an approximate 10 percent increase from the current Agreement. FOR CLERK USE. COUNCIL ACTION: Monthly Rent (150 Nodes) $14,250 DEPARTMENT CONTACT: Steve Hodges (760) 434-2925 steve.hodges@carlsbadca.gov ~ APPROVED CONTINUED TO DATE SPECIFIC D DENIED CONTINUED TO DATE UNKNOWN D CONTINUED D RETURNED TO STAFF D WITHDRAWN D OTHER-SEE MINUTES D AMENDED D REPORT RECEIVED D Item No. 3 - AB #22,325 June 28, 2016 Page 2 of 7 Authorization of Crown Castle Amendment June 28, 2016 Page 2 of2 ENVIRONMENTAL IMPACTS: The extension of this Agreement is exempt from the California Environmental Quality Act, pursuant to Section 15301 of the CEQA Guidelines (licensing of existing facilities). EXHIBITS: 1. Resolution authorizing the City Manager to execute the Third Amendment to the Telecommunications Network License and Encroachment Agreement with Crown Castle NG West, Inc. Item No. 3 - AB #22,325 June 28, 2016 Page 3 of 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2016-120 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, AUTHORIZING THE CITY MANAGER TO EXECUTE THE THIRD AMENDMENT TO THE TELECOMMUNICATIONS NETWORK LICENSE AND ENCROACHMENT AGREEMENT WITH CROWN CASTLE NG WEST, INC. WHEREAS, the City Council of the City of Carlsbad has determined that it is in the best interest of the city to enter into a Third Amendment to the Telecommunications Network License and Encroachment Agreement with Crown Castle NG West, Inc. to allow the parties sufficient time to enter into negotiations for a longer-term amendment; and WHEREAS, the City Council has further determined that terms of the Third Amendment to the Telecommunications Network License and Encroachment Agreement with Crown Castle NG West, Inc. are acceptable; and WHEREAS, the Third Amendment will generate $14,250 in monthly revenue for the city for a period of four months. 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. The City Manager is authorized to execute the Third Amendment to the Telecommunications Network License and Encroachment Agreement with Crown Castle NG West, Inc., which is attached hereto as Attachment A. II II II II Item No. 3 - AB #22,325 June 28, 2016 Page 4 of 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 28th day of June, 2016, by the following vote to wit: AYES: Halt Wood, Schumacher, Blackburn, Packard. NOES: None. ABSENT: None. ·~ ;1/g/(J/J MATI HALL, Mayor __.c::~:y:o..;~~~~--+-P) A ENGLESON, City Cler (SEAL) Item No. 3 - AB #22,325 June 28, 2016 Page 5 of 7 Ccicyof Carlsbad THIRD AMENDMENT TO TELECOMMUNICATIONS NETWORK LICENSE AND ENCROACHMENT AGREEMENT WITH CROWN CASTLE NG WEST LLC THIS THIRD AMENDMENT to theN etwork License and Encroachment Agreement ("Third Amendment") is made effective and entered into this ::l\ 5' day of J"' ,-..~~ 20_lk_, between the City of Carlsbad (the "City"), and Crown Castle NG West LLC, a Delaware limited liability company (previously named NextG Networks of California, Inc., and Crown Castle NG West Inc.) ("Crown Castle"); (collectively, "the Parties"), to the Network License and Encroachment Agreement ("License") dated June 6, 2006. WHEREAS, on June 6, 2006, the City and NextG Networks of California, Inc. entered into the License, granting a license to occupy portions of the public rights-of-way upon City owned infrastructure ("Municipal Facilities") for providing telecommunications services for its customers, which expires on June 30, 2016; and WHEREAS, the City and NextG Networks of California, Inc. executed a First Amendment to the License on May 24, 2007 authorizing installation of additional Nodes on Municipal Facilities, not to exceed a total of 100 Nodes; and WHEREAS, on May 3, 2012, NextG Networks of California, Inc., changed its name to Crown Castle NG West Inc.; and WHEREAS, the City and Crown Castle NG West Inc., executed a Second Amendment to the License on September 9, 2013, authorizing Crown Castle to install additional Nodes in the City, not to exceed a total of 150 Nodes; and WHEREAS, on December 31, 2013, Crown Castle NG West, Inc., changed its name to Crown Castle NG West LLC and converted to a limited liability company; and WHEREAS, the Parties desire to enter into negotiations for a longer term amendment to the License but need a brief extension of the License to do so; and WHEREAS, the Parties desire to enter into this Third Amendment under the following terms and conditions: 1. Term. Commencing on July 1, 2016, the term of the License will be month to month ending no later than October 31, 2016. 2. Rent. Crown agrees to pay City an increased monthly rent in the amount ofNinety Five Dollars ($95) per node payable on the 1st of each month effective July 1, 2016. 3. Termination. Either party may terminate this License upon providing 30 days written notice. Public Works Department General Services Division I 405 Oak Avenue I Carlsbad, CA 92008 I 760-434-2925 t Item No. 3 - AB #22,325 June 28, 2016 Page 6 of 7 4. Removal of Equipment/Penalty Fee. Within ninety (90) days from termination ofthis License, Crown Castle agrees remove from the Municipal Facilities all of its property and equipment, including antenna supports, and shall leave the Municipal Facilities in the same condition as it was immediately prior to the commencement of the License, normal wear and tear excepted. In the event Crown Castle fails remove all of its equipment from the Municipal Facilities within the time allowed, the City may, but is not obligated to, remove and store Crown Castle's property and equipment until recovered by Crown Castle. In the event the City removes and stores Crown Castle's property and equipment, the City shall not be liable for any damage to Crown Castle's property and equipment during the removal or storage. Crown Castle may recover equipment from the City by paying the City a daily penalty of Three Hundred Fifty Dollars ($350) for each day any of Crown Castle's property or equipment remains on the Premises after termination of the License. Alternatively, upon Crown Castle's request, City may approve abandonment of Crown Castle's equipment in place. Upon approval, Crown Castle shall execute, acknowledge and deliver necessary documents to transfer ownership of Crown Castle's equipment to the City. 5. Disposal of Abandoned Equipment. In the event Crown Castle fails to remove its property and equipment from the Municipal Facilities within ninety (90) days from the notice of termination, the City may declare the property and equipment abandoned and may, but is not required to, dispose of equipment as it chooses. Crown Castle shall reimburse the City all costs of removal and disposal and for the period of storage of Crown Castle's property and equipment. All other terms of the License shall continue during this extended term as if set forth herein. By their signatures below, the City and Crown Castle hereby agree to the terms of the Third Amendment as set forth herein, effective as of the date first written above. CROWN CASTLE BY: -)2?:.--- PrinteaName: 't(:J0 fh\;.:.Y ,,.} Title: V '?I c;i..Ji,Lrn. fl-/,•hv•<&t~,L Crown Castle NG West LLC DATE:_-=t____.L/_J_I 1_/k-____ _ Note: Signature of Crown Castle must be Notarized SEE CALIFORNIA ACKNQWLEDGI'viENT ATTACHED DATE~ll/iGrNTL~ CITY~ BY -. ...,. CITY MANAGER CITY OF CARLSBAD (-~ T' 'I I Item No. 3 - AB #22,325 June 28, 2016 Page 7 of 7 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validi!y of that document. State of California County of Orange 2olh :21, I before me, Philip Andrew Horn, Notary Public (insert name and title of the officer) personally appeared flo d I) 01/JJo,,-J , who proved to me on the basis of satisfactory evidence to be the person~ whose name(.s)@Yare subscribed to the within instrument and acknowledged to me that<ffel,she/they executed the same in ~/her/their authorized capacity(.fes.);-and that by@J/her/their signature~) on the instrument the perso*}, or the entity upon behalf of which the person(s.} acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is. true and correct. WITNESS my hand and offlclal seal. Signature __ ·.:,_p-~_,., _,___Jt±tw=-~. +-='---· __ _ (Seal)