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File Number: 18-601 <br />that it covers a small area with high-density usage. <br />These 4G small cells, and the evolution to 5G wireless technology, depend on closely spaced <br />antennas for which street lights and similar municipal vertical assets are ideal for cost effective <br />installations. Wireless infrastructure companies build and maintain “neutral” wireless network <br />infrastructure that they in turn can lease through partnership agreements to wireless service <br />providers. Additionally, some wireless service providers choose to build and maintain their own <br />infrastructure to provide mobile and cellular services. <br />City staff worked with ExteNet to draft a MLA that will govern and regulate the deployment of small <br />cells throughout the City. Other telecommunication companies who previously expressed interest <br />in negotiating MLAs with the City withdrew from negotiations. Their choice to withdraw from <br />negotiations was presumably based on a September 26, 2018 action by the Federal <br />Communications Commission that preempts local control over small cell deployment. The FCC’s <br />adopted order is scheduled to go into effect in January 2019, though it has been challenged in <br />Federal Court by cities and related groups, including the League of California Cities. <br />Analysis <br />Despite the FCC order, staff completed negotiations with ExteNet. ExteNet expressed a <br />willingness to execute a MLA in order to gain certainty from the City on the regulations that will <br />govern equipment deployments in the long term. ExteNet is voluntarily entering into a MLA with <br />the City as it has determined that the terms allowed sufficient certainty that its capital investment <br />would be recouped. <br />The MLA details various requirements to protect community aesthetics, health, safety, and <br />welfare in the public right-of-way. The MLA is consistent with the City’s goals, and will establish <br />the legal relationship and framework under which ExteNet may apply to the City for site-specific <br />and governing Pole Licenses to install small cells on City assets. <br />The key terms and conditions of the MLA include the following: <br />·The first term of the MLA is five years with two subsequent automatic five-year renewals. It <br />also includes optional five (5) year renewal terms to provide a sufficient long-term <br />arrangement if both parties so desire; <br />·Pursuant to the MLA, the licensee is required to obtain individual Pole Licenses for every <br />pole where small cell facilities are proposed; <br />·Individual Pole Licenses require the licensee to obtain all applicable and necessary <br />regulatory approvals, including a City-issued Encroachment Permit, prior to becoming <br />effective; <br />·The term of each Pole License will be from the effective date through the completion of the <br />term of the MLA or the earlier termination of the MLA, whichever occurs first; <br />·The annual License Fee per City-owned pole is $2,000 in 2018. The License Fee will <br />automatically escalate by 3 percent each year; <br />·If fiber-optics are installed to support small cell connectivity, the MLA includes an <br />Indefeasible Right of Use (IRU) clause that would grant to the City up to six dedicated fiber <br />optic strands exclusively for municipal use; <br />Page 2 City of San Leandro Printed on 11/27/2018