HomeMy WebLinkAbout2017-01-24; City Council; ; Adoption of Resolution authorizing City Manager to execute Fifth Amendment to Telecommunications Network License and Encroachment agreement with Crown Castle NG West IncCA Review _tb_
€) CITY COUNCIL Staff Report
Meeting Date
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From:
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Subject
January 24, 2016
Mayor and City Council J/' Kevin Crawford, City Manage!J
Curtis M. Jackson, Real Estate Manager
Curtis.jackson@carlsbadca.gov or 760-434-2836
Adoption of Resolution Authorizing the City Manager to Execute the Fifth
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 fifth 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 SO 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, and on October 25, 2016, City
Council authorized the Fourth Amendment of the agreement for the sole purpose of extending
the term a combined six 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
Item #4 January 24, 2017 Page 1 of 6
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 Fourth Amendment is set to expire on January 31, 2017, 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 April 30, 2017.
Fiscal Analysis
The term of the extension will be three months beginning February 1, 2017, and ending April
30, 2017. The rent amount of $95/month per location (node) is unchanged from the Fourth
Amendment.
Monthly Rent (150 Nodes):
Total Rent at three months (150 nodes):
Next Steps
$14,250
$42,750
Upon approval of the Fifth Amendment, Crown and city staff will continue to negotiate the terms
of a new license agreement. City staff anticipates bringing 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 Fifth 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 Fifth Amendment to
Telecommunications Network License and Encroachment Agreement with Crown Castle NG
West, Inc.
Item #4 January 24, 2017 Page 2 of 6
EXHIBIT 1
RESOLUTION NO. 2017-015
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIFTH 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 Fifth 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 Fifth Amendment
to Telecommunications Network License and Encroachment Agreement with Crown Castle NG
West, Inc. are acceptable; and
WHEREAS, the Fifth Amendment will generate $14,250 in monthly revenue for the city
for a period of three 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 Fifth 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 24th day of January, 2017, by the following vote, to wit:
AYES:
NOES:
ABSENT:
M.Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard.
None.
None.
{ City ofCarlsbad
FIFTH AMENDMENT TO TELECOMMUNICATIONS NETWORK
LICENSE AND ENCROACHMENT AGREEMENT WITH
CROWN CASTLE NG WEST, INC.
THIS FIFTH AMENDMENT to the Network License and Encroachment Agreement ("Fifth Amendment") is made effective and entered into this 2] t(/\ day of �\..A.� 2017,between the City of Carlsbad (the "City"), and Crown Castle NG West,�, a D�la� limited liability company ("Crown"); (collectively, "the Parties"), to the Network License and Encroachment Agreement ("License") dated June 6, 2006.
WHEREAS, on June 6, 2006, the City and Crown's predecessor in interest 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's predecessor in interest 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 executed a Second Amendment to the Agreement on
September 9, 2013, authorizing Crown to install additional Nodes in the City, not to exceed a total of 150 Nodes; and
WHEREAS, the City and Crown 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 City and Crown executed a Fourth Amendment to the Agreement on October 25, 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 Fifth Amendment under the following terms and conditions:
1.Term. Commencing on February 1, 2017, the term of the License will be month to monthending no later than April 30, 2017.
2.Rent. Crown agrees to pay City monthly rent in the amount of Ninety Five Dollars ($95) pernode payable on the l st of each month effective February 1, 2017.
Public Works Department
General Services Division I 405 Oak Avenue I Carlsbad, CA 92008 I 760-434-2925 t
3.Termination. Either party may terminate this License upon providing thirty (30) days written
notice.
4.Removal of Equipment/Penalty Fee. Within thirty (30) days from termination of this License,Crown agrees to assemble and remove from the Municipal Facilities all of its property and
equipment, including antenna supports, and shall leave the Municipal Facilities in the samecondition as it was immediately prior to the commencement of the License, normal wear andtear excepted. In the event Crown fails remove all of its equipment from the MunicipalFacilities within the time allowed, the City may, but is not obligated to, remove and store
Crown's property and equipment until recovered by Crown. In the event the City removes andstores Crown's property and equipment, the City shall not be liable for any damage to Crown'sproperty and equipment during the removal or storage. Crown may recover equipment fromthe City by paying the City a daily penalty of Three Hundred Fifty Dollars ($350) for each dayany of Crown's property or equipment remains on the Premises after termination of the
License. Alternatively, upon Crown's request, City may approve abandonment of Crown'sequipment in place. Upon approval, Crown shall execute, acknowledge and deliver necessarydocuments to transfer ownership of Crown's equipment to the City.
5.Disposal of Abandoned Equipment. In the event Crown 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 shall reimburse the City all costs of removal anddisposal and for the period of storage of Crown'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 hereby agree to the terms of the Fourth Amendment as set
forth herein, effective as of the date first written above.
CROWN
Printed Name. ..=cc--=:--""--'--=c-��'---'2-=---.,_--...-'-'--T i tl e :'<JI 'l ter;, Ov I Crown Castle NG West, Inc.
DATE: 1-1�'-1 '}
CITY
CITYMA GER CITY OF CARLSBAD
DATE: __ i_2_1._J_,--'-7 ______ _
NOTARY ACKNOWLEDGEMENT OF LICENSEE'S SIGNATURE(S) MUST BE ATTACHED