2018-038 Small Cell UpdateDate: March 30, 2018 Report No. 2018-038
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT: Update on Small Cellular Antennas
EXECUTIVE SUMMARY:
Council Member Briggs recently requested an update on the City of Denton’s effort in the small cellular antenna (small cell) technology implementation.
BACKGROUND:
According to the cellular industry, small cellular antennas (small cell or small nodes) are necessary
as consumers continue to migrate towards solely using cellular communications in their homes and businesses. The industry also claims that additional network coverage is necessary due to
public demand. This is also the technology strategy the cellular industry is using at is begins
deploying the new 5G technology.
The cellular industry lobbied for small cell technology legislation during the 85th Legislative Session. As a result, the Texas Legislature passed and Governor Abbott signed into law, Senate
Bill 1004 (codified as Texas Local Government Code, Chapter 284). The law was made effective
statewide on September 1, 2017.
The new law mandated that Texas cities follow certain requirements and methodologies to permit wireless companies to install small cellular nodes on new and existing utility poles within the
City’s right-of-way. The law has eroded the City’s ability to manage its right-of-way by
establishing the maximum fees cities can charge, the timing in which permits must be reviewed
and approved, and prohibited the ability to deny requests or place moratoriums on additional
device installations.
In anticipation of the law going into effect, the City Council approved on August, 22, 2017,
ordinance numbers 2017-042, 2017-043 (repealed by 2017-277), 2017-244, and 2017-245, that
locally codified the implementation of Chapter 284 of the Texas Local Government Code. To this
end, city staff within the CMO, City Attorney’s Office, Public Works Inspection, and DME have established processes, procedures, and criteria manuals to properly and safely implement the
requirements of the law.
To date, AT&T, Verizon Wireless, and Mobilitie have inquired and met with City staff about the
City’s permitting processes. A few applications have been submitted for review but have been rejected because of missing elements required by state law or did not comply with the City’s ordinances. As a result, no permits have been issued at this time. Staff continues to work with the
cellular providers to assist them through the application process.
As additional background material, the AIS, PowerPoint, and associated ordinances adopted on August 22, 2017, is included below.
Date: March 30, 2018 Report No. 2018-038
ATTACHMENT(S):
1. AIS - Small Cellular Antenna/Node dated August 22, 2017
2. PowerPoint presentation – Small Cell dated August 22, 2017
STAFF CONTACT:
Mario Canizares, City Manager’s Office
940-349-8235 Mario.Canizares@cityofdenton.com
City of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: City Manager’s Office
CM/ DCM/ ACM: Mario Canizares
DATE: August 22, 2017
SUBJECT
Consider adoption of an ordinance of the City of Denton adopting and approving a design manual in
accordance with Chapter. 284, Deployment of Network Nodes in Public Right-of-Way, Tex. Local Gov’t code; and providing an effective date.
BACKGROUND
In the 85th Legislative Session, the Texas Legislature passed and Governor Abbott signed into law, Senate
Bill 1004 (small cellular antennas or nodes). The new law goes into effect statewide on September 1, 2017. It is also a mandate for cities on the requirements and methodology to allow wireless telecommunication
companies to install small cellular nodes on new and existing utility poles within the City’s right-of-way.
The new law erodes the City’s ability to manage its right-of-way by establishing the maximum fees cities
can charge, the timing in which permits must be reviewed and approved, and prohibits the ability to deny
requests or place moratoriums on additional device installations.
According to the cellular industry the nodes are necessary as consumers continue to migrate towards solely
using cellular communications in their homes and businesses. To that end, the need for additional coverage
is necessary due to public demand. This is also a strategy for the telecom industry as it begins to rollout the
new 5G technology.
Based on the impending timing of the new law, cities across the state are working to establish the requisite
ordinances, design manuals, application forms, and in ternal review processes to be in com pliance by
September 1.
The following are highlights of the new law:
Mandates that network nodes and their support poles to be installed in the City’s right-of-way
o Includes the use of existing utility poles, tra ffic signal poles, and the installation of new
poles
o Restricts the installation of nodes on existing decorative poles
o Allows for some restrictions in historic and design districts (i.e. install decorative poles,
reasonable design and concealment restrictions)
o Sets height at a 55-foot maximum
Establishes permit requirements
o Generally required for a node, support pole, and transfer facility
o Up to 30 network nodes are allowed per permit
City Hall
215 E. McKinney Street Denton, Texas
www.cityofdenton.com
o Prohibits cities from issuing permits for routine maintenance, replacing or upgrading the existing node
Establishes time line (shot clock) on City’s permit approval process and Telecom’s installation
o Network node permit request: 30 days for the City to determine completeness; 60 days to approve or deny, and if not acted upon in this timeframe the permit is granted
o Node support pole permit: 30 days for the City to determ ine completeness; 150 days to
approve or deny, and if not acted upon in this timeframe the permit is granted
o Transfer facility: 10 days for the City to de termine completeness; 21 days to approve or deny, and if not acted upon in this timeframe the permit is granted
o If a perm it is denied f or being incom plete the applicant m ay resubmit a com pleted
application within 30 days; the City has 90 days to act on resubmitted applications
Establishes the fee structure:
Network Nodes:
o Application fee: $500 for up to five network nodes, $250 for each addition network node
on a permit
o Annual node site rental rate: $250 per node site, annual CPI adjustment is allowed
Node Support Poles:
o Application fee: $1,000 each pole
o Annual pole rental rate: $250 per pole site
Defines the restriction of node and pole installations by zoning districts
o Municipal parks that meet certain criteria
o Residential areas that meet certain criteria
o Historical districts that meet certain criteria
o Design districts that meet certain criteria
Allows for cities to establish a design manual
o The adopted design m anual would establish th e City’s design guidelines regarding the aesthetics of the nodes, the support poles, the nodes enclosure, and the camouflaging of the
electrical supply
Several City departments have been working together over the last several weeks to determine the best course of action. Based on the recommendations of staff a series of ordinances have been drafted to guide the implementation of this new legislation. This includes the fee ordinance, design manual and its
enabling ordinance, service pole license agreement, and municipality owned utility license agreement and
its enabling ordinance.
OPTIONS This new law is an unfunded m andate established by th e Texas Legislature and is set to go into effect
September 1, 2017. Unfortunately, there are minimal options available to consider.
RECOMMENDATION Consider approval of several ordinance related to SB 1004:
Fee ordinance,
Design manual and its enabling ordinance;
Service pole license agreement;
Municipality owned utility license agreement and its enabling ordinance
ESTIMATED SCHEDULE OF PROJECT Not applicable for this item
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
The information related to SB 1004 has been discussed and reviewed in work session for input with the
following City Boards and Commissions:
Planning & Zoning Commission: August 9, 2017
Public Utility Board: August 14, 2017
Historical Landmark Committee: August 14, 2017
FISCAL INFORMATION
At this early stage of the implementation for Senate Bill 1004 it is difficult to calculate the fiscal impact to
the City. The fees are set by the new state law. The revenues generated and expenditures incurred are all
contingent on the number of applications made by the cellular provider.
BID INFORMATION
Not applicable for this item.
STRATEGIC PLAN RELATIONSHIP The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Ke y Focus Areas (KFA): Organizational Excellence;
Public Infrastructure; Econom ic Development; Safe, Livable, and Fam ily-Friendly Community; and
Sustainability and Environmental Stewardship. Wh ile individual items may support multiple KFAs, this
specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Public Infrastructure
Related Goal: 1.1 Manage financial resources in a responsible manner
EXHIBITS 1. Agenda Information Sheet 2. Ordinance & Design manual
3. SB 1004 legislation
4. PowerPoint presentation
Respectf ully submitted:
Mario Canizares
Assistan t City Manager
Presentation regarding the Implementation of
Senate Bill 1004 (Small Cellular Antennas)
Denton City Council
August 22, 2017
Topics for Discussion:
•Purpose/Background of SB 1004 (small cell)
•Highlights of SB 1004
•Key provisions of the law
•Implementation Plan
Purpose/Background –Senate Bill 1004
•Authored by Senator Hancock in the 85th Legislative Session
•Signed by Governor Abbott in early June
•Establishes Chapter 284 of the Local Gov’t Code
•Goes into effect on September 1, 2017
•Allows the cellular industry to install small antennas/nodes
within the City’s rights-of-way
Purpose/Background –Senate Bill 1004
•Its purpose was to:
•Increase cellular network coverage across the state
•Update state law regarding new technologies
•Meet customer demand
•Easier rollout of new 5G technology and beyond
•Requires compliance by all cities
•One size fits all approach
•Baseline approval processes, timelines, and fees
•Including certain design elements
Purpose/Background –Senate Bill 1004
What does a small cell node look like?
Purpose/Background –Senate Bill 1004
Examples of what a small cell node looks like:
Purpose/Background –Senate Bill 1004
Examples of what a small cell node looks like:
Purpose/Background –Senate Bill 1004
Who are players in this field?
Highlights of SB 1004
Key Provisions of SB 1004; Chapter 284 LGC
•Mandates that small cell nodes and poles to be installed in the
City’s rights-of-way
•Includes use of existing utility and traffic poles
•Establishes City permit requirements
•Establishes time line (shot clock) for City approval
•Establishes maximum fee structure the City can charge
Highlights of SB 1004
Key Provisions of SB 1004; Chapter 284 LGC
Permit shot clock requirements:
Company files
application
City deadline to review
for completeness
If complete, City’s
deadline to approve or
deny application
Node (cell/antenna)Day 1 Maximum of 30 days
Day 31
Maximum of 60 days
Day 61
Transport facility Day 1 Maximum of 10 days
Day 11
Maximum of 21 days
Day 22
New Pole Day 1 Maximum of 30 days
Day 31
Maximum of 150 days
Day 151
Fee structure:
•$500 for up to 5 network nodes; $250 for each additional node
•Annual node site rental: $250 per node
•$1,000 for a new pole; $250 annual pole rental
•Monthly rental: $28 for each network transfer facility
Highlights of SB 1004
Small Cell Implementation -Process
Highlights of SB 1004
Key Provisions of SB 1004; Chapter 284 LGC
•Defines zoning restrictions of node and pole installations
•Municipal parks
•Residential areas
•Historical and Design districts
•Allows for certain design elements
•Maximum size of node; pole height
•Allows for enclosures and camouflaging of nodes and
support infrastructure
Highlights of SB 1004
Key Provisions of SB 1004; Chapter 284 LGC
Design elements:
City’s Implementation Plan
•Meetings with cell providers to understand their plans
•Drafting new ordinances
•Drafting design standards
•Drafting license and application forms
•Staff attending information sessions at NCTCOG
•Receiving/sharing information with other cities
City’s Implementation Plan
•Sent Informal Staff Report to City Council on July 28, 2017
•Presented to:
•Planning & Zoning Commission: August 9
•Public Utility Board: August 14
•Historic Landmark Commission: August 14
•Seeking approval of ordinance by City Council: August 22
•Post information on City website: August 23
•Begin receiving applications: September 1
Recommendation
That the City Council approve the following ordinances to
implement Senate Bill 1004
•Design Manual Ordinance
•Fee Ordinance
•Service Pole Agreement Ordinance
•MOU Pole Attachment Ordinance
In Conclusion
•SB 1004 goes into effect September 1, 2017
•Is very favorable to the cellular industry
•Requires that cities approve small cell deployments in the city’s
right-of-way
•All cities in Texas are affected
•It’s one size fits all
•This is a work in progress
•It directs the processes/methodology/pricing for cities
•Provides very limited options for regulating
Thank you
Any Questions?