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Home My WebLink About2016-10-25; City Council; ; Adoption of resolution authorizing the City Manager to execute the fourth amendment to Telecommunications Network License and Encroachment Agreement with Crown Castle NG West IncCA Review H-5 caNs.CITY COUNCIL •t•rik''Staff Report C4C/FO9 'P Meeting Date October 25, 2016 To:Mayor and City Council ,V From:Kevin Crawford, City Manager Staff Contact:Curtis M. Jackson, Real Estate Manager Curtis.jackson@carlsbadca.gov or 760-434-2836 Subject Adoption of Resolution Authorizing the City Manager to Execute the Fourth Amendment to Telecommunications Network License and Encroachment Agreement with Crown Castle NG West, Inc. Recommended Action Adopt a Resolution authorizing the City Manager to execute the Fourth Amendment to Telecommunications Network License and Encroachment Agreement with Crown Castle NG West, Inc. Executive Summary Crown Castle NG West, Inc. ("Crown")is licensed by the Federal Communications Commission to provide personal communications services.Crown desires to extend the terms of the existing license agreement to operate small cell nodes in the public right-of-way for an additional three months as the city and Crown continue to negotiate the terms of a new license agreement for small cell facilities located in the public right of way throughout the city. Discussion 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 September 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 Second Amendment was set to expire on June 30, 2016; however, the parties desired to enter into a new long term license agreement and required additional time to negotiate its terms. On June 28, 2016, City Council authorized the Third Amendment of the agreement for the sole purpose of extending the term four months to accommodate negotiations on a new license. Since then,city staff has commissioned a market analysis to ensure the city is charging an appropriate rent for the use of its infrastructure in the right of way. Staff is in the process of developing a master license for wireless communications facilities in the right of way, which will be brought to the City Council for consideration in the near future. The master license would standardize the terms under which Crown and other wireless communications companies would be eligible to use city infrastructure. Staff anticipates that related amendments to City Council Policy No. 64 (Wireless Communication Facilities) will be proposed at that time. The Third Amendment is set to expire on October 31, 2016, and more time is needed to complete negotiations.Crown and city staff desire to amend the agreement by extending the existing license for an additional three months at a rate of $95/month per node, with a new expiration date of January 31, 2016. Fiscal Analysis The term of the extension will be three months beginning November 1,2016, and ending January 31, 2016.The rent amount of $95/month per location (node)is unchanged from the Third Amendment. Monthly Rent (150 Nodes):$14,250 Total Rent at three months (150 nodes):$42,750 Next Steps Upon approval of the Fourth Amendment, Crown and city staff will continue to negotiate the terms of a new license agreement. City staff will bring to the City Council for consideration the master license for wireless communication facilities in the right of way and related amendments to City Council Policy No. 64 prior to the expiration date of the Fourth Amendment. Environmental Evaluation (CEQA) The proposed action is exempt from the California Environmental Quality Act (CEQA)per State CEQA guidelines 15301 —Existing Facilities.Section 15301 exempts the leasing of property involving negligible or no expansion of use beyond that existing at the time of the agency's determination. Exhibits 1.Resolution authorizing the City Manager to execute the Fourth Amendment to Telecommunications Network License and Encroachment Agreement with Crown Castle NG West, Inc. Exhibit 1 RESOLUTION NO. 2016-217 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, AUTHORIZING THE CITY MANAGER TO EXECUTE THE FOURTH AMENDMENT TO TELECOMMUNICATIONS NETWORK LICENSE AND ENCROACHMENT AGREEMENT WITH CROWN CASTLE NG WEST, INC. WHEREAS, on June 28, 2016, the City Council of the City of Carlsbad authorized the City Manager to execute the Third Amendment to 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, via Resolution No. 2016-120; and WHEREAS,the parties have been negotiating in good faith but need more time to complete negotiations; and WHEREAS,the City Council has determined that it is in the best interest of the city to enter into a Fourth Amendment to Telecommunications Network License and Encroachment Agreement with Crown Castle NG West,Inc.to allow the parties sufficient time to continue negotiations for a longer-term agreement; and WHEREAS,the City Council has further determined that terms of the Fourth Amendment to Telecommunications Network License and Encroachment Agreement with Crown Castle NG West, Inc. are acceptable; and WHEREAS,the Fourth 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 Fourth Amendment to Telecommunications Network License and Encroachment Agreement with Crown Castle NG West, Inc., which is attached hereto as Attachment A. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 25th day of October, 2016, by the following vote to wit: AYES:Hall, Wood, Schumacher, Blackburn, Packard. NOES:None. ABSENT:None. MATT HALL, Mayor ATTEST: BARBARA ENGLESON, City Clerk A\‘`‘ SBAD........C .ra ;.••• _A_*•••e/ III tON‘N C City of Carlsbad FOURTH AMENDMENT TO TELECOMMUNICATIONS NETWORK LICENSE AND ENCROACHMENT AGREEMENT WITH CROWN CASTLE NG WEST LLC THIS FOURTH AMENDMENT to the Network License and Encroachm Agreement ("Third Amendment")is made effective and entered into this (-2S--1://)day of 20 ,between the City of Carlsbad (the "City"), and Crown Castle NG West LLC,a Delaware limited liability company ("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 Crown Castle (then-named NextG Networks of California,Inc.)entered into a License Agreement,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 Crown Castle executed a First Amendment to the Agreement on May 24, 2007 authorizing installation of additional Nodes on Municipal Facilities, not to exceed a total of 100 Nodes; and WHEREAS, the City and Crown Castle executed a Second Amendment to the Agreement on September 9, 2013, authorizing Crown Castle to install additional Nodes in the City, not to exceed a total of 150 Nodes; and WHEREAS, the City and Crown Castle executed a Third Amendment to the Agreement on June 28,2016, extending the term of the Agreement four (4) months for the parties to negotiate a new long term license agreement; and WHEREAS,the Parties still require further negotiations for the new long term license agreement and require a three (3) month extension of the License to do so; and WHEREAS, the Parties desire to enter into this Fourth Amendment under the following terms and conditions: 1.Term.Commencing on November 1,2016, the term of the License will be month to month ending no later than January 31, 2017. 2.Rent.Crown Castle agrees to pay City monthly rent in the amount of Ninety Five Dollars ($95) per node payable on the 1st ofeach month effective November 1,2016. 3.Termination.Either party may terminate this License upon providing thirty (30) days written notice. 4.Removal ofEquipment/Penalty Fee.Within thirty (30)days from termination of this License, Crown Castle agrees to assemble and remove from the Municipal Facilities all of its property and General Services Division 1405 Oak Avenue I Carlsbad, CA 92008 I 760-434-2925 t 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 ofthe Fourth Amendment as set forth herein, effective as of the date first written above. CROWN CASTLE NG WEST LLC CITY BY:/Z 1 BY 01 Printed Na Title:\16f—off-AL OA prm CITY MANAGER Crown Castle NG West LLC CITY OF CARLSBAD • DATE:1°(t DATE:/ 07.96h tp NOTARY ACKNOWLEDGEMENT OF LICENSEE'S SIGNATURE(S) MUST BE ATTACHED CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT A notary public or other officer completing this certificate verifies only the identity ofthe individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF Osir-4 S .S . On t.0 lc ,before me, S. Yarborough, Notary Public personally appeared Co 0(H-a. e••Zz..---1 who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s) on the instrument the person(s), 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. CommissioniYsAsRioBn0:02U0G33H1 06WITNESS my hpl-Q official seal. 1`,Notary Public -California zz Signature (Seal)zyo _Orange County Ni. Comm. Expires ki '9.2017 f,OPTIONAL immmiummaiiiiiifilifiliMiiiMoim Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment ofthis form to another document. DESCRIPTION OF ATTACHED DOCUMENT Title or Type ofDocument: Document Date:Number ofPages: Signer(s) other than named above CAPACITY(IES) CLAIMED BY SIGNER(S) 0 INDIVIDUAL El INDIVIDUAL Right Thumbprint Right Thumbprint 0 CORPORATE OFFICER(S)Of Signer 0 CORPORATE OFFICER(S)ofSigner TITLE(S)Top ofthumb here TITLE(S)Top ofthumb here PARTNER(S)-0 LIMITED D PARTNER(S)-0 LIMITED 0 GENERAL 0 GENERAL ATTORNEY-IN-FACT 0 ATTORNEY-IN-FACT TRUSTEE(S) TRUSTEE(S) 0 GUARDIAN OR CONSERVATOR 0 GUARDIAN OR CONSERVATOR 0 OTHER 0 OTHER _-— SIGNER IS REPRESENTING: