HomeMy WebLinkAbout2017-04-25; City Council; ; Adoption of Resolution Authorizing the City Manager to Execute an amendment to the Telecommunications Network License and Encroachment Agreement with Crown Castle NG West, IncCA Review it
04 Aft\CITY COUNCIL
Staff Report
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Meeting Date April 25, 2017
To:Mayor and City Council
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 an
amendment to the Telecommunications Network License and
Encroachment Agreement with Crown Castle NG West,Inc.
Recommended Action
Adopt a Resolution authorizing the City Manager to execute an amendment to the
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 six
month period 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 th e
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 longterm license agreement and required additional time to negotiate its terms.
On June 28,2016,City Council authorized the Third Amendment;on October 25,2016,City
Council authorized the Fourth Amendment; and on January 24, 2017, City Council authorized the
Fifth Amendment of the agreement for the sole purpose of extending the term a combined nine
months to accommodate negotiations on a new license.
The Fifth Amendment is set to expire on April 30, 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 six months, with a new expiration date of October 31, 2017.The current
Item #4 April 25, 2017 Page 1 of 8
rate of $95/month per node established in the Fifth Amendment will remain unchanged.Upon
successful completion of negotiations,a Master License Agreement ("MLA") for Crown Castle will
be brought back for consideration by City Council.
Fiscal Analysis
The term of the extension will be six months beginning May 1, 2017, and ending October 31,
2017.As mentioned above, the rent amount of $95/month per location (node) will remain
unchanged.The rent calculations for the extended term are as follows:
Monthly Rent (97 Nodes))$9,215
Total Rent at six months (97 nodes):$55,290
Next Steps
Upon approval of this amendment, Crown and city staff will continue to negotiate the terms of a
new license agreement.Upon successful completion of negotiations,a Master License
Agreement ("MLA") for Crown Castle will be brought back for consideration by City Council.The
city anticipates utilizing the Crown Castle MLA framework when considering entering into a
future MLA agreement with any other telecommunications carrier interested in locating small
cell-site facilities on city poles in the city's right-of-way.Staff will bring back to the City Council
for their consideration and approval a standardized Master License Agreement in the near future.
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 Amendment to the
Telecommunications Network License and Encroachment Agreement with Crown Castle NG
West, Inc.
Item #4 April 25, 2017 Page 2 of 8
EXHIBIT 1
RESOLUTION NO. 2017-065
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
AUTHORIZING THE CITY MANAGER TO EXECUTE THE SIXTH
AMENDMENT TO THE 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 Sixth 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 Sixth Amendment
to Telecommunications Network License and Encroachment Agreement with Crown Castle NG
West, Inc. are acceptable; and
WHEREAS,the Sixth Amendment will generate $9,215 in monthly revenue for the city
over the six months, for a six month total of $55,290.
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.
Item #4 April 25, 2017 Page 3 of 8
2.The City Manager is authorized to execute an Amendment to the
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 April, 2017, by the following vote, to wit:
AYES:M. Hall,K.Blackburn, M. Schumacher,C.Schumacher, M. Packard.
NOES:None.
ABSENT:None.
MATT ALL,Mayor
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BARBAF&TGLESON, City Clerk
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Item #4 April 25, 2017 Page 4 of 8
rL.City of
Carlsbad
SIXTH AMENDMENT TO TELECOMMUNICATIONS NETWORK
LICENSE AND ENCROACHMENT AGREEMENT WITH
CROWN CASTLE NG WEST, LLC.
THIS SIXTH AMENDMENT to the Network License nd Encroachment eeme ("Sixth
Amendment")is made effective and entered into this day o 2017,
between the City of Carlsbad (the "City"), and Crown Castle NG West, LL .,a elaware 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 ofthe Agreement four (4) months for the parties to negotiate a new long
term license agreement; and
WHEREAS, the City and Crown executed a Fifth Amendment to the Agreement on January
24, 2017, extending the term of the Agreement three (3) 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 six (6) month extension of the License to do so; and
WHEREAS, the Parties desire to enter into this Sixth Amendment under the following terms
and conditions:
1.Term.Commencing on May 1,2017, the term of the License will be month to month ending
no later than October 31, 2017.
Public Works Department
General Services Division I 405 Oak Avenue I Carlsbad, CA 92008 I 760-434-2925 t
Item #4 April 25, 2017 Page 5 of 8
2.Rent.Crown agrees to pay City monthly rent in the amount of Ninety Five Dollars ($95) per
node payable on the 1St of each month effective May 1,2017.
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 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 same
condition as it was immediately prior to the commencement ofthe License, normal wear and
tear excepted.In the event Crown 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's property and equipment until recovered by Crown.In the event the City removes and
stores Crown's property and equipment, the City shall not be liable for any damage to Crown's
property and equipment during the removal or storage.Crown may recover equipment from
the City by paying the City a daily penalty of Three Hundred Fifty Dollars ($350) for each day
any of Crown's property or equipment remains on the Premises after termination of the
License.Alternatively, upon Crown's request, City may approve abandonment of Crown's
equipment in place.Upon approval, Crown shall execute, acknowledge and deliver necessary
documents to transfer ownership of Crown's equipment to the City.
5.Disposal of Abandoned Equipment.In the event Crown fails to remove its property and
equipment from the Municipal Facilities within ninety (90) days from the notice oftermination,
the City may declare the property and equipment abandoned and may, but is not required to,
dispose of equipment as it chooses.Crown shall reimburse the City all costs of removal and
disposal and for the period of storage of Crown's property and equipment.
All other terms of the License shall continue during this extended term as if set forth herein.By their
signatures below, the City and Crown hereby agree to the terms ofthe Fourth Amendment as set
forth herein, effective as of the date first written above.
CROWN CITY
BY:BY
Printed Name:
Title:cp.A-L OA CITY MANAGER
Crown Castle NG West, LLC CITY OF CARLSBAD
DATE:Zc-1/DATE:4/0)5/2011
NOTARY ACKNOWLEDGEMENT OF LICENSEE'S SIGNATURE(S) MUST BE ATTACHED
Item #4 April 25, 2017 Page 6 of 8
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of ORANGE
On APRIL 24, 2017 before me,ASHLEY JEAN MOELTER, NOTARY PUBLIC
(insert name and title of the officer)
personally appeared ROD HANSON
who proved to me on the basis of satisfactory evidence to be the person(s5 whose namec4 is/jaie
subscribed to the within instrument and acknowledged to me that he/syeitlAy executed the same in
his/Vr/tOir authorized capacity(i9i), and that by his/h/r/tVeir signature0 on the instrument the
person$,or the entity upon belAlf of which the personcslacted, 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.
,..,ASHLEY JEAN MOELTER
WITNESS my hand and official seal..21".ti.Commission *2116903
Notary Public -California I
mr Comm.E f:xaitgeres ru_nt_y_Ju23_2019
Signature Aj\-)(Seal)
Item #4 April 25, 2017 Page 7 of 8
Cr CROWN Crown Castle
%.•CASTLE 200 Spectrum Center Drive
Suite 1800
Irvine, CA 92618
April 24. 2017
Kevin Crawford/Curtis M. Jackson
City Manager/Real Estate Manager
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Dear Mr. Crawford and Mr. Jackson,
Enclosed please find the partially executed Sixth Amendment to Telecommunications Network License and
Encroachment Agreement for City Council approval and the City Manager's signature.Please let me know if you
need anything or have any questions.
Sincerely,
aildid(aldttz-D
Samantha Dang
Government Relations Specialist
(714) 876-4726
The Foundation for a Wireless World.
Item #4 CrownCastle.com April 25, 2017 Page 8 of 8