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File Number: 20-412 <br />Under existing federal and state law, local municipalities have retained certain authority to <br />regulate wireless telecommunications facilities in the public right-of-way. This includes the <br />authority to charge providers attachment and application fees, to regulate the aesthetic qualities <br />of the facilities and the appropriateness of the size and location of equipment within each <br />neighborhood and allow for site-by-site analysis of permit applications. <br />On September 26, 2018, the FCC adopted regulations that preempt certain local authority over <br />small cell deployments. The order sets rates municipalities can charge, provides strict “shot <br />clock” limits for processing permit applications, and establishes other restrictions on the ability of <br />municipalities to regulate small cell deployments. <br />On August 12, 2020 the Ninth Circuit Court of Appeals issued a decision in City of Portland v. <br />Federal Communications Commission (Case No. 18-72689) that largely upheld the FCC Order, <br />including the safe harbor rate of $270/pole/year. <br />Staff has developed a framework within these regulations. The key terms and conditions of the <br />MLA are as follows: <br />·The licensee is required to obtain individual Pole Licenses for every pole where small cell <br />facilities are proposed; <br />·Individual Pole Licenses require the licensee to obtain all applicable and necessary <br />regulatory approvals, including paying for and obtaining a City-issued Encroachment <br />Permit, prior to becoming effective; <br />·Verizon must remit a $4,000 Application Processing Payment to the City to cover Staff <br />and Legal costs; <br />·The standard term is ten years, with multiple renewals available thereafter; <br />·The term of each Pole License will be from the effective date through the term of the MLA <br />or the earlier termination of the MLA, whichever occurs first; <br />·The annual License Fee per City-owned pole is $270 in 2020 (note: under a “Contingent <br />Event,” such as new legislation that modified, enhances, or somehow changes the FCC <br />Order, the MLA provides that the annual fee will increase to $1,500 per year); <br />·License Fees in either case will automatically escalate by 3 percent each year; <br />·Verizon will work in good faith with Staff to ensure coexistence with other City wireless <br />facilities, such as public Wi-Fi and Climatec-installed lighting equipment; <br />·Verizon will work in good faith with Staff to negotiate a separate agreement for fiber-optics <br />and/or conduit, if Verizon installs them in the future; and <br />·The MLA imposes aesthetic requirements, design guidelines, and includes a public input <br />process for adjacent properties. <br />Given that the Agreement is more beneficial in its current form than previous proposals by <br />Verizon, and that the regulatory landscape, particularly following the Ninth Circuit’s decision, <br />greatly impacts the ability of the City to require additional benefits beyond those which have been <br />agreed to, Staff recommends that the City Council approve a Resolution authorizing the City <br />Manager to execute the Master License Agreement. The Resolution would also authorize the City <br />Manager to execute Master License Agreements under the same substantive terms with other <br />Page 2 City of San Leandro Printed on 9/23/2020 <br />264