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HomeMy WebLinkAbout5I Verizon Small Cell Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JULY 16, 2018 AGENDA #: 5I PREPARED BY: SARAH SCHWARZHOFF, CITY ATTORNEY AND NICK ZURBEY, PUBLIC WORKS TECHNICIAN PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A STANDARD SMALL WIRELESS FACILITY COLLOCATION AGREEMENT WITH VERIZON AND APPROVAL OF AN ORDINANCE AMENDING THE FEE SCHEDULE BY ESTABLISHING A SMALL CELL APPLICATION FEE. DISCUSSION: Introduction The purpose of this agenda item is to consider approval of an agreement that will allow Verizon to collocate small wireless antenna facilities (small cell) on certain City wireless support structures (e.g. light poles) located in the right of way (ROW). History The City and Verizon are parties to other antenna agreements for antenna located on City property (e.g. water towers). However, this is the first request to install small cell within the City’s ROW. The State legislature in early 2017 enacted a new law (located at Minn. Stat. 237.162-237.163) addressing placement of small cell antenna in the ROW. The Council adopted a new ROW ordinance in compliance with the new law last summer. This is the first agreement the City has considered for the placement of small cell in the ROW under the new regulations. Current Circumstances Verizon wishes to install several small cell antennas in the City of Prior Lake ROW . The City Attorney and City Staff have developed a standard form agreement to address small cell in the ROW in compliance with the new regulations. This form was used as the basis for negotiation with Verizon and will be used in the future as the basis for negotiation with any other users that desire to place small cell in the ROW. Verizon has executed the negotiated agreement. This agreement acts as a master agreement between the City and Verizon for all small cell sites in the ROW. Each small cell installation will be a separate supplement to the agreement. As this is the first agreement for small cell in the ROW, a new application fee must be established. City Staff recommends a fee of $1,500 which would be paid by an applicant prior to the master agreement being negotiated. Now that a form agreement has been established, City Staff expects the $1,500 to cover staff and attorney costs for negotiation of the small cell master agreement. ISSUES: New small cell technology mounts small antenna arrays at locations of high use or to fill gaps in coverage. Each site is backhauled from the small cell site via wire (fiber optic cable) to a wireless facility (e.g. a macro site like the water tower) to allow it access to the rest of the communications network. This is the City’s first experience with small cell technology. FINANCIAL IMPACT: An application fee will be paid by each user prior to negotiation of the small cell master agreement. As set forth in Minn. Stat. 237.163, Subd. 6 (g), Verizon shall pay to the City a base rent in the amount of $150.00 per year for each site plus a $25 maintenance fee per year for each site. Additionally, unless Verizon purchases electricity directly from a utility provider, the user shall pay to City an electricity fee of either: $876.00 per year for each radio node less than or equal to 100 max watts or $2,184.00 per year for each radio node over 100 max watts for each Site. The fee for electricity shall be paid annually along with the rent and maintenance payment. Verizon will also be required to acquire ROW permit for installation and for any major maintenance that may disrupt the ROW. ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve a resolution authorizing the Mayor and City Manager to execute a Standard Small Wireless Facility Collocation Agreement with Verizon and an ordinance establishing a small cell wireless application fee. 2. Motion and second to remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 18-___ A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A STANDARD SMALL WIRELESS FACILITY COLLOCATION AGREEMENT WITH VERIZON Motion By: Second By: WHEREAS, Various cellular companies have located their antennae equipment on City property and water towers; and WHEREAS, The public safety, health and welfare is served when cell phone coverage is uniform and unbroken; and WHEREAS, Verizon desires to install small wireless facilities collocated on City owned wireless support structures located within the right of way to improve network coverage in high use areas or in order to fill in gaps in coverage; and WHEREAS, The installations will be to the sole benefit of it’s customers and subscribers; and WHEREAS, The City Attorney and City Staff have developed an agreement; and WHEREAS, Verizon has executed said agreement. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council hereby approves the “Standard Small Wireless Facility Collocation Agreement” with Verizon. 3. The Mayor and City Manager are hereby authorized to execute the “Standard Small Wireless Facility Collocation Agreement” on behalf of the City. Passed and adopted by the Prior Lake City Council this 16th day of July 2018. VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager 4646 Dakota Street SE Prior Lake, MN 55372 CITY OF PRIOR LAKE ORDINANCE NO. 118-__ AN ORDINANCE OF THE CITY OF PRIOR LAKE, MINNESOTA, REVISING SECTION 113 OF THE PRIOR LAKE CITY CODE RELATING TO THE FEE SCHEDULE BY ESTABLISHING A FEE FOR SMALL WIRELESS FACILITY APPLICATIONS THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA, ORDAINS: Section 1. City Code Section 1113 is hereby amended by inserting the following new fee at the end of the “Permits” section of the City Fee Schedule: Small Wireless Facility Collocation Agreement Application Fee $1,500.00 Section 2. This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this 16th Day of July, 2018. ATTEST: _________________________ __________________________ Frank Boyles, City Manager Kirt Briggs, Mayor Published in the Prior Lake American on the 21st day of July 2018.