TITLE
Recommendation to authorize City Manager, or designee, to finalize and execute a Master License Agreement, and any necessary amendments, with Verizon Communications, Inc., for the non-exclusive use of City-owned properties, including street lights citywide, for wireless telecommunications facilities, for a 20-year term. (Citywide)
DISCUSSION
On March 13, 2018, the City Council adopted Ordinance ORD-18-0012 amending Chapter 21.56 (Wireless Telecommunications Facilities) and Title 15 (Public Utilities) of the Long Beach Municipal Code (LBMC) to update regulations relating to the installation of wireless telecommunications facilities (small cells) in the public right-of-way (ROW). The resulting regulations for small cells in the ROW addressed not only design and aesthetic standards, but also set forth a streamlined review and approval process. Since adoption of the new small cell regulations and process, the Department of Public Works (PW) has processed multiple new applications within the stated timelines, and executed one License Agreement.
Staff is seeking authorization to enter into a Master License Agreement with Verizon Communications, Inc. (Verizon), to implement small cell technologies within the public ROW. Staff worked with Verizon to negotiate terms that provide a public benefit for reduced fees. The proposed contract with Verizon includes non-monetary and public benefits provided by Verizon in exchange for a reduced license agreement annual rate. The general terms of the proposed agreement are outlined below. These terms represent a strategic and mutually beneficial partnership.
• Conduit: Verizon will provide the City with approximately 8.86 miles of 2-inch conduit to connect public facilities to the City’s network. This is an important step in upgrading connectivity. The City will be responsible for placing the fiber and final conduit connections at its own expense.
• Digital Inclusion:
o Verizon will provide a minimum of 50 Kajeet MiFi devices for use in low-income areas with 24 months of service at no cost to the City or users.
o Verizon will provide a one-time $100,000 STEM grant to a mutually agreeable organization for use in purchasing Chromebook tablets with internet connectivity.
• Intersection Safety Analytics: Verizon will provide traffic data for a period of 24 months at one intersection to be mutually determined. The data will allow the City to guide the required traffic engineering, enforcement, and education initiatives to help improve traffic safety.
• Traffic Data Services: Verizon will provide the City traffic congestion and origin-destination insights for a mutually agreed upon set of routes totaling 30 directional miles and designed for ten origination zones and ten destination zones.
• City Resources: The City will take the necessary steps to allocate resources necessary to process Verizon’s estimated 25-site applications per week. The City will also identify a primary point of contact to assist Verizon with their applications.
• Per Pole Fee: The City will provide Verizon with a reduced attachment fee of $100 per pole, per year for a term of 20 years for up to 400 sites.
This matter was reviewed by Deputy City Attorney Linda T. Vu on December 3, 2018 and by Budget Analysis Officer Julissa José-Murray on December 5, 2018.
TIMING CONSIDERATIONS
City Council action is requested on December 18, 2018, to finalize negotiations and execute a Master License Agreement with Verizon in January 2019.
FISCAL IMPACT
The proposed annual lease is $100 per site for use of City-owned facilities in the public ROW, a discounted rate due to the amount of non-monetary benefits Verizon is providing. These benefits (fiber conduit, traffic data, digital inclusion) will provide cost savings to the City. The amount generated by the executed annual lease will depend on the total number of approved locations and is unknown at this time. Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER