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McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-560,Version:1 AGENDA CAPTION Receiveareport,holdadiscussion,andgivestaffdirectionregardingtheStokeDentonentrepreneurcenter’s firstyearofoperationsandtheManagementAgreementbetweentheCityofDentonandtheDallas Entrepreneur Center. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Economic Development CM/ DCM/ ACM: Bryan Langley DATE: August 22, 2017 SUBJECT Receive a report, hold a discussion, and give staff direction regarding the Stoke Denton entrepreneur Dallas Entrepreneur Center. BACKGROUND As an economic development program of the City of Denton, the goal of Stoke Denton is to foster a local business climate in which entrepreneurs can start and grow businesses, creating knowledge-based, higher- paying jobs in the community. Stoke Denton prioritizes the recruitment and support of tech and tech- enabled startups, though it is not exclusive to businesses in the tech sector. Stoke Denton, which is managed by the Dallas Entrepreneur Center (DEC), opened on August 1, 2016. In February 2017, Economic Development staff recommended amending the Management Agreement to establish baseline metrics for: number of events held/attendees number of visitors number of mentor sessions available/used number of entrepreneurs assisted Council adopted an ordinance with that amendment in March 2017 (Exhibit 7). The initial baseline numbers captured during the first yea can be used to set specific goals for year two, should Council choose to renew the Management Agreement with the DEC. To further evaluate the value of Stoke Denton as an economic development program, City staff has monitored: occupancy rate recruitment of tech-sector members business generation and growth member satisfaction Exhibits 2 and 3 were prepared by the DEC to report on both baseline metrics and the additional monitored items. The current Management Agreement with the DEC terminates on Sept. 30, 2017. Should the Council choose to renew the Management Agreement for FY 2017-18, staff recommends these changes: Add metrics based on Year 1 baseline: o Grow event attendees 15% over Year 1 o Increase the number of tours given (visitors) 5% over Year 1 o o Increase the number of jobs based out of Stoke Denton by 10% over Year 1 o Maintain a net promoter score of at least 9.0 (gauges member satisfaction) Add a clause regarding City funding of the Stoke director position PRIOR ACTION/REVIEW (Council, Boards, Commissions) February 21, 2017 Work session regarding Stoke Denton and amendments to the Management Agreement with the Dallas Entrepreneur Center March 21, 2017 Work session regarding amendments to the Management Agreement with the Dallas Entrepreneur Center March 28, 2017 Individual consideration of amendments to the Management Agreement with the Dallas Entrepreneur Center FISCAL INFORMATION In FY 2014-15, the Council chose to invest in a program (eventually known as Stoke Denton) to help entrepreneurs start, build, and grow their businesses by providing access to professional space to work and meet, educational programs, mentoring, and a supportive peer community. Over time, entrepreneurs would contributing to the tax base and creating higher-paying, knowledge-based jobs. While not producing direct revenue to the program, the underlying idea was that these businesses will become taxpayers and employers in Denton, thus offsetting some of the program costs. The DEC retains 90% of the membership fees generated by Stoke Denton and uses that revenue for marketing, promotion, event supplies, office supplies, member amenities, selling/general/administrative costs, and DEC headquarters and affiliate network support. The DEC remits the other 10% to the City quarterly. Exhibits 4 an Exhibit 6 provides details on actual and estimated revenue and expenditures since FY 2014-15, as well as the FY 2017-18 proposed budget for Stoke Denton. STRATEGIC PLAN RELATIONSHIP -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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: Economic Development Related Goal: 3.4 Encourage development, redevelopment, recruitment, and retention EXHIBITS Exhibit 1 AIS 17-561 Exhibit 2 Stoke Report 8/1/2016-8/1/2017 Exhibit 3 Stoke Report Presentation Exhibit 4 DEC Profit & Loss Statement 2016 Exhibit 5 Profit & Loss Year 1 Statement Stoke Exhibit 6 City Stoke Revenues and Expenditures Exhibit 7 Amended Management Agreement 2017-107 Exhibit 8 Presentation Respectfully submitted: Caroline Booth Director of Economic Development 8;/$<"##"&$=*> /? /*/! $@/*>/ $A8;/$<=@B 6CDEF8$G<$HDII ."*!" ,$9$<//JK/ $230L TOTAL INCOME 4000 Membership Dues 4005 DEC Affiliate Network40,000.00 4010 Dedicated Membership Services333,587.67 4015 3rd Floor Innovation Hub89,621.27 4025 Virtual Membership26,175.00 4030 Coworking Membership Services103,526.67 4035 Conference Room Sponsorships3,000.00 4040 Mail Service1,200.00 4065 Mentor Program Dues1,400.00 4070 Passport/The DEC2,522.58 4090 Parking Spot2,400.00 Total 4000 Membership Dues603,433.19 4200 Non Profit Income SWAG SALES286,460.16 4250 Denton Director16,250.00 4300 Educational Class Fees2,413.34 4400 Venue Rental Income23,930.95 4450 Sponsorships377,113.34 4455 Donations933.02 Total Income$1,310,534.00 GROSS PROFIT$1,310,534.00 EXPENSES 5000 Payroll Expenses 5010 Payroll Wages484,459.12 5020 Payroll Taxes - SocSecEr28,444.48 5030 Payroll Taxes - Medcare Er6,589.68 5040 Payroll Fees10,323.55 5050 Payroll Taxes - FUTA343.43 5060 Payroll Taxes - SUTA2,115.34 5070 Employee Benefits13,463.54 5080 ACA Fees376.96 5090 Workers Compensation955.75 Total 5000 Payroll Expenses547,071.85 6000 Rent or Lease 6001 Monthly Rent/Lease290,504.90 6002 Prorata Electric35,187.18 6003 Monthly Parking9,800.00 Total 6000 Rent or Lease335,492.08 6010 Denton Stoke 10% to City of Denton (deleted)997.07 6100 Dues & Subscriptions7,502.71 6200 Legal & Professional Fees31,356.51 6250 Professional Development843.93 6300 Advertising13,786.08  !"#$%"&'&$$()*+",-$.!*/$01-$2304$30522$6($7(894 $$0:2 TOTAL 6350 Sponsored Events8,932.85 6370 Sponsored Meals252.23 6400 Meals and Entertainment5,401.16 6410 Travel5,769.39 6500 Office Supplies Expenses14,385.78 6505 General Administrative Expenses11,623.15 6510 Computer Software & Hardware1,618.60 6511 Internet12,508.11 6512 Gas/Mileage/Parking267.53 6520 Stationery & Printing1,402.78 6600 Utilities 6620 Telephone2,346.17 Total 6600 Utilities2,346.17 6700 Repair & Maintenance2,400.40 6750 Insurance704.00 6800 Taxes & Licenses4,455.00 7000 Bank Charges31.64 7100 QuickBooks Payments Fees18,210.52 Website DELETE (deleted)1,500.00 Total Expenses$1,028,859.54 NET OPERATING INCOME$281,674.46 OTHER INCOME 8700 Reimbursed Expenses DELETE (deleted)-6,741.23 Total Other Income$ -6,741.23 NET OTHER INCOME$ -6,741.23 NET INCOME$274,933.23  !"#$%"&'&$$()*+",-$.!*/$01-$2304$30522$6($7(894 $$2:2 7#':!;;!"<).='>=')',= ').'=?7#':< @ ABCDE7F:GCHH ,-,"./+12/08,-,"./0+12/3 TOTAL INCOME 4000 Membership Dues 4010 Dedicated Membership Services70,620.38 4025 Virtual Membership3,225.00 4030 Coworking Membership Services18,229.94 4065 Mentor Program Dues300.00 Total 4000 Membership Dues92,375.32 4250 Denton Director48,750.00 4400 Venue Rental Income5,389.00 4450 Sponsorships1,600.00 Total Income$148,114.32 GROSS PROFIT$148,114.32 EXPENSES 5000 Payroll Expenses 5010 Payroll Wages32,346.16 5020 Payroll Taxes - SocSecEr1,068.34 5030 Payroll Taxes - Medcare Er249.85 5040 Payroll Fees990.26 5050 Payroll Taxes - FUTA42.00 5060 Payroll Taxes - SUTA243.00 5070 Employee Benefits1,443.66 5090 Workers Compensation64.09 Total 5000 Payroll Expenses36,447.36 6000 Rent or Lease 6005 Keys Deposit-210.00 Total 6000 Rent or Lease-210.00 6250 Professional Development150.00 6300 Advertising261.18 6350 Sponsored Events1,907.45 6400 Meals and Entertainment876.61 6500 Office Supplies Expenses853.85 6505 General Administrative Expenses2,394.07 6512 Gas/Mileage/Parking617.71 6700 Repair & Maintenance0.00 7150 10% Back to City of Denton5,938.28 Total Expenses$49,236.51 NET OPERATING INCOME$98,877.81 OTHER INCOME$380.00 NET OTHER INCOME$380.00 NET INCOME$99,257.81 !"#$!"%"&'()'"(!*+,-,"./0+12/3//4/3565783 /9/ City Stoke Revenues and Expenditures 2017-18 2014-15 2015-16 2016-17* Proposed ActualActualEstimateBudget RevenuesTotals wĻƓƷğƌ źƓĭƚƒĻ Ʒƚ /źƷǤ ΛŅƩƚƒ 59/Μυ Ώυ Ώυ БͲБББυ ЊЉͲЉЉЉυ ЊБͲБББ Subtotal Revenues υ Ώυ Ώυ БͲБББυ ЊЉͲЉЉЉυ ЊБͲБББ Expenditures .ǒźƌķźƓŭ wĻƓƷ ğƓķ ƷźƌźƷźĻƭυ Ώυ ΛЏЋͲАЎАΜυ ΛЊЍАͲЌЏЎΜυ ΛЊБЊͲВЏЋΜυ ΛЌВЋͲЉБЍΜ wĻƓƷğƌ {ƦğĭĻ LƒƦƩƚǝĻƒĻƓƷƭυ Ώυ ΛЊВЏͲЊЋЏΜυ ΛЊБͲБЌАΜυ ΛЋЊЍͲВЏЌΜ 59/ tĻƩƭƚƓƓĻƌ tğǤƒĻƓƷυ Ώυ ΛЍБͲАЎЉΜυ ΛЏЎͲЉЉЉΜυ ΛЊЊЌͲАЎЉΜ .ƩğƓķźƓŭΉağƩƉĻƷźƓŭυ ΛЋВͲЉЉЉΜυ ΛЎЊͲБАЎΜυ ΛВͲВЌБΜυ Ώυ ΛВЉͲБЊЌΜ hƷŷĻƩυ Ώυ ΛЊЌͲБЊЉΜυ ΛБͲЊЉЊΜυ ΛАͲЉЉЉΜ υ ΛЋБͲВЊЊΜ Subtotal Expenditures υ ΛЋВͲЉЉЉΜυ ΛЌЋЍͲЎЏБΜυ ΛЋЌЋͲВВЊΜυ ΛЋЎЌͲВЏЋΜυ ΛБЍЉͲЎЋЊΜ Net Revenue (Expenditures)υ ΛЋВͲЉЉЉΜυ ΛЌЋЍͲЎЏБΜυ ΛЋЋЍͲЊЉЌΜυ ΛЋЍЌͲВЏЋΜυ ΛБЋЊͲЏЌЌΜ *Expenses are projected through the end of the current fiscal year and include outstanding encumbrances. Management Agreement Economic Development August 22, 2017 Stoke Denton: Year 1 Operations and Caroline Booth year of operations and proposed changes to the Management Agreement with the Dallas Entrepreneur CenterReceive direction regarding the Management Agreement / 8 Objective: 2 paying jobs - based, higher - The Stoke Denton entrepreneur center is an economic development program of the City of Denton.Goal: Foster a local business climate in which entrepreneurs can start and grow businesses and create knowledgeMethod: Provide access to professional space to work and meet, educational programs, mentoring, and a supportive peer community / 8 Background 3 Number of events held/attendeesNumber of visitorsNumber of mentor sessions available/used Number of entrepreneurs assisted Stoke Denton opened on August 1, 2016, and is managed by the Dallas Entrepreneur Center (DEC).Council amended the Management Agreement with the DEC on March 2017. Changes included establishing baseline metrics for: / 8 Background 4 sector members - Occupancy rateRecruitment of techBusiness generation and growthMember satisfaction To further evaluate the value of Stoke Denton as an economic development program, City staff is monitoring: / 8 Background 5 Totals $ 18,888 $ 18,888 $ (392,084)$ (214,963)$ (113,750)$ (90,813)$ (28,911)$ (840,521)$ (821,633) - 18 - Budget 2017 Proposed $ 10,000 $ 10,000 $ (181,962)$ (65,000)$ $ (7,000)$ (253,962)$ (243,962) 17* - Estimate 2016 $ 8,888 $ 8,888 $ (147,365)$ (18,837)$ (48,750)$ (9,938)$ (8,101)$ (232,991)$ (224,103) -- 16 - Actual 2015 $ $ $ (62,757)$ (196,126)$ (51,875)$ (13,810)$ (324,568)$ (324,568) ------ 15 - Actual 2014 $ $ $ $ $ $ (29,000)$ $ (29,000)$ (29,000) Revenues Expenditures Net Revenue (Expenditures) City Stoke Revenues and Expenditures Rental income to City (from DEC)Subtotal RevenuesBuilding Rent and UtilitiesRental Space ImprovementsDEC Personnel PaymentBranding/MarketingOtherSubtotal Expenditures*Expenses are projected through the end of the current fiscal year and include outstanding encumbrances. / 8 Fiscal Information 6 Grow event attendees 15% over Year 1Increase the number of tours given (visitors) 5% over Year 1Increase the number of jobs based out of Stoke Denton by 10% over Year 1Maintain a net promotor score of at least 9.0 Add metrics based on Year 1 baseline:Add a clause regarding City funding of the Stoke director position Current agreement terminates on Sept. 30, 2017Staff recommends the following: / 8 Management Agreement 7 Caroline Booth Seeking direction regarding the Management Agreement with the Dallas Entrepreneur Center / 8 Direction: 8 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-793,Version:1 AGENDA CAPTION Receive a report, hold a discussion, and give staff direction regarding Williams Square. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Economic Development CM/ DCM/ ACM: Bryan Langley DATE: August 22, 2017 SUBJECT Receive a report, hold a discussion, and give staff direction regarding Williams Square. BACKGROUND The City bought Williams Square (Exhibit 2) in 1925 for $8,000. It has been a public parking lot since, and also was used on certain days for a farmers market until the 1960s. The City has leased parking spaces in Williams Square to Wells Fargo Bank (formerly First State Bank of Texas) for more than 30 years. Ordinance 2011-184 and the attached lease (Exhibit 3) state that Wells Fargo has the option to renew at the same rate for seven years. Wells Fargo leases 58 spaces (at one time the spaces were numbered, so the lease states numbers 1-58) at $17.50 per space per month for a total of $12,180, which is paid once a year. The lease was amended by Ordinance No. 2017-052 (Exhibit 4) in order to comply with federal banking regulation requirements. The City also has leased parking spaces to Denton County for more than 30 years. They County currently leases 15 spaces, but no specific location is identified. The rate is the same, $17.50 per space per month, for a total of $3,150; payment is made monthly. Ordinance 2011-183 and the attached lease (Exhibit 5) state that the County has the option to renew at the same rate for seven years. In a letter (Exhibit 6) dated Aug. 8, 2017, Denton County Judge Mary Horn notified the City that Denton County will not be renewing the lease after Sept. 30, 2017. In 2005, the City leased 27 parking spaces in Williams Square to Denton County Transportation Authority (DCTA) for bus service while work was being completed on the Euline Brock Downtown Denton Transit Center. DCTA paid $17.50 per space per month for an annual total of $5,670. DCTA used the spaces through the spring of 2011. In 2013, the City leased 1,089 square feet of land between Williams Square and Rusty Taco to VOW 210 Hickory Partners to construct a patio. Ordinance No. 2013-009 and the attached lease (Exhibit 7) stated that the first payment of $3,267 would be due in 2013. The next payment, which was paid in February 2016, was adjusted on the basis of the then-current United States Consumer Price Index for all urban consumers for the Dallas-Fort Worth Bureau of Labor Statistics. The payment was $1,112 and will remain that amount until it is again adjusted in 2019 per the lease. The lease terminates in 2023. Occasionally, the City leases the parking lot to festivals and events (35 Denton, Day of the Dead, Oaktopia, etc.). The rates are: Half day (six hours) $50 Full day (twelve hours) $100 24 hours $150 Multi-day (maximum four days) $450 In May 2017, Jack Bell Properties completed the purchase of the four parcels associated with the Wells Fargo Bank building at 101 S. Locust St.: the tower/bank lobby, the ATM lot, and two parking lots, one of which adjoins Williams Square. Jack Bell Properties is interested in a long-term land lease of Williams Square from the City for the purpose of constructing a parking structure to serve the Wells Fargo redevelopment project and provide public parking. During a May 9, 2017, work session on the project, Square. LEGAL INFORMATION Please see your Legal Status Report dated August 18, 2017. FISCAL INFORMATION Please see Exhibit 8 for information regarding revenue from Williams Square. STRATEGIC PLAN RELATIONSHIP action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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: Economic Development Related Goal: 3.3 Promote a business-friendly environment EXHIBITS Exhibit 1 Agenda Information Sheet 17-793 Exhibit 2 Map of Williams Square Exhibit 3 Wells Fargo Lease Exhibit 4 First Amendment to Wells Fargo Lease Exhibit 5 Denton County Lease Exhibit 6 Nonrenewal Letter from Denton County Exhibit 7 Rusty Taco Lease Exhibit 8 Williams Square Parking Revenue FY 2006-2007 to FY 2015-2016 Exhibit 9 Presentation Respectfully submitted: Caroline Booth Director of Economic Development Prepared by: Julie Glover Downtown Program Administrator Williams Trade Square Parking Lot Boundary of City owned Williams Trade Square 06/13/17 MARY HORN Denton County Judge August 8, 2017 Todd Hileman, City Manager City of Denton 215 E. McKinney Denton, TX 76201 RE: Parking Permits and Williams Square Parking agreement for FY2018 It is my understanding from Commission Andy Eads that the City of Denton has agreed to the Denton County Commissioners Court request to provide staff and elected official parking permits without a reciprocal agreement of payment for parking spaces at Williams Trade Square. As a result, plnotice to end the lease agreement between the City of Denton and Denton County effective 09/30/2017, as the county will not renew its option for renewal in years six and seven of the original lease approved on October 4, 2011, under Court Order #11-0784; instead, the city will provide numbered parking permits to be used by staff and elected officials to utilize on-street parking around the Courthouse-on-the- Square. The permits for on-street parking expiring on December 31, 2017 will continue to be maintained by Denton County As we have done in the past, my staff will request new parking permits in January 2018 and will provide a list of numbered permits in use to Mrs. Julie Glover, Economic Development Program Administrator for the City of Denton, to forward to City of Denton Police Department Parking Enforcement. Thank you for your help in resolving this issue. If you have any questions, please feel free to call me at 940-349-2820. Sincerely, Mary Horn Denton County Judge cc: Julie Glover, Economic Development Program Administrator County District Attorney, Civil Division Courthouse-on-the- (940) 349-- - 3,1501,112 12,180 ЊЏͲЍЍЋ ЋЉЊЎΏЊЏ $ υ - - 3,150 12,180 ЊЎͲЌЌЉ ЋЉЊЍΏЊЎ $ υ - - 3,150 12,180 ЊЎͲЌЌЉ ЋЉЊЌΏЊЍ $ υ - 3,150 3,267 12,180 ЊБͲЎВА ЋЉЊЋΏЊЌ $ υ - - 3,150 12,180 ЊЎͲЌЌЉ ЋЉЊЊΏЊЋ $ υ - 945 3,150 12,180 ЊЏͲЋАЎ ЋЉЊЉΏЊЊ $ υ - 3,150 5,670 12,180 ЋЊͲЉЉЉ ЋЉЉВΏЊЉ ‘źƌƌźğƒƭ {ƨǒğƩĻ tğƩƉźƓŭ wĻǝĻƓǒĻ $ υ - 3,150 5,670 ЋЉЉБΏВ 12,180 ЋЊͲЉЉЉ $ υ - 3,150 5,670 ЋЉЉАΏБ 12,180 ЋЊͲЉЉЉ $ υ - 3,150 5,670 ЋЉЉЏΏА 12,180 ЋЊͲЉЉЉ $ υ C— ƚƷğƌ Wells FargoDenton CountyRusty TacoDCTA Williams Square Economic Development August 22, 2017 Caroline Booth Present information about the current uses and possible future uses of Williams SquareReceive direction regarding potential uses of Williams Square 6 / Objective: 2 Purchased by the City in 1925Used as a public parking lot since that time 6 / Background 3 - 58 spaces to Wells Fargo Bank ($17.50/space/month; terminates in 2018)15 spaces to Denton County ($17.50/space/month; terminates Sept. 30, 2017)1,089 square feet of land to Rusty Taco for a patio (adjustable rate, currently $1,112/year; terminates in 2023)Space for festivals and events (variable rates from a halfday to a maximum of four days) The City leases the following in Williams Square: 6 / Current Uses 4 term - In May 2017, Jack Bell Properties purchased the four parcels associated with the Wells Fargo Bank BuildingJack Bell Properties is interested in a longlease of Williams Trade Square from the City to construct a parking garage to serve the Wells Fargo redevelopment project and provide public parkingCity Legal and outside counsel concur that the City has the ability to enter into such a lease 6 / Potential Uses 5 Caroline Booth Seeking direction on potential uses of Williams Trade Square 6 / Direction: 6 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-979,Version:1 AGENDA CAPTION Receiveareport;holdadiscussion,andgivestaffdirectionregardingtheFY2017-18CityManager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Finance DCM: Bryan Langley DATE: August 22, 2017 SUBJECT Receive a report; hold a discussion, and give staff direction regarding the FY 2017-18 Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. BACKGROUND The FY 2017-18 City provided the City Council with a comprehensive overview of the proposed budget at a Budget Work Session on August 3, 2017 and has continued discussions during subsequent work sessions. The purpose of this agenda item is to allow an additional opportunity for questions and dialogue regarding the FY 2017-18 Proposed Budget. Below is the schedule we will follow to adopt the budget and tax rate: nd September 12 2 Public Hearing on Tax Rate Public Hearing on Proposed Budget September 19 City Council Adopts Budget and Tax Rate I look forward to discussing the budget materials in detail with you. If you have any questions, or need additional information, please let me know. STRATEGIC PLAN RELATIONSHIP -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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: Organizational Excellence Related Goal: 1.1 Manage financial resources in a responsible manner EXHIBITS Exhibit 1 Agenda Information Sheet Exhibit 2 PowerPoint Presentation Respectfully submitted: Chuck Springer, 940-349-8260 Director of Finance 18 Budget Discussions - FY 2017 2 combining into projection General Fund Police Academy Special Revenue Fund General FundCurrent Budgetary Work Session 3 Current General Fund Projection Questions? City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1096,Version:1 AGENDA CAPTION Receiveareport,holdadiscussion,andgivestaffdirectionontheCityCouncilEmployeeBenefitsAdHoc Committee recommendations for vacation and sick leave changes. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com AGENDA INFORMATION SHEET DEPARTMENT: Human Resources CM/ DCM/ ACM: Bryan Langley DATE: August 22, 2017 SUBJECT Receive a report, hold a discussion, and give staff direction on the City Council Employee Benefits Ad Hoc Committee recommendations for vacation and sick leave changes. BACKGROUND On February 14, 2017, at the request of Council, staff presented information on the City of Denton’s vacation and sick leave benefits (reference Exhibit 2 for a summary chart of the current vacation and sick leave benefits). As part of the presentation, staff provided information about how the City of Denton’s vacation and sick leave benefits compare to other DFW metroplex cities (reference Exhibit 3). The survey results revealed that Denton’s vacation benefits were more generous while the sick leave benefits were less generous. During that meeting, the Council discussed putting together an ad hoc Council Committee (“Committee”) to review the vacation and sick benefits in greater detail and make recommendations to the Council on any changes they think need to be made to be better aligned with the metroplex cities. The establishment of the “City Council Employee Leave Committee” was approved through resolution 2017- 007 on March 7, 2017. Kathleen Wazny, Sara Bagheri, and Keely Briggs were selected to serve on the Committee. Since that time, the following activities have taken place that have led to the recommendations of the Committee, which are outlined below in this report. March 24, 2017 – the Committee met to begin discussions about the vacation and sick leave benefits. During that meeting, the Committee recognized the need and value of being able to review and discuss other City of Denton benefits. April 11, 2017 - Councilmember Wazny, chair of the Committee, requested during the Council meeting that the scope of the Committee be expanded to include review of all City of Denton employee benefits, not just vacation and sick leave. April 18, 2017 - Resolution 2017-014 was approved, which amended resolution 2017-007 to expand the scope of the Committee. The title of the Committee was changed to “City Council Employee Benefits Committee.” The resolution included language to dissolve the Committee on May 16, 2017. April 27, 2017 – the Committee met for a second time to continue its discussions on vacation and sick leave benefits. During this meeting, the Committee also began discussing the health insurance benefits. The Committee asked the Human Resources staff members to seek input from employees for the Committee to consider before making a final recommendation to the City Council. May 16, 2017 – Human Resources (HR) staff met with the Employee Insurance Committee (EIC) to discuss the options the Committee was considering for vacation and sick leave benefit changes (note: these options were sent to the Council in an Informal Staff Report in May of 2017; reference Exhibit 4). During that meeting, possible changes to health insurance benefits and the cost associated with those changes were also shared. The HR staff requested EIC members to seek feedback from employees in the departments whom they represent to determine which options would be best supported. June 9, 2017 – Employee feedback from EIC members was due to HR. In General, employees were opposed to changes in the benefit structure. If changes were going to be made, however, employees were most agreeable to capping bonus time after 20 years and reducing the carryover and payouts identified as option 3 for the committee June 27, 2017 – Resolution 2017-024 was approved which re-established the ad hoc Committee. The Committee consisted of Sara Bagheri, Keely Briggs, and John Ryan. July 10, 2017 – the Committee met to review the feedback results from employees that the HR staff compiled (reference Exhibit 5) and to further discuss options for changes to vacation and sick leave benefits. During this meeting, the Committee made the recommendations outlined below. The recommendations below show information for regular, full-time employees only. If Council wishes to implement, benefits for ½ and ¾-time employees would have to be calculated. VACATION 1.In addition to the monthly vacation accrual, the City provides 4 hours of bonus time to all regular full-time employees (6 hours for Fire civil service employees) for each year of service beginning on th the 5anniversary date (e.g., 5 years = 4 hours, 6 years = 8 hours, 7 years = 12 hours, etc.). Note: benefits for Fire civil service employees are different because the City uses 12-hour days to calculate their benefits versus 8-hour days used for all other full-time employees. Instead of unlimited bonus time, the Committee is recommending capping bonus time at 20 years of service. This would result in the maximum bonus accrual of 60 hours for non-civil service and Police civil service employees and 90 hours for Fire civil service employees. Exhibit 6 shows a comparison of current versus proposed vacation accrual, including bonus time, by years of service. The Committee wanted to have a phased implementation. On January 1, 2018, the bonus time would be changed from 4 hours to 2 hours beyond 20 years (for Fire civil service employees, bonus time would be changed from 6 hours to 3 hours), then on January 1, 2019, the bonus hours would be removed altogether beyond 20 years. 2.The City allows vacation hours to be carried over on an employee’s anniversary date. The carryover hours are equivalent to the employee’s accrued hours, not to exceed 320 hours (480 hours for Fire civil service employees). The Committee is recommending bifurcating the carry-over hours based on years of service. There would be no change for employees with 10+ years of service with the City. Employees with 10 years of service or less would have carry-over hours changed from 320 hours to 240 hours (for Fire civil service employees, the hours would be changed from 480 to 360). Again, the Committee wanted to have a phased implementation, so on January 1, 2018, the hours would be changed to 280 (420 for Fire civil service employee). Effective January 1, 2019, the hours would be changed to 240 (360 for Fire civil service employees). 3.The City currently pays out accrued vacation hours to an employee leaving the City, not to exceed 320 hours (480 hours for Fire civil service employees) as long as he/she has been employed at least six months, has not been terminated for gross misconduct, and has returned all City property on or before issuance of the employee’s final pay check. The Committee is recommending changing the payout for employees leaving the City from a maximum of 320 hours to a maximum of 240 hours (Fire civil service employees would be changed from a maximum of 480 hours to a maximum of 360 hours). Again, the Committee wanted to have a phased implementation, so on January 1, 2018, the hours would be changed to a maximum of 280 (maximum of 420 hours for Fire civil service employees). Effective January 1, 2019, the hours would be changed to a maximum of 240 (maximum of 360 hours for Fire civil service employees). SICK 1.Non-civil service employees currently accrue 8 hours of sick leave per month, with a maximum accrual of 720 hours. There is no pay out for sick leave to non-civil service employees when they leave employment with the City of Denton. Police civil service employees accrue 10 hours per month, with a maximum accrual of 720 hours. Fire civil service employees accrue 15 hours per month, with a maximum of 1,080 hours. Police and Fire civil service employees are paid accrued sick hours, up to 90 days, as required by Chapter 143 of the Texas Local Government Code. The Committee is recommending increasing sick accrual from 8 hours per month to 10 hours per month for non-civil service employees. This would equate to 15 days per year, which is equivalent to what Police and Fire civil service employees currently receive. There would be no change in sick benefits for civil service employees. 2.There would be no change in the maximum accrual amounts. 3.There would be no change in the payout amounts. Exhibit 2 shows a comparison of the City’s current vacation and sick leave benefits to the proposed changes outlined above. During the August 22, 2017, City Council meeting, staff will be seeking direction from the full Council as to whether or not to implement the recommended changes to vacation and sick leave benefits made by the Committee. If directed to implement, staff will revise the associated policies and include them on a future Council agenda for approval. As far as health insurance, the Committee decided it would be best to let the Council discuss their desired funding level (City portion) yearly during budget discussions instead of looking at the specific plan design options. Once funding was established by Council, staff could determine if changes needed to be made to the plan design. 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 Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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: Organizational Excellence Related Goal: 1.1 Manage financial resources in a responsible manner EXHIBITS Exhibit 1 - Agenda Information Sheet Exhibit 2 - Vacation and Sick Benefits Summary and Recommended Changes by Council Ad Hoc Committee Exhibit 3 – Survey of DFW Metroplex Cities’ Vacation and Sick Leave Benefits Exhibit 4 – May 2017 Informal Staff Report – Ad Hoc Committee Update Exhibit 5- Compilation of Employee Feedback Exhibit 6 – Comparison of Current versus Proposed Vacation Accrual by Years of Service Respectfully submitted: Carla Romine Director of Human Resources Effective Date N/A1/1/18 for new employees; for existing employees, we would have a phased implementation. The bonus time beginning on 1/1/18 would be decreased to 2 hours (3 hours for Fire civil service employees) for years beyond 20; then be removed altogether 1/1/19 for years beyond 20.1/1/18 for new employees; for existing employees, we would have a phased implementation. The carryover for 0 - 10 years would be 280 hours beginning 1/1/18, then would be 240 beginning 1/1/19 (for Fire civil service employees, would be 420 hours beginning 1/1/18, then would be 360 hours beginning 1/1/19).1/1/18 for new employees; for existing employees, we would have a phased implementation. Beginning 1/1/18, employees would be paid up to 280 accrued hours, and on 1/1/19, they would be paid up to 240 accrued hours for Fire civll service employees, would be 420 hours beginning 1/1/18, then 360 hours beginning 1/1/19).1/1/18 for new as well as existing employeesN/AN/A Shift** Fire Civil Service Employees Working No changeCap at 20 years, so the maximum bonus time is 90 hours0 - 10 years = 360 hours 10+ years = 480 hoursAccrued hours up to 360 hoursNo changeNo changeNo change RECOMMENDED CHANGES BY COUNCIL AD HOC COMMITTEE 40 hours** Police Civil Service Employees Working and Fire Civil Service No changeCap at 20 years, so the maximum bonus time is 60 hours0 - 10 years = 240 hours 10+ years = 320 hoursAccrued hours up to 240 hoursNo changeNo changeNo change City of Denton Employees* Non-Civil Service No changeCap at 20 years, so the maximum bonus time is 60 hours0 - 10 years = 240 hours 10+ years = 320 hoursAccrued hours up to 240 hours10 hoursNo changeNo change Shift** Fire Civil Service Employees Working 15 hours6 hours for each year of service, beginning on the fifth anniversary 480 hoursAccrued hours up to 480 hours15 hoursUnlimited Accrued hours up to 1,080 hours Vacation and Sick Benefits Summary and Recommended Changes by Council Ad Hoc Committee 40 hours** Police Civil Service CURRENT BENEFITS Employees Working and Fire Civil Service 10 hours4 hours for each year of service, beginning on the fifth anniversary 320 hoursAccrued hours up to 320 hours10 hours Unlimited Accrued hours up to 720 hours Employees* Non-Civil Service 10 hours4 hours for each year of service, beginning on the fifth anniversary 320 hoursAccrued hours up to 320 hours8 hours720 hoursnone^^ Benefit VACATION Monthly AccrualBonus Accrual Maximum Annual Carry OverPay Out Upon Termination^SICK LEAVE Monthly AccrualMaximum Annual AccrualPay Out Upon Termination* Benefits presented in this chart are for regular, full-time employees. Regular 1/2 time and 3/4 employees receive prorated benefits.**Many of the sick and vacation benefits are mandated by Chapter 143 of the Texas Local Government Code. The mandated benefits per statute are highlighted in yellow.^Pay out upon termination is only allowed if the employee has completed 6 months of employment, has not been terminated for gross misconduct, and has returned all City property on or before issuance of the employee's final pay check.^^Exeption: per policy 111.01, employees who die while in service of the City or while on authorized military leave of absence shall be paid for all unused sick leave not to exceed 90 working days. accrued p to the maximum Employees any unused accrued p to 240 hour accrued hours General Hours Paid When Employee Leaves onths to 5 years of service = up to After 6 months, any unused hoursHired on or before 1/1/2011 with 5 years of service = up to 288 hours Hired on or before 1/1/2011 with 6 m160 hours Hired after 1/1/2011 with 6 months of service = up to 120 hoursAfter 1 year, uAfter 6 months, hoursUp to 320 hoursAfter 6 months, uallowable accrualAfter 1 year, up to 2 times annual accrualAny unused After 1 year, up to 160 hoursAfter 5 years, up to 480 hoursAfter 6 months of employment, up to 320 hours time, - Full depending on , , depending on years of 320 hours 400 hours, depending on hours hours, depending on years of 160 Maximum Carry Over Hours or , 240, or , 320 or 240 hours Executive employees receive 480 hours288 hours240 hours160 hours120 service192 to 352 service160years of service300 hours240years of service480 hours320 hours on years of anniversary th Vacation Accrual hours, depending on years of Annual 60 to 160 hours, depending on years of 4 80 to 1service Executive employees receive 160 hours8service120 to 160 hours, depending on years of service80 to 160 hours, depending on years of service96 to 160 hours, depending on years of service96 to 176 hours, depending on years of service80 to 160 hours, depending on years of service80 to 200 hours, depending on years of service80 to 200 hours, depending on years of service120 to 192 hours, dependingservice120 hours, plus 4 additional hours each year beginning on 5 City VACATION ArlingtonCarrolltonFriscoGarlandGrand PrairieIrvingLewisvilleMcKinneyMesquitePlanoDenton accrued Employees ny unused any unused accrued any unused accrued p to 240 hoursp to 360 hours shift) and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour(24 hour shift)(24 hour shift)(24 hour shift) Hours Paid When Employee Leaves Police and Fire After 6 months, ahoursPoliceAfter 6 months, up to 288 hours FireAfter 6 months, up to 432 hoursPoliceAfter 1 year, u FireAfter 1 year, uPoliceAfter 6 months, hours FireAfter 6 months, hoursPoliceUp to 320 hours FireUp to 480 hours , depending on years of hours, depending on years of hours 160 hours, depending on years of and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift Maximum Carry Over Hours (24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift) to 320 hourshoursoror 240 Police240 service Fire360 to 480 hours, depending on years of servicePolice288 hours Fire432 hoursPolice240 Fire360 hoursPolice160 Fire240 hoursPolice120service Fire180 service Vacation Accrual rs, depending on years of hou Annual 160 240 hours, depending on years of and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift)to 240 hours, depending on years of (24 hour shift) oror Police120 to 160 hours, depending on years of service Fire180 to 240 hours, depending on years of servicePolice120service Fire180 servicePolice120 to 160 hours, depending on years of service Fire180 to 240 hours, depending on years of servicePolice120 to 160 hours, depending on years of service Fire180 servicePolice96 to 160 hours, depending on years of service Fire144 to 240 hours, depending on years of service * * City * VACATION ArlingtonCarrolltonFriscoGarlandGrand Prairie accrualaccrual annual annual p to maximum p to maximum accrued hours ths, u years, up to 480 hours and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift) Hours Paid When Employee Leaves PoliceAfter 6 monallowable accrual FireAfter 6 months, uallowable accrualPoliceAfter 1 year, up to 2 X FireAfter 1 year, up to 2 X PoliceAny unused FireAny unused accrued hours PoliceAfter 1 year, up to 160 hours FireAfter 1 year, up to 240 hoursPoliceAfter 5 FireAfter 5 years, up to 720 hours 400 hours, depending on 320 hours, depending on years of 480 hours, depending on years of and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift Maximum Carry Over Hours (24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift) oror , 320, or Police240 to 352 hours, depending on years of service Fire360 to 528 hours, depending on years of servicePolice240 service Fire360 servicePolice300 hours Fire450 hours240years of servicePolice480 hours Fire720 hours Vacation Accrual hours, depending on years of hours, depending on years of 60 Annual 1 240 288 hours, depending on years of and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift)to oror Police120 to 176 hours, depending on years of service Fire180 to 264 hours, depending on years of servicePolice120 service Fire180 servicePolice120 to 200 hours, depending on years of service Fire180 to 300 hours, depending on years of servicePolice120 to 200 hours, depending on years of service Fire180 to 300 hours, depending on years of servicePolice120 to 192 hours, depending on years of service Fire180service * City ** IrvingLewisvilleMcKinneyMesquitePlano Leaves Hours Paid When Employee (24 hour shift) Maximum Carry Over Hours PoliceAfter 6 months, up to 320 hours FireAfter 1 year, up to 480 hours and Fire, 40 hour shift (24 hour shift) Police320 hours Fire480 hours Vacation Accrual Annual additional beginning on 6 and Fire, 40 hour shift anniversaryanniversary thth Police120 hours, plus 4 additional hours each year 5 Fire (24 hour shift)180 hours, plus hours each year beginning on 5 * City Denton *Chapter 143 Civil Service City l l to g a r d okin e f r n , up z i io d r i e w a hop 0 hil with 5 t 9 hours e sick leave wu 0 b d a e l l n 720 hours di a o 960 cee o x sh e e h e p to 160 hours hil up to 432 hoursup to 588 hoursup to 720 hours w o c t up to 300 hours s n w t e Employees r o ee o n y bs a o p to 240 hour e l ty i f v C o ea mp e e l e s = none paid v pay 50%, pays 60%, pays 70%, pays 80%, k r th = up to 960 hours c f ea l si o General years = 2/3 of unused d e ry e c a 3 yea5 years = 1/3 of unused sick leave6 5 years = none paid s viit ly Hours Paid When Employee Leaves i nusa er Retirees Hired on or before 1/1/201years of service = up to Hired after 1/1/2010 = none paidAfter 1 year, uNone paidNone paidNone paidAny accrued time over 240 hours720 hoursIf worked for City a minimum of 5 consecutive years, u0 3 5 6+ years = up to 90 days0 5 years = 6 years = 7 years = 8 years = 9 years = pay 90%, up to 10+ years = pays 100%, not to exceed 720 hoursNone paid Exception: smud time, - Full Accrual Maximum 200 hours600 hours ,, 1No limitNo limit40 to 160 hours, depending on years of serviceNo limitNo limit1No limitNo limitNo limit720 hours Accrual Sick , depending on years of Annual hours (11.37 hours per month) or 120 hoursto 160 hours, depending on years of 4 120 hours8service96 hours40service120 hours 120 hours120 hours136120 hours120 hours 96 hours City SICK ArlingtonCarrolltonFriscoGarlandGrand PrairieIrvingLewisvilleMcKinneyMesquitePlanoDenton p to 240 hoursp to 360 hours ours and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift) Hours Paid When Employee Leaves Police and Fire Employees PoliceRetirees = up to 960 hours FireRetirees = up to 1,440 hoursPoliceAfter 1 year, up to 960 hours FireAfter 1 year, up to 1,440 hoursPoliceAfter 1 year, u FireAfter 1 year, uPoliceUp to 720 hours FireUp to 1,080 hPoliceUp to 720 hours FireUp to 1,080 hours Accrual Maximum and Fire, 40 hour shift (24 hours shift) Police1,200 hours Fire1,800 hoursNo limitNo limitNo limitNo limit Accrual Sick Annual and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift hours(24 hour shift)hours(24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift) Police120 Fire180 Police120 hours Fire180 hoursPolice96 hours Fire144 hoursPolice120 hours Fire180 hoursPolice120 hours Fire180 hours * City SICK ArlingtonCarrolltonFriscoGarland*Grand Prairie* (up to a (up to a hours, up , if eligible to , if eligible to Employee Leaves and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift)(24 hour shift) il Service employees are eligible for Hours Paid When PoliceUp to 720 hours Civil Service employees are eligible for additional pay upon separationmaximum of 2,500 hours)retire, and if they have at least 500 additional hours in excess of 720 hours; pay is equivalent to a percentage of the accrued FireUp to 1,080 hours Civadditional pay upon separationmaximum of 2,500 hours)retire, and if they have accrued at least 750 additional hours in excess of 1,080 hours; pay is equivalent to a percentage of the employeebased on hours accruedPoliceAny accrued hours over 240 to 720 hours FireAny accrued hours over 360 hours, up to 1,080 hoursPoliceIf worked for City a minimum of 5 consecutive years, up to 160 hours FireIf worked for City a minimum of 5 consecutive years, up to 240 hours Maximum Accrual and Fire, 40 hour shift (24 hour shift) No limitPolice1,600 hours Fire2,400 hoursNo limit Sick Accrual Annual and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift)(24 hour shift) Police120 hours Fire180 hoursPolice120 hours Fire180 hoursPolice136 hours (11.37 hours per month) Fire184 hours (15.4 hours per month) City Irving*LewisvilleMcKinney Employee Leaves hours and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift) Hours Paid When PoliceUp to 720 hours FireUp to 1,080 hoursPoliceUp to 720 FireUp to 1,080 hoursPoliceUp to 720 hours Fire (24 hour shift)Up to 1,080 hours Maximum Accrual No limitNo limitNo limit Sick Accrual Annual and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift) 0 hours 2 Police120 hours Fire180 hours Police1 Fire180 hoursPolice120 hours Fire (24 hour shift)180 hours City * Mesquite*Plano*Denton *Chapter 143 Civil Service City Date: May 5, 2017 Report No. 2017-030 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: City Council Employee Benefits Ad Hoc Committee Update EXECUTIVE SUMMARY: The City Council Employee Benefits Ad Hoc Committee has had two meetings to date: March 24, 2017, and April 27, 2017. They have reviewed and discussed the vacation and sick benefits as well as health insurance. They are interested in making changes to these benefits to align them more with other DFW metroplex cities. Staff has provided the Committee with a couple of change options to vacation accruals, vacation carry-over and payout, and sick leave accruals. Before making a final recommendation to Council, the Committee has asked the staff to seek input from an employee committee. Once the Committee is prepared to make a final recommendation, a presentation will be made to the full Council. BACKGROUND: On February 14, 2017, at the request of Council, staff presented information on the City of an ad hoc Council Committee to review the vacation and sick benefits further and make recommendations to the Council on any changes they think need to be made. The establishment of the ad hoc Committee was approved through resolution 2017-007 on March 7, 2017. Kathleen Wazny, Sara Bagheri, and Keely Briggs serve on the committee. At the April 11, 2017, City Council meeting, Councilmember Wazny, chair of the Committee, requested the scope of the Committee be expanded to include review of all City of Denton employee benefits, not just vacation and sick leave. The Council agreed and resolution 2017-007 was amended (reference resolution 2017-014). The Committee met on March 24, 2017, to begin discussions on the vacation and sick benefits. The Committee met again on April 27, 2017, to continue its discussions on vacation and sick benefits. During this meeting, the Committee also began discussing the health insurance benefits. DISCUSSION: The Committee expressed interest in ensuring City of Denton employee benefits are more in line with other DFW metroplex cities. When comparing our benefits to other cities, it is clear that we are more generous in some cases (as with vacation and some aspects of our health insurance) and less generous (as with sick leave) in others. The Committee has been considering decreasing the vacation benefits but increasing the sick leave benefits. Attached are some options they have been discussing. No considerations have been made for health insurance. Staff suggested that instead of Date: May 5, 2017 Report No. 2017-030 making specific recommendations on the health insurance benefit provisions (e.g., deductibles, co- insurance, copays, plan design, etc), it might be better for Council to provide information on their comfort level for the amount that is budgeted each year to cover any rising health insurance costs (currently 6% is included in the budget). Staff could then determine changes that should be made, with the input from the Employee Insurance Committee (EIC) to ensure we were within budget. Staff has been utilizing the EIC to determine changes to the health insurance benefits for years now. The EIC includes approximately 30 employees representing all departments. The Committee thought that was a good idea. As the Committee is considering its recommendations for changes to any benefits, they wanted to have an employee committee weigh in on the discussion. Staff suggested utilizing the EIC, which will be meeting on May 16, 2017, to discuss vacation and sick leave benefits as well as health insurance. During this meeting, the options that the ad hoc committee have been reviewing will be shared with them. These options are attached to this informal staff report. They will be asked to seek input from employees in the departments they are representing to determine which options would be best supported. Staff anticipates compiling this feedback by the first part of June to share with the ad hoc committee, and eventually, the entire Council. CONCLUSION: After receiving input from the employee committee, the Committee will make its final recommendations. These recommendations will be presented to the full Council in the near future. ATTACHMENTS: Exhibit 1 Vacation and Sick Benefit Change Options STAFF CONTACT: Carla Romine, Director of Human Resources 940-349-8344 Date: May 5, 2017 Report No. 2017-030 Exhibit 1 Date: May 5, 2017 Report No. 2017-030 Vacation Accrual Change Options Date: May 5, 2017 Report No. 2017-030 Vacation Benefits Change Options OPTION 1: -No change to monthly accrual -Cap bonus time at 20 years -No change in carryover Denton Current AccrualProposed Years of Hours Accrued Per Hours Accrued Service Year (including Hours Lost Per Year bonus time) 1201200 1201200 1201200 1201200 1201200 1241240 1281280 1321320 1361360 1401400 1441440 1481480 1521520 1561560 1601600 1641640 1681680 1721720 1761760 1801800 184180-4 188180-8 192180-12 196180-16 200180-20 204180-24 208180-28 212180-32 216180-36 220180-40 224180-44 228180-48 232180-52 236180-56 240180-60 35244180-64 Date: May 5, 2017 Report No. 2017-030 Vacation Benefits Change Options OPTION 2: -Eliminate bonus time and have a graduated plan 0 - 10 years3 weeks 120 hours per year(10 hrs per month) 10+ - 20 years4 weeks 160 hours per year(13.3333 per month) 20+ years5 weeks200 hours per year(16.6666 per month) -No change in carryover Denton Current Proposed Accrual Years of Hours Accrued Per Hours Accrued Per Service Year (including Hours Lost Year bonus time) 1201200 1201200 1201200 1201200 1201200 124120-4 128120-8 132120-12 136120-16 140120-20 14416016 14816012 1521608 1561604 1601600 164160-4 168160-8 172160-12 176160-16 180160-20 18420016 18820012 1922008 1962004 2002000 204200-4 208200-8 212200-12 216200-16 220200-20 224200-24 228200-28 232200-32 236200-36 240200-40 35244200-44 Date: May 5, 2017 Report No. 2017-030 Vacation Carry-Over and Payout Change Options Date: May 5, 2017 Report No. 2017-030 OPTION 1 example, keep carryover at 320 (480 for Fire CS), but only allow payout up to 240 hours (360 for Fire CS). As of 2/20/17, there are 214 employees who have more than 320 hours (480 hours for Fire CS): NCS = 157 employees Police CS = 53 employees Fire CS = 4 employees Changing the payout to 240 hours (360 hours for Fire CS) would affect a total of 392 employees; however 214 are already over the maximum allowable hours to be paid. An additional 178 employees would be impacted by this change. NCS = 281 Police = 81 Fire CS = 30 To implement with less negative impact on employee morale, could either: A. Grandfather in existing employees and implement policy change to coincide with the new fiscal year (with employees starting October 1, 2017). OR B. to avoid employees potentially requesting a lot of time difference in the maximum hours allowed to be paid. OPTION 2 Change carryover 240 hour (360 for Fire CS); maximum payout would reflect carryover. Same comments as above for implementation. OPTION 3 Implement a graduated carryover plan based on years of service as follows: Date: May 5, 2017 Report No. 2017-030 Less than 10 years = 240 hours 10+ years = 320 hours As of 2/20/17, the number of employees by years of service (through 9/30/17) are as follows: Years of Service Non Civil Service Police Civil Fire Civil Service through 9/30/17 Service Less than 10 years of 678 (63.84%) 63 (37.28%) 58 (33.72%) service 10+ years of service 384 (36.16%) 106 (62.72%) 114 (66.28%) Maximum payout would reflect carryover. Date: May 5, 2017 Report No. 2017-030 Sick Accrual Change Options For Non-Civil Service Employees Date: May 5, 2017 Report No. 2017-030 Non Civil Service Sick Benefits Change Options OPTION 1: -Implement a graduated plan 0 to 5 years = 8 hours per month (96 hours per year) 5+ to 10 years = 9 hours per month (108 hours per year) 10+ years =10 hours per month (120 hours per year) Proposed Years of Denton Current Hours Accrued ServiceAccrual per YearChange in Hours Per Year 96 960 96960 96960 96960 96960 9610812 9610812 9610812 9610812 9610812 9612024 9612024 9612024 9612024 9612024 15+9612024 Date: May 5, 2017 Report No. 2017-030 -END OF EXHIBIT- Summarized Employee Feedback Re: Sick/Vacation and Health Insurance Benefits June 2017 Sick Leave (24 total comments*) Option 1 (implement a graduated plan; 0 -5 years = 96 hrs/yr; 5+ - 10 years = 108 hrs/yr; 10+ = 120 hrs/yr)4 Option 2 (change accruals from 96 hrs per year to 120 hrs per year; this would match Civil Service employees of 15 days per year)5 Payout Sick Upon Termination12 Develop incentives not to use2 Increase accruals2 Eliminate the cap on accruals3 Base accrual on years of service3 Vacation Leave (37 total comments*) Grandfather existing employees12 Accrual Option 1 (no change in accruals but cap bonus time at 20 years)10 Accrual Option 2 (0 - 10 years = 3 weeks; 10+ - 20 years = 4 weeks; 20+ years = 5 weeks)5 Cap accrual at 240 hrs1 Reduce bonus time from 4 hrs to 3 hrs1 Carryover & Payout Option 1 (leave carryover at 320 (480 for Fire CS), but maximum payout would be 240 hours (360 for Fire CS))3 Carryover & Payout Option 2 (change carryover to 240 hour (360 for Fire CS); maximum payout would reflect carryover)3 Carryover & Payout Option 3 (Implement a graduated carryover plan based on years of service as follows: Less than 10 years = 240 hours; 10+ years = 320 hours; maximum payout would reflect carryover) 5 No changes to vacation2 Reduce payout but don't change accruals1 Develop a vacation buy-back program1 Health Benefits (34 total comments*) Support plan changes over premium increases3 Agree with EIC recommendations9 Widen benefit/premium gap between Gold plan and Silver plan2 Base premiums on # of family members2 Discounts for not using the health plan2 Encourage more use of clinic2 Re-evaluate the need for the clinic2 Lower prescription drug copayments1 Reduce bariatric surgery benefit1 More training/education on cost of plan/how to best utilize the plan4 General Comments (19 comments*) Good benefits attract & retain good employees7 Reward longevity2 If comparing benefits with other cities we also need to raise those where we are lacking2 Bring back Compensatory Time1 Add Maternity/Paternity Leave1 *Many of these comments are a summary of an employee group 1 Full Employee Comments Sick/Vacation Leave and Health Benefits Sick Leave Pay employees a percentage of their sick leave based on years of service when employee leaves. The City of Denton sick leave policy provides absolutely no incentive to employees to stay well or not use up all of their sick leave before they terminate. It sends the wrong message to employees. Non Civil Service Sick Benefits: Option 2 Sick accrual Change Option 2 I believe adopting additional sick time whose balance remains uncompensated at retirement/departure will result in additional use it or lose it practices among non-police/fire employees. I think a flat-rate plan is more efficient to administer than a graduated plan. I vote for option 2 because operationally I think it is better choice. And if the goal is to attract better employees by offering more in terms of sick-time benefits (to better compete with those other Cities), than I Prefer current vacation and sick policies do not change. However, 7 of the 10 cities surveyed paid out some sick. Sick Leave- Option 2, but there needs to be a payout of some sick based on years of service. Sick Accrual Change Options option 1 The EIC rep polled the group and Option 1 (24 in favor of) was preferred over Option 2 (16 in favor of). Option 1 for sick leave, with payout of accrued hours upon separation for employees with more than 5 years of service. The sick time payout is an incentive for employees to use good judgement on how much time they use. Why was adding a payout for sick time not considered when 6 out of the other 10 city have some sort of payout for sick time Our limit on sick time is 720 hours when 9 out of the 10 other cities surveyed have either a higher accrual limit (2 cities) or no limit at all on sick time accrual (7 cities). Why are we not falling in line with the majority of other cities surveyed and eliminating a sick time accrual cap? People generally like to have a large number of hours banked in case something catastrophic happens to them. This does not mean the city has to pay all of those hours when a person leaves the city. r any sick time, Many of the North Texas municipalities polled offered some sort of cash-out upon termination of accrued sick leave. Most of the North Texas municipalities polled did not have a cap on the number of hours that could be accrued for sick time. toward the mean of North Texas cities, then it seems reasonable that a sick-leave cash-out option for long term employees and the elimination or at least increasing the present 720 hour sick leave accrual cap would both be part of the policy-making discussion. 2 Option 2 for sick leave with payout of accrued hours upon separation for employees with more than 5 years of service. Start new employees at a 96 hrs of sick , then increase and cap at 120 Look into some sick payout Start employees off with 96 hours, then increase 4 hours per year until 120 hours are reach and cap off at that point. Starting with new employees, lower the maximum amount of sick time one can accrue. Sick leave: o 96 hours up to 5 years of employment o 120 hours over 5 years o Regarding the Sick Leave, Option 1 with a modification that new employees would not accrue sick leave until 6 months of being hired. Vacation Leave On vacation options-Comment need to grandfather in employees that currently have the maximum amount of vacation hours and pay them for any difference if one of the new plans takes effect- these are valuable long term employees that deserve this benefit. Prefer Option 1-leave the maximum at 320 hours. As a long term employee, prefer Grandfather Option B- to be paid out for any vacation time that exceeds the maximum yearly amount. Vacation Benefits: Option 2 Carry-over and payout: Option 3 Vacation Benefits Change Option 2 Vacation Carryover & Payout Change Option 3 I would like those of us carrying the current 320 hours of vacation to either be grandfathered in at that number or paid out versus required to take extensive time out to reduce our hours. I prefer Option 1 under Vacation Benefits. This option would probably have little-to-no impact on morale and turnover. I think most employees have the 20 year time frame in their heads. This is in line with how long most of us expect to be working before we collect retirement (and maybe move on to a new job). Of course some of us will stay beyond that, but acation here or there will make much difference. Option 2 under Vacation Benefits encourages turnover in my opinion. There are enough Cities in the Metroplex that grant extra vacation time after 5 years, not 10. Couple this with a negative work environment here (for some) and better pay elsewhere (for some), and turnover will probably increase. Turnover comes with its own costs (sometimes as much as 200% of the It would be cheaper to just leave the benefits as they are than to go down that road. Vacation payout - Grandfathering existing employees (Option 1.A) is always a good idea versus taking something away from existing employees. Let new employees come in under the new rules. As existing employees leave the organization the old out. Morale is unaffected. Turnover is unaffected. The City starts to see savings as soon as one existing employee leaves and a new employee is hired on. It just compounds after that until the old system is gone. Please do not reduce our vacation benefits. Vacation Accrual: Option 2 with no change in carryover Vacation Carry-Over and Payout: Option 1 but grandfather in existing employees Vacation Accrual Change Options option 1 3 Vacation Carry-Over and Payout Change Options option 1A The EIC rep polled the group and Option 1 was preferred (11 in favor of). Most were in favor of Option 1A, Grandfather existing employees at 320 and 240 on future employees for vacation carryover The EIC rep polled the group and Option 3 was preferred (29 in favor of) No change to monthly accrual, and carryover, agree to a 20 year cap. Option 1 for vacation changes, with a cap of 200 hr. Option 1A, Grandfather existing employees at 320 and 240 on future employees for vacation carryover. When looking at reducing vacation time, was the number of holidays other cities receive considered? Some cities may give less vacation time but more holidays. Was an option of changing the bonus ours accrued after 5 years from 4 hours to 3 hours discussed? I personally do not mind reducing the total number of vacation hours paid out by the city upon separation. So long as the total accrual is not reduced. The bonus time that we pay to keep seasoned, loyal employees to serve our citizens here in Denton should be kept. If there has to be a cap on number of vacation hours allotted annually, then make it 200 hours. The number of hours of vacation carry-over was not a big concern, 240 hours a year maximum carry-over seems reasonable. Option 1 for vacation changes, with a cap of 200 hr. Option 3 on vacation carryover. Start new employees at the same vacation as of now, but do not add bonus 4 hrs until they are vested at 5 yrs. Then continue to add bonus hours until 25 yrs and cap at 200 hrs vac. Possibly look into vacation payout earlier in career at a lower cost than when they retire at a higher payout cost Grandfather existing employees in with the current policy. Offer Vacation Buy-Back - Lower the maximum amount accrued and that can be saved as well as allow employees to cash out some of their vacation time. Most companies allow a max of 1-2 weeks per year to be cashed out if not taken. This saves money in the long run because they will get the time paid out at their current pay (which is often lower than it would be in the future). It also prevents employees from saving up so much time, as many people would like to have the cash in hand now. Start employees at a lower rate - Start new employees with 2 weeks paid vacation for year 1, earning 4 hours each year until 5 years where they bump to 3 weeks. Employees then earn an additional 4 hours per year until 10 years, when they bump up to 4 weeks. Employees then earn 4 hours more per year until 20 years, where they max out at 5 weeks. Graphically demonstrated below: 4 Years of Employment Vacation Hours Earned 1 80 2 84 3 88 4 92 5 120 6 124 7 128 8 132 9 136 10 160 11 164 12 168 13 172 14 176 15 180 16 184 17 188 18 192 19 196 20 + 200 Vacations: o 2 weeks up to 5 years o 3 weeks 5 to 15 years o 4 weeks 15-20 years o 5 weeks over 20 years Use Option 1 for carry overs and payouts and grandfather in existing employees and start new vacation and sick with new hires October 1, 2017 Regarding Vacation Time, Option 1 with a modification that new employees (new physical year) would not accrue vacation time until 6 months of being hired. Current employees would be grandfathered in. Option 3 on carryover hours seems very logical based on the # of employees outlined. 5 Health Plan Changes Specific to lowering our benefits through higher employee contributions and higher deductibles will not lead to better health outcomes but we never see anything related to how anything the city does in health care benefits, policy, and activities that leads to better health outcomes. If the City wants more buy-in to improve our health outcomes then let employees see/interact with more of what is happening in employee health. Knowledge is empowerment. The only thing we do get to see is punitive strategies for all based on actions of a few. So, for example, now that they are charging for Clinic no-shows has the no- choose to try strategies that were positive reinforcement instead of punitive that would have also reduced no-shows? It feels like they did not choose the second options because they are problem focused and do not hold employees in high-esteem. If the proposed changes keep the premiums down, then they may be acceptable. The Employee and Family plan comparisons needs to take into account the $50/month addition if the spouse is offered insurance. Be in favor of the Sliver Plan increasing in price if the following items are addressed to be consistent with the other cities surveyed. o A decrease in Out of Pocket Maximums o Adding Out of Network Benefits back o Decreasing the copayments of physician, specialist, urgent care and ER o Removing the RX deductible We agree with the insurance changes that were most favored by the EIC Committee, PCP/SPC Co-Pay increase and deductible increase for Tier2 & Tier 3 prescriptions. I think there needs to be a more drastic difference between the Gold & Silver plans. Many employees choose Silver to lessen the amounts taken from their checks in hope to not have to much difference between the two, why have two options? Suggested Options: o Premiums: Increase Gold 5% & Silver 10% o Co-Pays: Gold: $25/$40 Silver: $35/$55 o ER: Gold: $350 Silver: $450 o Co-Insurance: Gold: 85%/80% Silver: 75%/70% o Deductibles: Gold: $1000/$2000 Silver: $2000/$3250 I use the health clinic for myself and my children whenever possible. It allows me convenience, should be ANY charges for any reason regarding this clinic. Its purpose was not to make money, but to save money. I do wish they would issue more shots in the office and not always prescribe pills (to have to go to the pharmacy) when possible. If you want to cut costs, do away with the Health Clinic, the paper says it costs $1million. Look at what it costs to run the Health Clinic and compare the cost to what it saves in insurance savings to see if it is still viable. rather give prescriptions, than a shot to help get you well quicker. 6 The Healthies Incentive Program has become a joke, it takes way too much time to enter everything you have to now, so most people I have talked to in our department do not do it anymore. Why do we need two different plans (Gold and Silver) when they are not all that different, either widen the gap between the two or only offer one. The Water Meter Shop is on board with the four options for health insurance benefits increases, but express a short term fix. We agree with the insurance changes that were most favored by the EIC Committee, PCP/SPC Co-Pay increase and deductible increase for Tier2& Tier 3 prescriptions Premiums should be based on number of family members on the plans such as Employee only, E+1, E+2, E+3, etc. take away benefits that make Denton shine above other cities? The preference is to have the copays/deductible amounts increased rather than an across the board increase in insurance premiums to cover the projected 2018 short-fall of funding. The EIC insurance changes favored were the PCP/SCP copay increase and the Tier 2 & Tier3 prescription deductible increase in order to help achieve the 6% reduction. If there are living increase too. As it stands for some employees our annual salary review/increase is only enough to cover the cost of the annual insurance increase(s). I think i remember a lot of employees (new and current) consider the benefits package, salary, distance and cost of living before accepting/leaving positions with the City of Denton. Increase the Prescription Drug Annual Deductible Increase Emergency Room Copayment Increase Copays are employees who have our health plan and have not had a claim for years, however they are paying health insurance for their family as a precaution. Do not increase premiums Personally, I think our co-pays for medications are too high. Most of my generics cost the exact pre effects from the generic and need this specific brand for one, I am denied coverage at all and am having to seek coupons from the manufacturer. I again have to file outside of insurance to save money. I think our insurance is not as good as most private companies, though I am not sure how it compares to other cities exactly. I just got on it a month ago and am seriously regretting something that really benefits me. The cost of one prescription is so high without any coverage from our plan that I can afford to lose my healthy incentive discount I would have next year and $90 (which I have paid $4 per month for this med with both Aetna and BCBS), I still come out saving money to get off of our plan. Insurance: o Gold Plan: Ee only-$110.00 Ee-Spouse-$242.00 Ee+child up to 2-$308.00 Ee + children 3 or more-$374.00 7 Ee+Family up to 2 children-$448.00 Ee+Family up to 3 or more children-$514.00 o Silver Plan Ee only-$42.00 Ee+Spouse-$138.00 Ee+child up to 2-$170.00 Ec+child 3 or more-$236.00 Ee+Family up to 2 children-$248.00 Ee+Family 3 or more children-$294.00 Reduce benefits for Bariatric Surgery and instead have employee use nutrition and fitness coaches Increase drug deductible from $50.00 to $75.00 Set up a required HR class for all employees to attend throughout the year that covers our costs another provider referred to by your physician or our clinic until you have UHC confirm they are in-network or have Compass check or who to contact for assistance; what after hours doctor facilities are our best cost savings and their locations and hours; etc. Any topic that can save employees and the City money. Or send an email out to all employees covering the above topics so we can have this information saved on our phones when something does arise at night or on the weekend. Or a wallet sized card to carry with our insurance card that lists phone numbers for Compass or the clinics around town that offer the most cost effective services and lowest co-pays. o Increase the Prescription Drug Annual Deductible o Increase Emergency Room Copayment o Increase Copays If this plan does goes in affect, HR can provide a training class to educate our employees on when to use the ER and how to locate in network physicians and specialist. here are employees who have our health plan and have not had a claim for years, however they are paying health insurance for their family as a precaution. General The City of Denton attracts exemplary employees partly due to their benefit. As a recently rated non-exempt employee I have lost the ability to gain discretionary time. Pair this fact with the possibility of reducing vacation days effects my moral negatively. Preference on vacation/sick benefits would be no change at all but if a change has to be made the option should promote longevity. There are benefits to having employees staying committed to the City of Denton which include enhanced experience and knowledge of As we have seen recently, when there is a constant turnover in employees, City staff and the citizens have to deal with learning curves, additional hiring and training costs, and policy/procedural changes. Public service is not known for competitive pay when compared to the private sector but the City can make up the void by offering good benefits and therefore, allow us to compete with other cities, public entities, and the private sector. 8 As a hardworking, dedicated person with a strong work ethic the idea of adding extra sick hours and reducing vacation hours sends a mixed message that degrades the principal of a strong work ethic and a job well done. If the goal is to save money then a graduated increase for sick and vacation in 5 year increments (0-4, 5-9, 10- Is the making changes that promote good health and reward individuals by considering a percentage of the sick benefits to be paid out upon separation. This would work well with a graduated plan and could still save money. In general, I would like to advocate that any decisions are based on how the change is an asset to the City and to the employee rather than how employees will take advantage of the benefit. Cost savings cannot be the only consideration. 1. If adjustments are made to bring us in alignment with other Cities benefits then that should be equitable across both benefit. reduce vacation and then not increase sick leave. 2. If there must be a change, I would prefer that it be grandfathered option so that you are not removing benefits from existing employees who are already committed to the organization regardless of current tenure. I am not trying to lump everyone into the same perceptions and I am aware that this assumption would not apply to all but right or wrong my perception is that there are too many people in that room making decisions based on the assumptions of the worst of employees rather than seeing the best of employees with a commitment to supporting and honoring employee contribution. Honestly, it feels like some important leaders have forgotten that their role is build up the workforce, make us better: better performers, better leaders, better employees, better in service to our clients, the citizens. I think current staff should be Grand-fathered in on any changes made to leave benefits. A lot of people accepted the position with the City of Denton due the benefit package that was offered at the time of their start date. I understand the need for adjustments in insurance premiums, documents. We have a lot of staff members that are uncertain of the future they may have with the City of Denton due to all the current changes taking place, I do know that a lot of these time of unrest and I think throwing this in the mix may be too much at one time. In looking at the vacation and sick time accrual, carryover, and payout options from the ten other cities here are my observations; thth 1) Denton has the best accrual, 4 best carryover and we are tied for 5 best payout programs when it comes to vacation. thth 2) Denton has the worst (tied for 10) accrual, 10 best carryover and we are tied for worst (with three other cities) for payout program when it comes to sick. To achieve what the council has stated as the goal in this study, to bring Denton to an average of thth these other cities we would have to be between the 5 and 6 ranked cities in each category. Taking an average of what each city offers is not a true average because of the wide difference between the cities at the bottom, who choose to be there, and the top performing cities, who also choose to be where they are. VACATION- 9 Accrual #5 is Irving who has a graduated plan from 96 to 176 hours depending on years of service. Carryover #5 is Lewisville who has a graduated plan from 160, 240, or 320 hours depending on years of service. Payout #5 is Grand Prairie who allow up 320 hours as does Denton. SICK- Accrual #5 is a tie from #2-#7 (Arlington, Grand Prairie, Irving, Lewisville, Mesquite and Plano) each with 120 hours. Carryover #5 is a tie from #1-#7 (Carrollton, Frisco, Grand Prairie, Irving, McKinney, Mesquite and Plano) each with no limit. Payout #5 is Mesquite who has a graduated plan of 0-3 yrs none, 3-5 yrs 1/3 of unused, 5-6yrs 2 /3 of unused and 6+yrs up to 90 days or 720hrs. If the council truly wants to ensure our benefits are better aligned with other DFW metroplex cities this would be what needs to be done. I am sure that some employees would be upset, others would be indifferent and still others would be happy. As you can see this would cost the city more $ in payout and actually not save any hard $ with the reduction in vacation hrs accrued. Take that just a little further, and if the council would like to make Denton a true Leader among DFW Metroplex Cities, move these benefits into the top 3 in each category (top 25%). This wants to continue to attract and retain the best employees in the future. This would also be a cost but should also be viewed as an offset in production. It is proven if you have a happy work force you gain productivity through employees taking less time off, improved morale, more attention to detail, and safer work habits. The biggest increase that I think the council would see is in each e in morale. relax and unwind. But if the council is actually only worried about the bottom line and cutting costs and all we as employees have to choose from is the options sent out by the EIC, I would choose Option #2 of the Vacation Benefits Change Options/ Option #3 of the Vacation Carry-Over and Payout Change Options with Option A Grandfather Existing Employees and implement the change October 1, 2017. The easiest and less controversial option is to leave them as they are. When considering changes to vacation time, did the committee ask if the other cities on the list cities do, which may be why they have less vacation accrual. For example, Garland allows accrual of 90 hours of comp time for nonexempt employees and 160 hours for exempt employees. Some City of Denton employees have to work over 40 hours per week due to the nature of their jobs, staff shortages, a special project or event, weather event, etc, or regularly e ple who have time accumulated such at the 320/720 and those hours depleted due to a new policy is terrible for morale and disrespectful to employees who have worked extremely hard and count on those 10 hours in case of a life crisis, medical emergency, etc. I understand the need for policy changes, but I think strong consideration should be given to long term employees who have accumulated those hours in their bank, to not remove hours earned. I am sending this email in concern to the newly proposed health care, vacation, and sick plans. I have currently been with the City of Denton three and a half years. I really enjoy working for the city as well as working with all the current city employees. I left my current job in 2013 to come to the City of Denton strictly because of the great benefits the city had to offer. Since I have been here, the health insurance has went up in some form or fashion every year. I completely ically enough to change our rates every year? As for comparing Denton to all the other cities listed in I have heard is how the City of Denton strives to be the best and offer the best for their employees among all the other surrounding cities. I think there are plenty of other areas among the city that they can cut cost from, rather than cutting it from their own people. As for the vacation and sick time, is there a city wide problem with the way it is now? If they want to talk about other towns, it is clearly shown in the comparisons of the other cities that there are some drastic changes from town to t clear that the majority of the other cities pay their employees for their accrued sick time when they leave. I did not see that in any of these proposals to get on the same playing field as the other towns. There are a lot of questions that I as well. It is shown that Denton has better benefits than most in the majority of areas. There are some that clearly have better benefits the precedent and uphold the reputation of being a city that everyone around would love to work for? Leave everything as is, the sick increase will result in employees using sick in lieu of the vacation that is lost. The benefit package is what lures potential employees to work for the City of Denton, we have hard time filling jobs with the current marketplace and economy already. I had a little round table with my team this morning and we find these options unacceptable. If you are looking for average employees then you have average benefits. Denton has always tried to be a leader of cities and now we are wanting to go back to average? live with it for now. But, it really disturbs me that bonus vacation time will be capped at 25 unfunded liability munici some well- more money. Or, as I suspect is the case, the council wants senior employees to just go ahead of their employees. You get what you pay for. Minimal to no changes to be made to Vacation/ Sick Grandfather in existing options before making changes to Vacation/Sick Start offering some sort of maternity/paternity leave Full Email from one employee: Scott, I have several concerns about the Council looking into changing our benefits. With this being said I do realize some change is coming but I just hope the Council will take into consideration that every 11 employee that works for the City of Denton is a person not just a number. Here is a little bit about myself: Years of Service: 28 years Born and raised: Denton TX High School: Denton High City of Denton both as an employee and citizen, some good, some not so good. Here are a couple of questions for the Council before they make their decisions on our benefits. 1. As a Denton Citizen and Employee I would like for Denton to be a leader not a follower among Cities, is the Council ok with Denton just being average? 2. As a supervisor I am responsible for hiring, the positions I hire in most cases are very technical positions are competitive but not above market. So I need these benefits as a selling point to get good quality personnel. Finding technical technicians is very difficult now, if we just have average benefits then hiring just got more difficult. I would think the Council would want the best possible employee we could get, not just an average Joe? 3. The Potential Benefit Change Talking Points states that the four (4) changes generate $1,025,914 in potential savings. I would like to know what this potential savings would go to, just curious? 4. Anytime you take benefits away from the work force you affect the morale of that work force. Since these possible changes have come to light I know my team has been affected, and not in a positive way. There are even a couple mentioned bringing in a Union, heard that talk before. 5. When looking at the different options on Vacation and Sick, it does look like we get more vacation then most but not as much sick. I would rather my guys get more vacation for one simple reason, SAFETY! What I mean by this, Substations is very busy(and so are all the other departments), I want my guys to be able to take off and relax, rest, clear their heads, spend time with their families, then come back and be focused and work SAFE! This job is very demanding on each team member, they need and deserve their down time. If you take vacation away and increase sick time, this could create another problem, some might take off sick when vacation is really what they should be using. Council just keep in mind these team members need their down time for themselves, other team members and most important their families. 6. If the Ad Hoc Committee wants to better align our benefits with those offered by other cities pay for any Sick when you leave but 7 out of 11 Cities do pay for Sick time. So where in the Options does it say what the City of Denton plan to pay for Sick? 7. have. If we can afford better insurance for the employees then they should have it. Again lets be a leader among Cities! I have always bragged on working for the City of Denton and one major reason has always been the benefits. I do appreciate all that the City of Denton has done for its employees over the years, I just 12 Comparison of Current versus Proposed Vacation Accrual, Including Bonus Time, by Years of Service bƚƓΏ/źǝźƌ {ĻƩǝźĭĻ ğƓķ tƚƌźĭĻ /źǝźƌ {ĻƩǝźĭĻ Denton Current Proposed Accrual Hours Accrued Years of Hours Accrued Per Per Year Service Year (including Hours Lost (including bonus bonus time) time) 1201200 1201200 1201200 1201200 1201200 1241240 1281280 1321320 1361360 1401400 1441440 1481480 1521520 1561560 1601600 1641640 1681680 1721720 1761760 1801800 184180-4 188180-8 192180-12 196180-16 200180-20 204180-24 208180-28 212180-32 216180-36 220180-40 224180-44 228180-48 232180-52 236180-56 240180-60 244180-64 248180-68 CźƩĻ /źǝźƌ {ĻƩǝźĭĻ Denton Current Proposed Accrual Years of Service Hours Accrued Per Hours Accrued Year (including Per Year bonus time)(including bonus Hours Lost 1801800 1801800 1801800 1801800 1801800 1861860 1921920 1981980 2042040 2102100 2162160 2222220 2282280 2342340 2402400 2462460 2522520 2582580 2642640 2702700 276270-6 282270-12 288270-18 294270-24 300270-30 306270-36 312270-42 318270-48 324270-54 330270-60 336270-66 342270-72 348270-78 354270-84 360270-90 35 - 36366270-96 36- 37372270-102 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1121,Version:1 AGENDA CAPTION Receiveareport,holdadiscussion,andgivestaffdirectionregardingacompressednaturalgas(CNG)fueling facility at the intersection of Mayhill Road and Spencer Road. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Solid Waste & Recycling Department CM/ DCM/ ACM: Mario Canizares DATE: August 22, 2017 SUBJECT Receive a report, hold a discussion, and give staff direction regarding a compressed natural gas (CNG) fueling facility at the intersection of Mayhill Road and Spencer Road. BACKGROUND During the last several weeks, staff members in the Solid Waste Department have evaluated financial impacts of the department’s investments into compressed natural gas (CNG). As previously reported to the City Council, differences in market prices between diesel and CNG have narrowed substantially, and fuel cost savings associated with CNG no longer cover the costs of converting refuse vehicles to CNG (approximately $40,000 each). The fuel cost associated with the mobile fueling platform that currently provides fuel for these vehicles is also not sustainable. Staff recommends taking immediate action to reduce further negative financial impacts. Staff presented various options to address CNG fueling costs for the existing fleet to the City Council on July 25, 2017. During this meeting, the Council directed staff to determine the availability and possible use of local CNG fuel stations. If a local source was not available, staff was directed to pursue the proposed CNG fueling station for City of Denton use only. Staff conducted additional research and found that there is a potential local CNG fueling option for a fueling facility that is currently under consideration. However, the timing of the construction and configuration of this fueling station is uncertain at this point, and it is possible that this station may not be built at all. Staff performed analyses under the assumption that the station would be available soon at the proposed location, which is approximately 20 miles round trip from Solid Waste operations at Mayhill Road. Considering the current fleet of CNG vehicles, the time it would take to fully age out these vehicles, vehicle depreciation and fuel usage associated with the additional travel miles, and additional staff time, this option would cost approximately $3,208,154. This option has a higher degree of uncertainty, is substantially more expensive, and contains additional elements of risk such as transit time delays when compared to the proposed option of completing construction of the CNG fueling station at Mayhill for City of Denton use only. Staff presented these findings to the Public Utility Board (PUB) on August 14, 2017 and requested a recommendation. The PUB recommended completing construction of the CNG fueling facility for City of Denton use (5-0). RECOMMENDATION Staff recommends completing construction of the CNG fueling facility for City of Denton use only. ESTIMATED SCHEDULE OF PROJECT If construction of the CNG fuel facility moves forward, staff estimates construction will be completed within a six month period. PRIOR ACTION/REVIEW (Council, Boards, Commissions) October 22, 2012 – PUB discussion regarding CNG November 5, 2012 – City Council discussion regarding CNG April 15, 2014 – Awarded a mobile fueling contract to Ultimate CNG January 6, 2015 – First amendment to the contract with Ultimate CNG November 9, 2015 – Second amendment to the contract with Ultimate CNG August 22, 2016 – Awarded Zeit Energy a contract for CNG fuel facility construction July 24, 2017 – PUB discussion regarding CNG July 25, 2017 – City Council discussion regarding CNG August 14, 2017 – PUB discussion regarding CNG FISCAL INFORMATION The construction of the CNG fuel facility will be funded from the Solid Waste Department’s capital improvement program (CIP). The purchase of natural gas and additional operational expenses will be funded from the department’s operating fund. 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 Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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: Sustainable & Environmental Stewardship Related Goal: 2.5 Develop Capital Improvement Program (CIP) based on community needs EXHIBITS 1. Agenda Information Sheet 2. Presentation Respectfully submitted: Ethan Cox, 349-7421 Director of Solid Waste Station 2017 22, Council City August CNGFueling 2 use existing for COD for search 2017 2017 station first 25, 24, to CNG July July staff on CNGStatus PUBCouncil toto requested recommended but PresentedPresentedCouncilonly,CNGstations • •• 3 time, time (staff transit fuel). etc. expenses ΑDƩğƦĻǝźƓĻΉLƩǝźƓŭ timeline, additional Stations operating station and configuration, Project CNG CNG CNGstation added in platform roundtriproundtrip depreciation, fuel existing Α ƓĭĻƩƷğźƓƷǤͲ Area million milesmiles 4020$3.2vehicleRisksdelays, ClosestPossibleDenton •••• •• 4 fueling Public 0). fueling (5 the COD the to information recommendation.the salessales a of pursue publicpublic to presented CNGstation was approval requested Staff withoutwithout and presentation potential 2017, (PUB) the 14, proposed,proposed, recommended PUB asas recommendation Board PUB August OnconcerningUtility{ƷğŅŅ͸ƭstationThestation • •• 5 1,2 sales not vehicles public are that Station CNGfleet of 1 out expenses COD age site and and summary operational construction, line include and likely FuelingDieselRetrofitStation station will for sales Mobile debt Options public year (loss)(4,383,767)(2,496,947)(1,448,595)(868,526) / 20 quantified with savings(2,140,508)0.00313,662313,662 cost cost(6,322,907)(2,496,947)(1,134,932)(554,863) income includesStation 12 currently Revenue(201,368)(201,368)2,630,0323,230,032Expense(3,981,031)(2,295,579)(4,078,627)(3,782,919)NetFuel Full 6 estimated proposed, is as station completion for fueling direction COD action timeline the Council other The sales 1. take pursue seeking to to months from 6 is public option staff staff Direct Directwithout Staff :: 12 approximately recommends be OptionOption Staffto ••• 7 Questions? City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-990,Version:1 AGENDA CAPTION Certain Public Power Utilities: Competitive Matters - Under Texas Government Code, Section 551.086. Receivecompetitivepublicpowercompetitiveinformationandfinancialinformationfromstaffregardingthe proposedFY2017-2018operatingbudgetforDentonMunicipalElectric(ÐDMEÑ)includingwithout limitation,proposedratesforDMEforFY2017-2018,expectedrevenues,expenses,commodityvolumes,and financial commitments of DME; discuss, deliberate and provide staff with direction. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1099,Version:1 AGENDA CAPTION ConsultwithAttorneys-UnderTexasGovernmentCodeSection551.071;DeliberationsregardingReal Property - Under Texas Government Code Section 551.072. ConsultwithandprovidedirectiontoCity’sattorneysregardinglegalissuesandlegalstrategiesassociatedwith thepossibleaccess,occupationand/oruseoftheCity’srightofwayforfiberand/orfiberconduitbyZayo Group,LLC,includingpossibleaccess,occupation,and/oruseoftheCity’srightofwaypursuanttoan ExchangeAgreementwiththeDentonIndependentSchoolDistrictandtheCountyofDenton,Texaseffective July28,2015;apublicdiscussionoftheselegalissuesandlegalstrategieswouldconflictwiththedutyofthe City’sattorneystotheCityCouncilundertheTexasDisciplinaryRulesofProfessionalConductoftheState Bar of Texas. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-559,Version:1 Agenda Caption Consider nominations/appointments to the City’s Economic Development Partnership Board. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Economic Development CM/ DCM/ ACM: Bryan Langley DATE: August 22, 2017 SUBJECT BACKGROUND The City Council appointed a Nominating Committee at the July 18, 2017, meeting that was charged with recommending nominees to the Economic Development Partnership Board (EDPB). Nominating Committee members are Councilmembers Sara Bagheri and Gerard Hudspeth and Chamber member Joey Hawkins. EDPB members serve two-year terms and may serve as many as three terms. The ordinance requires that the members fall into specific categories when they are appointed to the Board (see chart below). The City Manager, the President of the Chamber of Commerce, and the DISD Superintendent serve as ex-officio members and have no defined terms of service. Member Category Term Expires Cleve Breedlove, Chair Aviation 2017 (ineligible) Marty Rivers, Vice Chair Chamber of Commerce 2018 Larry Parker Chamber of Commerce 2017 (ineligible) OPEN City Council 2017 OPEN City Council 2018 (unexpired term) Steve Edgar Top 20 Taxpayer 2018 Jim Fykes Top 20 Taxpayer 2017 (eligible) Neal Smatresk* UNT President 2018 Carine Feyten* TWU Chancellor/President 2018 John Baines Denton Black Chamber of 2017 (eligible) Commerce Jimmy Mejia Denton Hispanic Chamber of 2018 Commerce Carrell Ann Simmons At Large 2018 *Under Ordinances 2015-074 and 2016-249, the President of UNT and the Chancellor/President of TWU or his/her designee is not restricted to the three-term limit. However, such member must be reappointed by the City Council for each term. The Nominating Committee offers the following slate of nominees to the City Council: Bob Eames, Aviation Jill Jester, Chamber of Commerce Keely Briggs, City Council Gerard Hudspeth, City Council Jim Fykes, Top 20 Taxpayer John Baines, Denton Black Chamber of Commerce PRIOR ACTION/REVIEW (Council, Boards, Commissions) July 18, 2017 Council adopted the EDPB Ordinance 2017-203. July 18, 2017 Council selected the EDPB Nominating Committee. STRATEGIC PLAN RELATIONSHIP -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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: Economic Development Related Goal: 3.1 Develop targeted policies and incentives to achieve desired economic growth EXHIBITS Exhibit 1 Agenda Information Sheet Exhibit 2 Presentation Respectfully submitted: Caroline Booth Director of Economic Development Board Appointments Economic Development Aug. 22, 2017 Economic Development Partnership Caroline Booth Consider nominations to the Economic Development Partnership Board (EDPB) 5 / Objective: 2 years; members can serve up to three terms - large - 2 each City Council, Chamber of Commerce Board of Directors, and top 20 taxpayers in the City of Denton1 UNT1 TWU1 Denton Black Chamber of Commerce1 Denton Hispanic Chamber of Commerce1 aviation1 at EDPB is appointed by Council and serves as a recommending bodyMembers fall into specific categories:Terms are two 5 / Background 3 2 Council members1 Chamber member Council appoints a nominating committee willingness to serve and compiles slate of nomineesSlate is presented to Council for a vote 5 / Nominating Process 4 Commerce City Council Council City , Aviation Jester, Chamber of Bob EamesJill Keely Briggs, Gerard Hudspeth, Jim Fykes, Top 20 Taxpayer John Baines, Denton Black Chamber of Commerce / 5 Nominees 5 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:A17-0001d,Version:1 AGENDA CAPTION ConductthesecondoftworeadingsandconsideradoptionofanordinanceoftheCityofDentonvoluntarily annexingapproximately118.041acresofland,generallylocatednorthofMcKinneyStreetandwestofTrinity Road;providingforacorrectiontothecitymaptoincludetheannexedlands;providingforasavingsclause and an effective date. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Department of Development Services CM: Todd Hileman DATE: August 22, 2017 SUBJECT Conduct the second of two readings and consider adoption of an ordinance of the City of Denton voluntarily annexing approximately 118.041 acres of land, generally located north of McKinney Street and west of Trinity Road; providing for a correction to the city map to include the annexed lands; providing for a savings clause and an effective date. BACKGROUND The 118.041 acres of land was originally owned by three separate entities. In March 2017, the properties were purchased and brought under a single ownership. The applicant, Brent Murphree, on behalf of the property owner, The Woodlands on McKinney St, LLC, has submitted an annexation application to voluntarily annex the subject property. In December 2016, the applicant held a Pre-Development Meeting (PDM) with the City’s Development Review Committee to discuss development of the site as a manufactured housing development. As part of the PDM, the applicant was informed that the proposed development would violate the terms of non- annexation agreements (NAAs) associated with the 118.041 acres of land and would trigger immediate voluntary annexation. In addition to an annexation application, the applicant also submitted a zoning application to facilitate the proposed manufactured housing development. The property owner is requesting to zone the property Neighborhood Residential 6 (NR-6) District. This request is currently under review and will be brought forward after the subject property is annexed into the city. The NR-6 District permits manufactured housing developments with an approved Specific Use Permit (SUP) and meets the density requirement proposed by the applicant. It is anticipated that the applicant will be submitting an SUP application for review soon. The tentative schedule for this annexation is as follows: stnd May 23, 2017 - City Council meeting setting the 1 and 2 public hearing dates and authorizing the publication of notice of the public hearings - Complete st June 13, 2017 - 1 Public Hearing - Complete nd June 20, 2017 - 2 Public Hearing - Complete July 18, 2017 - First Reading of the Annexation Ordinance - Complete August 22, 2017 - Second Reading and Adoption of the Annexation Ordinance OPTIONS 1. Approve as submitted. 2. Approve subject to conditions. 3. Deny. 4. Postpone consideration. 5. Table item. RECOMMENDATION The Development Review Committee recommends approval of this request. PRIOR ACTION/REVIEW (Council, Boards, Commissions) April 6, 2010, City Council adopted a 3-Year Annexation Plan for DH-12. August 16, 2011, City Council approved a service plan for DH-12. December 18, 2012, the City Council approved an NAA for the subject property through August 1, 2020. stnd May 23, 2017, the City Council adopted an ordinance setting the 1 and 2 public hearing dates and authorizing the publication of notice of the public hearings. June 13, 2017, the City Council held the first of two required public hearings for annexation of the subject property. June 20, 2017, the City Council held the second of two required public hearings for annexation of the subject property. July 18, 2017, the City Council conducted the first of two readings of the annexation ordinance. 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 Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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: Economic Development Related Goal: 3.4 Encourage development, redevelopment, recruitment, and retention EXHIBITS 1. Agenda Information Sheet 2. Location Map 3. Zoning Map 4. Draft Ordinance 5. Presentation Respectfully submitted: Munal Mauladad Director of Development Services Prepared by: Ron Menguita, AICP Long Range Planning Administrator A17-0001 Site Location 426 " ) 03106201,240 Feet SITECOD µ ETJ Parcels NAA 8/1/20 Roads Date: 4/6/2017 The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather for reference purposes. These maps are the property of the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate information possible. No warranties, expressed or implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement. A17-0001 Zoning NRMU-12 NR-6 RD-5X OIL NR-2 NR-4 ETJ NR-1 NR-3 NRMU IC-G 426 " ) 03006001,200 Feet SITEETJNR-4 µ IC-GNR-6 Parcels NR-1NRMU Roads NR-2NRMU-12 NR-3RD-5X Date: 5/5/2017 The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather for reference purposes. These maps are the property of the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate information possible. No warranties, expressed or implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement. A17-0001 Planning Division The Woodlands of McKinney Street Ron Menguita –Development Services August 22, 2017 of two second Conduct the readings and consider adoption of an ordinance of the City of Denton voluntarily annexing approximately 118.041 acres of land, generally located north of McKinney Street and west of Trinity Road. 2 / 5 Request Non-annexation Agreement (NAA)Manufactured Housing DevelopmentInitial ZoningSpecific Use Permit 3 / 5 Proposed Development Public Hearing Public Hearing stnd June 13, 2017 -1June 20, 2017 -2July 18, 2017 -First Reading of the Annexation OrdinanceAugust 22, 2017 -Second Reading and Adoption of the Annexation Ordinance 4 / 5 Annexation Schedule An ordinance of the City of Denton annexing approximately 118.041 acres of land, generally located north of McKinney Street and west of Trinity Road, more specifically described in Exhibit A and illustrated in Exhibit B; providing for a correction to the city map to include the annexed lands; providing for a savings clause and an effective date. 5 / 5 Ordinance City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:A17-0004d,Version:1 AGENDA CAPTION ConductthesecondoftworeadingsandconsideradoptionofanordinanceoftheCityofDentonforan involuntaryannexationofapproximately6.71acresofland,generallylocatednorthofBrushCreekRoadand east of Fort Worth Drive by the City of Denton, Texas; providing for a savings clause and an effective date. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton,Texas www.cityofdenton.com AGENDA INFORMATION SHEET DEPARTMENT: Department of Development Services CM: Todd Hileman DATE: August 22, 2017 SUBJECT Conduct the second of two readings and consider adoption of an ordinance of the City of Denton for an involuntary annexation of approximately 6.71 acres of land, generally located north of Brush Creek Road and east of Fort Worth Drive by the City of Denton, Texas; providing for a savings clause and an effective date. BACKGROUND At the February 7, 2017 meeting, the City Council directed staff to pursue annexation of a 6.71 acretract of land generally located north of Brush Creek Road and east of Fort Worth Drive. The subject property is part of a larger site, in total approximately an 18 acre site, of which the remaining portion of the site (approximately 11 acres) is already located within the City of Denton. The property owner is proposing a commercial and multi-family development on the entire 18 acre site. The portion of the site currently within the City limits is zoned Neighborhood Residential 1 (NR-1) District, in which neither one of the proposed developments by the property owner is permitted. Therefore, the existing portion of the site within the City would have to be rezoned and the proposed 6.71-acre annexed property would have to be zoned. Based on the Future Land Use Map, the area is designated as Neighborhood Mixed Use. On March 7, 2017, the property owner was sent a certified letter notifying of the City intent to annexthe remaining 6.71 acre tract of property because the proposed development meets the Citys criteria for annexation. The proposed development: will require connection to City public services; is within the City Certificate of Convenience and Necessity boundary for water, sewer, and electric services; is partially in the City limits and in the CityTJ; and will have a significant impact upon the City in terms of service costs, increased traffic, and utility needs. In reviewing the proposed annexation, staff considered the following: 1. The ability of the city to provide infrastructure and public services equal to other comparableareas inside the city limits. Water service for this site would require extension of an 8-inch main along Brush Creek Road to applic southwest property corner (approximately 550 feet). An extension of gravity wastewater service to this site would be required. DME has a main line circuit US 377 (Fort Worth Drive) right-of-way near the property. Solid Waste will add this property to existing routes. Policing of the subject site would comply with required response times. 2. The reliability, capacity, and future public cost, if any, of current and planned provisions for community facilities, including but not limited to roads, drainage, and utilities. The terms of the needed improvements/upgrades will be determined upon platting and permitting and funding will be the responsibility of the developer. 3. The need and quality of land use and building controls. The annexation of the subject property into the city will enable the use of development and design standards in the Denton Development Code (DDC), minimizing the impacts of the proposed commercial and multifamily development on adjacent neighborhoods. 4. Conformance with the Land Use Element of the Citycomprehensive plan. The subject property is located in the transition area between the area designated as Neighborhood Mixed Use (along Fort Worth Drive), and the area designated as Rural Areas (located in theETJ). The proposed mixed use development with both commercial and multifamily componentscomplies with this designation. 5. Impact on the City, both current and long range, including at a minimum. Anticipated impacts to the City will be minimal as noted in Items 1 to 3, above. 6. The property meets the minimum requirements for annexation in accordance with state law. The property complies with all minimum requirements for annexation as set forth by the Texas Local Government Code as stated in Chapter 43, Subchapter C-1, Annexation Procedure for Areas Exempted from Municipal Annexation Plan. The property owner did not respond to the City annexation notification and as a result, Staff initiated the involuntary annexation proceedings in accordance with state law. After continued effort to contactthe property owner, Staff met with the property owner to discuss the annexation process. The property owner stated that he is not in favor of the annexation. The tentative schedule for this annexation is as follows: st nd May 23, 2017 - City Council meeting setting the 1and 2public hearing dates and authorizing the publication of notice of the public hearings - Complete st June 13, 2017 1Public Hearing - Complete nd June 20, 2017 2Public Hearing - Complete July 18, 2017 First Reading of the Annexation Ordinance - Complete July 19, 2017 Publication of the Annexation Ordinance in the newspaper - Complete August 22, 2017 - Second Reading and Adoption of the Annexation Ordinance PRIOR ACTION/REVIEW (Council, Boards, Commissions) February 7, 2017, the City Council directed staff to pursue annexation of the subject. st nd May 23, 2017, the City Council approved the 1and 2public hearing dates and authorized the publication of notice of the public hearings June 13, 2017, the City Council held the first of two required public hearings for the annexation of the subject property. June 20, 2017, the City Council held the second of two required public hearings for the annexation of the subject property. July 18, 2017, the City Council held the first of two readings of the annexation ordinance. STRATEGIC PLAN RELATIONSHIP The City of De Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundations of the plan are the five long-term Key Focus Areas (KFA): Organizational Excellence, Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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: Economic Development Related Goal: 3.4 Encourage development, redevelopment, recruitment, and retention EXHIBITS 1. Agenda Information Sheet 2. Location Map 3. Zoning Map 4. Draft Ordinance 5. Staff Presentation Respectfully submitted: Munal Mauladad Director of Development Services Prepared by: Cindy Jackson, AICP Senior Planner A17-0004 Location Map ALLRED BRUSH CREEK 0125250500 Feet SITECOD µ ETJ Parcels NAA 8/1/20 Roads Date: 5/2/2017 The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather for reference purposes. These maps are the property of the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate information possible. No warranties, expressed or implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement. A17-0004 Zoning Map RD-5X ALLRED NRMU NR-6 ETJ NR-1 BRUSH CREEK NR-2 0125250500 Feet SITEETJNR-6COD µ NR-1NRMUETJ Parcels NR-2RD-5XNAA 8/1/20 Roads Date: 5/2/2017 The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather for reference purposes. These maps are the property of the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate information possible. No warranties, expressed or implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement. 0004 - A17 Mixed Use Property Development Services August 22, 2017 Planning Division - Ron Menguita of two second Conduct the readings and consider adoption of an ordinance of the City of Denton involuntarily annexing approximately 6.71 acres of land, generally located north of Brush Creek Road and east of Fort Worth Drive. 2 / 5 Request family residential, retail, - Mixed Use DevelopmentMultirestaurant, and officeInitial ZoningZoning Change Proposed Development 3 / 5 Public Hearing Public Hearing Second Reading and Adoption of the stnd - 12 First Reading of the Annexation Ordinance -- - 2017 2017 2017 2017 June 13, June 20, July 18, August 22, Annexation Ordinance Annexation Schedule 4 / 5 providing for and . An ordinance of the city of Denton, Texas, annexing approximately 6.71 acres of land, generally located north of Brush Creek Road and east of Fort Worth Drive by the city of Denton, Texas, more specifically described in illustrated in a correction to the city map to include the annexed lands; providing for a savings clause and an effective date Ordinance 5 / 5 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1131,Version:1 AGENDA CAPTION Consider approval of a resolution by the City of Denton, Texas, approving the grant application for ÐDenton - Specialized Regional Response Teams SustainmentÑ project for fiscal year 2016 to the Office of the Governor; authorizing the City Manager or his agents official authority over this project; declaring an effective date; and requiring delivery of the Resolution to the Office of the Governor; and providing an effective date. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Fire CM/ DCM/ ACM: Todd Hileman DATE: August 22, 2017 SUBJECT Specialized Authorizing the City Manager or his agents official authority over this project; Declaring an effective date; and requiring delivery of the Resolution to the Office of the Governor; and providing an effective date. BACKGROUND The State Homeland Security Program (SHSP) grant is appropriated by the Department of Homeland Security and is designed to enhance the ability of local governments to prevent, protect against, respond to, and recover from terrorist attacks and other disasters. The Office of the Governor (OOG) allocates funding member of the Urban Area Security In for this program. Hazardous Materials Response team and is 100 percent funded by the grant. The grant project has been pre- authorized by the OOG pending final approval upon passage of the resolution. RECOMMENDATION City staff recommends approval of the resolution to participate in the grant program ESTIMATED SCHEDULE OF PROJECT The State deadline for the completion of the grant project is 8/31/2018. FISCAL INFORMATION The total grant award for this project is $130,000, requiring no local match. STRATEGIC PLAN RELATIONSHIP -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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: Safe, Liveable & Family-Friendly Community Related Goal: 4.1 Enhance public safety in the community EXHIBITS Exhibit 1 Agenda Information Sheet Exhibit 2 Resolution Respectfully submitted: Robin Paulsgrove Fire Chief Prepared by: Chad Weldon Deputy Fire Marshal City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1137,Version:1 AGENDA CAPTION 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. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ 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 th In the 85 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 internal review processes to be in compliance 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, traffic 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 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 determine 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 determine completeness; 21 days to approve or deny, and if not acted upon in this timeframe the permit is granted o If a permit is denied for being incomplete the applicant may resubmit a completed 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 manual would establish the 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 mandate established by the 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 Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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 Respectfully submitted: Mario Canizares Assistant City Manager CITY OF DENTON, TEXAS WIRELESS SERVICES (SMALL CELL/DAS) DESIGN MANUAL A.General Provisions. 1. Applicability. a.The provisions of this ordinance apply to any sitings, installations, and collocations in, on, over, or under the Public Rights-of-Way of Network Nodes, Node Support Poles, Micro Network Nodes, Distributed Antenna Systems, Transport Facilities, microwave communications, or other Wireless Facilities, by whatever nomenclature, whether they are installed pursuant to Tex. Loc. Gov't Code Chapter 284, or pursuant to an agreement with the City, or installed as may otherwise be allowed by law. b.Providers shall comply with all Applicable Codes of the City pertaining to the occupancy and use of Public Right-of-Way, unless such provisions conflict with this Ordinance, in which case this Ordinance prevails. c.Providers shall adhere to the requirements found in this ordinance for the placement of their facilities within the Public Right-of-Way. d.Any and all facilities selected for the installation of Provider’s Wireless Facilities shall not be considered “personal wireless service facilities” as that term is defined at 47 U.S.C. §332(c)(7)(C)(ii), or a “base station” as that term is defined at 47 CFR § 24.5. The limitations applicable to local governments with regard to the placement, construction, and Modification of “personal wireless service facilities” under 47 U.S.C. § 332(c)(7)(B) shall not apply to the City with regard to Locations selected for Wireless Facilities in the Public Right-of-Way. Nor shall any federal regulations limiting the authority of local governments with regard to the placement, construction, and Modification of “base stations” apply to the City with regard to Wireless Facilities located in the Public Right-of-Way. 2. Definitions. The following words, terms and phrases, when used in this Ordinance, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Abandon and its derivatives shall mean, with regard to Wireless Facilities and Transport Facilities, and all supporting equipment installed in the City’s Public Right-of-Way (including by way of example but not limited to: Poles, wires, conduits, manholes, handholes, cuts, Network Nodes, Node Support Poles, Ground Equipment, or any portion thereof) that have been left by a Provider in an unused or non-functioning condition for more than 120 consecutive Days unless, after notice to Provider, Provider has established to the reasonable satisfaction of the City that the applicable facility, or portion thereof, is still in active use. Affiliate shall mean each person or entity that falls into one or more of the following categories: (a) a person or entity having, directly or indirectly, a controlling interest in a Provider; (b) a person or entity in which Provider has, directly or indirectly, a controlling interest; or (c) a person or entity that directly or indirectly is controlled by a third party that also directly or indirectly controls a Provider. Antenna shall mean communications equipment that transmits or receives electromagnetic radio frequency signals used in the provision of Wireless Services. Page1 of 34 Applicable Codes shall mean (i) all applicable City of Denton Code of Ordinances provisions, Denton Development Code provisions, policies, and guidelines; (ii) all applicable engineering and safety standards governing the installation, maintenance and operation of facilities and the performance of all work in or around Public Right-of-Way and includes the most current versions of the National Electric Safety Code (“NESC”), the National Electrical Code (“NEC”), the Texas Health and Safety Code, Chapter 752, the rules and regulations of the Occupational Safety and Health Act (“OSHA”); and (iii) any applicable lawful rules, requirements or orders now in effect or hereafter issued by the City or other authority having jurisdiction. Cityshall mean the City of Denton, a Texas home-rule municipal corporation. Concealment or Camouflage shall mean any Wireless Facility or Pole that is covered, blended, painted, disguised, camouflaged, or otherwise concealed such that it blends into the surrounding environment and is visually unobtrusive. A Concealed or Camouflaged Wireless Facility or Pole includes any Wireless Facility or Pole approved by the City as conforming to the surrounding area in which the Wireless Facility or Pole is located and may include, but is not limited to, a Wireless Facility or Pole that is hidden beneath a facade, blended with surrounding area design, painted to match the supporting area, or disguised with artificial tree branches. Chapter 284 and Ch. 284, Tex. Local Gov’t Code shall mean Texas Local Government Code, Chapter 284, and as amended. CollocateandCollocation shall mean the installation, mounting, maintenance, modification, operation, or replacement of Network Nodes in the Public Right-of-Way on or adjacent to a Pole. Communication Space shall mean that space of the MOU Pole containing cable attachments, telecommunication attachments, and other communication cables and equipment. The Communication Space begins no less than forty inches (40”) below the electric neutral. Communication Workers Safety Zone shall mean the safety zone or “neutral” space on an MOU Pole between the lowest electrical supply conductor or equipment and the highest communication cables or equipment. The Communication Workers Safety Zone space begins no less than forty inches (40”) below the electric neutral. Days shall mean calendar days unless otherwise specified. Decorative Pole shall mean any Streetlight Pole specially designed and placed for aesthetic purposes and on which no appurtenances or attachments, other than specially designed informational or directional signage or temporary holiday or special event attachments, have been placed or are permitted to be placed according to Applicable Codes. Denton Municipal Electric orDMEshall mean the City’s municipally owned electric utility. Design District shall mean an area that is zoned or otherwise designated by the City, and for which the City maintains and enforces unique design and aesthetic standards. Disaster emergency, or disaster, or emergency shall mean an imminent, impending, or actual natural or human-induced situation wherein the health, safety, or welfare of the residents of the City is threatened, and includes, but is not limited to, any declaration of emergency by the City, state, or federal governmental authorities. Distributed Antenna System or DAS shall mean a type of Network Node. Page2 of 34 Easement shall mean and shall include any public easement or other compatible use created by dedication, or by other means, to the City for public utility purposes, or any other purpose whatsoever. Easement shall include a private easement used for the provision of utilities. Electric Supply Zone shall mean that space of an MOU Pole reserved for electric supply facilities. TheElectric Supply Zone may include separate facilities operating at different voltages; for safety reasons, the highest voltages are located uppermost on the MOU Pole. Only Qualified Electrical Workers are allowed to in or above the Electric Supply Zone. Ground Equipment shall mean any part of a Wireless Facility or associated equipment that is located on the surface of the ground and, if included in an approved Permit application or otherwise approved by the City in writing, an incidental structure to support the Wireless Facility. Highway Right-of-Way shall mean right-of-way adjacent to a state or federal highway. Historic District means an area that is zoned or otherwise designated as a historic district under Applicable Codes, state or federal law. License Agreement shall mean the Chapter 284 Municipally Owned Utility Pole Wireless Network Node Collocation Agreement or the Chapter 284 Service Pole Wireless Network Node Collocation Agreement. Location shall mean the City-approved and lawfully permitted location for the Network Node or Node Support Pole. Macro Tower shall mean a guyed or self-supported pole or monopole greater than the height parameters prescribed by Chapter 284 and that supports or is capable of supporting antennas. Micro Network Node shall mean a Network Node that is not larger in dimension than 24 inches in length, 15 inches in width, and 12 inches in height, and that has an exterior antenna, if any, not longer than 11 inches. Modification or Modify shall mean any work in the Public Right-of-Way, or alteration of a Wireless Facility that is not substantially similar in size or is a change in the Wireless Facility’s location in the Public Right-of-Way or its physical position on the Pole, except those alterations or changes that are excepted from requiring a Permit under Chapter 284, which do not constitute Modifications hereunder. Municipal Park shall mean an area that is zoned or otherwise designated by City ordinance or has been dedicated to the City for use as a public park for the purpose of recreational activity. Municipally-Owned Utility Pole or MOU Pole shall mean a Utility Pole owned by the City and operated by its municipally-owned electric utility, as defined by Tex. Util. Code, § 11.003, and located in the Public Right-of-Way. Network Node shall mean equipment at a fixed location that enables wireless communications between user equipment and a communications network. The term: (1) includes: (a) equipment associated with wireless communications; (b) a radio transceiver, an antenna, a battery-only backup power supply, and comparable equipment, regardless of technological configuration; and Page3 of 34 (c) coaxial or fiber-optic cable that is immediately adjacent to and directly associated with a particular collocation; and (2) does not include: (a) an electric generator; (b) a pole; or (c) a Macro Tower. Network Provider shall mean: (1) a Wireless Service provider; or (2) a person that does not provide Wireless Services and that is not an electric utility but builds or installs on behalf of a Wireless Service provider: (a) Network Nodes; or (b) Node Support Poles or any other structure that supports or is capable of supporting a Network Node. Node Support Pole shall mean a pole installed by a Network Provider for the primary purpose of supporting a Network Node. Permit shall mean the City’s written authorization for the use of Public Right-of-Way or collocation on a Pole for a Network Provider to perform an action or initiate, continue, or complete a project pursuant to the requirements of this Ordinance. A Permit shall include an excavation permit. Pole shall mean a Service Pole, Municipally-Owned Utility Pole, Node Support Pole, or Utility Pole. Pole-Top Zone shall mean the space located at the top of the MOU Pole above the Electric Supply Zone of the MOU Pole. Post-Installation Inspection shall mean the inspection of an MOU Pole to determine and verify the Make-Ready Wireless Construction, and all other Make-Ready work, including the installation of the permitted attachment was made in accordance with the generally applicable engineering standards, Applicable Codes, Design Manual, and all other requirements of the Permit. Pre-Permit Survey shall mean all work or operations required by Applicable Codes or the City to determine whether the proposed location of a Network Node has the structural and spatial ability to accommodate Network Nodes and related equipment. Such work includes, but is not limited to, field inspection, loading calculations, and administrative processing. The Pre-Permit Survey shall be coordinated with the City and include the Provider’s professional engineer. Private Easement shall mean an Easement or other real property right that is only for the benefit of the grantor and grantee and their successors and assigns. Provider has the same meaning as “Network Provider.” Page4 of 34 Public Right-of-Way or Right-of-Way shall mean the area on, below, or above a public roadway, highway, Street, public sidewalk, alley, waterway, or utility easement in which the City has an interest. The term does not include: (1) a Private Easement; or (2) the airwaves above a Public Right-of-Way with regard to wireless telecommunications. Qualified Electrical Worker shall mean specially trained lineman with the skillset to work with and around electrical wires in or above the Electric Supply Space. A Qualified Electrical Worker must possess a Journeyman Lineman or higher card through a United States Department of Labor approved Lineman Apprentice program. Safety Briefing shall mean a document or presentation materials prepared by a Provider and provided to DME regarding how to work safely near and/or around the Provider’sWireless Facilities. A Safety Briefing must be submitted with a Pre-Certification Equipment Form and pre-approved by the City electric department before distributing or otherwise making available to City electric department employees or contractors. Site License shall mean a DME map document authorizing a Provider’s non-exclusive right of attachment and ongoing use of specific MOU Poles or Streetlight Pole. Stub Pole shall mean an MOU Pole that has had a portion of its upper structure removed so that only a limited amount remains in place. This is usually done when an electric utility has removed its facilities in the Electric Supply Zone but telecommunication facilities remain on the pole. Supply Cable shall mean the jacketed multiple conductor that provides electric energy to a load. Supply Space shall mean Electric Supply Zone. Topped-Off Pole shall mean Stub Pole. School shall mean an educational institution that offers a course of instruction for students in one or more grades from kindergarten through grade 12. Service Pole shall mean a pole, other than a Municipally Owned Utility Pole, owned or operated by the City and located in a Public Right-of-Way, including: (1) a pole that supports traffic control functions; (2) a structure for signage; (3) a Pole that supports lighting, other than a Decorative Pole; and (4) a pole or similar structure owned or operated by the City and supporting only Network Nodes. Small Cell is included as a type of Network Node. Street shall mean only the paved portion of the Public Right-of-Way used for vehicular travel, being the area between the back of the street curb to the back of the opposite street curb, or the area between the two parallel edges of the paved roadway for vehicular travel where there is no curb. A Street is generally part of, but smaller in width than the width of, the entire Right-of-Way. A Right-of-Way may include Page5 of 34 sidewalks and public utilities, but a Street does not. A Street does not include the sidewalk, if present at the time of a permit application or if added later. Streetlight Pole shall mean any standard-design concrete, fiberglass, metal, or wooden pole used for street lighting purposes, owned or operated by the City, that is capable of supporting Network Nodes. TAS shall mean Texas Accessibility Standards. Traffic Control Device shall mean all signs, signals, markings, or devices placed or erected by the City or a public body having jurisdiction for the purpose of regulating, warning, or guiding traffic. Traffic Signal shall means any device, whether manually, electrically, or mechanically operated by which traffic is alternately directed to stop and to proceed. Transport Facility shall mean each transmission path physically within a Public Right-of-Way, extending with a physical line from a Network Node directly to the network, for the purpose of providing backhaul for Network Nodes. Underground Utility District shall mean an area where poles, overhead wires, and associated overhead or above-ground structures have been removed and buried, or have been approved for burial underground pursuant to City ordinances, City zoning regulations, state law, private deed restrictions, and other public or private restrictions, that prohibit installing above-ground structures in a Public Right-of- Way. Utility Pole shall mean a pole that provides: (1) electric distribution with a voltage rating of not more than 34.5 kilovolts; or (2) services of a telecommunications provider, as defined by Section 51.002, Utilities Code. Wireless Service shall mean any service, using licensed or unlicensed wireless spectrum, including the use of Wi-Fi, whether at a fixed location or mobile, provided to the public using a Network Node. Wireless Service Provider shall mean a person or entity that provides Wireless Service to the public. Wireless Facilities shall mean Micro Network Nodes, Network Nodes, and Node Support Poles, as defined herein and in Chapter 284. B.Applications and Permitting. A.Access to Public Right-of-Way. a.Subject to the provisions of this ordinance, the City will issue a Permits to Providers authorizing Providers to install and maintain Wireless Facilities and Transport Facilities in or on Public Right-of-Way in accordance with Chapter 284. The locations at which Provider’s Wireless Facilities and Transport Facilities may be permitted, and the size and appearance of such Wireless Facilities, shall be determined in accordance with this ordinance. Provisions concerning construction and activities in the Public Right-of- Way in Chapter 6 shall also be applicable to Providers' activities in the Public Right-of- Way. If the requested Location is to Collocate a Network Node on a Service Pole, Municipally Owned Utility Pole, or Utility Pole, Provider must also, prior to making application for such Location, enter into a License Agreement with the City for such Collocation. Page6 of 34 b.The City will issue a Permit(s) to Provider only when the City reasonably determines, in its sole judgment, that (i) Provider meets all requirements set forth in this ordinance, and (ii) such Permit(s) comply with all Applicable Codes. c.No use, however lengthy, of any of Public Right-of-Way, and no payment of any fees or charges required under this ordinance, shall create or vest in Provider any easement or other ownership or property right of any nature in any portion of the Public Right-of-Way. After issuance of any Permit, Provider shall be and remain a mere licensee. Neither this ordinance, nor any Permit granted under this ordinance, shall constitute an assignment of any of the City’s rights to the Public Right-of-Way. d.No part of Provider’s Wireless Facilities or Transport Facilities or other equipment constructed, Modified, or erected, or placed on Public Right-of-Way will become, or be considered by the City as being affixed to or a part of, the Public Right-of- Way. All portions of Provider’s Wireless Facilities and Transport Facilities and other equipment constructed, Modified, erected, or placed by Provider on Public Right-of-Way will be and remain the property of Provider and may be removed by Provider at any time. e.Nothing in this ordinance or in a Permit granted hereunder shall be construed as granting Provider any right to attach Provider’s Wireless Facilities or Transport Facilities at any specific location or facility or to compel the City to grant Provider the right to attach at any specific location or facility. f.This ordinance does not in any way limit the City’s right to locate, operate, maintain or remove Service Poles, MOU Poles, or other City equipment or property in the manner that the City deems appropriate. g.Provider is obligated to obtain all necessary certification, permitting, and franchising from federal, state and local authorities, if required, prior to making any installations of Wireless Facilities or Transport Facilities. h.Nothing in this ordinance shall be construed to require the City to install, retain, extend, or maintain any Service Poles, MOU Poles, or other City equipment or property for use by the Provider when such Service Poles, MOU Poles, or other City equipment or property are not needed for the City’s own requirements. i.Nothing in this ordinance shall limit, restrict, or prohibit the City from fulfilling any agreement or arrangement regarding a Service Pole, MOU Pole, or other City equipment or property into which the City has previously entered, or may enter in the future, with other entities, including, but not limited to, agreements or arrangements for the removal of Wireless Facilities. j.Nothing in this ordinance or in any Permit granted hereunder shall be construed to grant Provider the authority to lease, grant, or otherwise assign any rights under its Permit to any other party without the written consent of the City. k.In the event the City determines to deny the use by Provider of any particular Service Poles, MOU Poles, or other City equipment or property or any particular location in the Public Right-of-Way, such denial shall not be construed to be a prohibition on, or to have the effect of prohibiting, the provision of Wireless Services. Any such denial Page7 of 34 by the City shall be undertaken in its capacity as proprietor of the Public Right-of-Way, and not in its regulatory capacity. l.Any Permit granted under this ordinance is limited to the uses specifically authorized in the Permit and any other use shall be considered a material breach of this ordinance. Nothing in this ordinance or in any Permit granted hereunder shall be construed to require the City to allow Provider to use the Public Right-of-Way after the termination of the applicable Permit. 2. Fees and Charges. a.Provider shall pay the City the following Permit application fees: i.Network Nodes - An application fee in an amount as set forth in the City’s fee ordinance for up to five (5) Network Nodes in each application, and an additional amount as set forth in the City’s fee ordinance for each additional Network Node in the application (a maximum of thirty (30) Network Nodes may be included in each application). ii.Node Support Poles - An application fee in an amount as set forth in the City's fee ordinance for each pole. iii.Transport Facility - An application fee in an amount as set forth in the City's fee ordinance for up to five (5) Network Nodes in each application, and an additional amount as set forth in the City’s Ch. 284 fee ordinance for each additional Network Node in the application (a maximum of thirty (30) Network Nodes may be included in each application). b.Provider shall pay the City the following recurring fees: i.Network Nodes - An annual Network Node site rental fee in an amount as set forth in the City’s Ch. 284 fee ordinance per Network Node site, with an annual adjustment as provided herein. ii.Transport Facility - A monthly Transport Facility rental fee in an amount as set forth in the City’s Ch. 284 fee ordinance for each Network Node site, not to exceed the Provider’s monthly aggregate per-node compensation to the City. The Network Provider bears the burden to establish that the entity paying the City the Transport Facility rental is the same as, or an Affiliate of, the entity paying the Network Node site rental rate. iii.Collocation of Network Nodes on Service Poles and MOU Poles - An annual fee in an amount as set forth in the City’s Ch. 284 fee ordinance per Service Pole or MOU Pole. iv.All recurring fees are payable in advance and are due upon approval of the Permit(s) by the City; no Permit shall become effective until the fee has been paid. Initial amounts shall be pro-rated, based upon an annual due date of January 1 of each year. (a) For example, a Network Node Permit approved by the City in August shall be effective upon payment in advance by the Provider Page8 of 34 of 5/12 of the annual rental rate. Thereafter, all payments of annually- recurring fees are due to the City by January 1 for the following calendar year. (b) For example, a Transport Facility Permit approved by the City in August shall be effective upon payment by the Provider of five months of the monthly rental amount. Thereafter, payments for twelve months at a time are due to the City by January 1 for the following twelve months. v.Provider shall maintain and submit annually to the City with each payment to the City, an inventory of Provider’s Network Nodes, Node Support Poles, Node Support Poles connected by Transport Facilities, and Collocated Network Nodes. This information shall include complete and accurate GIS location information, maps, plans, equipment inventories, and other records related to Provider’s Facilities. An inventory shall be effective from January 1 of each year. The City reserves the right to compare the information contained on the inventory to any actual field inspection or survey conducted mutually. In the event that Provider fails to submit an inventory, Provider shall pay the City, in addition to the monthly- or annually-recurring fees, all actual costs associated with the City's performance of an inventory of Provider’s Facilities. (a) If either Provider or the City subsequently discovers that Provider has failed to pay the entire or correct amount of compensation due, the correct amount shall be paid by Provider within thirty (30) Days of such determination. Any overpayment to the City through error or otherwise will, at the sole option of the City, either be refunded to Provider by the City within thirty (30) Days of such determination or offset against the next payment due from Provider. Acceptance by either Provider or the City of any payment due under this section shall not be deemed to be a waiver by either of any claim of violation of this ordinance, nor shall the acceptance by either of any such payments preclude either from later establishing that a larger amount was actually due or from collecting any balance due. Nothing in this section shall be deemed a waiver by either Provider or the City of its rights under law or equity. (b) Interest on late payments shall be calculated in accordance with the interest rate for customer deposits established by the Public Utility Commission of Texas in accordance with the Texas Utilities Code, Section 183.003, as amended for the time period involved. (c) The compensation payable to the City hereunder shall not be offset by any payment by Provider to the City relating to ad valorem taxes. vi.The Network Node site rental fee set forth herein shall be adjusted on an annual basis, by an amount equal to one-half of the annual change, if any, in the Consumer Price Index. For purposes of this section, Consumer Price Index shall mean the annual revised Consumer Price Index for All Urban Consumers for Texas, as published by the federal Bureau of Labor Statistics. The adjusted fee will Page9 of 34 be effective sixty (60) Days after the City provides notice to Providers of the new rate. vii.The recurring fees set forth herein shall be exclusive of, and in addition to, all ad valorem taxes, special assessment for municipal improvements, and other lawful obligations of the Provider to the City. viii.When the City at its own expense has removed or remediated Provider's Wireless Facilities or Transport Facilities or Provider is otherwise required to reimburse the City hereunder, the Provider shall remit payment to the City within 30 Days of the date of the invoice. ix.Upon Provider’s termination of the use of any Service Pole, MOU Pole, or Public Right-of-Way in accordance with the terms of a Permit and this ordinance, and Provider peaceably surrendering the Service Pole, MOU Pole, or Public Right-of-Way to the City in the same condition it was in on the date the Permit(s) was granted, excepting ordinary wear and tear, there will be no compensation due to the City by Provider for such location. C.Installation in Right-of-Way. 1.General Requirements. a.Wireless Facilities shall be concealed or enclosed as much as possible in an equipment box, cabinet, or other unit that may include ventilation openings. External cables and wires hanging off a Pole shall be sheathed or enclosed in a conduit, so that wires are protected and not visible or are visually minimized to the extent possible. b.Wireless Facilities must conform to the City’s aesthetic or design standards for the proposed Location, if any, unless otherwise approved by the City. c.Separation. i.In order to minimize negative visual impact to the surrounding area, the hazard of Poles adjacent to roadways, and the effect on property values, the City may deny a Permit for a new Node Support Pole if the requested location is within 45 linear feet of a Street intersection or 300 linear feet per block face of existing Utility Pole or Node Support Pole. ii.In residential zoning districts, Network Nodes and Node Support Poles shall not be located without the City's written consent if the Public Right-of- Way is adjacent to a Street or thoroughfare that is not more than 50 feet wide and adjacent to single-family residential lots or other multi-family residences or undeveloped land that is designated for residential use by zoning or deed restrictions. iii.In non-residential zoning districts, Wireless Facilities shall be located between tenant spaces, storefront bays, or adjoining properties where their shared property lines intersect the Public Right-of-Way. d.Provider shall comply with and observe all applicable City, state, and federal historic preservation laws and requirements. Page10 of 34 e.When a Permit is issued Provider shall install and maintain its Wireless Facilities and Transport Facilities, and all Ground Equipment, in accordance with the City’s requirements and specifications. All of Provider's Wireless Facilities, Transport Facilities, and Ground Equipment must comply with all Applicable Codes. f.Provider shall be responsible for the installation and maintenance of its Wireless Facilities, Transport Facilities, and related Ground Equipment. Provider shall install such facilities in a good and workmanlike manner and in accordance with the requirements promulgated by the City, as such may be amended from time to time. Provider’s work shall be subject to the regulation, control, and direction of the City. All work done in connection with the installation, operation, maintenance, repair, Modification, and/or replacement of the Wireless Facilities, Transport Facilities, and related Ground Equipment shall be in compliance with all applicable City, state, and federal laws, ordinances, codes, rules, and regulations. g.Primary Use. The City shall not grant Permits to locate Wireless Facilities on Service Poles or other City facilities or equipment that, in the City's sole determination, will adversely impact the primary use of the Service Pole, MOU Pole, or other City facility or equipment. h.Visual Clutter. The City may not grant Permits to Wireless Facilities that, in the City's sole determination, will contribute to visual clutter, taking into account the proximity of existing Wireless Facilities and the surrounding land use. There shall not be more than one Network Node on any one Pole, unless otherwise approved, in writing, by the City. i.Wireless Facilities and Ground Equipment shall not impede pedestrian or vehicular traffic or render the Public Right-of-Way non-compliant with Applicable Codes, including the Americans with Disabilities Act. j.Height. All Network Node and Node Support Poles shall have a maximum height of thirty-five (35) feet in residential zoning districts, if allowed, Historic Districts and Design Districts. In all other districts, a Node Support Pole, modified Utility Pole, Service Pole, or MOU Pole shall not exceed the height limitations of Chapter 284, Sec. 284.103. 2.Placement Preference. a.General Guidelines on Placement. In accordance with Chapter 284, a Network Provider shall construct and maintain Network Nodes and Node Support Poles in a manner that does not: i.Obstruct, impede, or hinder the usual travel or public safety on a Public Right-of-Way; ii.Obstruct the legal use of a Public Right-of-Way by other utility providers; iii.Violate nondiscriminatory Applicable Codes; iv.Violate or conflict with the City's ordinances regulating the use and occupancy of Public Rights-of-Way or this ordinance; or Page11 of 34 v.Violate the federal Americans with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.). b.Order for Installation. The order for installation of Network Node attachments to existing facilities and new Node Support Poles is as follows: i.Existing telephone or electric lines between existing Utility Poles, including MOU Poles. Micro Network Nodes shall only be lashed on existing telephone or electrical lines between existing Utility Poles (electric poles or telephone poles), with notice to the pole owner as required by the Federal Pole Attachment Act, and not placed on Utility Poles, Node Support Poles, Service Poles, or MOU Poles. ii.Existing Utility Poles (electric poles or telephone poles) shall be the preferred support facility for Network Nodes and related ground equipment. iii.Service Poles: (a) Non-Decorative Poles with a height of more than 20 feet, outside of Historic District and Design District. (b) Wireless Facilities shall not be placed on Service Poles supporting Traffic Control Devices, Traffic Signals, or any structure supporting a Traffic Control Device or Traffic Signal, unless the City determines that such installation will not interfere with the integrity of the facility or the safety of the public. Any such installation allowed by the City will be in accordance with a separate agreement with the City. (c) Attachment to Service Poles used for street signage is discouraged. iv.New Node Support Poles shall be the least preferred type of allowed facility for attachment of Network Nodes. v.Ground Equipment shall be minimal and the least intrusive design and placement as possible. 3.Historic District. a.Areas within the City that have been, or shall be in the future, designated by zoning or otherwise as Historic Districts, in which unique design and aesthetic standards are maintained and enforced by the City. Providers shall comply with and observe all applicable City, state, and federal historic preservation laws and requirements. b.Wireless Facilities proposed within a Historic District shall be subject to review by the City Engineer or designee in order to satisfy that the installations are compatible with the regulations applicable to Historic District. i.As a condition for approval of Permits for Network Nodes or Node Support Poles in Historic Districts, the City shall require reasonable design or Concealment measures for such facilities. Therefore, with any request for installations in these areas, Provider shall include proposed Concealment measures Page12 of 34 in the Permit application. Thereafter, Provider shall implement the City-approved design concepts, and the use of Camouflage or stealth materials as necessary in order to achieve compliance with Historic District review, including following the design guidelines for the City’s Historic Districts and other applicable regulations. ii.Prior to submitting an application for a Permit for a Wireless Facility in a Historic District, Provider shall meet with the City Engineer or designee to discuss any potential design modifications appropriate for the installation. 4.Design District. a.Areas within the City that have been, or shall be in the future, designated by zoning or otherwise as Design Districts, in which unique design and aesthetic standards are maintained and enforced by the City. Providers shall comply with and observe all applicable City, state, and federal historic preservation laws and requirements. b.Wireless Facilities proposed within a Design District shall be subject to review by the City Engineer or designee in order to satisfy that the installations are compatible with the regulations applicable to Design District. i.As a condition for approval of Permits for Network Nodes or Node Support Poles in Design Districts, the City shall require reasonable design or Concealment measures for such facilities. Therefore, with any request for installations in these areas, Provider shall include proposed Concealment measures in the Permit application. Thereafter, Provider shall implement the City-approved design concepts, and the use of Camouflage or stealth materials as necessary in order to achieve compliance with Design District review, including following the design guidelines for the City’s Design Districts and other applicable regulations. ii.Prior to submitting an application for a Permit for a Wireless Facility in a Design District, Provider shall meet with the City Engineer or designee to discuss any potential design modifications appropriate for the installation. 5.School Zone Lights. Wireless Facilities will not be allowed at locations that interfere with school zone flashing lights. The interference to be avoided is structural, radio frequency, and visual. 6.Pedestrian Impacts. a.The City shall not grant Permits for Wireless Facilities that, in the City’s sole determination, will adversely impact pedestrian movement or will be in violation of the Americans with Disabilities Act. b.A minimum five (5) foot clear path of travel will be provided at all times. c.Network Nodes on new or existing Poles must be installed at least eight (8) feet above the ground. Page13 of 34 d.If the Network Node attachment is projecting toward the Street, it must be installed no less than sixteen (16) feet above the ground for the safety and protection of the public and vehicular traffic. e.No protrusion from the outer circumference of the existing structure or Pole shall be more than two (2) feet. 7.New Node Support Poles. a.Node Support Poles shall be set back a minimum of twenty (20) feet from a Traffic Signal Pole, and set back a minimum of fifteen (15) feet from any pedestrian ramp. The City may require a greater setback from these and other fixtures in the Public Right-of-Way to ensure proper sight lines for public safety purposes. b.Node Support Poles and accessory equipment shall be located at least ten (10) feet from a driveway and at least twelve (12) feet from the center of existing trees. 8.Decorative Poles. a.Wireless Facilities proposed for Decorative Poles must be Camouflaged so as to not adversely affect the appearance of such poles. b.Prior to submitting an application for a Wireless Facility on a Decorative Pole, Provider shall meet with the City Engineer or designee to discuss any potential design modifications appropriate for the installation. 9.Residential Areas and Municipal Parks. a.Providers shall not be allowed, without the written consent of the City, to install a Network Node on an existing Pole in a Public Right-of-Way located in or adjacent to a Street or thoroughfare that is: i.Not more than fifty (50) feet wide, and ii.Adjacent to single-family residential lots or other multi- family residences or undeveloped land that is designated for residential use by zoning or deed restrictions. b.As a general rule, new Node Support Poles will not be permitted in a Public Right-of-Way that is in a Municipal Park or that is adjacent to a Street or thoroughfare that is described in section C.8.a. above. c.The City may, but is not required to, issue a Permit for the installation of a Network Node or Node Support Pole in areas described in this section on terms that are discretionary and nondiscriminatory, and that have the effect of minimizing interference with the aesthetic qualities of such areas, and that are in keeping with this ordinance. d.If the City approves a Permit for the installation of Network Nodes or Node Support Poles in the areas described this section, Provider remains under an obligation to determine whether any private deed restrictions or other private restrictions are in place in the area, and to comply with same. 10.Undergrounding Requirements. Page14 of 34 a.Areas within the City may be designated from time to time by the City as Underground Utility Districts in accordance with filed plats, and/or in connection with the conversion of overhead to underground areas, as may be allowed by law. b.Provider will comply with nondiscriminatory undergrounding requirements, including municipal ordinances, zoning regulations, state law, private deed restrictions, and other public or private restrictions, that prohibit installing aboveground structures in a Public Right-of-Way without first obtaining zoning or land use approval. c.In Underground Utility Districts as established by the City, Provider shall neither allow nor install Transport Facilities or any other overhead Facilities serving to connect Provider's Network Nodes. In all areas where overhead telecommunications or utility lines are, or are planned to be, buried below ground as part of a City project, all Transport Facilities or any other Wireless Facilities serving to connect Provider's Network Nodes, including ground equipment, shall also be buried below ground. d.If a Permitted Location subsequently becomes part of an Underground Utility District, Provider's Permit will be automatically revoked within 90 Days after such designation, with removal of Provider's Micro Network Node, Network Node, Node Support Pole, and related ground equipment at such location within 90 Days of such designation, or as otherwise reasonably allowed by the City for the transition of overhead facilities. 11.Electrical Supply. Provider shall be responsible for obtaining any required electrical power service to the Wireless Facility. The City shall not be liable to the Provider for stoppages or shortages of electrical power furnished to the Wireless Facility, including, without limitation, stoppages or shortages caused by any act, omission, or requirement of the utility serving the Wireless Facility or the act or omission of any other tenant or licensee of a City facility, or for any other cause beyond the control of the City. Provider shall not be entitled to any abatement of the Rental Fee for any such stoppage or shortage of electrical power. 12.Traffic Signals and Street Signage. a.If allowed by the City, installations on Traffic Signals or Street Signage must not interfere with the integrity of same or the safety of the public. b.Any installation allowed by the City will be in accordance with a separate agreement with the City. c.Network Nodes installed on any Traffic Signal or Street Signage structures shall be encased in a conduit separate from the Traffic Light or Street Signage elements, have an electric power connection separate from the Traffic Signal or Street Signage structure, and have an access point separate from the Traffic Signal or Street Signage structure. 13.Generators. Generators or back-up generators shall not be installed in the Public Right-of-Way. Permits granted to Provider for Network Nodes or Transport Facilities do not include authorization for the installation of generators or back-up generators in the Public Right- of-Way. 14.Ground Equipment. Page15 of 34 a.In addition to the size restrictions provided in Chapter 284, § 284.003(a)(4), Ground Equipment near Street corners and intersections should be minimal and the least intrusive. Ground Equipment may not be installed within 250 feet of a Street corner or a Street intersection. This set-back is for the purposes of minimizing any obstruction, impediment, or hindrance to vehicular traffic and public safety, maximizing line-of-sight in order to protect the safety of vehicular and pedestrian traffic at Street corners and intersections, and thereby minimizing hazards at those locations. b.Ground Equipment near Municipal Parks. For the safety of Municipal Park patrons, particularly small children, and to allow full line-of-sight near Municipal Park property, the Network Provider shall not install Ground Equipment in a Public Right-of- Way that is within a Municipal Park or within 250 feet of the boundary line of a Municipal Park, unless approved by the City in writing. c.Ground Equipment density. In order to enhance the safety requirements of line-of-sight of pedestrians, particularly small children, the City may deny a request for a proposed Location for Ground Equipment where existing Ground Equipment within 300 feet of the proposed Location, already occupies a footprint of 25 square feet, or more. 15.Equipment Dimensions. With each application and with each request for a Permit, and for each requested Location, Provider shall provide detailed drawings with calculations to show strict conformity to the size limitations as set forth herein and in Chapter 284 for Micro Network Nodes, Network Nodes, and Node Support Poles. 16.Non-interference. a.To the extent not inconsistent with Chapter 284, Provider’s Network Nodes shall not cause harmful interference to the City's public service radio frequency, wireless network, SCADA operations, or communications operations (“City Operations”), or to third-parties’ Network Nodes or similar third-party equipment in the Public Right-of- Way or adjacent City property (“Protected Equipment”). If Provider's Network Node interferes with City Operations, then Provider shall immediately cease operation of the Network Node causing said interference upon receiving notice from the City and refrain from operating until Provider has eliminated the interference. If after notice Provider continues to operate a Network Node that causes interference with City Operations, such Network Node may be deemed unauthorized and subject to the remediation and termination provisions of this Ordinance. If Provider's Network Node interferes with Protected Equipment, then Provider shall take the steps necessary to correct and eliminate such interference within 24 hours of receipt of notice from the City. If Provider is unable to resolve the interference issue within this timeframe, it will voluntarily power down the Network Node causing the interference, except for intermittent testing until such time as the interference is remedied. b.Following installation or Modification of a Network Node, the City may require Provider to test the Network Node's radio frequency and other functions to confirm that it does not interfere with City Operations or Protected Equipment. If, after notice, Provider continues to operate a Wireless Facility that causes interference with City Operations, such Wireless Facility may be deemed unauthorized and subject to the provisions of this Ordinance. Page16 of 34 17.Tree Maintenance. Provider and its contractors and agents shall obtain written permission from the City before trimming trees hanging over its Wireless Facilities and Transport Facilities to prevent branches of such trees from contacting same. When directed by the City, Provider shall trim under the supervision and direction of the City Engineer or designee. The City shall not be liable for any damages, injuries, or claims arising from the Provider's actions under this section. 18.Signage. Provider shall post its name, location identifying information, and emergency telephone number in an area on the Wireless Facility or Ground Equipment that is visible to the public. Corporate logos are prohibited as signage. Signage required under this section shall not exceed 4 inches by 6 inches, unless otherwise required by law (e.g., RF ground notification signs), or the City. Except as required by law, Provider shall not post any other signage or advertising on the Pole, the Wireless Facility, or any Ground Equipment cabinet or back-up battery. Signage must be updated by the Provider within 90 Days of a company name change of the Provider. 19.Repair. Whenever the installation, placement, attachment, repair, Modification, removal, operation, use, or relocation of the Wireless Facility or Transport Facility, or any portion thereof is required or permitted under this ordinance, and such installation, placement, attachment, repair, Modification, removal, operation, use, or relocation causes any Service Pole, and City facility or equipment, or any portion of the Public Right-of-Way, to be damaged or to have been altered in such a manner as to make it unusable, unsafe, or in violation of any Laws, Provider, at its sole cost and expense, shall promptly repair and return such Service Pole, City facility or equipment, or Public Right-of-Way to its original condition. If Provider does not perform such work as described in this paragraph, then the City shall have the option, upon 15 Days’ prior written notice to Provider or immediately if there is an imminent danger to the public, to perform or cause to be performed such reasonable and necessary work on behalf of Provider and to charge Provider for the reasonable and actual costs incurred by the City. Provider shall reimburse the City for the costs in accordance with this ordinance. 20.Damage to Pole. Whenever a Service Pole, MOU Pole, or other City facility or equipment supporting a Network Node is damaged or knocked down, the City shall endeavor to provide prompt notice to Provider of the need to remove or repair Provider's Network Node. Upon receipt of notification from City of such damage, Provider shall promptly respond and shall within one hour of such notification take such measures as are necessary to make the area safe, such as disconnection of the power source to the Network Node and removing damaged equipment from the Public Right-of-Way, if applicable. 21.Access by Provider. Provider’s access to Public Right-of-Way shall be coordinated with the City to schedule such access at times that are least disruptive to the traveling public. The time of day and duration of Provider's access shall be as determined by the City. For all activities that impact traffic, Provider’s access shall be conditioned upon City approval of Provider’s traffic control plan. Provider shall maintain written logs of each instance when Provider has accessed the Public Right-of-Way; such log shall be made available to the City upon reasonable request by the City. 22.Graffiti Abatement. As soon as practical, but not later than 14 Days from the date Provider receives notice thereof, Provider shall remove all graffiti on any of its Wireless Facilities, Page17 of 34 or Ground Equipment. The foregoing shall not relieve Provider from complying with any visual blight ordinance or regulation. D.Private and Regulatory Compliance. 1.Necessary Approvals. Provider shall be responsible for obtaining from the appropriate public and/or private authority or other appropriate persons any required authorization to construct, operate and/or maintain its Wireless Facilities or Transport Facilities on public property before it occupies any portion of the Public Right-of-Way. The City retains the right to require evidence that appropriate authorization has been obtained before any Permit is issued to Provider. Provider’s obligations under this Article include, but are not limited to, the obligation to obtain all necessary approvals to occupy public/private rights-of-way and to pay all associated costs. E.Permit Application Procedures. 1.Permit Required. Provider shall not install any Wireless Facility or Transport Facility in any portion of the Public Right-of-Way, or materially Modify the Wireless Facility or Transport Facility, without first applying for and obtaining a Permit in compliance with the City’s Permit application process. 2.License Agreement Required. As a precondition to receiving a Permit to Collocate a Network Node on a Service Pole, Provider shall enter into a License Agreement with the City. The City Manager or designee shall have the authority to execute said agreement. 3.Permit Not Required. a.Notwithstanding any other provision of this ordinance, a Permit is not required for: i.routine maintenance that does not require excavation or closing of sidewalks or vehicular lanes in a Public Right-of-Way; ii.replacing or upgrading a Network Node or Pole with a Node or Pole that is substantially similar in size or smaller and that does not require excavation or closing of sidewalks or vehicular lanes in a Public Right-of-Way; or iii.the installation, placement, maintenance, operation, or replacement of Micro Network Nodes that are strung on cables between existing Poles or Node Support Poles, in compliance with the National Electrical Safety Code. b.For purposes of this section: i.a Network Node or Pole is considered to be “substantially similar” if: a)the new or upgraded Network Node, including the Antenna or other equipment element, will not be more than 10 percent larger than the original permitted Network Node, provided that the increase may not result in the Network Node exceeding the size limitations provided by Chapter 284; and Page18 of 34 b)the new or upgraded Pole will not be more than 10 percent higher than the original permitted Pole, provided that the increase may not result in the Pole exceeding the applicable height limitations prescribed by this ordinance and Chapter 284; ii.the replacement or upgrade does not include replacement of an existing Node Support Pole; and iii.the replacement or upgrade does not defeat existing Concealment elements of a Node Support Pole. c.The determination under this section of whether a replacement or upgrade is substantially similar is made by measuring from the dimensions of the Network Node or Node Support Pole as approved by the City. d.Notwithstanding the above, for activities that do not require a Permit: i.The Provider shall give the City 30 Days advance notice of the work described above; ii.a Network Provider may replace or upgrade a Pole only with the approval of the Pole’s owner; and iii.the size limitations may not in any event exceed the parameters prescribed by Chapter 284 without the City’s approval. 4.Permit Application Requirements. a.Provider shall complete and submit to the City an application to locate a Wireless Facility or Transport Facility, using the application form provided by the City. The following items shall accompany the completed application form: i.A one-time, nonrefundable application fee for review of the application in the amount provided for in the City’s Ch. 284 fee ordinance. ii.Documents necessary for the review or as requested by the City that are designed and sealed by a professional engineer, including but not limited to: a)A map or site plan drawn to scale on 14”x17” or 22”x34” paper showing: i.the location of the proposed installation, including GIS or street address information; ii.the proximity of the proposed installation to special districts of the City; iii.the proximity to Schools and Municipal Parks; and iv.the proximity to Service Poles, Utility Poles, MOU Poles, Node Support Poles, and other Network Nodes on a Service Pole or MOU Pole, if any, and depicting the sidewalks, Page19 of 34 and Tamps onto sidewalks required by Applicable Codes, TAS, or other law, including the Americans with Disabilities Act, paved street surface and all existing underground and overhead utilities in the Right-of-Way and utility easements. b)Disclosure if the proposed installation is: i.In a Residential Area as described in Section 13.77; and ii.In an Underground Utility District or other area with undergrounding requirements. c)A Pre-Permit Survey completed, signed and sealed by a qualified and experienced professional engineer in accordance with the City's requirements, certifying that Provider's Wireless Facilities or Transport Facilities can be installed on the identified structure in compliance with the Applicable Codes. The professional engineer's qualifications must include experience performing work for similar attachments on similar facilities. d)Detailed plans for each Wireless Facility, Transport Facility, and Ground Equipment, including representative drawings or pictures of the intended Network Node and other equipment, and proposed dimensions of same. Such plans shall show strict compliance with this ordinance, with the size limitations set forth in Chapter 284, with maximum Pole height limitations set forth herein and in Chapter 284, and with all Applicable Codes. e)Certification that the proposed Wireless Facility complies with applicable regulations of the Federal Communications Commission and that the proposed Wireless Facility shall not cause any interference with the City's public safety radio system, traffic light system, or other City safety communications components. f)Certification that the proposed Network Node will be placed into active commercial service by or for a Provider not later than the 60th day after the date the construction and final testing of the Network Node is completed. g)If the proposed location is on a Service Pole, Provider shall have in place an executed License Agreement with the City for the use of the Service Pole. i. The Permit application will be denied if this license agreement is not in place at the time the application is submitted. ii.Representative drawings or pictures of the intended Network Node as intended to be Collocated on the Service Pole shall be provided. Page20 of 34 iii.Engineering and construction plans and drawings related to the Collocation of the Network Node on the Service Pole, including where the proposed Transport Facilities will be connected to the Network Node as electrical power connections, shall also be provided. iv.If the applicant is not the same as the licensee identified in the license agreement, the licensee shall sign the Permit application or provide a letter of agency satisfactory to the City. The licensee in such license agreement shall be presumed to be the owner of the Network Node and Ground Equipment, and shall be fully responsible for them and the Rental Fees payable to the City thereunder. v.If the requested Location has already been approved for Collocation by other entities the application for the Service Pole shall be denied. h)If the proposed location is on a MOU Pole, Provider shall have in place an executed License Agreement with the City for the use of the MOU Pole. i. The Permit application will be denied if this license agreement is not in place at the time the application is submitted. ii.Representative drawings or pictures of the intended Network Node as intended to be Collocated on the Service Pole shall be provided. iii.Engineering and construction plans and drawings related to the Collocation of the Network Node on the Service Pole, including where the proposed Transport Facilities will be connected to the Network Node as electrical power connections, shall also be provided. iv.If the applicant is not the same as the licensee identified in the license agreement, the licensee shall sign the Permit application or provide a letter of agency satisfactory to the City. The licensee in such license agreement shall be presumed to be the owner of the Network Node and Ground Equipment, and shall be fully responsible for them and the Rental Fees payable to the City thereunder. v.If the requested Location has already been approved for Collocation by other entities the application for the Service Pole shall be denied. i)If the proposed location lies within a Highway Right-of- Way, the Provider must provide evidence of a permit from the state or federal government. Page21 of 34 iii.The City's acceptance of the submitted design documents does not relieve Provider and its engineer of full responsibility and liability for any errors and/or omissions in the engineering analysis. b.The City shall review the Permit application for completeness and notify the Provider in writing if Provider needs to submit additional or missing information. Such written notice will be provided within 30 Days after receipt of a Permit application for a Network Node or Node Support Pole, or within 10 Days for a Permit for a Transport Facility. The notice shall specifically identify the missing information. If Provider does not submit the missing or additional information within 180 Days of the notice, the Provider's Permit application for the requested location shall be deemed withdrawn. c.The City shall review the Permit application to determine if the requested location and proposed installation complies with all Applicable Codes. i.If the City denies the Permit application, it will notify Provider by electronic mail on the date the City denies the application, stating the basis for the denial. ii.Provider may cure the deficiencies identified by the City within thirty (30) Days by resubmitting the application, along with payment to the City for the City's actual costs incurred in reviewing the resubmitted application. 5.Pre-Construction Meeting. Provider or Provider’s contractor shall notify the City at least seven (7) business days before the commencement of work, as the City may require a pre- construction conference. No work shall commence until the date provided to the City or as specifically authorized at the pre-construction meeting, if any. 6.Record Drawings. Upon passing final City inspection, Provider shall furnish to the City the original drawings, revised to depict as-built conditions. The plans shall be marked “Record Drawings” on each sheet and shall be signed and dated by the Provider’s design engineer. The Provider’s design engineer shall certify that the plans accurately show the work as actually constructed. 7.Termination of Permits. a.Unless the City grants an extension of time upon Provider’s request, a Permit shall expire six months after approval by the City if installation pursuant to the Permit has not begun by that date. b.Any Permit shall automatically terminate when Provider ceases to have authority to construct and operate its Wireless Facilities or Transport Facilities on Public Right-of-Way at the location covered by the Permit. Provider shall, at its sole expense, remove the Wireless Facility or Transport Facility from the Public Right-of-Way within thirty (30) Days. If Provider fails to remove the Wireless Facility or Transport Facility within thirty (30) Days, the City shall have the right to remove the facilities at Provider’s expense. c.Any Permit shall automatically terminate for a Wireless Facility or Transport Facility that becomes nonfunctional and no longer fit for service (“Nonfunctional Attachment”). Provider shall, at its sole expense, remove any Nonfunctional Attachment, Page22 of 34 or part of a Nonfunctional Attachment, within thirty (30) Days of the Wireless Facility or Transport Facility becoming nonfunctional. If Provider fails to remove a Nonfunctional Attachment within thirty (30) Days, the City shall have the right to remove the Nonfunctional Attachment at Provider's expense. d.Provider may at any time surrender any Permit. Provider shall, at its sole expense, remove the Wireless Facility, Transport Facility, and related Ground Equipment from the Public Right-of-Way within thirty (30) Days of Provider’s notice of surrender of a Permit. If Provider fails to remove the Wireless Facility, Transport Facility, or related Ground Equipment, or any part thereof from the Public Right-of-Way within thirty (30) days, the City shall have the right to remove same at Provider’s expense. E.Additional Procedures and Requirements for Providers Collocating Micro Network Nodes or Network Nodes to Municipally Owned Utility Poles \[Note: To the extent Section E conflicts with any other provision of the Design Manual then Section E will prevail.\] 1.Provider Initial Registration a.Providers Collocating must be registered with the City (See Registration Form; Attachment A). The registration must indicate: (i) corporate name of the Provider; (ii) corporate contact information; and, (iii) contact information for primary liaison and an escalation list of company personnel (to the Senior Executive level including contact phone numbers and email addresses) responsible to respond to any operational requests from the City or DME. b.Providers must submit a Request for Wireless Installation Permit (Attachment B). c.The Provider shall provide copies of the PUCT certificate and any franchise or license agreement, permits, or ordinances with the Registration Form authorizing access to the Public Rights-of-Way within DME’s service territory. d.DME has no obligation to approve a Permit within any part of its service area to any Provider that has not been granted the right to use Public Right-of-Way for the installation of Wireless Facilities. 2.Updates to Registration Information. The Registration Form must be updated and submitted to DME by October 31 annually or as changes to the Provider’s information warrant. Provider has an obligation and duty to maintain the accuracy of the information in the Registration Form at all times. 3.Wireless Facility Removal Notification and Abandoned Wireless Facilities. a.Wireless Facility Removal i.Provider must provide DME written notice of each licensed Wireless Facility removed from an MOU Pole or Streetlight. Absent such notice, Page23 of 34 each Wireless Facility will remain subject to the terms and conditions of the License Agreement. ii.Upon receiving written notice of the Provider’s Wireless Facilities have been removed, DME reserves the right to inspect the designated Wireless Facilities to verify removal. Upon verification of removal, DME shall issue the applicable Site License for the remaining authorized Wireless Facilities. iii.In the event the inspection finds that Wireless Facilities have not been removed from MOU Poles, each Wireless Facility shall remain subject to the terms and conditions of License Agreement and the Provider will be assessed the fees associated with the inspection. iii.Wireless Facility Removal Notification Process a)Upon completion of removal of the licensed Wireless Facilities, submit confirmation of the removal to NJUNS@cityofdenton.com. b)Include in the confirmation notice a copy of the Site License designating the licensed Wireless Facilities that have been removed. b.Abandoned Wireless Facilities. The Provider shall bear all costs of removal of any DME costs incurred as a result of such removal, and shall continue to pay all Wireless Facility fees due DME under the applicable section of the License Agreement up to and until the date on which such Wireless Facilities that have been removed. 4.Municipally Owned Utility Poles. a.Providers will have access to all non-decorative Streetlights, but only limited access to MOU Poles. The limitations are: i.Wireless Facilities shall be installed only on MOU Poles and Streetlights which do not have supply equipment installed. Supply equipment includes, but is not limited to: (i) transformers; (ii) capacitors; (iii) primary risers; (iv) secondary risers; (v) downguys; (vi) and switches. MOU Poles with junctions, laterals or dead-ends cannot have Antennas installed on them. ii.Wireless Facilities cannot be installed on Poles with existing or planned vertical, armless, or ridge-pin construction. iii.Wireless Facilities cannot be installed on MOU transmission poles or MOU transmission poles with distribution underbuild. iv.Only one (1) Antenna is allowed on each eligible MOU Pole and must be installed such that it meets safety concerns and climbing requirements. Page24 of 34 v.No other Wireless Facilities, except the Antenna, conduit and coax shall be installed on an MOU Pole. Only designs with wireless cabinets and meters on a separate pedestal off of the MOU Pole, or on a different pole installed by Provider, will be considered. The Provider must install all cabinets or other required appurtenances a minimum of five feet (5’) radius from the MOU pole the Antenna is installed on. vi.The use of pole top extensions is prohibited to accommodate wireless Antennas to obtain vertical clearance. vii.Wireless Facilities shall only be installed on MOU Poles located in the Public Right-of-Way which are bucket truck accessible. viii.Any exceptions to this limitations must be evaluated on a case-by- case basis. Final and ultimate determination of MOU Pole availability is at the sole discretion of the City. ix.No mid-span taps will be allowed. x.If DME transfers it facilities to another MOU Pole, the Provider must permit and transfer their facilities within 45 days to allow DME to remove the idle MOU Pole. Failure to complete pole transfer will result in DME relocating and/or removing the Provider’s facilities at the Provider’s sole cost and expense. xi.Installations on stub-poles or topped-off poles shall not be allowed. xii.Antenna grounding shall be in compliance with the current National Electrical Safety Code (NESC). xiii.It is the responsibility of any persons having valid reason to climb MOU Poles in performance of their job to first satisfy themselves as to the structural integrity of Poles prior to climbing. xiv.DME does not own every pole in its service territory. It is the sole responsibility of the Provider to properly identify pole ownership. Failure to properly identify pole ownership can cause a delay in the Providers permit approval. DME cannot grant permission to install Wireless Facilities on poles not owned by them. If the Provider continually fails to identify pole ownership causing the loss of DME Engineering productivity, the Provider shall be assessed a fee for this service. xv.The Provider has the option to install a four foot (4’) bracket arm, to be installed in the Communication Zone only, on which the Provider’s Antenna can be mounted. All materials necessary for this installation must be provided by Page25 of 34 the Provider, and must be submitted to DME prior to approval and installation, and after approval, installed by a Qualified Electrical Worker. a)Installation of the bracket arm can only be done by a Qualified Electrical Worker. b)Clearances shall be per the National Electrical Safety Code and shall not interfere with the mounting bracket. c)Supply cable must be jacketed multiple conductor. Jacket must enclose entire cable assembly. d)Supply cable must be trained to be inside of the bracket arm. e)Only one piece of Wireless Facilities shall be mounted on the bracket arm. f)Maximum weight of the communication Wireless Facilities shall not exceed 15 lbs. when installed on the bracket arm. g)Communication Wireless Facilities to be installed a minimum of twelve-inches (12”) and maximum of three-feet (3’) from pole on bracket arm. h)No bracket arms shall be installed in the supply space. i)The Provider must provide a minimum of a #6 S.D. bare copper pole ground to which the bracket arm is to be bonded. The pole ground is to be attached to a ground rod supplied, and installed, by the Provider. j)Wireless attachment line clearances shall be as per the NESC and shall not interfere with the mounting bracket. k)To install and maintain Wireless Facilities, Qualified Electrical Workers must be qualified to work in supply space and use supply space work rules and methods. l)Rules for the Historic Areas and non-standard Streetlights: i.Decorative Poles in Historic Areas will not be allowed to have Wireless Facilities. Page26 of 34 ii.In Historic Areas, the Provider must meet all of the aesthetic requirements of the Historic Area as well as the Historic Area’s homeowner’s association. iii. The Provider(s) who chooses to have Wireless Facilities in areas legally designated as a Historic Area, will pay for all costs associated with installation of approved structures to support their Wireless Facilities and any other appurtenances. 5.Execution of Providers Requests a.The application review process for Wireless Facilities installed on MOU Poles or Streetlights is illustrated in Figure 1 below. ApplicationApplicationMakeReadyMakeReadyPost DMEDMEDME Service madetoDMEreviewElectric Service WirelessConstruction ProviderProvider includingMakeConstructionInstallationInspection ReadyElectricCommunication WirelessWireless Engineering b.Wireless Antenna Site License Application Process i.The Provider must apply for an individual Site License for each Wireless Telecommunications Wireless Facility. ii.The Provider must submit the following information for each Wireless Facility request: a)Specifications for all Wireless Facilities proposed for installation on DME’s Poles for DME’s review. b)Electric service requirements including operating voltage and kW demand of the Wireless Facility Wireless Facilities. c)A map showing the location of the MOU Pole proposed for the Wireless Facility. d)Contact information of the person or entity responsible for the installation. e)The Provider must follow all requirements and standards set forth by DME through the NESC, Applicable Codes, Design Manual, and the Electric Service Standards. iii.Within 45 days from receipt, DME will either: a)Inspect and either approve or deny the proposed MOU Pole location(s) and provide a cost estimate to replace the approved MOU Pole(s) with a taller MOU Pole suitable for the purpose Antenna, or Page27 of 34 b)Provide a written denial of the use of the specific MOU Pole if DME deems the MOU Pole and requested Wireless Facility Request to be: (1) non-compliant with NESC, Applicable Codes, Design Manual, and the Electric Service Standards; (2) in conflict with DME’s core business, including but not limited to maintenance, renovation, or relocation of DME’s facilities; or (3) otherwise would compromise the safety, reliability, capacity, and/or generally accepted engineering practices of DME’s facilities. iv.Upon approval of the applicants approval, of and payment, of Make-Ready fees or costs, DME will release the MOU Pole replacement work- order with timing being contingent on DME’s current work schedule. a)Simultaneously, Applicant will contract with the DME- approved electrical contractor to install the approved Wireless Facility on the replacement pole. b)The electric contractor shall install Provider’s Wireless Facility at the same time the contractor or DME performs DME’s Pole replacement work v.Upon final Post-Installation Inspection of the Wireless Facility, as installed, DME shall provide the Provider with a Site License. Payment of rental fees will continue until Wireless Facilities is removed. vi.DME shall perform a Post-Installation Inspection to verify compliance with the NESC and these Guidelines. Any installation causing a violation of the NESC, Applicable Codes, Design Manual, and the Electric Service Standards will be rejected. If rejected, the Provider has one (1) week to correct any issue. Failure to address the issue(s) in this time frame shall result in stoppage of all requests and/or fiscal penalties which must be paid prior to DME continuing review of requests. c.Any make ready required to provide the necessary clearances and pole heights for a Pole-Top Wireless Facility will be determined by DME or its contractors. All MOU Pole replacement work will be performed by DME or DME’s authorized electrical contractors. All costs for the make-ready will be at the sole expense of the Provider and paid in full prior to DME beginning make ready work. i.Antenna installation at the top of DME poles and above the supply space conductors require the installation of up to a ten foot (10’) taller pole. ii.The increased pole height, coupled with the height of any foreign Wireless Facilities or Antenna, shall not cause the structure to exceed a maximum of sixty feet (60’). Page28 of 34 iii.Acceptable Pole classes will be determined by DME. iv.Tree trimming, where required for MOU Pole replacement or installation, or to provide clearance for the Wireless Facility(s) will be performed by DME’s contractors during the MOU Pole installation, at the Provider’s sole cost and expense. This does not apply to on-going maintenance needed by the Provider. The Provider is responsible for obtaining the services of a certified tree trimmer who can do the work. d.DME may deny any proposed Wireless Facility(s) that DME deems: i.Non-compliant with the NESC, Applicable Codes, Design Manual, and the Electric Service Standards; ii.Requires use of any MOU Pole with insufficient capacity; or iii.Otherwise would compromise safety, reliability, or sound engineering of DME’s facilities. 6.Installation Requirements a.Design must be sealed by a Texas Professional Engineer. b.Providers shall supply a disconnect which has been installed on a DME approved structure which is accessible by DME employees or its contractors and has the capability to be locked by DME with a DME owned lock. c.The Provider shall provide identification hardware (tags) that clearly identifies ownership of a Wireless Facility. All Wireless Facilities shall be identified with tags showing the following, minimal, identifiers: i.The Provider’s generally recognized business name ii.An identifying company logo iii.An emergency telephone number iv.Any other mutually agreed upon identifying symbol d.All Wireless Facilities shall be tagged at the time of installation. i.Identification tags should be secured to remain permanently affixed to the Provider’s Wireless Facilities. ii.Specifications for the tags include: a)Be resistant to fading from the effects of weather, chemicals, etc.; Page29 of 34 b)Be generally consistent in appearance for a given Provider throughout DME’s service territory; c)Utilize a typeface that is legible to an observer from ground level; and d)Avoid the use of sharp edges and corners (if constructed of metal) to prevent injury to personnel or damage to cables. e)All Antenna and cable installations must be tagged at every Pole to ensure adequate identification. e.The Provider shall provide RF Warning Signs on all Streetlights and MOU Poles with an Antenna stating the potential hazard associated with RF at that location. The RF Warning Signs shall be submitted to DME for approval prior to installation. f.Providers are responsible for obtaining Private Easement off of ublic Right-of-Way for the installation of Wireless Facilities pedestals when necessary. The City will not negotiate Private Easements for the benefit of the Provider. The Cit does not guarantee the Provider will be granted property rights from property owners, municipalities, or other rights-of-way owners for the use of Public Right-of-Way. g.Providers are solely responsible for obtaining consent, where necessary, from property owners. 7.Qualifications of Workers. All work performed within or above the Electrical Supply Zone (including the Pole-Top Zone), including work related to construction, installation, maintenance, or repair of Wireless Pole-Top Wireless Facilities must be performed by Qualified Electrical Workers. 8.Worker Safety. a.With a Permit request, Providers shall provide an evaluation of proposed wireless units to determine compliance with FCC guidelines for human exposure to radiofrequency fields. Evaluation shall be performed with regards to uncontrolled exposure in the near field and far field regions. Evaluations shall be provided for new installations and whenever the transmitting power of existing Wireless Facilities is increased. b.If wireless interference is suspected, the Antenna will be disconnected until the Provider provides sufficient data to show the interference has been eliminated. DME has the right to require a more in-depth study when it deems necessary. c.Means shall be provided to safely disconnect Wireless Facilities to limit work exposure to radiation per RFCC OET Bulletin 65 when evaluation of emitted radiation exceed the limits for uncontrolled exposure. The Antenna power source shall Page30 of 34 have a lockable disconnect installed to allow the Antenna to be de-energized before work can be performed within the area designated by the RF Warning Signs. d.DME maintains the right to disconnect a Wireless Facility without prior notice to the Provider. e.A Provider who desires to install a Wireless Installation on DME’s system is required to provide a Safety Briefing related to RF suitable for DME employees and contractors who may be required to work near and/or around such Wireless Facilities locations. The content of the Safety Briefing is to be pre-approved by DME and distribution of the Briefing shall be given at DME’s discretion. E.Removal of Wireless Facilities and Ground Equipment. 1.Removal Upon Notice from the City for City Project. a.The City may determine that it is necessary for Provider to remove or relocate its Micro Network Node, Network Node, Node Support Pole, Transport Facilities, and related Ground Equipment, or any portion thereof, from the Public Right-of-Way or a Service Pole for City projects. Whenever the City reasonably determines that relocation or removal is needed for the construction, completion, repair, widening, relocation, or maintenance of, or use in connection with, any City construction or maintenance project of a Street or Public Right-of-Way, or Service Pole, Provider shall remove or relocate its facilities at its sole cost and expense, except as otherwise provided in existing state or federal law. b.Provider shall complete the removal or relocation within thirty (30) Days after receiving written notice from the City, provided the City or a third party has not prevented Provider from completing such work. Provider shall notify the City in writing within ten (10) Days after the removal or relocation has been completed. c.If Provider fails to remove or relocate the Micro Network Node, Network Node, Node Support Pole or related Ground Equipment, or portion thereof as requested by the City within thirty (30) Days after receiving written notice from the City, the City shall have the right to remove, or to have removed, the Micro Network Node, Network Node, Node Support Pole or related Ground Equipment, or portion thereof, at Provider's expense. d.The City shall not be responsible or liable for damage to Provider’s Wireless Facilities, Transport Facilities, or related Ground Equipment except to the extent provided in this ordinance. e.Network Provider shall reimburse the City for the City’s actual cost of removal of Wireless Facilities, Transport Facilities, and related Ground Equipment within 30 Days of receiving the invoice from the City. e.Removal Required by the City for Safety and Imminent Danger Reasons. a.Network Provider shall, at its sole cost and expense, promptly disconnect, remove, or relocate the applicable Wireless Facility, Transport Facility, and related Ground Equipment within the time frame and in the manner required by the City if the City Page31 of 34 reasonably determines that the disconnection, removal, or relocation of any part of a Wireless Facility, Transport Facility, or related Ground Equipment: i.is necessary to protect the public health, safety, welfare, or public property; ii.if such Wireless Facility, Transport Facility, or related Ground Equipment, or portion thereof, is adversely affecting proper operation of Service Poles or other City facilities or equipment; or iii.if Provider fails to obtain all applicable licenses, Permits, and certifications required by Law for its Wireless Facilities, Transport Facilities, and related Ground Equipment, or for the use of any Location under Applicable Codes, except to the extent not consistent with Chapter 284. b.If the City reasonably determines that there is imminent danger to the public, then the City may immediately disconnect, remove, or relocate the applicable Wireless Facilities, Transport Facilities, or related Ground Equipment at the Provider's sole cost and expense in strict accordance with the City's ordinances, except to the extent not consistent with Chapter 284. f.Repair by Provider. Provider shall repair any damage to any Service Pole, Public Right-of- Way, City facility or equipment, and the property of any third party resulting from Provider’s removal or relocation activities (or any other of Provider's activities hereunder) within 10 Days following the date of such removal or relocation, at Provider's sole cost and expense, including restoration of the Service Pole or other City facility or equipment and any portion of the Public Right-of-Way to substantially the same condition as it was immediately before the date Provider was granted a Permit, including restoration or replacement of any damaged trees, shrubs, or other vegetation. Such repair, restoration and replacement shall be subject to the sole, reasonable approval of the City. G.Abandonment or Removal. 1.Abandonment by the City. a.If the City desires at any time to abandon or remove any Service Pole or other City facility or equipment to which Provider’s Wireless Facilities or Transport Facilities are attached, the City shall give Provider notice in writing at least sixty (60) Days prior to the date on which the City intends to abandon or remove such Service Pole or other City facility or equipment. If, following the expiration of the sixty (60) Day period, Provider has not removed all of Provider’s Wireless Facilities or Transport Facilities, shall have the right to remove same at Provider's expense. b.If any Service Pole or other City facility or equipment must be removed by reason of any federal, state, county, municipal or other governmental requirement, including, but not limited, to underground conversion, or the requirement of a property owner, Provider shall remove its Wireless Facilities or Transport Facilities from the affected Location, at Provider’s expense, within sixty (60) Days of receipt of written notice from the City. If Provider does not remove its Wireless Facilities or Transport Facilities within the sixty (60) Day period, the City shall have the right to remove same at Provider’s expense. Page32 of 34 c.Provider shall not abandon in place any Wireless Facilities, Transport Facilities, or related Ground Equipment, underground conduit, or any portion thereof. 2.Removal by Provider. If Provider removes or relocates a Wireless Facility, Transport Facility, or Ground Equipment at its own discretion, it shall notify the City Engineer in writing not less than 10 business days prior to removal or relocation. Provider shall obtain all Permits required for relocation or removal of its Wireless Facilities, Transport Facilities, or Ground Equipment prior to relocation or removal. G.Inspection of Facilities. 1.Provider must give seven (7) business days’ notice to the City prior to the start of work. The City reserves the right to inspect new and existing Wireless Facilities, Transport Facilities, and related Ground Equipment at any time. 2.The City's inspections, or the failure to do so, shall not operate to impose upon the City any liability of any kind whatsoever or relieve Provider of any responsibility, obligations or liability for Provider’s Wireless Facilities, Transport Facilities, or related Ground Equipment, whether assumed under Provider's Permit or otherwise existing. 3.The City shall provide written notice to Provider if an inspection reveals that all, or any part, of Provider’s Wireless Facilities, Transport Facilities, or related Ground Equipment are installed, used, or maintained in violation of this ordinance or Provider's Permit. Provider agrees to bring its Wireless Facilities, Transport Facilities, and related Ground Equipment into full compliance with this ordinance and its Permit within thirty (30) Days of receipt of notice from the City. If Provider does not correct the violation(s) within thirty (30) Days as required, the City may correct the conditions at Provider’s expense. When the City reasonably believes that the violation(s) poses an immediate threat to the safety of any person, interferes with the performance of the City’s obligations, or poses an immediate threat to the physical integrity of Service Poles or other City facilities or the Public Right-of-Way, the City may perform work and/or take action as reasonably necessary to eliminate such immediate threat without first giving written notice to Provider. The City will advise Provider in writing of the work performed or the action taken, including photographic evidence substantiating the violation and its cause. Provider shall pay the City for all costs the City incurs in performing the work or taking the action. H.Liability and Indemnification. 1.The City reserves the right to maintain and operate Public Rights-of-Way in the manner it deems best. Provider agrees to use Public Rights-of-Way at Provider's sole risk. The City shall exercise reasonable care to avoid damaging Provider's Wireless Facilities and the City shall report to Provider the occurrence of any such damage caused by the City's employees, agents or contractors. 2.INDEMNTIFICATION. PROVIDER SHALL INDEMNIFY THE CITY AS PROVIDED IN CHAPTER 283, SECTION 283.057(a) AND (b), TEXAS LOCAL GOVERNMENT CODE. 3.Sec. 13.109. No provision of this ordinance is intended, or shall be construed, to be a waiver for any purpose by the City of governmental immunity or other provisions of Texas law limiting municipal liability. No indemnification provision contained in this ordinance under Page33 of 34 which Provider indemnifies the City shall be construed in any way to limit any other indemnification provision contained in this ordinance or Texas law. I.Duties and Responsibilities. 1.The City does not warrant the condition or safety of Public Rights-of-Way or Service Poles. Any Provider issued a Permit to occupy Public Rights-of-Way or Service Poles has an obligation to inspect Public Rights-of-Way or Service Poles, prior to commencing any work. By accepting a Permit from the City for occupancy of Public Right-of-Way, PROVIDER ASSUMES ALL RISKS OF ANY DAMAGE, INJURY, OR LOSS OF ANY NATURE WHATSOEVER CAUSED BY OR IN CONNECTION WITH THE USE OF PUBLIC RIGHTS-OF-WAY. 2.By accepting a Permit, Provider warrants that it has acquainted, or will fully acquaint, itself and its employees and/or contractors and agents with the conditions relating to the work that Provider will undertake under the Permit and that it fully understands or will acquaint itself with the facilities, difficulties, and restrictions attending the execution of such work. 3.THE CITY MAKES NO EXPRESS OR IMPLIED WARRANTIES WITH REGARD TO PUBLIC RIGHTS-OF-WAY, SERVICE POLES, OR OTHER CITY FACILITIES OR EQUIPMENT, ALL OF WHICH WARRANTIES ARE HEREBY DISCLAIMED. THE CITY EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 4.In the event that Provider shall cause an interruption of service by damaging or interfering with any equipment of the City, Provider at its expense shall immediately do all things reasonable to avoid injury or damages, direct and incidental, resulting from the interruption and shall notify the City immediately. To the extent permitted by Texas law, Provider shall be liable for all direct costs resulting from such damage and any necessary repairs. 5.If Chapter 284 of the Local Government Code, or any part thereof is at any time, in full or in part, revoked, found to be unconstitutional, struck down, preempted or otherwise becomes void or invalid, then Permits granted under this ordinance shall automatically terminate, unless an extension is granted by the City. This section shall constitute notice that in such case, all Network Nodes are to be removed within ninety (90) Days from the event that affects Chapter 284. The Parties agree they will negotiate in good faith to assure an ease of transitions as to those parts of Chapter 284 that have been adjudicated as unenforceable, as well as continued compliance with those parts that may remain enforceable, if any. J.Emergency Contact. Provider shall maintain a staffed 24-hour emergency telephone number, not available to the general public, where the City can contact Provider to report damage to Provider’s Wireless Facilities, Transport Facilities, or Ground Equipment or other situations requiring immediate communications between the parties. Such contact person shall be qualified and able to respond to the City's concerns and requests. Page34 of 34 S.B.ANo.A1004 1ANACT 2relatingtothedeploymentofnetworknodesinpublicright-of-way; 3authorizingfees. 4BEITENACTEDBYTHELEGISLATUREOFTHESTATEOFTEXAS: 5SECTIONA1.AASubtitleA,Title9,LocalGovernmentCode,is 6amendedbyaddingChapter284toreadasfollows: 7CHAPTER284.DEPLOYMENTOFNETWORKNODESINPUBLICRIGHT-OF-WAY 8SUBCHAPTERA.GENERALPROVISIONS 9Sec.A284.001.AAFINDINGSANDPOLICY.(a)AAThelegislature 10findsthat: 11(1)AAnetworknodesareinstrumentaltoincreasing 12accesstoadvancedtechnologyandinformationforthecitizensof 13thisstateandtherebyfurtheranimportantpublicpolicyofhaving 14reliablewirelessnetworksandservices; 15(2)AAthisstatehasdelegatedtoeachmunicipalitythe 16fiduciaryduty,asatrustee,tomanagethepublicright-of-wayfor 17thehealth,safety,andwelfareofthepublic,subjecttostatelaw; 18(3)AAnetworknodesoftenmaybedeployedmost 19effectivelyinthepublicright-of-way; 20(4)AAnetworkprovidersaccesstothepublic 21right-of-wayandtheabilitytoattachnetworknodestopolesand 22structuresinthepublicright-of-wayallownetworkprovidersto 23densifytheirnetworksandprovidenext-generationservices; 24(5)AAexpeditiousprocessesandreasonableand 1 S.B.ANo.A1004 1nondiscriminatoryterms,conditions,andcompensationforuseof 2thepublicright-of-wayfornetworknodedeploymentsareessential 3tostate-of-the-artwirelessservicesandtherebyfurtheran 4importantpublicpolicyofhavingreliablewirelessnetworksand 5services; 6(6)AAnetworknodeshelpensurethatthisstateremains 7competitiveintheglobaleconomy; 8(7)AAthetimelypermittingofnetworknodesinthe 9publicright-of-wayisamatterofstatewideconcernandinterest; 10(8)AArequirementsofthischapterregardingfees, 11charges,rates,andpublicright-of-waymanagement,when 12consideredwithfeeschargedtootherpublicright-of-wayusers 13underthiscode,arefairandreasonableandincompliancewith47 14U.S.C.Section253; 15(9)AAtotheextentthisstatehasdelegatedits 16fiduciaryresponsibilitytomunicipalitiesasmanagersofa 17valuablepublicasset,thepublicright-of-way,thisstateis 18actinginitsroleasalandownerinbalancingtheneedsofthe 19publicandtheneedsofthenetworkprovidersbyallowingaccessto 20thepublicright-of-waytoplacenetworknodesinthepublic 21right-of-waystrictlywithinthetermsofthischapter;and 22(10)AAastoeachmunicipality,includinghome-rule 23municipalities,thisstatehasdeterminedthatitisreasonableand 24necessarytoallowaccesstothepublicright-of-wayforthe 25purposesofdeployingnetworknodestoprotectandsafeguardthe 26health,safety,andwelfareofthepublicasprovidedbythis 27chapter. 2 S.B.ANo.A1004 1(b)AAInordertosafeguardthehealth,safety,andwelfareof 2thepublic,itisthepolicyofthisstatetopromotetheadoption 3ofandencouragecompetitionintheprovisionofwirelessservices 4byreducingthebarrierstoentryforprovidersofservicessothat 5thenumberandtypesofservicesofferedbyproviderscontinueto 6increasethroughcompetition. 7(c)AAItisthepolicyofthisstate,subjecttostatelawand 8strictlywithintherequirementsandlimitationsprescribedbythis 9chapter,thatmunicipalities: 10(1)AAretaintheauthoritytomanagethepublic 11right-of-waytoensurethehealth,safety,andwelfareofthe 12public;and 13(2)AAreceivefromnetworkprovidersfairandreasonable 14compensationforuseofthepublicright-of-wayandforcollocation 15onpoles. 16Sec.A284.002.AADEFINITIONS.Inthischapter: 17(1)AA"Antenna"meanscommunicationsequipmentthat 18transmitsorreceiveselectromagneticradiofrequencysignalsused 19intheprovisionofwirelessservices. 20(2)AA"Applicablecodes"means: 21(A)AAuniformbuilding,fire,electrical, 22plumbing,ormechanicalcodesadoptedbyarecognizednationalcode 23organization;and 24(B)AAlocalamendmentstothosecodestotheextent 25notinconsistentwiththischapter. 26(3)AA"Collocate"and"collocation"meanthe 27installation,mounting,maintenance,modification,operation,or 3 S.B.ANo.A1004 1replacementofnetworknodesinapublicright-of-wayonor 2adjacenttoapole. 3(4)AA"Decorativepole"meansastreetlightpole 4speciallydesignedandplacedforaestheticpurposesandonwhich 5noappurtenancesorattachments,otherthanspeciallydesigned 6informationalordirectionalsignageortemporaryholidayor 7specialeventattachments,havebeenplacedorarepermittedtobe 8placedaccordingtonondiscriminatorymunicipalcodes. 9(5)AA"Designdistrict"meansanareathatiszoned,or 10otherwisedesignatedbymunicipalcode,andforwhichthecity 11maintainsandenforcesuniquedesignandaestheticstandardsona 12uniformandnondiscriminatorybasis. 13(6)AA"Historicdistrict"meansanareathatiszonedor 14otherwisedesignatedasahistoricdistrictundermunicipal,state, 15orfederallaw. 16(7)AA"Law"meanscommonlaworafederal,state,or 17locallaw,statute,code,rule,regulation,order,orordinance. 18(8)AA"Macrotower"meansaguyedorself-supportedpole 19ormonopolegreaterthantheheightparametersprescribedby 20Section284.103andthatsupportsoriscapableofsupporting 21antennas. 22(9)AA"Micronetworknode"meansanetworknodethatis 23notlargerindimensionthan24inchesinlength,15inchesin 24width,and12inchesinheight,andthathasanexteriorantenna,if 25any,notlongerthan11inches. 26(10)AA"Municipallyownedutilitypole"meansautility 27poleownedoroperatedbyamunicipallyownedutility,asdefinedby 4 S.B.ANo.A1004 1Section11.003,UtilitiesCode,andlocatedinapublic 2right-of-way. 3(11)AA"Municipalpark"meansanareathatiszonedor 4otherwisedesignatedbymunicipalcodeasapublicparkforthe 5purposeofrecreationalactivity. 6(12)AA"Networknode"meansequipmentatafixed 7locationthatenableswirelesscommunicationsbetweenuser 8equipmentandacommunicationsnetwork.Theterm: 9(A)AAincludes: 10(i)AAequipmentassociatedwithwireless 11communications; 12(ii)AAaradiotransceiver,anantenna,a 13battery-onlybackuppowersupply,andcomparableequipment, 14regardlessoftechnologicalconfiguration;and 15(iii)AAcoaxialorfiber-opticcablethatis 16immediatelyadjacenttoanddirectlyassociatedwithaparticular 17collocation;and 18(B)AAdoesnotinclude: 19(i)AAanelectricgenerator; 20(ii)AAapole;or 21(iii)AAamacrotower. 22(13)AA"Networkprovider"means: 23(A)AAawirelessserviceprovider;or 24(B)AAapersonthatdoesnotprovidewireless 25servicesandthatisnotanelectricutilitybutbuildsorinstalls 26onbehalfofawirelessserviceprovider: 27(i)AAnetworknodes;or 5 S.B.ANo.A1004 1(ii)AAnodesupportpolesoranyother 2structurethatsupportsoriscapableofsupportinganetworknode. 3(14)AA"Nodesupportpole"meansapoleinstalledbya 4networkproviderfortheprimarypurposeofsupportinganetwork 5node. 6(15)AA"Permit"meansawrittenauthorizationforthe 7useofthepublicright-of-wayorcollocationonaservicepole 8requiredfromamunicipalitybeforeanetworkprovidermayperform 9anactionorinitiate,continue,orcompleteaprojectoverwhich 10themunicipalityhaspolicepowerauthority. 11(16)AA"Pole"meansaservicepole,municipallyowned 12utilitypole,nodesupportpole,orutilitypole. 13(17)AA"Privateeasement"meansaneasementorother 14realpropertyrightthatisonlyforthebenefitofthegrantorand 15granteeandtheirsuccessorsandassigns. 16(18)AA"Publicright-of-way"meanstheareaon,below, 17oraboveapublicroadway,highway,street,publicsidewalk,alley, 18waterway,orutilityeasementinwhichthemunicipalityhasan 19interest.Thetermdoesnotinclude: 20(A)AAaprivateeasement;or 21(B)AAtheairwavesaboveapublicright-of-waywith 22regardtowirelesstelecommunications. 23(19)AA"Publicright-of-waymanagementordinance"means 24anordinancethatcomplieswithSubchapterC. 25(20)AA"Publicright-of-wayrate"meansanannualrental 26chargepaidbyanetworkprovidertoamunicipalityrelatedtothe 27construction,maintenance,oroperationofnetworknodeswithina 6 S.B.ANo.A1004 1publicright-of-wayinthemunicipality. 2(21)AA"Servicepole"meansapole,otherthana 3municipallyownedutilitypole,ownedoroperatedbyamunicipality 4andlocatedinapublicright-of-way,including: 5(A)AAapolethatsupportstrafficcontrol 6functions; 7(B)AAastructureforsignage; 8(C)AAapolethatsupportslighting,otherthana 9decorativepole;and 10(D)AAapoleorsimilarstructureownedoroperated 11byamunicipalityandsupportingonlynetworknodes. 12(22)AA"Transportfacility"meanseachtransmission 13pathphysicallywithinapublicright-of-way,extendingwitha 14physicallinefromanetworknodedirectlytothenetwork,forthe 15purposeofprovidingbackhaulfornetworknodes. 16(23)AA"Utilitypole"meansapolethatprovides: 17(A)AAelectricdistributionwithavoltagerating 18ofnotmorethan34.5kilovolts;or 19(B)AAservicesofatelecommunicationsprovider, 20asdefinedbySection51.002,UtilitiesCode. 21(24)AA"Wirelessservice"meansanyservice,using 22licensedorunlicensedwirelessspectrum,includingtheuseof 23Wi-Fi,whetheratafixedlocationormobile,providedtothepublic 24usinganetworknode. 25(25)AA"Wirelessserviceprovider"meansapersonthat 26provideswirelessservicetothepublic. 27Sec.A284.003.AALIMITATIONONSIZEOFNETWORKNODES. 7 S.B.ANo.A1004 1(a)AAExceptasprovidedbySection284.109,anetworknodetowhich 2thischapterappliesmustconformtothefollowingconditions: 3(1)AAeachantennathatdoesnothaveexposedelements 4andisattachedtoanexistingstructureorpole: 5(A)AAmustbelocatedinsideanenclosureofnot 6morethansixcubicfeetinvolume; 7(B)AAmaynotexceedaheightofthreefeetabove 8theexistingstructureorpole;and 9(C)AAmaynotprotrudefromtheoutercircumference 10oftheexistingstructureorpolebymorethantwofeet; 11(2)AAifanantennahasexposedelementsandisattached 12toanexistingstructureorpole,theantennaandallofthe 13antennasexposedelements: 14(A)AAmustfitwithinanimaginaryenclosureofnot 15morethansixcubicfeet; 16(B)AAmaynotexceedaheightofthreefeetabove 17theexistingstructureorpole;and 18(C)AAmaynotprotrudefromtheoutercircumference 19oftheexistingstructureorpolebymorethantwofeet; 20(3)AAthecumulativesizeofotherwirelessequipment 21associatedwiththenetworknodeattachedtoanexistingstructure 22orpolemaynot: 23(A)AAbemorethan28cubicfeetinvolume;or 24(B)AAprotrudefromtheoutercircumferenceofthe 25existingstructureorpolebymorethantwofeet; 26(4)AAground-basedenclosures,separatefromthepole, 27maynotbehigherthanthreefeetsixinchesfromgrade,widerthan 8 S.B.ANo.A1004 1threefeetsixinches,ordeeperthanthreefeetsixinches;and 2(5)AApole-mountedenclosuresmaynotbetallerthan 3fivefeet. 4(b)AAThefollowingtypesofassociatedancillaryequipment 5arenotincludedinthecalculationofequipmentvolumeunder 6Subsection(a): 7(1)AAelectricmeters; 8(2)AAconcealmentelements; 9(3)AAtelecommunicationsdemarcationboxes; 10(4)AAgroundingequipment; 11(5)AApowertransferswitches; 12(6)AAcut-offswitches;and 13(7)AAverticalcablerunsfortheconnectionofpower 14andotherservices. 15(c)AAEquipmentattachedtonodesupportpolesmaynot 16protrudefromtheouteredgeofthenodesupportpolebymorethan 17twofeet. 18(d)AAEquipmentattachedtoautilitypolemustbeinstalled 19inaccordancewiththeNationalElectricalSafetyCode,subjectto 20applicablecodes,andtheutilitypoleownersconstruction 21standards. 22SUBCHAPTERB.USEOFPUBLICRIGHT-OF-WAY 23Sec.A284.051.AAAPPLICABILITYOFSUBCHAPTER.Thissubchapter 24appliesonlytoactivitiesrelatedtotransportfacilitiesfor 25networknodes,activitiesofanetworkprovidercollocatingnetwork 26nodesinthepublicright-of-wayorinstalling,constructing, 27operating,modifying,replacing,andmaintainingnodesupport 9 S.B.ANo.A1004 1polesinapublicright-of-way,andmunicipalauthorityinrelation 2tothoseactivities. 3Sec.A284.052.AAEXCLUSIVEUSEPROHIBITED.Amunicipalitymay 4notenterintoanexclusivearrangementwithanypersonforuseof 5thepublicright-of-wayfortheconstruction,operation, 6marketing,ormaintenanceofnetworknodesornodesupportpoles. 7Sec.A284.053.AAANNUALPUBLICRIGHT-OF-WAYRATE.(a)AAA 8publicright-of-wayrateforuseofthepublicright-of-waymaynot 9exceedanannualamountequalto$250multipliedbythenumberof 10networknodesinstalledinthepublicright-of-wayinthe 11municipalityscorporateboundaries. 12(b)AAAtthemunicipalitysdiscretion,themunicipalitymay 13chargeanetworkprovideralowerrateorfeeifthelowerrateor 14feeis: 15(1)AAnondiscriminatory; 16(2)AArelatedtotheuseofthepublicright-of-way;and 17(3)AAnotaprohibitedgiftofpublicproperty. 18Sec.A284.054.AAPUBLICRIGHT-OF-WAYRATEADJUSTMENT.(a)AAIn 19thissection,"consumerpriceindex"meanstheannualrevised 20ConsumerPriceIndexforAllUrbanConsumersforTexas,as 21publishedbythefederalBureauofLaborStatistics. 22(b)AAAmunicipalitymayadjusttheamountofthepublic 23right-of-wayratenotmoreoftenthanannuallybyanamountequalto 24one-halftheannualchange,ifany,intheconsumerpriceindex. 25Themunicipalityshallprovidewrittennoticetoeachnetwork 26providerofthenewrate,andtherateshallapplytothefirst 27paymentduetothemunicipalityonorafterthe60thdayfollowing 10 S.B.ANo.A1004 1thatnotice. 2Sec.A284.055.AAUSEOFPUBLICRIGHT-OF-WAYANDAPPLICABLE 3RATE.(a)AAAnetworkproviderthatwantstoconnectanetworknode 4tothenetworkusingthepublicright-of-waymay: 5(1)AAinstallitsowntransportfacilitiessubjectto 6Subsection(b);or 7(2)AAobtaintransportservicefromapersonthatis 8payingmunicipalfeestooccupythepublicright-of-waythatare 9theequivalentofnotlessthan$28pernodepermonth. 10(b)AAAnetworkprovidermaynotinstallitsowntransport 11facilitiesunlesstheprovider: 12(1)AAhasapermittousethepublicright-of-way;and 13(2)AApaystothemunicipalityamonthlypublic 14right-of-wayratefortransportfacilitiesinanamountequalto 15$28multipliedbythenumberofthenetworkprovidersnetwork 16nodeslocatedinthepublicright-of-wayforwhichtheinstalled 17transportfacilitiesprovidebackhaulunlessoruntilthetimethe 18networkproviderspaymentofmunicipalfeestothemunicipality 19exceedsitsmonthlyaggregateper-nodecompensationtothe 20municipality. 21(c)AAApublicright-of-wayraterequiredbySubsection(b)is 22inadditiontoanypublicright-of-wayraterequiredbySection 23284.053. 24Sec.A284.056.AACOLLOCATIONOFNETWORKNODESONSERVICE 25POLES.Amunicipality,subjecttoanagreementwiththe 26municipalitythatdoesnotconflictwiththischapter,shallallow 27collocationofnetworknodesonservicepolesonnondiscriminatory 11 S.B.ANo.A1004 1termsandconditionsandataratenotgreaterthan$20peryearper 2servicepole. 3Sec.A284.057.AAPROHIBITIONONOTHERCOMPENSATION.A 4municipalitymaynotrequireanetworkprovidertopayany 5compensationotherthanthecompensationauthorizedbythischapter 6fortherighttouseapublicright-of-wayfornetworknodes,node 7supportpoles,ortransportfacilitiesfornetworknodes. 8SUBCHAPTERC.ACCESSANDAPPROVALS 9Sec.A284.101.AARIGHTOFACCESSTOPUBLICRIGHT-OF-WAY. 10(a)AAExceptasspecificallyprovidedbythischapter,andsubject 11totherequirementsofthischapterandtheapprovalofapermit 12application,ifrequired,anetworkproviderisauthorized,asa 13permitteduse,withoutneedforaspecialusepermitorsimilar 14zoningreviewandnotsubjecttofurtherlanduseapproval,todo 15thefollowinginthepublicright-of-way: 16(1)AAconstruct,modify,maintain,operate,relocate, 17andremoveanetworknodeornodesupportpole; 18(2)AAmodifyorreplaceautilitypoleornodesupport 19pole;and 20(3)AAcollocateonapole,subjecttoanagreementwith 21themunicipalitythatdoesnotconflictwiththischapter. 22(b)AAAnetworkprovidertakinganactionauthorizedby 23Subsection(a)issubjecttoapplicablecodes,includingapplicable 24publicright-of-waymanagementordinances. 25Sec.A284.102.AAGENERALCONSTRUCTIONANDMAINTENANCE 26REQUIREMENTS.Anetworkprovidershallconstructandmaintain 27networknodesandnodesupportpolesdescribedbySection284.101 12 S.B.ANo.A1004 1inamannerthatdoesnot: 2(1)AAobstruct,impede,orhindertheusualtravelor 3publicsafetyonapublicright-of-way; 4(2)AAobstructthelegaluseofapublicright-of-wayby 5otherutilityproviders; 6(3)AAviolatenondiscriminatoryapplicablecodes; 7(4)AAviolateorconflictwiththemunicipalitys 8publiclydisclosedpublicright-of-waydesignspecifications;or 9(5)AAviolatethefederalAmericanswithDisabilities 10Actof1990(42U.S.C.Section12101etseq.). 11Sec.A284.103.AAGENERALLIMITATIONONPLACEMENTOFPOLES.A 12networkprovidershallensurethateachnew,modified,or 13replacementutilitypoleornodesupportpoleinstalledinapublic 14right-of-wayinrelationtowhichthenetworkproviderreceived 15approvalofapermitapplicationdoesnotexceedthelesserof: 16(1)AA10feetinheightabovethetallestexisting 17utilitypolelocatedwithin500linearfeetofthenewpoleinthe 18samepublicright-of-way;or 19(2)AA55feetabovegroundlevel. 20Sec.A284.104.AAINSTALLATIONINMUNICIPALPARKSAND 21RESIDENTIALAREAS.(a)AAAnetworkprovidermaynotinstallanew 22nodesupportpoleinapublicright-of-waywithoutthe 23municipalitysdiscretionary,nondiscriminatory,andwritten 24consentifthepublicright-of-wayisinamunicipalparkoris 25adjacenttoastreetorthoroughfarethatis: 26(1)AAnotmorethan50feetwide;and 27(2)AAadjacenttosingle-familyresidentiallotsor 13 S.B.ANo.A1004 1othermultifamilyresidencesorundevelopedlandthatisdesignated 2forresidentialusebyzoningordeedrestrictions. 3(b)AAInadditiontotherequirementprescribedbySubsection 4(a),anetworkproviderinstallinganetworknodeornodesupport 5poleinapublicright-of-waydescribedbySubsection(a)shall 6complywithprivatedeedrestrictionsandotherprivate 7restrictionsintheareathatapplytothosefacilities. 8Sec.A284.105.AAINSTALLATIONINHISTORICORDESIGNDISTRICTS. 9(a)AAAnetworkprovidermustobtainadvanceapprovalfroma 10municipalitybeforecollocatingnewnetworknodesorinstallingnew 11nodesupportpolesinanareaofthemunicipalityzonedorotherwise 12designatedasahistoricdistrictorasadesigndistrictifthe 13districthasdecorativepoles.Asaconditionforapprovalofnew 14networknodesornewnodesupportpolesinahistoricdistrictora 15designdistrictwithdecorativepoles,amunicipalitymayrequire 16reasonabledesignorconcealmentmeasuresforthenewnetworknodes 17ornewnodesupportpoles.Amunicipalitymayrequestthata 18networkprovidercomplywiththedesignandaestheticstandardsof 19thehistoricordesigndistrictandexplorethefeasibilityof 20usingcertaincamouflagemeasurestoimprovetheaestheticsofthe 21newnetworknodes,newnodesupportpoles,orrelatedground 22equipment,oranyportionofthenodes,poles,orequipment,to 23minimizetheimpacttotheaestheticsinahistoricdistrictorona 24designdistrictsdecorativepoles. 25(b)AAThissectionmaynotbeconstruedtolimita 26municipalitysauthoritytoenforcehistoricpreservationzoning 27regulationsconsistentwiththepreservationoflocalzoning 14 S.B.ANo.A1004 1authorityunder47U.S.C.Section332(c)(7),therequirementsfor 2facilitymodificationsunder47U.S.C.Section1455(a),orthe 3NationalHistoricPreservationActof1966(54U.S.C.Section 4300101etseq.),andtheregulationsadoptedtoimplementthose 5laws. 6Sec.A284.106.AAEQUIPMENTCABINETS.Anetworkprovidershall 7ensurethattheverticalheightofanequipmentcabinetinstalled 8aspartofanetworknodedoesnotexceedtheheightlimitation 9prescribedbySection284.003,subjecttoapprovalofthepoles 10ownerifapplicable. 11Sec.A284.107.AACOMPLIANCEWITHUNDERGROUNDINGREQUIREMENT. 12(a)AAAnetworkprovidershall,inrelationtoinstallationfor 13whichthemunicipalityapprovedapermitapplication,complywith 14nondiscriminatoryundergroundingrequirements,including 15municipalordinances,zoningregulations,statelaw,privatedeed 16restrictions,andotherpublicorprivaterestrictions,that 17prohibitinstallingabovegroundstructuresinapublic 18right-of-waywithoutfirstobtainingzoningorlanduseapproval. 19(b)AAArequirementorrestrictiondescribedbySubsection 20(a)maynotbeinterpretedtoprohibitanetworkproviderfrom 21replacinganexistingstructure. 22Sec.A284.108.AADESIGNMANUAL.(a)AAAmunicipalitymayadopt 23adesignmanualfortheinstallationandconstructionofnetwork 24nodesandnewnodesupportpolesinthepublicright-of-waythat 25includesadditionalinstallationandconstructiondetailsthatdo 26notconflictwiththischapter.Thedesignmanualmayinclude: 27(1)AAarequirementthatanindustrystandardpoleload 15 S.B.ANo.A1004 1analysisbecompletedandsubmittedtothemunicipalityindicating 2thattheservicepoletowhichthenetworknodeistobeattached 3willsafelysupporttheload;and 4(2)AAarequirementthatnetworknodeequipmentplaced 5onnewandexistingpolesbeplacedmorethaneightfeetabove 6groundlevel. 7(b)AAAnetworkprovidershallcomplywithadesignmanual,if 8any,inplaceonthedateapermitapplicationisfiledinrelation 9toworkforwhichthemunicipalityapprovedthepermitapplication. 10AmunicipalitysobligationsunderSection284.154maynotbe 11tolledorextendedpendingtheadoptionormodificationofadesign 12manual. 13Sec.A284.109.AAEXCEPTIONS.SubjecttoSubchapterD,a 14networkprovidermayconstruct,modify,ormaintaininapublic 15right-of-wayanetworknodeornodesupportpolethatexceedsthe 16heightordistancelimitationsprescribedbythischapteronlyif 17themunicipalityapprovestheconstruction,modification,or 18maintenancesubjecttoallapplicablezoningorlanduse 19regulationsandapplicablecodes. 20Sec.A284.110.AADISCRIMINATIONPROHIBITED.Amunicipality, 21intheexerciseofthemunicipalitysadministrativeandregulatory 22authorityrelatedtothemanagementofandaccesstothepublic 23right-of-way,mustbecompetitivelyneutralwithregardtoother 24usersofthepublicright-of-way. 25SUBCHAPTERD.APPLICATIONSANDPERMITS 26Sec.A284.151.AAPROHIBITIONOFCERTAINMUNICIPALACTIONS. 27(a)AAExceptasotherwiseprovidedbythischapter,amunicipality 16 S.B.ANo.A1004 1maynotprohibit,regulate,orchargefortheinstallationor 2collocationofnetworknodesinapublicright-of-way. 3(b)AAAmunicipalitymaynotdirectlyorindirectlyrequire, 4asaconditionforissuingapermitrequiredunderthischapter, 5thattheapplicantperformservicesunrelatedtotheinstallation 6orcollocationforwhichthepermitissought,includingin-kind 7contributionssuchasreservingfiber,conduit,orpolespacefor 8themunicipality. 9(c)AAAmunicipalitymaynotinstituteamoratorium,inwhole 10orinpart,expressordefacto,on: 11(1)AAfiling,receiving,orprocessingapplications;or 12(2)AAissuingpermitsorotherapprovals,ifany,for 13theinstallationofnetworknodesornodesupportpoles. 14Sec.A284.152.AAAUTHORITYTOREQUIREPERMIT.(a)AAExceptas 15otherwiseprovidedbythischapter,amunicipalitymayrequirea 16networkprovidertoobtainoneormorepermitstoinstallanetwork 17node,nodesupportpole,ortransportfacilityinapublic 18right-of-wayifthepermit: 19(1)AAisofgeneralapplicabilitytousersofthepublic 20right-of-way; 21(2)AAdoesnotapplyexclusivelytonetworknodes;and 22(3)AAisprocessedonnondiscriminatorytermsand 23conditionsregardlessofthetypeofentitysubmittingthe 24applicationforthepermit. 25(b)AAAnetworkproviderthatwantstoinstallorcollocate 26multiplenetworknodesinsidetheterritorialjurisdictionofa 27singlemunicipalityisentitledtofileaconsolidatedpermit 17 S.B.ANo.A1004 1applicationwiththemunicipalityfornotmorethan30network 2nodesandreceivepermitsfortheinstallationorcollocationof 3thosenetworknodes. 4Sec.A284.153.AAGENERALPROCESSRELATINGTOPERMIT 5APPLICATION.(a)AAExceptasotherwiseprovidedbythissection,a 6municipalitymaynotrequireanapplicanttoprovidemore 7informationtoobtainthepermitthanatelecommunicationsutility 8thatisnotanetworkproviderisrequiredtoprovideunlessthe 9informationdirectlyrelatestotherequirementsofthischapter. 10(b)AAAspartofthestandardformforapermitapplication,a 11municipalitymayrequiretheapplicanttoincludeapplicable 12constructionandengineeringdrawingsandinformationtoconfirm 13thattheapplicantwillcomplywiththemunicipalityspublicly 14disclosedpublicright-of-waydesignspecificationsandapplicable 15codes. 16(c)AAAmunicipalitymayrequireanapplicanttoprovide: 17(1)AAinformationreasonablyrelatedtotheproviders 18useofthepublicright-of-wayunderthischaptertoensure 19compliancewiththischapter; 20(2)AAacertificatethatthenetworknodecomplieswith 21applicableregulationsoftheFederalCommunicationsCommission; 22and 23(3)AAcertificationthattheproposednetworknodewill 24beplacedintoactivecommercialservicebyorforanetwork 25providernotlaterthanthe60thdayafterthedatetheconstruction 26andfinaltestingofthenetworknodeiscompleted. 27Sec.A284.154.AAMUNICIPALREVIEWPROCESS.(a)AAA 18 S.B.ANo.A1004 1municipalityshallprocesseachpermitapplicationona 2nondiscriminatorybasis. 3(b)AANotlaterthanthe30thdayafterthedatethe 4municipalityreceivesanapplicationforapermitforanetwork 5nodeornodesupportpole,orthe10thdayafterthedatethe 6municipalityreceivesanapplicationforapermitforatransport 7facility,themunicipalityshalldeterminewhethertheapplication 8iscompleteandnotifytheapplicantofthatdetermination.Ifthe 9municipalitydeterminesthattheapplicationisnotcomplete,the 10municipalityshallspecificallyidentifythemissinginformation. 11(c)AAAmunicipalityshallapproveanapplicationthatdoes 12notrequirezoningorlanduseapprovalunderthischapterunless 13theapplicationorthecorrespondingworktobeperformedunderthe 14permitdoesnotcomplywiththemunicipalitysapplicablecodesor 15othermunicipalrules,regulations,orotherlawthatisconsistent 16withthischapter. 17(d)AAAmunicipalitymustapproveordenyanapplicationfora 18nodesupportpolenotlaterthanthe150thdayafterthedatethe 19municipalityreceivesthecompleteapplication.Amunicipality 20mustapproveordenyanapplicationforanetworknodenotlater 21thanthe60thdayafterthedatethemunicipalityreceivesthe 22completeapplication.Amunicipalitymustapproveordenyan 23applicationforatransportfacilitynotlaterthanthe21stday 24afterthedatethemunicipalityreceivesacompleteapplication. 25Anapplicationforapermitforanodesupportpole,networknode, 26ortransportfacilityshallbedeemedapprovediftheapplication 27isnotapprovedordeniedonorbeforetheapplicabledatefor 19 S.B.ANo.A1004 1approvalordenialprescribedbythissubsection. 2(e)AAAmunicipalitythatdeniesacompleteapplicationmust 3documentthebasisforthedenial,includingthespecific 4applicablecodeprovisionsorothermunicipalrules,regulations, 5orotherlawonwhichthedenialwasbased.Themunicipalityshall 6sendthedocumentationbyelectronicmailtotheapplicantonor 7beforethedatethemunicipalitydeniestheapplication. 8(f)AANotlaterthanthe30thdayafterthedatethe 9municipalitydeniestheapplication,theapplicantmaycurethe 10deficienciesidentifiedinthedenialdocumentationandresubmit 11theapplicationwithoutpayinganadditionalapplicationfee,other 12thanafeeforactualcostsincurredbythemunicipality. 13NotwithstandingSubsection(d),themunicipalityshallapproveor 14denytherevisedcompletedapplicationafteradenialnotlater 15thanthe90thdayafterthedatethemunicipalityreceivesthe 16completedrevisedapplication.Themunicipalitysreviewofthe 17revisedapplicationislimitedtothedeficienciescitedinthe 18denialdocumentation. 19Sec.A284.155.AATIMEOFINSTALLATION.(a)AAAnetwork 20providershallbegintheinstallationforwhichapermitisgranted 21notlaterthansixmonthsafterfinalapprovalandshalldiligently 22pursuetheinstallationtocompletion. 23(b)AANotwithstandingSubsection(a),themunicipalitymay 24placealongertimelimitoncompletionorgrantreasonable 25extensionsoftimeasrequestedbythenetworkprovider. 26Sec.A284.156.AAAPPLICATIONFEES.(a)AAAmunicipalitymay 27chargeanapplicationfeeforapermitonlyifthemunicipality 20 S.B.ANo.A1004 1requiresthepaymentofthefeeforsimilartypesofcommercial 2developmentinsidethemunicipalitysterritorialjurisdiction 3otherthanatypeforwhichapplicationorpermitfeesarenot 4allowedbylaw. 5(b)AATheamountofanapplicationfeechargedbya 6municipalitymaynotexceedthelesserof: 7(1)AAtheactual,direct,andreasonablecoststhe 8municipalitydeterminesareincurredingrantingorprocessingan 9applicationthatarereasonablyrelatedintimetothetimethe 10costsofgrantingorprocessinganapplicationareincurred;or 11(2)AA$500perapplicationcoveringuptofivenetwork 12nodes,$250foreachadditionalnetworknodeperapplication,and 13$1,000perapplicationforeachpole. 14(c)AAIndeterminingforpurposesofSubsection(b)(1)the 15amountoftheactual,direct,andreasonablecosts,the 16municipalitymaynot: 17(1)AAincludecostsincurredbythemunicipalityin 18relationtothird-partylegalorengineeringreviewofan 19application;or 20(2)AAdirectpaymentsorreimbursementofthird-party 21publicright-of-wayratesorfeeschargedonacontingencybasisor 22underaresult-basedarrangement. 23Sec.A284.157.AACERTAINWORKEXEMPTED.(a)AANotwithstanding 24anyotherprovisionofthischapter,amunicipalitymaynotrequire 25anetworkprovidertosubmitanapplication,obtainapermit,orpay 26aratefor: 27(1)AAroutinemaintenancethatdoesnotrequire 21 S.B.ANo.A1004 1excavationorclosingofsidewalksorvehicularlanesinapublic 2right-of-way; 3(2)AAreplacingorupgradinganetworknodeorpolewith 4anodeorpolethatissubstantiallysimilarinsizeorsmallerand 5thatdoesnotrequireexcavationorclosingofsidewalksor 6vehicularlanesinapublicright-of-way;or 7(3)AAtheinstallation,placement,maintenance, 8operation,orreplacementofmicronetworknodesthatarestrungon 9cablesbetweenexistingpolesornodesupportpoles,incompliance 10withtheNationalElectricalSafetyCode. 11(b)AAForpurposesofSubsection(a)(2): 12(1)AAanetworknodeorpoleisconsideredtobe 13"substantiallysimilar"if: 14(A)AAtheneworupgradednetworknode,including 15theantennaorotherequipmentelement,willnotbemorethan10 16percentlargerthantheexistingnode,providedthattheincrease 17maynotresultinthenodeexceedingthesizelimitationsprovided 18bySection284.003;and 19(B)AAtheneworupgradedpolewillnotbemorethan 2010percenthigherthantheexistingpole,providedthatthe 21increasemaynotresultinthepoleexceedingtheapplicableheight 22limitationsprescribedbySection284.103; 23(2)AAthereplacementorupgradedoesnotinclude 24replacementofanexistingnodesupportpole;and 25(3)AAthereplacementorupgradedoesnotdefeat 26existingconcealmentelementsofanodesupportpole. 27(c)AAThedeterminationunderSubsection(b)(1)ofwhethera 22 S.B.ANo.A1004 1replacementorupgradeissubstantiallysimilarismadeby 2measuringfromthedimensionsofthenetworknodeornodesupport 3poleasapprovedbythemunicipality. 4(d)AANotwithstandingSubsection(a): 5(1)AAamunicipalitymayrequireadvancenoticeofwork 6describedbythatsubsection; 7(2)AAanetworkprovidermayreplaceorupgradeapole 8onlywiththeapprovalofthepolesowner;and 9(3)AAthesizelimitationsmaynotinanyeventexceed 10theparametersprescribedbySection284.003withoutthe 11municipalitysapprovalinaccordancewithSection284.109,with 12themunicipalityactingonbehalfofthisstateasthefiduciary 13trusteeofpublicproperty. 14SUBCHAPTERE.ACCESSTOMUNICIPALLYOWNEDUTILITYPOLES 15Sec.A284.201.AAUSEOFMUNICIPALLYOWNEDUTILITYPOLES. 16(a)AAThegoverningbodyofamunicipallyownedutilityshallallow 17collocationofnetworknodesonmunicipallyownedutilitypoleson 18nondiscriminatorytermsandconditionsandpursuanttoanegotiated 19poleattachmentagreement,includinganyapplicablepermitting 20requirementsofthemunicipallyownedutility. 21(b)AATheannualpoleattachmentrateforthecollocationofa 22networknodesupportedbyorinstalledonamunicipallyowned 23utilitypoleshallbebasedonapoleattachmentrateconsistent 24withSection54.204,UtilitiesCode,appliedonaper-footbasis. 25(c)AATherequirementsofSubchaptersB,C,andDapplicable 26totheinstallationofanetworknodesupportedbyorinstalledona 27poledonotapplytoanetworknodesupportedbyorinstalledona 23 S.B.ANo.A1004 1municipallyownedutilitypole. 2SUBCHAPTERF.EFFECTONOTHERUTILITIESANDPROVIDERS 3Sec.A284.251.AADEFINITIONS.Inthissubchapter: 4(1)AA"Cableservice"and"videoservice"havethe 5meaningsassignedbySection66.002,UtilitiesCode. 6(2)AA"Electriccooperative"hasthemeaningassignedby 7Section11.003,UtilitiesCode. 8(3)AA"Electricutility"hasthemeaningassignedby 9Section31.002,UtilitiesCode. 10(4)AA"Telecommunicationsprovider"hasthemeaning 11assignedbySection51.002,UtilitiesCode. 12(5)AA"Telephonecooperative"hasthemeaningassigned 13bySection162.003,UtilitiesCode. 14Sec.A284.252.AAEFFECTONINVESTOR-OWNEDELECTRICUTILITIES, 15ELECTRICCOOPERATIVES,TELEPHONECOOPERATIVES,AND 16TELECOMMUNICATIONSPROVIDERS.Nothinginthischaptershallgovern 17attachmentofnetworknodesonpolesandotherstructuresownedor 18operatedbyinvestor-ownedelectricutilities,electric 19cooperatives,telephonecooperatives,ortelecommunications 20providers.Thischapterdoesnotconferonmunicipalitiesanynew 21authorityoverthoseutilities,cooperatives,orproviders. 22Sec.A284.253.AAEFFECTONPROVIDERSOFCABLESERVICESOR 23VIDEOSERVICES.(a)AAAnapprovalfortheinstallation,placement, 24maintenance,oroperationofanetworknodeortransportfacility 25underthischaptermaynotbeconstruedtoconferauthorizationto 26provide: 27(1)AAcableserviceorvideoservicewithoutcomplying 24 S.B.ANo.A1004 1withalltermsofChapter66,UtilitiesCode;or 2(2)AAinformationserviceasdefinedby47U.S.C. 3Section153(24),ortelecommunicationsserviceasdefinedby47 4U.S.C.Section153(53),inthepublicright-of-way. 5(b)AAExceptasprovidedbythischapter,amunicipalitymay 6notadoptorenforceanyregulationsorrequirementsthatwould 7requireawirelessserviceprovider,oritsaffiliate,thatholdsa 8cableorvideofranchiseunderChapter66,UtilitiesCode,to 9obtainanyadditionalauthorizationortopayanyfeesbasedonthe 10providersprovisionofwirelessserviceoveritsnetworknodes. 11SUBCHAPTERG.GENERALCONDITIONSOFACCESS 12Sec.A284.301.AALOCALPOLICE-POWER-BASEDREGULATIONS. 13(a)AASubjecttothischapterandapplicablefederalandstatelaw, 14amunicipalitymaycontinuetoexercisezoning,landuse,planning, 15andpermittingauthorityinthemunicipalitysboundaries, 16includingwithrespecttoutilitypoles. 17(b)AAAmunicipalitymayexercisethatauthoritytoimpose 18police-power-basedregulationsforthemanagementofthepublic 19right-of-waythatapplytoallpersonssubjecttothemunicipality. 20(c)AAAmunicipalitymayimposepolice-power-based 21regulationsinthemanagementoftheactivitiesofnetwork 22providersinthepublicright-of-wayonlytotheextentthatthe 23regulationsarereasonablynecessarytoprotectthehealth,safety, 24andwelfareofthepublic. 25Sec.A284.302.AAINDEMNIFICATION.Theindemnification 26provisionsofSections283.057(a)and(b)applytoanetwork 27provideraccessingapublicright-of-wayunderthischapter. 25 S.B.ANo.A1004 1Sec.A284.303.AARELOCATION.Exceptasprovidedinexisting 2stateandfederallaw,anetworkprovidershallrelocateoradjust 3networknodesinapublicright-of-wayinatimelymannerand 4withoutcosttothemunicipalitymanagingthepublicright-of-way. 5Sec.A284.304.AAINTERFERENCE.(a)AAAnetworkprovidershall 6operateallnetworknodesinaccordancewithallapplicablelaws, 7includingregulationsadoptedbytheFederalCommunications 8Commission. 9(b)AAAnetworkprovidershallensurethattheoperationofa 10networknodedoesnotcauseanyharmfulradiofrequency 11interferencetoaFederalCommunicationsCommission-authorized 12mobiletelecommunicationsoperationofthemunicipalityoperating 13atthetimethenetworknodewasinitiallyinstalledor 14constructed.Onwrittennotice,anetworkprovidershalltakeall 15stepsreasonablynecessarytoremedyanyharmfulinterference. 16SECTIONA2.AA(a)AAInthissection,"collocation,""network 17node,""networkprovider,"and"publicright-of-way"havethe 18meaningsassignedbySection284.002,LocalGovernmentCode,as 19addedbythisAct. 20(b)AAPublic/privateagreementsbetweenamunicipalityanda 21networkproviderforthedeploymentofnetworknodesinthepublic 22right-of-wayonfairandreasonabletermsasprovidedbyChapter 23284,LocalGovernmentCode,asaddedbythisAct,andcorresponding 24ordinancesgoverningthatdeployment,arenecessarytoprotectthe 25health,safety,andwelfareofthepublicbyfacilitatingrobust 26anddependablewirelessnetworks.Accordingly,thoseagreements 27andordinancesshallbeconformedasprovidedbythissection. 26 S.B.ANo.A1004 1(c)AASubjecttoSubsection(d)ofthissection,therates, 2terms,andconditionsofagreementsandordinancesenteredintoor 3enactedbeforetheeffectivedateofthisActshallapplytoall 4networknodesinstalledandoperationalbeforetheeffectivedate 5ofthisAct. 6(d)AAForallnetworknodesinstalledandoperationalonor 7aftertheeffectivedateofthisAct: 8(1)AAifarate,term,orconditionofanagreementor 9ordinancerelatedtotheconstruction,collocation,operation, 10modification,ormaintenanceofnetworknodesdoesnotcomplywith 11therequirementsofChapter284,LocalGovernmentCode,asaddedby 12thisAct,amunicipalityshallamendtheagreementorordinanceto 13complywiththerequirementsofChapter284,LocalGovernmentCode, 14asaddedbythisAct,andtheamendedrates,terms,orconditions 15shalltakeeffectforthosenetworknodesonthesix-month 16anniversaryoftheeffectivedateofthisAct;and 17(2)AAtherates,terms,andconditionsofeachagreement 18executed,andeachordinanceenacted,onoraftertheeffective 19dateofthisActshallcomplywiththerequirementsofChapter284, 20LocalGovernmentCode,asaddedbythisAct. 21SECTIONA3.AAThisActtakeseffectSeptember1,2017. 27 S.B.ANo.A1004 ______________________________AAAA______________________________ PresidentoftheSenateAAAAAAAAAAAAASpeakeroftheHouse IherebycertifythatS.B.ANo.A1004passedtheSenateon April6,2017,bythefollowingvote:YeasA29,NaysA0,twopresent notvoting;andthattheSenateconcurredinHouseamendmenton MayA25,2017,bythefollowingvote:YeasA29,NaysA0,twopresent notvoting. ______________________________ AAAASecretaryoftheSenate IherebycertifythatS.B.ANo.A1004passedtheHouse,with amendment,onMay18,2017,bythefollowingvote:YeasA140, NaysA6,twopresentnotvoting. ______________________________ AAAAChiefClerkoftheHouse Approved: ______________________________ AAAAAAAAAAAAADate ______________________________ AAAAAAAAAAAGovernor 28 August 22, 2017 Denton City Council Senate Bill 1004 (Small Cellular Antennas) Presentation regarding the Implementation of Key provisions of the law Purpose/Background of SB 1004 (small cell)Highlights of SB 1004•Implementation Plan Topics for Discussion:••• Legislative Session th Signed by Governor Abbott in early JuneEstablishes Chapter 284 of the Local Gov’t CodeGoes into effect on September 1, 2017 Authored by Senator Hancock in the 85•••Allows the cellular industry to install small antennas/nodes within the City’s rights-of-way Purpose/Background –Senate Bill 1004 •• Update state law regarding new technologiesMeet customer demandEasier rollout of new 5G technology and beyondOne size fits all approachBaseline approval processes, timelines, and feesIncluding certain design elements Increase cellular network coverage across the state•••Requires compliance by all cities••• Its purpose was to:•• Purpose/Background –Senate Bill 1004 • What does a small cell node look like? Purpose/Background –Senate Bill 1004 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: Who are players in this field? Purpose/Background –Senate Bill 1004 to be installed in the Includes use of existing utility and traffic polesYes, even DME’s poles City’s rights-of-way•• Mandates that small cell nodes and polesEstablishes City permit requirementsEstablishes time line (shot clock) for City approvalEstablishes maximum fee structure the City can charge Highlights of SB 1004 Key Provisions of SB 1004; Chapter 284 LGC•••• ®± £ ¸² £ ¸² £ ¸² #¨³¸Ȍ² ͷͶ ͻ͵ Ͷͺ͵ ͻͶͷͷ ͶͺͶ  ¯¯±®µ¤ ®¥ ®¥ ®¥  ¯¯«¨¢ ³¨®­ $ ¸$ ¸ $ ¸ ¢®¬¯«¤³¤Ǿ £¤­¸ )¥ - ·¨¬´¬ - ·¨¬´¬ - ·¨¬´¬ £¤ £«¨­¤³® £ ¸²£ ¸²£ ¸² ±¤µ¨¤¶ ͸͵Ͷ͵͸͵ ³® ͸ͶͶͶ͸Ͷ ®¥®¥®¥ $ ¸ $ ¸$ ¸ ¢®¬¯«¤³¤­¤²² £¤ £«¨­¤ ¥®± #¨³¸ Ͷ- ·¨¬´¬Ͷ- ·¨¬´¬Ͷ- ·¨¬´¬  ¯¯«¨¢ ³¨®­ #®¬¯ ­¸¥¨«¤² 0®«¤$ ¸ .®£¤$ ¸4± ­²¯®±³¥ ¢¨«¨³¸$ ¸.¤¶ $500 for up to 5 network nodes; $250 for each additional nodeAnnual node site rental: $250 per node$1,000 for a new pole; $250 annual pole rentalMonthly rental: $28 for each network transfer facility Highlights of SB 1004 Key Provisions of SB 1004; Chapter 284 LGC Permit shot clock requirements:Fee structure:•••• support infrastructure Municipal parksResidential areasHistorical and Design districtsMaximum size of node; pole heightAllows for enclosures and camouflaging of nodes and ••••• Defines zoning restrictions of node and pole installationsAllows for certain design elements Highlights of SB 1004 Key Provisions of SB 1004; Chapter 284 LGC•• Design elements: Highlights of SB 1004 Key Provisions of SB 1004; Chapter 284 LGC Meetings with cell providers to understand their plansDrafting new ordinancesDrafting design standardsDrafting license and application formsStaff attending information sessions at NCTCOGReceiving/sha ring information with other cities City’s Implementation Plan•••••• Planning & Zoning Commission: August 9Public Utility Board: August 14Historic Landmark Commission: August 14 Seeking approval of ordinance by City Council: August 22Post information on City website: August 23Begin receiving applications: September 1 Sent Informal Staff Report to City Council on July 28, 2017Presented to:••• City’s Implementation Plan••••• Design Manual OrdinanceFee OrdinanceService Pole Agreement OrdinanceMOU Pole Attachment Ordinance Recommendation That the City Council approve the following ordinances to implement Senate Bill 1004•••• Is very favorable to the cellular industryIt’s one size fits allThis is a work in progress SB 1004 goes into effect September 1, 2017•All cities in Texas are affected••It directs the processes/methodology/pricing for citiesProvides very limited options for regulating Requires that cities approve small cell deployments in the city’s right-of-way In Conclusion••••• City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1138,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton adopting and approving fees related to implementation of Chapter 284, Tex. Local Gov’t Code; and providing an effective date. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ 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 fees related to implementation of Chapter 284, Tex. Local Gov’t Code; and providing an effective date. BACKGROUND th In the 85 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 internal review processes to be in compliance 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, traffic 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 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 determine 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 determine completeness; 21 days to approve or deny, and if not acted upon in this timeframe the permit is granted o If a permit is denied for being incomplete the applicant may resubmit a completed 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 manual would establish the 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 mandate established by the 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 Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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 Respectfully submitted: Mario Canizares Assistant City Manager City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1139,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton adopting and approving a uniform Chapter 284 service pole wireless network node collocation attachment license agreement; authorizing the City Manager or designee to execute said agreements; and providing an effective date. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ 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 uniform Chapter 284 service pole wireless network node collocation attachment license agreement; authorizing the City Manager or designee to execute said agreements; and providing an effective date. BACKGROUND th In the 85 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 internal review processes to be in compliance 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, traffic 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 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 determine 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 determine completeness; 21 days to approve or deny, and if not acted upon in this timeframe the permit is granted o If a permit is denied for being incomplete the applicant may resubmit a completed 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 manual would establish the 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 mandate established by the 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 Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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 & Agreement Respectfully submitted: Mario Canizares Assistant City Manager CITYOFDENTON CHAPTER284SERVICEPOLECOLLOCATIONATTACHMENTLICENSEAGREEMENT TABLEOFCONTENTS PageNo. ARTICLE1.PARTIES.........................................................................................................7 1.1.ADDRESSES...........................................................................................................7 ARTICLE2.DEFINITIONS..................................................................................................7 ARTICLE3.CHAPTER284GRANTANDSCOPEOFAUTHORIZATIONTOCOLLOCATE NETWORKNODESONSERVICEPOLES..........................................................13 3.1.CITYGRANTOFPERMISSIONINACCORDANCEWITHCHAPTER284................13 3.2.SCOPEOFAGREEMENT......................................................................................13 3.3.UNAUTHORIZEDNETWORKNODEONSERVICEPOLES.....................................13 ARTICLE4.APPLICATIONFORAPERMITTOCOLLOCATEONASERVICEPOLE................14 4.1.APPLICATIONFORAPERMITTOCOLLOCATIONANETWORKNODEONA SERVICEPOLE.....................................................................................................14 4.2.REVIEWPROCESSFORANAPPLICATIONFORCOLLOCATIONOFA NETWORKNODEONASERVICEPOLEPERMIT.(ch.284,Sec.284.154)...........16 ARTICLE5.CHAPTER284RENTALFEESANDOTHERPAYMENTS....................................17 5.1.NETWORKNODESITEANNUALRENTALRATE.(Ch.284,Sec.284.053)...........17 5.2.COLLOCATIONATTACHMENTONSERVICEPOLEFEE.(Ch.284,Sec. 284.056).............................................................................................................17 5.3.MONTHLYTRANSPORTFACILITYFEE.(Ch.284,Sec.284.055)..........................18 5.4.APPLICATIONFEES.(Ch.284,Sec.284.156)......................................................20 5.5.OTHERPAYMENTS.............................................................................................20 5.6.NONFUNCTIONINGNETWORKNodes..............................................................20 5.7.PAYMENT...........................................................................................................20 5.8.REIMBURSEMENT..............................................................................................20 5.9.PAYMENTLIMITS...............................................................................................20 5.10.COMPLIANCEREVIEW........................................................................................21 1 5.11.PERMITSCONDITIONEDONPAYMENTSBEINGCURRENT................................21 ARTICLE6.DESIGNMANUAL,PUBLICRIGHTOFWAYMANAGEMENTORD. COMPLIANCEANDRELATEDREQUIREMENTS..............................................21 6.1.AESTHETICREQUIREMENTS...............................................................................21 6.2.INSTALLATION....................................................................................................22 6.3.INSPECTIONS......................................................................................................22 6.4.PLACEMENT.......................................................................................................22 6.5.ELECTRICALSUPPLY...........................................................................................22 6.6.TRANSPORTFACILITYFIBERCONNECTION........................................................23 6.7.GENERATORS.....................................................................................................23 6.8.EQUIPMENTDIMENSIONS.................................................................................23 6.9.TREEMAINTENANCE..........................................................................................23 6.10.SIGNAGE.............................................................................................................23 6.11.REPAIR................................................................................................................23 6.12.GRAFFITIABATEMENT.......................................................................................23 ARTICLE7.RADIOINTERFERENCEBYNETWORKNODEPROHIBITED.(CH.284,SEC. 284.304).......................................................................................................24 7.1.NOLIABILITY.......................................................................................................24 7.2.NOINTERFERENCE.............................................................................................24 ARTICLE8.ABANDONMENT,RELOCATIONANDREMOVAL...........................................25 8.1.ABANDONMENTOFOBSOLETENETWORKNODE.............................................25 8.2.REMOVALREQUIREDBYCITY............................................................................25 8.3.REMOVALORRELOCATIONBYLICENSEE..........................................................26 8.4.REMOVALORRELOCATIONREQUIREDFORCITYPROJECT...............................26 8.5.REMOVALREQUIREDAFTERTERMINATIONOREXPIRATIONOFLICENSE........26 8.6.REMOVALREQUIREDAFTERREVOCATION.......................................................27 8.7.OWNERSHIP.......................................................................................................27 8.8.RESTORATION....................................................................................................27 8.9.LICENSEERESPONSIBLE......................................................................................27 8.10.ALLOCATIONOFFUNDSFORREMOVALANDSTORAGE...................................27 2 ARTICLE9.ENVIRONMENTALLAWREQUIREMENTS......................................................28 ARTICLE10.SECURITY.....................................................................................................28 ARTICLE11.INDEMNIFICATION,INSURANCEANDLIABILITY...........................................28 ARTICLE12.TERMANDTERMINATION............................................................................28 12.1.TERM..................................................................................................................28 12.2.RENEWALS.........................................................................................................28 12.3.TERMINATIONFORCAUSEBYCITY....................................................................28 12.4.TERMINATIONBYLICENSEE...............................................................................29 12.5.AUTOMATICTERMINATION...............................................................................30 ARTICLE13.TRANSFEROFAUTHORITY............................................................................30 13.1.ASSIGNMENT......................................................................................................30 13.2.BUSINESSSTRUCTUREANDASSIGNMENTS.......................................................30 ARTICLE14.INVENTORYANDINSPECTIONS....................................................................31 14.1.INVENTORYRECORDS........................................................................................31 14.2.INSPECTIONS......................................................................................................31 14.3.CONFIDENTIALINFORMATION..........................................................................31 ARTICLE15.MISCELLANEOUS..........................................................................................32 15.1.FORCEMAJEURE................................................................................................32 15.2.DISPUTERESOLUTION........................................................................................32 15.3.ACCEPTANCEANDAPPROVAL;CONSENT..........................................................33 15.4.REPRESENTATIONSANDWARRANTIES..............................................................33 15.5.STATEMENTOFACCEPTANCE............................................................................34 15.6.RELATIONSHIPOFTHEPARTIES.........................................................................34 15.7.SEVERABILITY.....................................................................................................34 15.8.ENTIREAGREEMENT..........................................................................................34 15.9.WRITTENAMENDMENT.....................................................................................34 15.10.APPLICABLELAWSANDVENUE.........................................................................34 15.11.NOTICES.............................................................................................................35 15.12.CAPTIONS...........................................................................................................35 3 15.13.NONWAIVER.....................................................................................................35 15.14.ENFORCEMENT..................................................................................................36 15.15.AMBIGUITIES......................................................................................................36 15.16.SURVIVAL...........................................................................................................36 15.17.RESERVED...........................................................................................................36 15.18.PARTIESININTEREST.........................................................................................36 15.19.REMEDIESCUMULATIVE....................................................................................36 15.20.LICENSEEDEBT...................................................................................................36 15.21.PARTSINCORPORATED......................................................................................37 15.22.CONTROLLINGPARTS.........................................................................................37 15.23.SIGNATURES.......................................................................................................37 4 ListofExhibits: Exhibit\[xxx\]ApplicationforCollocationonServicePolePermit. 5 CITYOFDENTON CHAPTER284SERVICEPOLECOLLOCATIONATTACHMENTLICENSEAGREEMENT STATEOFTEXAS§ DENTONCOUNTY§ This ServicePoleCollocationAttachmentLicenseAgreement Λͻ!ŭƩĻĻƒĻƓƷͼΜismadeby andbetweentheCityofDentonΛͻ/źƷǤͼΜͲaTexashomerulemunicipalcorporation,and _____________,ΛͻbĻƷǞƚƩƉtƩƚǝźķĻƩͼorͻ\[źĭĻƓƭĻĻͼΜͲa_____________\[stateandtypeoflegal entity\]withitsprincipalofficesat______________.PursuanttoTex.Loc.Gov.Code,Chapter 284Λͻ/ŷğƦƷĻƩЋБЍͼΜͲSection284.056andSection284.101(a)(3),theCityentersintothis AgreementtofurtherdetailthetermsandconditionsofCollocationofattachmentsofwireless NetworkNodestoandonCityServicePoles. RECITALS WHEREAS,Licensee,aNetworkProvider,asthattermisdefinedinChapter284,is requestingtoCollocate,whichincludesattachments,asthattermisdefinedinChapter284,its NetworkNodes,asdefinedinChapter284,toandonthe/źƷǤ͸ƭServicePoles,asthattermis definedinChapter284,thatareinthePublicRightofWaytotheextentpermittedbyChapter 284;and WHEREAS,Chapter284states ͻ totheextentthisstatehasdelegateditsfiduciary responsibilitytomunicipalitiesasmanagersofavaluablepublicasset,thepublicrightofway, thisstateisactinginitsroleasalandownerinbalancingtheneedsofthepublicandtheneeds ofthenetworkprovidersbyallowingaccesstothepublicrightofwaytoplacenetworknodesin thepublicrightofwaystrictlywithinthetermsofthisĭŷğƦƷĻƩͼͳand WHEREAS,Chapter284statesͻΝźΞƷisthepolicyofthisstate,subjecttostatelawand strictlywithintherequirementsandlimitationsprescribedbythischapter,thatmunicipalities: (1)retaintheauthoritytomanagethepublicrightofwaytoensurethehealth,safety,and receivefromnetworkprovidersfairandreasonablecompensation welfareofthepublic;and(2) foruseofthepublicrightofwayandforcollocationonƦƚƌĻƭͼͳand WHEREAS,Section253oftheFederalCommunicationsActof1934,asamended, including47U.S.C.§253,acknowledgesthattheCityhastheauthoritytomanageandcontrol accesstoanduseofthePublicRightofWaywithintheCitylimits;and WHEREAS,theCityhasbeenauthorizedbytheStatetoactasfiduciaryandtrusteefor thepublic,inexercisingproprietaryrightsinitsdiscretiontograntuseofthePublicRightofWay withintheCitylimitsandconditionthatuseinaccordancewithChapter284;and WHEREAS,Chapter284,Section284.101(a)(b),etal,setforththeconditionstoaccess andCollocationonthe/źƷǤ͸ƭServicePolesthatareinthePublicRightofWayoftheNetwork NodestoincludecompliancewiththeApplicableCodes,andPublicRightofWayManagement 6 Ordinances,andtheChapter284limitstotheheight,width,safetyandaestheticrequirements ofNetworkNodes;and WHEREAS,theLicenseeshallcompensatetheCitypursuanttoapplicablestatelaw, includingChapter284,forthecollocationoftheNetworkNodesonServicePolesinthe/źƷǤ͸ƭ PublicRightofWay;and WHEREAS,the\[źĭĻƓƭĻĻ͸ƭnonexclusiveuseatlocationsinitsPublicRightofWay,are subjecttothetermsandconditionssetforthherein,andpursuanttoPermitsissuedbytheCity Engineer;and WHEREAS,theCityandLicenseedesirebythisAgreementtosetforththeirunderstanding ofsuchmatters. NOWTHEREFORE,inconsiderationofthemutualcovenantsandagreementscontained hereinbelow,CityandLicenseeagreeasfollows: ARTICLE1.PARTIES 1.1.ADDRESSES Theinitialaddressoftheparties,whicheitherpartymaychangeatanytimebygivingwritten noticetotheotherpartypursuanttothetermsofthisAgreement,areasfollows: CityofDenton Attn:ToddHileman,CityManager 215E.McKinneySt. Denton,Texas76201 Email:todd.hileman@cityofdenton.com NetworkProviderandLicensee _____________________________ Attn:_______________________ Street________ Texas,_________ Email:________________ ARTICLE2.DEFINITIONS 2.1.AsusedinthisAgreement,thedefinitionsasusedinTex.Loc.Gov.Code,Chapter284, 1 Sec.284.002shallbeused,unlessotherwisenotedinSection2.1,below: 2.1.1.Abandon anditsderivativesmeansthefacilitiesinstalledintherightofway (includingbywayofexamplebutnotlimitedto:poles,wires,conduit,manholes, 7 handholes,cuts,networknodesandnodesupportpoles,orportionthereof)that havebeenleftbyProviderinanunusedornonfunctioningconditionformore than120consecutivecalendardaysunless,afternoticetoProvider,Providerhas establishedtothereasonablesatisfactionoftheCitythattheapplicable facilities,orportionthereof,isstillinactiveuse. 2.1.2.Affiliate means(a)anyentitywho(directlyorindirectly)ownsorcontrols,is ownedorcontrolledby,orisundercommonownershiporcontrolwiththe Licensee;(b)anyentityacquiringsubstantiallyalloftheassetsofLicenseeinthe marketdefinedbytheFederalCommunicationsCommissioninwhichthe Locationsarelocated;or(c)anysuccessorentityinamerger,acquisition,or otherbusinessreorganizationinvolvingLicensee.Forpurposesofthis definition,ͻƚǞƓͼmeanstoownanequityorotherfinancialinterest(orthe equivalentthereof)ofmorethan10percentoranymanagementinterest. 2.1.3.Agreement meansthiscontractbetweentheParties,includinganyexhibitsand anywrittenamendmentsasauthorizedbythisAgreement. 2.1.4.Antenna meanscommunicationsequipmentthattransmitsorreceives electromagneticradiofrequencysignalsusedintheprovisionofwireless services. 2.1.5.ApplicableCodeorCodes meansuniformbuilding,fire,electrical,plumbing,or mechanicalcodesadoptedbyarecognizednationalcodeorganization;andlocal amendmentstothosecodestotheextentnotinconsistentwithChapter284. 2.1.6.City isdefinedinthepreambleofthisAgreementandincludesitssuccessorsand assigns. 2.1.7.CityAttorney meansthecurrentlyappointedoractingCityAttorneyorhis/her designee. 2.1.8.CityEngineer meansthecityengineerfortheCityfrom/źƷǤ͸ƭPublicWorks Department,oritssuccessordepartment,orapersonheorshedesignates. 2.1.9.CityManager meansthecurrentandsuccessorCityManageroftheCity. 2.1.10.Collocate andC ollocation meantheinstallation,mounting,maintenance, modification,operation,orreplacementofnetworknodesinapublicrightof wayonoradjacenttoapole. 2.1.11.ConcealmentorCamouflaged meansanyWirelessFacilityorPolethatis covered,blended,painted,disguised,camouflagedorotherwiseconcealedsuch thattheWirelessFacilityblendsintothesurroundingenvironmentandisvisually unobtrusiveasallowedasaconditionforCityadvanceapprovalunderChapter 284,Sec.284.105inHistoricorDesignDistricts.AConcealedorCamouflaged WirelessFacilityorPolealsoincludesanyWirelessFacilityorPoleconformingto 8 thesurroundingareainwhichtheWirelessFacilityorPoleislocatedandmay include,butisnotlimitedtohiddenbeneathafaçade,blendedwithsurrounding areadesign,paintedtomatchthesupportingarea,ordisguisedwithartificial treebranches. 2.1.12.DecorativePole meansastreetlightpolespeciallydesignedandplacedfor aestheticpurposesandonwhichnoappurtenancesorattachments,otherthan speciallydesignedinformationalordirectionalsignageortemporaryholidayor specialeventattachments,havebeenplacedorarepermittedtobeplaced accordingtonondiscriminatorymunicipalcodes. 2.1.13.DesignDistrict meansanareathatiszoned,orotherwisedesignatedby municipalcode,andforwhichthecitymaintainsandenforcesuniquedesignand aestheticstandardsonauniformandnondiscriminatorybasis. 2.1.14.DesignManual meanstheCityDesignManualfortheInstallationofNetwork NodesandNodeSupportPolespursuanttoTex.Loc.Gov.Code,Chapter284 enactedandadoptedbytheCityinaccordancewithChapter284,Sec.284.108. 2.1.15.DisasterEmergency or Disaster or Emergency meansanimminent,impending, oractualnaturalorhumanlyinducedsituationwhereinthehealth,safety,or welfareoftheresidentsofthecityisthreatened,andincludes,butisnot limitedtoanydeclarationofemergencybycitystateorfederalgovernmental authorities. 2.1.16.DistributedAntennaSystemorDAS shallbeincludedasatypeofͻbĻƷǞƚƩƉ bƚķĻ͵ͼ 2.1.17.EffectiveDate meansthatdatesignedbytheCityManageronthesignaturepage ofthisAgreementforeachrespectiveLicensee. 2.1.18.GroundEquipment meansaWirelessFacilitythatislocatedonthesurfaceofthe PublicRightofWayinanapprovedpermitthatisimmediatelyadjacenttothe PoleonwhichtheNetworkNodeislocated. 2.1.19.HistoricDistrict recognizedbytheCity,stateorfederalgovernmentunderthe CityCodeofOrdinances,StateLaw,including,butnotlimitedto,Sec.442.001(3) oftheTexasGovernmentCode,afederallaw,including,butnotlimitedto,16 U.S.C.§470. 2.1.20.HistoricLandmark recognizedbytheCity,stateorfederalgovernmentunderthe CityCodeofOrdinances,StateLaw,including,butnotlimitedto,Sec.442.001(3) oftheTexasGovernmentCode,afederallaw,including,butnotlimitedto,16 U.S.C.§470. 2.1.21.Law meanscommonlaworafederal,state,orlocallaw,statute,code,rule, regulation,order,orordinance 9 2.1.22.Licensee and NetworkProvider means_______\[Addnameofentity,stateand typeofentity\]andincludesitssuccessorsandassigns. 2.1.23.Location meansthelocationofaServicePoleinthePublicRightofWayinwhich obtained LicenseeisauthorizedtoplaceitsNetworkNode,providedthatithas allPermits. 2.1.24.MacroTower meansaguyedorselfsupportedpoleormonopolegreaterthan theheightparametersprescribedbyChapter284,Section284.103andthat supportsoriscapableofsupportingantennas. 2.1.25.MicroNetworkNode meansanetworknodethatisnotlargerindimensionthan 24inchesinlength,15inchesinwidth,and12inchesinheight,andthathasan exteriorantenna,ifany,notlongerthan11inches. 2.1.26.Modification meansanyworkinthePublicRightofWay,oralterationofa WirelessFacilitythatisnotsubstantiallysimilarinsizeorisachangeinthe WirelessCğĭźƌźƷǤ͸ƭlocationinthePublicRightofWayoritsphysicalpositionon thePoleexceptthosealterationsorchangesthatareexceptedfromrequiringa permitunderChapter284,Sec.284.157(a)and(b)donotconstitute Modifications. 2.1.27.MunicipalPark meansanareathatiszonedorotherwisedesignatedby municipalcodeasapublicparkforthepurposeofrecreationalactivity. 2.1.28.MunicipallyOwnedUtilityPole meansautilitypoleownedoroperatedbya municipallyownedutility,asdefinedbySection11.003,UtilitiesCode,and locatedinapublicrightofway. 2.1.29.MUTCD meansManualofUniformTrafficControlDevices. 2.1.30.NetworkNode meansequipmentatafixedlocationthatenableswireless communicationsbetweenuserequipmentandacommunicationsnetwork.The term:(A)includes:(i)equipmentassociatedwithwirelesscommunications;(ii)a radiotransceiver,anantenna,abatteryonlybackuppowersupply,and comparableequipment,regardlessoftechnologicalconfiguration;and (iii)coaxialorfiberopticcablethatisimmediatelyadjacenttoanddirectly associatedwithaparticularcollocation;and(B)doesnotinclude:(i)anelectric generator;(ii)apole;or(iii)amacrotower. 2.1.31.NetworkProvider means:(A)awirelessserviceprovider;or(B)apersonthat doesnotprovidewirelessservicesandthatisnotanelectricutilitybutbuildsor installsonbehalfofawirelessserviceprovider:(i)networknodes;or(ii)node supportpolesoranyotherstructurethatsupportsoriscapableofsupportinga networknode. 10 2.1.32.Party or Parties meantheLicenseeandCity,individuallyorcollectivelyas indicatedinthecontextinwhichitappears. 2.1.33.OtherParty or OtherParties meansaChapter284WirelessServiceproviderwho isnotaPartytothisAgreement. 2.1.34.NodeSupportPole meansapoleinstalledbyanetworkproviderfortheprimary purposeofsupportinganetworknode. 2.1.35.Permit meansawrittenauthorizationfortheuseofthepublicrightofwayor collocationonaservicepolerequiredfromamunicipalitybeforeanetwork providermayperformanactionorinitiate,continue,orcompleteaprojectover whichthemunicipalityhaspolicepowerauthority. 2.1.36.Pole meansaservicepole,municipallyownedutilitypole,nodesupportpole,or utilitypole 2.1.37.Provider hasthesamemeaningasͻbĻƷǞƚƩƉtƩƚǝźķĻƩ͵ͼ 2.1.38.PublicRightofWay meanstheareaon,below,oraboveapublicroadway, highway,street,publicsidewalk,alley,waterway,orutilityeasementinwhich themunicipalityhasaninterest.Thetermdoesnotinclude:(A)aprivate easement;or(B)theairwavesaboveapublicrightofwaywithregardto wirelesstelecommunications. 2.1.39.PublicRightofWayRate meansanannualrentalchargepaidbyanetwork providertoamunicipalityrelatedtotheconstruction,maintenance,or operationofnetworknodeswithinaPublicRightofWayintheCitypursuantto Chapter284,Sec.284.053. 2.1.40.RentalFeesmeans asdescribedinArticle5herein. 2.1.41.School meansaneducationalinstitutionthatoffersacourseofinstructionfor studentsinoneormoregradesfromkindergartenthroughgrade12 2.1.42.ServicePole meansapole,otherthanamunicipallyownedutilitypole,owned oroperatedbyamunicipalityandlocatedinapublicrightof=way,including: (A)apolethatsupportstrafficcontrolfunctions;(B)astructureforsignage;(C) apolethatsupportslighting,otherthanadecorativepole;and(D)apoleor similarstructureownedoroperatedbyamunicipalityandsupportingonly networknodes. 2.1.43.SmallCell shallbeincludedasatypeofͻbĻƷǞƚƩƉbƚķĻ͵ͼ 2.1.44.Street meansonlythepavedportionofthePublicRightofWayusedfor vehiculartravel,beingtheareabetweentheinsideofthecurbtotheinsideof theoppositecurb,ortheareabetweenthetwoparalleledgesofthepaved 11 roadwayforvehiculartravelwherethereisnocurb.Aͻ{ƷƩĻĻƷͼisgenerallypart of,butsmallerinwidththanthewidthoftheentirerightofway,whileaPublic RightofWaymayincludesidewalksandutilityeasements,aͻ{ƷƩĻĻƷͼdoesnot. orthesidewalk,ifeitherarepresentatthe AͻƭƷƩĻĻƷͼdoesnotincludethecurb timeofapermitapplicationorifaddedlater. 2.1.45.TAS meansTexasAccessibilityStandards. 2.1.46.TrafficSignal meansanydevice,whethermanually,electrically,ormechanically operatedbywhichtrafficisalternatelydirectedtostopandtoproceed. 2.1.47.TransportFacility meanseachtransmissionpathphysicallywithinapublicright ofway,extendingwithaphysicallinefromanetworknodedirectlytothe network,forthepurposeofprovidingbackhaulfornetworknodes 2.1.48.UndergroundRequirementArea shallmeanmeansanareawherepoles, overheadwires,andassociatedoverheadorabovegroundstructureshavebeen removedandburiedorhavebeenapprovedforburialundergroundpursuantto municipalordinances,zoningregulations,statelaw,privatedeedrestrictions, andotherpublicorprivaterestrictions,thatprohibitinstallingaboveground structuresinapublicrightofway. 2.1.49.UtilityPole meansapolethatprovides:(A)electricdistributionwithavoltage ratingofnotmorethan34.5kilovolts;or(B)servicesofatelecommunications provider,asdefinedbyChapter284,Section51.002,UtilitiesCode. 2.1.50.WirelessService meansanyservice,usinglicensedorunlicensedwireless spectrum,includingtheuseofWiFi,whetheratafixedlocationormobile, providedtothepublicusinganetworknode. 2.1.51.WirelessServiceProvider meansapersonthatprovideswirelessservicetothe public. 2.1.52.WirelessFacilities meanͻaźĭƩƚNetworkbƚķĻƭͲͼͻbĻƷǞƚƩƉbƚķĻƭͲͼandͻbƚķĻ SupporttƚƌĻƭͼasdefinedinTexasLocalGovernmentCodeChapter284 2.2Whennotinconsistentwiththecontext,wordsusedinthepresenttenseincludethe future,wordsusedinthepluralnumberincludethesingularnumber,andwordsinthe singularincludetheplural. 2.3.Thewordͻƭŷğƌƌͼisalwaysmandatoryandnotmerelypermissive. 2.4.ͻLƓĭƌǒķĻͼandͻźƓĭƌǒķźƓŭͲͼandwordsofsimilarimport,shallbedeemedtobefollowed bythewordsͻǞźƷŷƚǒƷƌźƒźƷğƷźƚƓ͵ͼ 12 ARTICLE3.CHAPTER284GRANTANDSCOPEOFAUTHORIZATIONTOCOLLOCATE NETWORKNODESONSERVICEPOLES. 3.1.CITYGRANTOFPERMISSIONINACCORDANCEWITHCHAPTER284. 3.1.1.OnlytotheextentrequiredbyChapter284,Sec.284.056andSec.284.101(a) (3)doestheCitygrantLicenseetherighttoenterthePublicRightofWayand toCollocateNetworkNodefacilitiesonServicePolesinthePublicRightofWay, subjecttothetermsofthisAgreementandChapter284. 3.1.2.ThisAgreementdoesnotconferanyotherrightsnotdescribedhereinnordoes itpermitLicenseeorthirdpartiestousethePublicRightofWayorServicePoles forpurposesnotspecifiedinthisAgreement,excepttotheextentotherwise expresslyallowedbylaw. 3.1.3.ThisAgreementdoesnotauthorizetheLicenseetoinstallequipmentand facilitiesassociatedwithorforMacroTowersinthePublicRightofWay. 3.1.4.NetworkProvidermusthaveanexistingAgreementwiththeCitytoapplyfor andbegrantedaPermittouseortoinanywayCollocateNetworkNodefacilities onServicePoles. 3.2.SCOPEOFAGREEMENT 3.2.1.ThisAgreementisnotexclusiveandtheCityreservestherighttogrant permissiontoenterthePublicRightofWayandtouseServicePolesinthe PublicRightofWaytoCollocateNetworkNodefacilitiestoothereligibleand qualifiedOtherPartiesunderChapter284. 3.2.2.Exceptasexpresslyprovidedherein,thisAgreementdoesnotgrantLicenseethe authoritytograntanyrightsunderthisAgreementtoanyOtherPartywithout thewrittenconsentoftheCityinaseparateagreementinaccordancewith Chapter284. 3.2.3.ThisAgreementonlyauthorizesCollocationofNetworkNodeonServicePoles inthePublicRightofWayanddoesnotconferanyrightsorpermissiontoinstall orotherwisecollocateNetworkNodeonanyotherPolesortoplacesuch NetworkNodeinthePublicRightofWay. 3.2.4.ThisAgreementdoesnotgranttotheLicenseeaninterestinanyproperty,real orpersonal. 3.3.UNAUTHORIZEDNETWORKNODEONSERVICEPOLES. 3.3.1.TheCityManagershalldeemasunauthorizedanytypeofNetworkNode attachedorCollocatedtoaServicePoleifthereisnoAgreement,evenifitwas inadvertentlyandincorrectlypermitted.TheCityManagerathisorhersole 13 discretionmay,upon30dayswrittennotice,removeorrequiretheLicenseeto removeunauthorizedNetworkNodeat\[źĭĻƓƭĻĻ͸ƭexpensewithoutanyliability totheCity.TheCitywillinvoiceandLicenseeshallreimbursetheCitywithin30 unauthorized daysofreceiptoftheinvoiceforthe/źƷǤ͸ƭcostofremovalof NetworkNode. 3.3.2.AnyModificationtoaNetworkNodemustbeapprovedbytheCityEngineer exceptforthosemodifications,repairs,routinemaintenanceorrelatedwork thatdonotrequireapermitunderChapter284,Sec.284.157(a)and(b), howeverevenforthosemodifications,repairs,routinemaintenanceorrelated workthatdonotrequireapermitunderChapter284,Sec.284.157(a)and(b), advancenoticeshallbegivenviawrittenletter(whichmaybedeliveredbyhand orothermethod)oranacknowledgedemailtransmissionbytheNetwork beprovidedtotheCityas ProvidertotheCitycontactlistedinArticleIshall allowedbyChapter284,Sec.284.157(d)(1)(3). ARTICLE4.APPLICATIONFORAPERMITTOCOLLOCATEONASERVICEPOLE. 4.1.APPLICATIONFORAPERMITTOCOLLOCATIONANETWORKNODEONASERVICEPOLE. 4.1.1.ApplicationforCollocationonServicePolePermit.PriortoCollocationofa NetworkNodeonaServicePoleorinstallationoftherelatedGroundEquipment adjacenttoaServicePole,LicenseeshallcompleteandsubmittotheCity EngineertheApplicationforCollocationofaNetworkNodeonaServicePole Location,attachedasExhibit\[xxx\]Ν5ƩğŅƷĻƩ͸ƭbƚƷĻ/źƷǤƭŷƚǒƌķƦƩĻƦğƩĻğŅƚƩƒ ğƦƦƌźĭğƷźƚƓΞ asarepresentativesample,andthefollowing: 4.1.1.1.FeeforApplicationforCollocationonServicePolePermitDuewith Application. (a)CitywillchargeanapplicationandpermitfeefortheApplicationfor CollocationofaNetworkNodeonaServicePoleLocationinaccordance withChapter284,Sec.284.156. (b)LicenseeshallpaytheCitytheCh.284,Sec.284.156applicationand permitfeesatthetimeofthesubmittaloftheapplicationforthepermits. ExceptasprovidedforinthisAgreement,applicationandpermitfeesare nonrefundable. 4.1.1.2.DocumentsnecessaryforthereviewoftheApplicationforCollocation ofaNetworkNodeonaServicePoleLocation,andasreasonablyrequestedby theCityEngineerasmayberequestedbyChapter284,includebutarenot limitedto: 4.1.1.2.1.MapshowingexactintendedlocationoftheNetworkNode anditsdistancefromadesignatedHistoricLandmark,Park,orSchool, UtilityPole,NodeSupportPole,andotherNetworkNodesonaService 14 Pole,ifany,anddepictingthesidewalks,andrampsontosidewalks requiredbyApplicableCodes,TAS,orotherlaw,includingtheAmericans withDisabilitiesAct,andpavedstreetsurfaceandutilityeasements; 4.1.1.2.2.Representativedrawingsorpicturesoftheintended NetworkNodeasintendedtobeCollocatedontheServicePole;and 4.1.1.2.3.Engineeringandconstructionplansanddrawingsrelatedto theCollocationoftheNetworkNodeontheServicePole,including wheretheproposedTransportFacilitieswillbeconnectedtothe NetworkNodeaselectricalpowerconnections. 4.1.1.3.Requiredindustrystandardpoleloadanalysis:InstallationsonallService Polesshallhaveanindustrystandardpoleloadanalysiscompletedandsubmitted totheCitywitheachpermitapplicationindicatingthattheServicePoletowhich theNetworkNodeistobeattachedwillsafelysupporttheload,inaccordance withChapter284.108.Anapplicationwillnotbeacceptedascompleteorwillbe deemedtohavenotbeenacceptedwithouttheappropriateengineeringanalysis. 4.1.1.4.Heightofattachments:AllattachmentsonallServicePolesshallbeat least8feetabovegrade,inaccordancewithChapter284,Sec.285.108(a)(1)(2) andifaNetworkNodeattachmentisprojectingtowardthestreet,forthesafety andprotectionofthepublicandvehiculartraffic,theattachmentshallbeinstalled nolessthansixteen(16)feetabovetheground. 4.1.1.5.InstallationsonTrafficSignals:InstallationsonallTrafficSignalstructures mustnotinterferewiththeintegrityofthefacilityinanywaythatmay compromisethesafetyofthepublicandmustbeinaccordancewithan agreementasallowedbyChapter284,Sec.285.056andSec.284.101(a)(3),and (b).InstallationofNetworkNodefacilitiesonanyTrafficSignalstructuresshall: i.Beencasedinaseparateconduitthanthetrafficlightelectronics; ii.HaveaseparateelectricpowerconnectionthantheTrafficSignal structure;and iii.HaveaseparateaccesspointthantheTrafficSignalstructure. iv.Shallnotalter,punctureordrillintotheTrafficSignalstructure. 4.1.1.6.InstallationsonStreetsignage:InstallationsonallStreetsignage structuresmustnotinterferewiththeintegrityofthefacilityinanywaythatmay compromisethesafetyofthepublic.InstallationofNetworkNodefacilitiesonany Streetsignagestructuresthathaselectronicsshall: i.BeencasedinaseparateconduitthananyStreetsignageelectronics; 15 ii.HaveaseparateelectricpowerconnectionthantheStreetsignage structure; iii.HaveaseparateaccesspointthantheStreetsignagestructure; iv.Willnotalter,punctureordrillintotheStreetstructure. 4.1.2.NetworkProvidershallcomplywithanyadditionalrequirementsimposedby ApplicableCodesorLaw,theDesignManualordirectionsoftheCityManagerconcerning collocatingitsNetworkNodesonanyServicePole.ComplianceistobewiththeLawand DesignManualineffectatthetimeoftheApplicationforCollocationofaNetworkNode onaServicePoleLocation. 4.1.3.IftheapplicantisnotthesameastheLicenseelistedontheApplicationfor CollocationofaNetworkNodeonaServicePoleorinstallationoftherelatedGround Equipment,theLicenseeshallsigntheapplicationorprovidealetterofagency satisfactorytotheCityAttorneyandispresumedtobetheowneroftheNetworkNode, andGroundEquipmentandshallbefullyresponsibleforthemandtheRentalFeesasset forthastheLicenseeandNetworkProviderinthisAgreement. 4.2.REVIEWPROCESSFORANAPPLICATIONFORCOLLOCATIONOFANETWORKNODEONA SERVICEPOLEPERMIT.(CH.284,SEC.284.154) 4.2.1.TheCityEngineershallreviewanApplicationforCollocationofaNetworkNode onaServicePoleorinstallationoftherelatedGroundEquipmentonaService Poleforcompletenessandactinthetimeallowed,withnotificationstothe Licensee,asprescribedinChapter284,Sec.284.154. 4.2.2.TheCityEngineershallreviewtheApplicationforCollocationofaNetworkNode onaServicePoletodetermine: 4.2.2.1.IftherequestedsitehasalreadybeenapprovedasaLocationfor OtherParties,inwhichinstancethatLocationshallnolongerbeavailableand applicationshallbedenied; 4.2.2.2.Ifalltherequireddocumentationhasbeenprovided; 4.2.2.3.CompliancewiththerequirementsoftheApplicableCodesorLaw andDesignManualandthisAgreement; 4.2.2.4.Thatwrittenpermissionhasbeenobtainedbyapplicablepartiesas requiredbythisAgreement;and 4.2.2.5.Compliancewithapplicableconstruction,engineering,design specifications,ApplicableCodesandlaws,andotherapplicablerequirements, includingtheAmericanswithDisabilitiesAct. 4.2.3.TheCityEngineershalldenyarequestedApplicationforCollocationofa NetworkNodeonaServicePoleifthe\[źĭĻƓƭĻĻ͸ƭapplicationisnotincompliance withtheApplicableCodesorLaw,theDesignManualandthisAgreement. 16 4.2.4.LicenseeshallnotinstallaNetworkNodewithouttherequisitePermit(s). 4.2.5.TheCityEngineershallforwardtotheCityManagereachapprovedGISorStreet addressandrelatedinformationintheApplicationforCollocationofaNetwork NodeonaServicePolewhenaPermitisapproved. ARTICLE5.CHAPTER284RENTALFEESANDOTHERPAYMENTS 5.1.NETWORKNODESITEANNUALRENTALRATE.(CH.284,SEC.284.053) 5.1.1 AnnualNetworkNodeRate.LicenseeshallpaytheCityannually$250perNetwork NodesiteinaccordancewithCh.284.,Sec.284.053(a)theNetworkNodePublicRight ofWayRateforeachLocationforwhichLicenseehasobtainedPermit(s)regardlessof whetherornotaLicenseeinstallsNetworkNodesinthePublicRightofWay.Exceptas providedforinthisAgreement,theannualNetworkNodePublicRightofWayRateis nonrefundable. 5.1.2.InitialAnnualNetworkNodeRateProRated.TheannualNetworkNodePublic RightofWayRatepaymentforthefirstyearatanyLocationΛͻLƓźƷźğƌAnnualNetwork NodetğǤƒĻƓƷͼΜbeginsaccruingwhenthePermitisissuedandisdue30daysafter LicenseeobtainsaPermittoinstallorcollocateaNetworkNodeattheLocation.TheInitial AnnualNetworkNodePaymentshallbeproratedforthemonthsremaininginthe thePermitissuancedate. calendaryearafter 5.1.3.SubsequentYearsAnnualNetworkNodeRateDueDate.TheannualNetworkNode PublicRightofWayRateforeveryyearaftertheInitialAnnualNetworkNodePayment shallbepaidinadvanceonorbeforeDecember31ofeachcalendaryearforeach inthePublicRightofWayforthenextcalendaryearperiod. NetworkNode 5.1.4 AnnualNetworkNodeRateAdjustment.PursuanttoCh.284,Sec.284.054onor abouteachOctoberofeachyearafterOctober2017theCityintendstoadjusttheannual NetworkNodePublicRightofWayRatebyanamountequaltoonehalftheannual change,cumulativesinceSept.1,2017,ifany,intheConsumerPriceIndexforAllUrban ConsumersforTexas,aspublishedbythefederalBureauofLaborStatistics.TheCityshall providewrittennoticetoeachNetworkProviderofthenewrate,andtherateshallapply tothefirstpaymentduetothemunicipalityonorafterthe60thdayfollowingthatnotice. Itisthe/źƷǤ͸ƭintentthatthenewadjustedNetworkNodePublicRightofWayRatebe effectiveeachyearbyDecember31inordertoapplyandbeginaccruingJanuary1ofthe yearfollowingtheNoticeoftheadjustmentintheNetworkNodeSitePublicRightofWay Rate. 5.2.COLLOCATIONATTACHMENTONSERVICEPOLEFEE.(CH.284,SEC.284.056) 5.2.1 AnnualCollocationonServicePoleAttachmentFee.LicenseeshallpaytheCity annually$20foreachNetworkNodePermittedtobeCollocatedonServicePolein accordancewithCh.284.,Sec.284.056foreachLocationforwhichLicenseehasobtained Permit(s)tocollocateaNetworkNodeonaServicePoleregardlessofwhetherornota 17 LicenseecollocatesaNetworkNodeonaServicePole.Exceptasprovidedforinthis Agreement,thisfeeisnonrefundable. 5.2.2.InitialAnnualCollocationonServicePoleAttachmentFeeProRated.Theannual collocationonServicePoleattachmentfeepaymentforthefirstyearatanyLocation ΛͻLƓźƷźğƌAnnualCollocationonServicePoleAttachmentFeetğǤƒĻƓƷͼΜbeginsaccruing whenthepermitisissuedandisdue30daysafterLicenseeobtainsaPermittoinstallor collocateaNetworkNodeattheLocation.TheInitialAnnualCollocationonServicePole AttachmentFeePaymentshallbeproratedforthemonthsremaininginthecalendar yearafterthepermitissuancedate. 5.2.3.SubsequentYearsAnnualCollocationonServicePoleAttachmentFeeDueDate. TheannualCollocationonServicePoleattachmentfeeforeveryyearaftertheInitial PaymentshallbepaidinadvanceonorbeforeDecember31ofeachcalendaryearfor eachNetworkNodeinthePublicRightofWayforthenextcalendaryearperiod. 5.3.MONTHLYTRANSPORTFACILITYFEE.(CH.284,SEC.284.055) 5.3.1 MonthlyTransportFacilityFee.TotheextentNetworkProviderhasTransport FacilitiesPermittedfromtheNetworkNodesinthePublicRightofWayitshallpaythe CityinaccordancewiththeCh.284,Sec.284.055(b)amonthlyTransportFacilitiesFee onaquarterlybasisassetoutbelowinSec.5.3.3,whichbeginsaccruingwhenthePermit isissuedandisonthesamequarterlyaccesslinescheduleforquarterlycalendarperiod coveredandquarterlypaymentscheduleasinChapter283oftheLocalGov.Code.Except asprovidedforinthisAgreement,theMonthlyTransportFacilityFeeisnonrefundable 5.3.2Licenseemayeither: (a)InaccordancewithCh.284.,Sec.284.055(a)(1),installitsownTransport Facilities,subjecttoTransportFacilityFeepaymentsassetoutinSubsection5.3.3, below;or (b)InaccordancewithCh.284.,Sec.284.055(a)(2)obtaintransportservicefrom apersonthatispayingtheCityfeestooccupythePublicRightofWaythatarethe equivalentofnotlessthan$28perNetworkNodesitepermonth,forwhichthe Cityshallrequireindependentreasonableverificationthattheproviderof TransportFacilityservicetotheNetworkProviderhaspaidtheCityinthe correspondingcalendarquarterlytimeperiodapaymentinanamountthatis equivalenttoorgreaterthantheTransportFacilityfeedueforthatquarterly paymentforthesameandcorrespondingcalendarquarterperiodthatthe NetworkProviderwouldhavebeenduetopaythecityforthecalendarquarteras setoutinSubsection5.3.4.,below. 5.3.3.MonthlyTransportFacilityFeepayment.InaccordancewithCh.284.,Sec.284.055 (b),theNetworkProvidershallpaytotheCityanamountequalto$28multipliedbythe numberoftheNetworkProvider'sNetworkNodeslocatedinthePublicRightofWayfor whichtheinstalledTransportFacilitiesprovidebackhaulunlessoruntilthetimethe 18 NetworktƩƚǝźķĻƩ͸ƭpaymentofmunicipalrightsofwayfeesforuseofthePublicRight ofWaystotheCityfromthatsameandcorrespondingcalendarquarterperiodthat exceedsitsmonthlyaggregatepernodecompensationtotheCitydueforthatcalendar inSubsection5.3.4.,below. quarter,subjecttotheverificationassetout 5.3.3.1.QuarterlyDueDatesofTransportFacilityFeePayments.TheMonthly TransportFacilityFeebeginsaccruingwhenthePermitisissuedandisonthesame quarterlyaccesslinescheduleforquarterlycalendarperiodcoveredandquarterly paymentscheduleasinChapter283oftheLocalGov.Code.TheNetworkProvider shallpaytheCitytheMonthlyTransportFacilityFeepaymentonaquarterly calendaryearbasisforeachcalendarquarter,45daysaftertheendofthe precedingcalendarquarterthemonthlyPublicRightofWayrateforTransport Facilities. 5.3.4 AlternativeQuarterlyTrueupVerificationReport.IfNetworkProviderutilizesthe Ch.284.,Sec.284.055(a)(2)optiontoobtaintransportservicefromapersonthatis payingmunicipalfeestooccupythePublicRightofWayorutilizestheCh.284,Sec. 284.055(a)(1),optionandinstallitsownTransportFacilitiesandassertsthatithaspaid theCityinanamountthatisequivalenttoorgreaterthantheTransportFacilityfeedue forthatquarterlyperiodforthesameandcorrespondingcalendarquarterperiodthat wouldhavebeenduefromtheNetworkProvidertotheCityforthecalendarquarterthen: (a)45daysaftertheendofeachcalendarquartertheNetworkProvidershall providetotheCityaQuarterlyTrueupVerificationReportdocumentingthose equivalentorgreaterpaymentstotheCity. (b)ThisverificationreportistoallowtheCitytoverifythatthecorresponding immediatelyprecedingpastquarterlypaymentsduetheCityforTransferFacilities foreachNetworkNodeTransferFacilitythattheCityhasreceivedfromthe NetworkProviderorfromtheNetworktƩƚǝźķĻƩ͸ƭproviderofTransportFacilities apaymenttotheCityforthatcorrespondingpriorcalendarquarterlyƦĻƩźƚķ͸ƭis equaltoorexceedsthemonthlyaggregatepernodeTransferFacility compensationduetotheCityunderthisAgreementandCh.284.,Sec.284.055(b) (2)forthatsamecalendarquarterperiod. (c)TheQuarterlyTrueupVerificationReportshallbeprovided45daysafterthe endofeachcalendarquarterthatanactualandfullpaymentisnotmadefromthe NetworkProvidertotheCityfortheTransferFacilitiesMonthlyTransportFacility Feepayment. (d)IntheeventthepaymenttotheCitythatisassertedtobeequaltoor exceedingthemonthlyaggregatepernodeTransferFacilitycompensationdueto theCityunderthisAgreementandCh.284.,Sec.284.055wasbyadifferentnamed entitythantheNetworkProvider,theNetworkProviderbearstheburdento establishthattheentitypayingtheCityandtheNetworkProviderisanAffiliate 19 andthattheyareoneandthesameforpurposesofaChapter284TransferFacility feetrueupcreditagainsttheMonthlyTransportFacilityFee. 5.3.5.ThisTransportFacilityfeeisinadditiontoanyannualNetworkNodePublicRight ofWayRatepaymentrequiredbyCh.284,Section284.053 5.4.APPLICATIONFEES.(CH.284,SEC.284.156) 5.4.1 ApplicationandPermitFees.LicenseeshallpaytheCitytheCh.284,Sec.284.156 applicationandpermitfeescontemporaneouslywiththesubmittaloftheapplicationfor thepermits.ExceptasprovidedforinthisAgreement,applicationandpermitfeesare nonrefundable. 5.5.OTHERPAYMENTS TheNetworkNodePublicRightofWayRate,theCollocationonServicePoleAttachmentFee, theTransportFacilityFee,(collectivelysometimesreferredtoasͻwĻƓƷğƌCĻĻƭͼΜandthe applicationandpermitfeespayableunderCh.284,shallbeexclusiveof,andinadditiontoall advaloremtaxes,specialassessmentsformunicipalimprovements,andotherlawful obligationsoftheLicenseetotheCity. 5.6.NONFUNCTIONINGNETWORKNODES LicenseeshallcontinuetopayRentalFeesforNetworkNodesattachedtoServicePolesthatare nolongerinserviceoroperationaliftheNetworkNodesattachedtoServicePolesoccupythe PublicRightofWay. 5.7.PAYMENT 5.7.1.RentalFeesshallbeasdueassetoutinSection5.15.4above. 5.7.2.RentalFeeandotherpaymentsshallbepayablebyACHdirectdepositorcheck payabletotheCityofDentonandsenttothefollowingaddress: Cityof_________________________ ATTN:____________ _____ P.O.Box Denton,TX76201 5.8.REIMBURSEMENT WhenunderthetermsofthisAgreement,theCityatitsownexpensehasremovedorremediated \[źĭĻƓƭĻĻ͸ƭNetworkNodesattachedtoServicePolesorLicenseeisrequiredtoreimbursetheCity, theLicenseeshallremitpaymenttotheCitytotheaddresslistedinArticle5.7within30daysof thedateoftheinvoiceforremoval,remediation,orrequirement. 5.9.PAYMENTLIMITS 20 FollowingremovalofanyNetworkNodesattachedtoServicePolesconsistentwiththetermsof thisAgreement,andpaymentforanydamagesduetotheinstallation,maintenanceorremoval oftheNetworkNode,oranyotheramountsduetheCityunderthisAgreementtherewillbeno RentalFees,totheCitybyLicenseeforsuchNetworkNodes compensationdue,includingany attachedtoServicePolesexceptthattheCityshallnotissueanyrefundsforanyamountsalready paidbyLicenseeforNetworkNodesattachedtoServicePolesthathavebeenremoved. Notwithstandingtheforegoing,ifLicenseeisrequiredbytheCitytoremoveaNetworkNode(s) attachedtoServicePole(s)andsuchremovalisnottheresultof\[źĭĻƓƭĻĻ͸ƭfailuretocomplywith thisAgreement,CitymayreimburseLicenseetheRentalFeeforsuchNetworkNodesattached toServicePolesproratedmonthlyfortheremainderofthecalendaryear. 5.10.COMPLIANCEREVIEW TheCitymay,atitsdiscretion,uponnolessthan30dayspriorwrittennotice,requirethatthe LicenseeproduceitsrecordsrelatedtothisAgreementforreviewbytheCityManagerto ascertainthecorrectnessoftheinformationprovidedunderArticle5ofthisAgreement.Ifthe CityManageridentifies,asaresultofareviewoftheinformationprovidedpursuanttoArticle 5ofthisAgreementamountsowedbytheLicenseefrompriorperiods,theLicenseeshallpay theamountidentifiedwithin30daysofthedateoftheinvoice.Ifthereviewdeterminesthat paymentoftheRentalFeewasnotmadeinaccordancewiththetermsofthisAgreementand thatsuchpaymentrepresentsanoverpaymentofanyamount,Citywillcreditsuchoverpayment against\[źĭĻƓƭĻĻ͸ƭfutureobligationstoCityunderthisAgreement. 5.11.PERMITSCONDITIONEDONPAYMENTSBEINGCURRENT. PermitsareexpresslyconditionedonRentalpaymentsbeingcurrentorthepermitisvoidafter 30ķğǤƭ͸noticeofdelinquencyandremainvoiduntilpaymentinfull,exceptforthoseamounts disputedingoodfaith,forwhichreasonableanddetaileddocumentationhasbeensubmitted totheCitysupportingsuchdisputedamountsandisstillpendingCityreview. ARTICLE6.DESIGNMANUALCOMPLIANCEANDRELATEDREQUIREMENTS 6.1.AESTHETICREQUIREMENTS 6.1.1.NetworkProvidershallcomplywiththerequirementsoftheLaw,/źƷǤ͸ƭApplicable Codes,andDesignManualconcerningCollocatingitsNetworkNodesonanyServicePole, astheLaw,/źƷǤ͸ƭApplicableCodes,andDesignManualarepublishedandamendedfrom timetotime.ComplianceistobewiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesign ManualineffectatthetimeoftheApplicationforCollocationofaNetworkNodeona ServicePoleLocation. 6.1.2.TotheextentnotinconflictwiththeLaw,/źƷǤ͸ƭApplicableCodes,DesignManual orChapter284theNetworkNodeontheServicePoleshallbeconcealedorenclosedas muchaspossibleinanequipmentbox,cabinetorotherunitthatmayincludeventilation openings;externalcablesandwireshangingoffapoleshallbesheathedorenclosedina 21 conduit,sothatwiresareprotectedandnotvisibleorarevisuallyminimizedtotheextent possible. 6.2.INSTALLATION TotheextentnotinconflictwiththeLaw,/źƷǤ͸ƭApplicableCodes,orDesignManualorChapter 284theNetworkNodeontheServicePoleLicenseeshall,atitsowncostandexpense,installthe NetworkNodesattachedtoServicePolesinagoodandworkmanlikemannerandinaccordance withtherequirementspromulgatedbytheCityEngineer,assuchmaybeamendedfromtimeto time.\[źĭĻƓƭĻĻ͸ƭworkshallbesubjecttotheregulation,controlanddirectionoftheCityEngineer. Allworkdoneinconnectionwiththeinstallation,operation,maintenance,repair,and/or replacementoftheNetworkNodesattachedtoServicePolesshallbeincompliancewithall ApplicableCodesandLaws. 6.3.INSPECTIONS 6.3.1.TheCityEngineermayperformvisualinspectionsofanyNetworkNodes attachedtoServicePoleslocatedinthePublicRightofWayastheCityEngineer deemsappropriatewithoutnotice.Iftheinspectionrequiresphysicalcontact withtheNetworkNode,theCityEngineershallprovidewrittennoticetothe Licenseewithinfivebusinessdaysoftheplannedinspection.Licenseemayhave arepresentativepresentduringsuchinspection. 6.3.2.Intheeventofanemergencysituation,theCitymay,butisnotrequiredto, notifyLicenseeofaninspection.TheCitymaytakeactionnecessaryto remediatetheemergencysituationandtheCityEngineershallnotifyLicensee assoonaspracticallypossibleafterremediationiscomplete. 6.4.PLACEMENT NetworkProvidershallcomplywiththerequirementsoftheLaw,/źƷǤ͸ƭApplicableCodes, andDesignManualconcerningCollocatingitsNetworkNodesonanyServicePole,asthe Law,/źƷǤ͸ƭApplicableCodes,andDesignManualarepublishedandamendedfromtime totime.ComplianceistobewiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesignManualin effectatthetimeoftheApplicationforCollocationofaNetworkNodeonaServicePole Location. 6.5.ELECTRICALSUPPLY NetworkProvidershallcomplywiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesignManual concerningelectricalconnectionstoitsNetworkNodesonanyServicePoleaspublishedand amendedfromtimetotime,butasineffectatthetimeoftheapplicationforapermit.Licensee shallberesponsibleforobtaininganyrequiredelectricalpowerservicetotheNetworkNodes. TheCityshallnotbeliabletotheLicenseeforanystoppagesorshortagesofelectricalpower furnishedtotheNetworkNodes,includingwithoutlimitation,stoppagesorshortagescausedby anyact,omission,orrequirementofthepublicutilityservingthestructureortheactoromission ofanyothertenantorLicenseeofthestructure,orforanyothercausebeyondthecontrolofthe 22 City.LicenseeshallnotbeentitledtoanyabatementoftheRentalFeeforanysuchstoppageor shortageofelectricalpower. 6.6.TRANSPORTFACILITYFIBERCONNECTION LicenseeshallberesponsibleforobtainingandproperlypermittingTransportFacilitiesforthe NetworkNodesaccessandconnectiontofiberopticlinesorotherbackhaulsolutionsthatmay berequiredforitsNetworkNodes. 6.7.GENERATORS LicenseeshallnotalloworinstallgeneratorsorbackupgeneratorsinthePublicRightofWay. 6.8.EQUIPMENTDIMENSIONS \[źĭĻƓƭĻĻ͸ƭNetworkNodesshallstrictlyconformtothesizelimitsinChapter284foritsNetwork NodesandGroundEquipmentandshallbenogreaterthanthosesizes,butmaybelessthanthe sizessetoutinChapter284. 6.9.TREEMAINTENANCE NetworkProvidershallcomplywiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesignManual concerningtreemaintenance. 6.10.SIGNAGE NetworkProvidershallcomplywiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesignManual concerningsignageontheNetworkNodeandanyGroundEquipment. 6.11.REPAIR TotheextentnotinconflictwiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesignManualwhenever theinstallation,placement,Collocation,attachment,repair,removal,operation,use,or relocationoftheNetworkNode,orGroundEquipment,oranyportionthereofisrequiredor permittedunderthisAgreement,andsuchinstallation,placement,Collocation,attachment, repair,removal,operation,use,orrelocationcausesanypropertyoftheCityoranythirdparty tobedamagedortohavebeenalteredinsuchamannerastomakeitunusable,unsafe,orin violationofanyLaw,ApplicableCode,rule,orregulation,Licensee,atitssolecostandexpense, shallpromptlyrepairandreturnsuchpropertytoitsoriginalcondition.IfLicenseedoesnot repairsuchpropertyorperformsuchworkasdescribedinthisparagraph,thentheCityshallhave theoption,upon15ķğǤƭ͸priorwrittennoticetoLicenseeorimmediatelyifthereisanimminent dangertothepublic,toperformorcausetobeperformedsuchreasonableandnecessarywork onbehalfofLicenseeandtochargeLicenseeforthereasonableandactualcostsincurredbythe City.LicenseeshallreimbursetheCityforthecostsinaccordancewithArticle5.8ofthis Agreement. 6.12.GRAFFITIABATEMENT 23 NetworkProvidershallcomplywiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesignManual concerninggraffitionanyofitsNetworkNodeorGroundEquipment. ARTICLE7.RADIOINTERFERENCEBYNETWORKNODEPROHIBITED.(ch.284,Sec.284.304) 7.1.NOLIABILITY 7.1.1.TheCityshallnotbeliabletoLicenseeforanydamagecausedbyotherLicensees withNetworkNodeincloseproximityoftheServicePole. 7.1.2.TheCityshallnotbeliabletoLicenseebyreasonofinconvenience,annoyanceor injurytotheNetworkNode,orGroundEquipment,oractivitiesconductedby Licenseetherefrom,arisingfromthenecessityofrepairinganyportionofthe PublicRightofWay,orfromthemakingofanynecessaryalterationor improvements,in,orto,anyportionofthePublicRightofWay,orin,orto,its fixtures,appurtenancesorequipment.TheCitywillusereasonableeffortsnotto causematerialinterferenceto\[źĭĻƓƭĻĻ͸ƭoperationofitsNetworkNode. 7.2.NOINTERFERENCE 7.2.1.\[źĭĻƓƭĻĻ͸ƭNetworkNodeshallstrictlycomplywithChapter284,Sec.284.304and notcauseanyharmfulradiofrequencyinterferencetoaFederalCommunications Commissionauthorizedmobiletelecommunicationsoperationofany municipalityoperatingatthetimetheNetworkNodewasinitiallyinstalledor takeallsteps constructed.Onwrittennotice,theNetworkProvidershall reasonablynecessarytoremedyanyharmfulinterference. 72.2.TotheextentnotinconsistentwithChap.284,Sec.284.304: TheNewarktƩƚǝźķĻƩ͸ƭNetworkNodecollocatedonServicePolesshallnotcause harmfulinterferencetothe/źƷǤ͸ƭpublicserviceradiofrequency,wireless network,orcommunicationsoperationsΛͻ/źƷǤhƦĻƩğƷźƚƓƭͼΜandOthertğƩƷźĻƭ͸ NetworkNodesorsimilarthirdpartyequipmentinthePublicRightofWayor adjacentCitypropertyΛͻtƩƚƷĻĭƷĻķ9ƨǒźƦƒĻƓƷͼΜ͵If\[źĭĻƓƭĻĻ͸ƭNetworkNode interfereswiththe/źƷǤ͸ƭOperations,thenLicenseeshallimmediatelycease operationoftheNetworkNodecausingsaidinterferenceuponreceivingnotice fromtheCityandrefrainfromoperatinguntilLicenseehaseliminatedthe interference.IfafternoticeLicenseecontinuestooperateNetworkNodethat causeinterferencewithCityOperations,suchNetworkNodemaybedeemed unauthorizedandsubjecttotheprovisionsofthisAgreement.If\[źĭĻƓƭĻĻ͸ƭ NetworkNodeinterfereswithProtectedEquipment,thenLicenseeshalltakethe stepsnecessarytocorrectandeliminatesuchinterferencewithin24hoursof receiptofnoticefromtheCity.IftheLicenseeisunabletoresolvethe interferenceissuewithinthistimeframe,itwillvoluntarilypowerdownthe NetworkNodecausingtheinterference,exceptforintermittenttestinguntilsuch timeastheinterferenceisremedied. 24 7.2.2.FollowinginstallationorModificationofaNetworkNode,theCityEngineermay requireLicenseetotesttheNetworkbƚķĻ͸ƭradiofrequencyandotherfunctions toconfirmthatitdoesnotinterferewiththe/źƷǤ͸ƭOperationsorProtected Equipment. ARTICLE8.ABANDONMENT,RELOCATIONANDREMOVAL 8.1.ABANDONMENTOFOBSOLETENETWORKNODE NetworkProvidershallcomplywiththerequirementsoftheLaw,/źƷǤ͸ƭApplicableCodes,and DesignManualconcerningcollocatingitsNetworkNodesonanyServicePole,astheLaw,/źƷǤ͸ƭ ApplicableCodes,andDesignManualarethatarepublishedandamendedfromtimetotime. ComplianceistobewiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesignManualineffectatthe timeoftheApplicationforCollocationofaNetworkNodeonaServicePoleLocation. TotheextentnotinconflictwiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesignManualLicensee shallremoveNetworkNodesandGroundEquipmentwhensuchfacilitiesareAbandoned regardlessofwhetheritreceivesnoticefromtheCity.UnlesstheCitysendsnoticethatremoval mustbecompletedimmediatelytoensurepublichealth,safety,andwelfare,theremovalmust becompletedwithintheearlierof90daysofitbeingAbandonedorwithin90daysofreceiptof writtennoticefromtheCity.WhenLicenseeremovesorabandonspermanentstructuresinthe PublicRightofWay,theLicenseeshallnotifytheCityEngineerandCityManagerinwritingof suchremovalorabandonmentandshallfilewiththeCityEngineerandCityManagerthelocation ofNetworkNodesandGroundEquipmentremovedorabandoned.TheCity anddescription EngineermayrequiretheLicenseetocompleteadditionalremedialmeasuresnecessaryfor publicsafetyandtheintegrityofthePublicRightofWay. 8.2.REMOVALREQUIREDBYCITY 8.2.1.TotheextentnotinconflictwiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesign ManualorChapter284,Sec.284.303,Licenseeshall,atitssolecostandexpense, promptlydisconnect,remove,orrelocatetheapplicableNetworkNodesand GroundEquipmentwithinthetimeframeandinthemannerrequiredbytheCity EngineeriftheCityEngineerreasonablydeterminesthatthedisconnection, removal,orrelocationofanypartofNetworkNodesandGroundEquipment(a)is necessarytoprotectthepublichealth,safety,welfare,orCityproperty,(b) NetworkNodesandGroundEquipmentorportionthereof,isadverselyaffecting properoperationofstreetlights,orCityproperty,or(c)Licenseelosesorfailsto obtainallapplicablelicenses,Permits,andcertificationsrequiredbyLawforits NetworkNodesandGroundEquipment,oruseofanyLocationunderthis Agreement.IftheCityEngineerreasonablydeterminesthatthereisimminent dangertothepublic,thentheCitymayimmediatelydisconnect,remove,or relocatetheapplicableNetworkNodesandGroundEquipmentatthe\[źĭĻƓƭĻĻ͸ƭ solecostandexpense. 25 8.2.2.TheCityEngineershallprovide90dayswrittennoticetotheLicenseebefore removingaNetworkNodesandGroundEquipmentunderthisSection8.2,unless thereisimminentdangertothepublichealth,safety,andwelfare. storage 8.2.3.LicenseeshallreimburseCityforthe/źƷǤ͸ƭactualcostofremovalandany orassociatedcostsofitsNetworkNodesandGroundEquipmentinaccordance withthisAgreementwithin30daysofreceivingtheinvoicefromtheCity. 8.3.REMOVALORRELOCATIONBYLICENSEE 8.3.1.IftheLicenseeremovesorrelocatesaNetworkNodesandGroundEquipmentat itsowndiscretion,itshallnotifytheCityEngineerandCityManagerinwritingnot lessthan10businessdayspriortoremovalorrelocation.Licenseeshallobtainall permitsrequiredforrelocationorremovalofitsNetworkNodesandGround Equipmentpriortorelocationorremoval. 8.3.2.ExceptasotherwiseprovidedinthisAgreement,theCityshallnotissueany refundsforanyamountspaidbyLicenseeforNetworkNodesandGround Equipmentthathavebeenremoved. 8.4.REMOVALORRELOCATIONREQUIREDFORCITYPROJECT 8.4.1.TotheextentnotinconflictwiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesign ManualandChapter284,Sec.284.303,Licenseeunderstandsandacknowledges thattheCitymayrequireLicenseetoremoveorrelocateitsNetworkNodesand GroundEquipment,oranyportionthereoffromthePublicRightofWay,and LicenseeshallattheCity9ƓŭźƓĻĻƩ͸ƭdirectionremoveorrelocatethesameat \[źĭĻƓƭĻĻ͸ƭsolecostandexpense,whenevertheCityEngineerreasonably determinesthattherelocationorremovalisneededforanyofthefollowing purposes:Requiredfortheconstruction,completion,repair,widening,relocation, ormaintenanceof,oruseinconnectionwith,anyCityconstructionor maintenanceprojectthatenhancesthePublicRightofWayforuseofthe travelingpublic. 8.4.2.IfLicenseefailstoremoveorrelocatetheNetworkNodesandGroundEquipment, orportionthereofasrequestedbytheCityEngineerwithin90daysof\[źĭĻƓƭĻĻ͸ƭ receiptoftherequest,thentheCityshallbeentitledtoremovetheNetwork NodesandGroundEquipmentorportionthereofat\[źĭĻƓƭĻĻ͸ƭsolecostand expense,withoutfurthernoticetoLicensee,andLicenseeshall,within30days followingissuanceofinvoiceforthesame,reimbursetheCityforitsreasonable expensesincurredintheremoval(including,withoutlimitation,storageexpenses) oftheNetworkNodesandGroundEquipment,orportionthereof. 8.5.REMOVALREQUIREDAFTERTERMINATIONOREXPIRATIONOFLICENSE Within30calendardaysafterterminationorexpirationofthisAgreement,Licenseeshall commenceremovalofallof\[źĭĻƓƭĻĻ͸ƭNetworkNodesandGroundEquipmentfromallService Pole(s)inthePublicRightofWayandpeaceablysurrenderthePublicRightofWaytoCityinthe 26 sameconditionthePublicRightofWaywasinontheEffectiveDate.Removalofallthe \[źĭĻƓƭĻĻ͸ƭNetworkNodesandGroundEquipmentunderthissectionmustbecompletedwithin 90days.IfLicenseefailstobeginremovaloftheNetworkNodesandGroundEquipmentonor aftertheAgreementexpiresorterminatesorfailstocompleteremoval beforethe30thday within90days,theCitymayremove,store,ordisposeofanyremainingportionoftheNetwork NodesandGroundEquipmentinanymannertheCityEngineerdeemsappropriate.Licensee shall,within30daysafterreceiptofthe/źƷǤ͸ƭwrittenrequestandinvoice,reimbursetheCityfor allcostsincurredbytheCityinconnectiontherewith(includinganyreasonableoverheadand storagefees). 8.6.REMOVALREQUIREDAFTERREVOCATION Within30daysafterthedateofthenoticeofrevocationofaPermitforaLocation,Licenseeshall commenceremovaloftheNetworkNodesandGroundEquipmentfromthePublicRightofWay andpeaceablysurrenderthePublicRightofWaytoCityinthesameconditionthePublicRight ofWaywasinontheEffectiveDate.IfLicenseefailstocompleteremovalwithin90days,the Citymayremove,store,ordisposeofanyremainingportionoftheNetworkNodesandGround EquipmentinanymannertheCityEngineerdeemsappropriate.Licenseeshall,within30days afterreceiptofthe/źƷǤ͸ƭwrittenrequestandinvoice,reimbursetheCityforallcostsincurredby theCityinconnectiontherewith(includinganyreasonableoverheadandstoragefees). 8.7.OWNERSHIP NopartofaNetworkNodeconstructed,erectedorplacedonthePublicRightofWaybyLicensee willbecome,orbeconsideredbytheCityasbeingaffixedtoorapartof,aServicePoleorofthe PublicRightofWay.AllportionsoftheNetworkNodeconstructed,modified,erectedorplaced byLicenseeonthePublicRightofWaywillbeandremainsthepropertyofLicenseeandmaybe removedbyLicenseeatanytimeduringoraftertheTerm. 8.8.RESTORATION LicenseeshallrepairanydamagetothePublicRightofWay,andthepropertyofanythirdparty resultingfrom\[źĭĻƓƭĻĻ͸ƭremovalactivities(oranyotherof\[źĭĻƓƭĻĻ͸ƭactivitieshereunder) within10daysfollowingthedateofsuchremovalorrelocation,at\[źĭĻƓƭĻĻ͸ƭsolecostand expense,toincluderestorationofthePublicRightofWayandpropertytosubstantiallythesame conditionasitwasimmediatelybeforetheEffectiveDate,includingrestorationorreplacement ofanydamagedtrees,shrubsorothervegetation.Suchrepair,restorationandreplacementshall besubjecttothesole,reasonableapprovaloftheCityManager. 8.9.LICENSEERESPONSIBLE Licenseeshallberesponsibleandliablefortheactsandomissionsof\[źĭĻƓƭĻĻ͸ƭemployees, temporaryemployees,officers,directors,consultants,agents,Affiliates,subsidiaries, sublicensees,sublessees,andsubcontractorsinconnectionwiththeperformanceofthis Agreement,asifsuchactsoromissionswere\[źĭĻƓƭĻĻ͸ƭactsoromissions. 8.10.ALLOCATIONOFFUNDSFORREMOVALANDSTORAGE 27 TheCityhasappropriated$0underthisAgreementtopayforthecostofanyremovalorstorage ofNetworkNode,asauthorizedunderthisArticle,andnootherfundsareallocatedinconnection withtheperformanceofthisAgreement. ARTICLE9.ENVIRONMENTALLAWREQUIREMENTS NetworkProvidershallcomplywiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesignManual concerningenvironmentallawrequirementsonanyofitsNetworkNodeorGroundEquipment. ARTICLE10.SECURITY NetworkProvidershallcomplywiththeLaw,/źƷǤ͸ƭApplicableCodes,andDesignManual concerningsecurityrequirementsonanyofitsNetworkNodeorGroundEquipment. ARTICLE11.INDEMNIFICATION,INSURANCEANDLIABILITY 11.1 Indemnity.NetworkProvidershallcomplywiththeLaw,/źƷǤ͸ƭApplicableCodes,and DesignManualandChapter284,Sec.284.302concerningonindemnificationrequirementson anyofitsNetworkNodeorGroundEquipment. 11.2 Insurance.NetworkProvidershallcomplywiththeLaw,/źƷǤ͸ƭApplicableCodes,and DesignManualconcerninginsurancerequirementsonanyofitsNetworkNodeorGround Equipment. 11.3 Liability.NetworkProvidershallberesponsibleforanydamagestoanypartythatoccur duetotheinstallation,maintenanceorfailuretomaintain,theremovalorfailuretoremove NetworkNodesforwhichitwouldbeliableunderLaw. ARTICLE12.TERMANDTERMINATION 12.1.TERM 12.1.1.ThisAgreementiseffectiveontheEffectiveDateandunlesssoonerterminated underotherprovisionsofthisAgreement,willremainineffectuntilDecember 31,2025ΛͻLƓźƷźğƌĻƩƒͼΜ͵ 12.2.RENEWALS UponexpirationoftheInitialTerm,thisAgreementwillautomaticallyrenewforuptotwo(2) successivefive(5)yearterms(eachaͻwĻƓĻǞğƌĻƩƒͼΜonthesametermsandconditions, unlesseithertheCityorLicenseechoosesnottorenew.IfeithertheCityorLicenseechooses nottorenewthisAgreement,theCityManagershallnotifytheLicenseeortheLicenseeshall notifytheCityManagerofnonrenewalatleast90daysbeforetheexpirationofthethen currentterm. 12.3.TERMINATIONFORCAUSEBYCITY 28 12.3.1.IfLicenseedefaultsunderthisAgreement,theCitymayterminatethisAgreement subjectto\[źĭĻƓƭĻĻ͸ƭabilitytocuresuchdefaultsbelow.TheCity'srightto terminatethisAgreementforLicensee'sdefaultiscumulativeofallitsrightsand butisnot remedieswhichexistnoworinthefuture.DefaultbyLicenseeincludes, limitedto: 12.3.1.1.FailureoftheLicenseetocomplywithanymaterialtermofthis Agreement; 12.3.1.2.Licenseebecomesinsolvent. 12.3.1.3.The\[źĭĻƓƭĻĻ͸ƭfailuretoobtainalllicenses,permits,and certificationrequiredbytheCityunderthisAgreementandpayallfeesassociated therewithaftertheCityhasnotifiedtheLicenseethatlicenses,permits,and certificationsmustbeobtainedtoworkinthePublicRightofWay; 12.3.1.4.Allorasubstantialpartof\[źĭĻƓƭĻĻ͸ƭassetsareassignedforthe benefitofitscreditors; 12.3.1.5.AreceiverortrusteeisappointedforLicensee;or 12.4.1.6.LicenseefailstoapplyforpermitstoCollocateonServicePolesin thePublicRightofWaywithin1yearoftheEffectiveDateofthisAgreement. 12.3.2.Ifadefaultoccurs,theCityManagershalldeliverawrittennoticetoLicensee describingthedefaultandtheterminationdate.IftheCityManagersendsa defaultnotice,theLicenseeshallhave60daysfromthereceiptofsuchnoticeto curethedefault(unlessthenatureoftheeventtakeslongertocureandthe Licenseecommencesacurewithinsuch60dayperiodandthereafterdiligently pursuesitbutwillnotexceed180daysunlessagreedtobytheCityManagerwhich agreementwillnotbeunreasonablywithheld).IfLicenseecuresthedefault beforetheproposedterminationdate,theproposedterminationisineffective. 12.3.3.IfthedefaultisnotcuredinthetimeandmannersetoutaboveorbytheCity thentheCityManagermayimmediatelyterminatethisAgreementby Manager, notifyingLicenseeinwritingofsuchtermination.Afterreceivingthenotice, Licenseeshall,immediatelyceaseoperationsandremoveNetworkNodefromthe PublicRightofWayinaccordancewiththeSections8.5and8.6ofthisAgreement, andanypaymentdueshallberemittedbyLicenseewithin30daysofthereceipt ofthenoticetotheaddressintheSection1.1ofthisAgreement. 12.4.TERMINATIONBYLICENSEE 12.4.1.TheLicenseemayterminatethisAgreementatanytimewithoutcausebygiving 30daysadvancewrittennoticetotheCityManager. 12.4.2.IftheLicenseedoesnotremoveallNetworkNodefromthePublicRightofWay withinthetimeperiodrequiredbySection8.5ofthisAgreement,theNetwork NodemayberemovedbytheCity,subjecttoreimbursementforitscostfromthe NetworkproviderasallowedbytheAgreement. 29 12.5.AUTOMATICTERMINATION. IfChapter284oftheLocalGovernmentCode,oranypartthereofisatanytime,infullorinpart, revoked,foundtobeunconstitutional,struckdown,preemptedorotherwisebecomesvoidor invalid,thenthisLicenseshallautomaticallyterminate,unlessanextensionisgrantedbytheCity. ThissectionshallconstituteNoticethatinsuchcase,allNetworkNodesaretoberemovedwithin ninety(90)daysfromtheeventthataffectChapter284.ThePartiesagreetheywillnegotiatein goodfaithtoassureaneaseoftransitionsastothosepartsofChapter284thathavebeen adjudicatedasunenforceable,aswellascontinuedcompliancewiththosepartsthatmayremain enforceable,ifany. ARTICLE13.TRANSFEROFAUTHORITY 13.1.ASSIGNMENT 13.1.1.Licenseemaynotassign,delegate,transfer,orsellalloranyportionofitsrights, privilegesandobligationsunderthisAgreementwithoutwrittennoticetoandthe priorwrittenconsentoftheCityManager,whichconsentwillnotbeunreasonably withheld.Noassignmentinlaworotherwiseshallbeeffectiveuntiltheassignee hasfiledwiththeCityManageraninstrument,dulyexecuted,recitingthefact ofsuchassignment,acceptingthetermshereof,andagreeingtocomplywithall oftheprovisionshereof.Amortgageorotherpledgeofassetsinabonafide anassignmentofthisAgreementfor lendingtransactionshallnotbeconsidered thepurposesofthisArticle. 13.1.2.ThisAgreementbindsandbenefitsthePartiesandtheirlegalsuccessorsand permittedassigns;however,thisprovisiondoesnotaltertherestrictionson assignmentanddisposalofassetssetoutinthisArticle.ThisAgreementdoesnot createanypersonalliabilityonthepartofanyofficeroragentoftheCity. 13.1.3.NotwithstandinganythingtothecontrarycontainedinthisAgreement,Licensee will,wheneverinitssolediscretionitisrequiredorappropriatefortheoperation ofitsbusiness,havetheright,withoutnoticetoorconsentofCity,CityManager, oranyotherparty,toassignalloranyportionofitsrightsunderthisAgreement inwholeorinpart,to(a)anyAffiliatesaslongassuchentityhasexpertiseinthe operationofNetworkNode,orprovisionofWirelessServices;(b)anyentitywith whichtheLicenseeoranAffiliateoftheLicenseesharesjointownershipofthe NetworkNodesandGroundEquipment;or(c)anyentitythatisaholderofathen currentAgreement.TheLicenseeshallgivewrittennoticetotheCityManager withinthirty(30)daysofsuchassignment. 13.2.BUSINESSSTRUCTUREANDASSIGNMENTS Nothinginthisclause,however,preventsthecreationofasecurityinterestintheNetworkNode facilitiesasdescribedintheTexasBusiness&CommerceCode.Inthecaseofsuchan enforcementofthatsecurityinterestbytheholderofthesecurityinterest,asanassignee, LicenseeshallimmediatelyfurnishtotheCityManagerwithproofoftheassignmentandthe 30 name,telephonenumber,andaddressoftheassigneeandaclearcontractualobligationthatthe assigneeshallanddoesassumealltheliabilitiesandresponsibilitiesofLicenseeunderthis Agreement,includingresponsibilitiesforanyunpaidpastduepayments,andcurrentandfuture doesnotreleaseLicenseeofitsobligations paymentsthatmaybeduetheCity.Suchassignment andpaymentsdueortobeduetheCity,unlessthereisanexpresswrittenreleaseagreedtoby theCity. ARTICLE14.INVENTORYANDINSPECTIONS. 14.1.INVENTORYRECORDS 14.1.1.LicenseeshallmaintainalistofitsapprovedNetworkNodeLocationsonService PolesbyGISlocationduringtheTermofthisAgreement.Licenseeshallprovide totheCityManagersuchlistwithin30daysuponwrittenrequest,butnomore frequentthanonceayearafterthefirstyearofthisagreement. 14.2.INSPECTIONS 14.2.1.Cityrepresentativesshallhavetherighttoperform,ortohaveperformed,(1) inspectionsoftherecordsdescribedin14.1.1and(2)inspectionsofallplacesin thePublicRightofWaywhereworkisundertakeninconnectionwiththis forthis Agreement.Licenseeshallkeepitsrecordsdescribedin14.1.1available purposeforatleastfouryearsafterthisAgreementterminatesorexpires.The inspectionmaybeperformedbyCitystafforthirdpartyrepresentativesengaged bytheCity.Thisprovisiondoesnotaffecttheapplicablestatuteoflimitations. orbyLaw,theLicensee 14.2.2.Inadditiontootherrecordsorfilingsrequiredhereunder shallmaintainandprovideaccesstoacurrentmapbyeitherpaperorelectronic means,uponrequestbytheCityManagerorCityEngineer,showingthe approximatelocationsofNetworkNodesonServicePolesintheRightofWay. 14.2.3.TheCityManagermayreasonablyrequirethekeepingofadditionalrecordsor accountsreasonablynecessarytodeterminethe\[źĭĻƓƭĻĻ͸ƭcompliancewiththe termsofthisAgreement. 14.3.CONFIDENTIALINFORMATION TheCityManagershallnotdiscloseanyconfidentialinformationreproducedfordocumentation ofauditissuesunlessrequiredbylaw.IftheCityreceivesarequesttorevieworcopyconfidential informationundertheTexasPublicInformationActorrelatedlaw(theδ!ĭƷͼΜͲtheCityshall complywiththerequirementsforhandlingthirdpartyinformationundertheAct,including notifyingtheLicenseethatarequesttorevieworcopyConfidentialInformationhasbeen submittedtotheCity.ConfidentialinformationdeemedsubjecttodisclosureundertheActby theAttorneyGeneraloftheStateofTexasshallbedisclosed. 31 ARTICLE15.MISCELLANEOUS 15.1.FORCEMAJEURE OtherthantheLicensee'sfailuretopayamountsdueandpayableunderthisAgreement,the LicenseeshallnotbeindefaultorbesubjecttosanctionunderanyprovisionofthisAgreement whenitsperformanceispreventedbyForceMajeure.ForceMajeuremeansaneventcausedby epidemic;actofGod;fire,flood,hurricanes,tornadoes,orothernaturaldisasters;explosions; terroristactsagainsttheCityorLicensee;actofmilitaryorsuperiorgovernmentalauthoritythat Licenseeisunabletopreventbyexerciseofreasonablediligence;war;riots;orcivildisorder; provided,however,thatsuchcausesarebeyondthereasonablecontrolandwithoutthewillful act,fault,failureornegligenceoftheLicensee.Thetermdoesnotincludeanychangesingeneral economicconditionssuchasinflation,interestrates,economicdownturnorotherfactorsof generalapplication;oraneventthatmerelymakesperformancemoredifficult,expensiveor impractical.Performanceisnotexcusedunderthissectionfollowingtheendoftheapplicable eventofForceMajeure.Licenseeisnotrelievedfromperformingitsobligationsunderthis Agreementduetoastrikeorworkslowdownofitsemployees.ForceMajeuredoesnotentitle Licenseetoreimbursementofpayments. Thisreliefisnotapplicableunlesstheaffectedpartydoesthefollowing: 15.1.1.UsesduediligencetoremovetheeffectsoftheForceMajeureasquicklyas possibleandtocontinueperformancenotwithstandingtheForceMajeure;and 15.1.2.Providestheotherpartywithpromptwrittennoticeofthecauseandits anticipatedeffect. TheCityManagerwillreviewclaimsthataForceMajeurethatdirectlyimpactstheCityor Licenseehasoccurredandrenderawrittendecisionwithin14days.ThedecisionoftheCity Managerisfinal. LicenseeisnotrelievedfromperformingitsobligationsunderthisAgreementduetoastrikeor workslowdownofitsemployees.Licenseeshallemployonlyfullytrainedandqualifiedpersonnel duringastrike. 15.2.DISPUTERESOLUTION 15.2.1.IntheeventofadisputebetweenthePartiesthatarisesduringtheTermofthis Agreement,thePartiesshallattempttoexpeditiouslyandamicablyresolveany disputethroughgoodfaithdiscussionsintheordinarycourseofbusinessatthe levelatwhichthedisputeoriginates. 15.2.2.IfthePartiesarenotabletoresolvethedisputeintheordinarycourseofbusiness, theCityManagerandrepresentativesofotherCitydepartmentsthatareinvolved inthedisputewillmeetwith\[źĭĻƓƭĻĻ͸ƭauthorizedrepresentativeinanattempt toresolvethedispute. 15.2.4.Exceptinemergencies,nolawsuitunderorrelatedtothisAgreementbyoneparty againsttheothermaybefileduntilatleastmeetinghasoccurredbetweenthe 32 CityManagerandexecutivesofNetworkProviderwithfullauthoritytoresolvethe claimsinthemeetingorthatareavailablecontemporaneouslywiththemeeting vialivetelephoniccommunicationswherethepartiesagreetoattemptingood agree faithtoresolveornarrowtheissues;andifnotresolved,andtheparties thatbeforeinitiatinglitigation,eitherpartyshallnotifytheotherpartyofitsintent tosue,andprovideacopyofthedraftpleading,withsupportingfactsandlegal authoritiesatleastfourteen(14)daysbeforesuitisfiled. 15.2.5.Thissectiondoesnotapplytodisputesthatinvolveaquestionoflaw. 15.2.6.NotwithstandingtheexistenceofanydisputebetweentheParties,insofarasis possibleunderthetermsofthisAgreement,eachPartyshallcontinuetoperform theobligationsrequiredofitduringthecontinuationofanysuchdispute,unless enjoinedorprohibitedbyacourtofcompetentjurisdictionorunlessthis Agreementterminatesorexpiresunderthetermsprovidedherein. 15.3.ACCEPTANCEANDAPPROVAL;CONSENT AnapprovalbytheCityManager,theCityEngineer,oranyotherinstrumentalityofCity,ofany partoftheLicensee'sperformanceshallnotbeconstruedtowaivecompliancewiththis AgreementortoestablishastandardofperformanceotherthanrequiredbythisAgreementor bylaw.WherethisAgreementcontainsaprovisionthateitherpartyapproveorconsenttoany actionoftheotherparty,suchapprovalorconsentshallnotbeunreasonablywithheldor delayed.ExceptasprovidedforinthisAgreement,theCityManagerorCityEngineerarenot authorizedtovarythetermsofthisAgreement. 15.4.REPRESENTATIONSANDWARRANTIES Inadditiontotherepresentations,warranties,andcovenantsoftheLicenseetotheCityset forthelsewhereherein,theLicenseerepresentsandwarrantstotheCityandcovenantsand agrees(whichrepresentations,warranties,covenantsandagreementsshallnotbeaffectedor waivedbyanyinspectionorexaminationmadebyoronbehalfoftheCity)that,asofthe EffectiveDateandthroughoutthetermofthisAgreement: 15.4.1.Organization,StandingandPower.TheLicenseeisaNetworkProviderduly organized,validlyexistingandingoodstandingunderthelawsofthestateofits dobusinessintheStateofTexasandinthe organizationandisdulyauthorizedto City.TheLicenseehasallrequisitepowerandauthoritytoownorleaseits propertiesandassets,subjecttothetermsofthisAgreement,toconductits businessesascurrentlyconductedandtoexecute,deliverandperformthis Licenseandallotheragreementsenteredintoordeliveredinconnectionwithor ascontemplatedhereby. 15.4.2.TruthfulStatements.TheLicenseewarrants,tothebestofitsknowledgeand belief,thatinformationprovidedandstatementsmadeinconnectionwithits applicationforthisAgreementweretrueandcorrectwhenmadeandaretrueand correctuponexecutionhereof. 33 15.4.3.ConditionofPublicRightofWay.LicenseeacceptsthePublicRightofWaywhere NetworkNodeareauthorizedtobelocated ͻ!{L{Ͳͼ withoutanyexpressor impliedwarrantiesofanykind. 15.5.STATEMENTOFACCEPTANCE LicenseeandCity,forthemselves,theirsuccessorsandassigns,herebyacceptandagreestobe boundbyallterms,conditionsandprovisionsofthisAgreement. 15.6.RELATIONSHIPOFTHEPARTIES Licenseeshallberesponsibleandliableforitscontractors,subcontractors,andsublicensees.The Cityhasnocontrolorsupervisorypowersoverthemannerormethodof\[źĭĻƓƭĻĻƭ͸ĭƚƓƷƩğĭƷƚƩƭ͸ andƭǒĬĭƚƓƷƩğĭƷƚƩƭ͸performanceunderthisAgreement.AllpersonnelLicenseeusesorprovides areitsemployees,contractors,orsubcontractorsandnotthe/źƷǤ͸ƭemployees,agents,or subcontractorsforanypurposewhatsoever. 15.7.SEVERABILITY IfanypartofthisAgreementisforanyreasonfoundtobeunenforceable,allotherpartsremain enforceableunlesstheresultmateriallyprejudiceseitherParty. 15.8.ENTIREAGREEMENT ThisAgreementmergesthepriornegotiationsandunderstandingsofthePartiesandembodies theentireagreementoftheParties.Nootheragreements,assurances,conditions,covenants (expressorimplied),orothertermsofanykind,existbetweenthePartiesregardingthis Agreement. 15.9.WRITTENAMENDMENT UnlessotherwisespecifiedelsewhereinthisAgreement,thisAgreementmaybeamendedonly bywritteninstrumentexecutedonbehalfoftheCity(byauthorityofanordinanceadoptedby theCityCouncil)andLicensee.TheCityManagerandCityEngineerareonlyauthorizedto performthefunctionsspecificallydelegatedtohimorherinthisAgreement. 15.10.APPLICABLELAWSANDVENUE 15.10.1.ThisAgreementissubjecttoallApplicableCodesandLaws,andallrulesand regulationsofanyregulatorybodyorofficerhavingjurisdiction,includingany lawfulcourtoradministrativedecisions,judgmentsorordersthathavebeenfully andfinallyadjudicated,includinganyappealsofsuchdecisionsjudgments,or ordersΛͻ5ĻĭźƭźƚƓƭͼΜ͵ThisAgreementshallbegoverned,construed,andenforced 34 accordingtothelawsoftheStateofTexas,withoutregardtoitschoiceoflaw provisions. IfanymaterialprovisionofthisAgreementissupersededoraffectedbyLaw,then thePartiesshallnegotiateingoodfaithtorevisethisAgreement. 15.10.2.SubjecttothetğƩƷźĻƭ͸obligationtosubmittothedisputeresolutionprocessor mediationasdescribedinthisAgreement,Licenseeshallsubmitanyandall litigationandlegalproceedingsbetweenanyoftheLicenseeandtheCitytothe exclusivejurisdictionofthestateorfederalcourtsintheStateofTexasandwaive anyobjectionsorrightastoforumnonconveniens,lackofpersonaljurisdiction, orsimilargrounds.VenueforanylitigationrelatingtothisAgreementisDenton County,Texas. 15.11.NOTICES 15.11.1.AllnoticestoeitherpartytotheAgreementmustbeinwritingandmustbe deliveredbyhand,facsimile,UnitedStatesregisteredorcertifiedmail,return receiptrequested,UnitedStatesExpressMail,FederalExpress,AirborneExpress, UPSoranyothernationalovernightexpressdeliveryservice.Thenoticemustbe addressedtothepartytowhomthenoticeisgivenatitsaddresssetoutinArticle I,Section1.1ofthisAgreementorotheraddressthereceivingpartyhas designatedpreviouslybypropernoticetothesendingparty.Postageordelivery chargesmustbepaidbythepartygivingthenotice. 15.11.2.LicenseeshalladdressacopytotheCityEngineerattheaddresssetoutinArticle I,Section1.1ofallnoticespertainingtoArticle6and8andothernoticestothe CityEngineerrequiredunderthisAgreement. 15.11.3.LicenseeshalladdressacopytotheCityAttorneyattheaddresssetoutinArticle I,Section1.1ofallnoticespertainingtoArticle15andothernoticestotheCity AttorneyrequiredunderthisAgreement 15.12.CAPTIONS CaptionscontainedinthisAgreementareforreferenceonly,and,therefore,havenoeffectin construingthisAgreement.Thecaptionsarenotrestrictiveofthesubjectmatterofanysection inthisAgreement. 15.13.NONWAIVER IfeitherPartyfailstorequiretheothertoperformatermofthisAgreement,thatfailuredoes notpreventthePartyfromlaterenforcingthattermandallotherterms.IfeitherPartywaives theƚƷŷĻƩ͸ƭbreachofaterm,thatwaiverdoesnotwaivealaterbreachofthisAgreement. 35 15.14.ENFORCEMENT TheCityAttorneymayenforcealllegalrightsandobligationsunderthisAgreementwithout furtherauthorization.LicenseeshallprovidetotheCityAttorneyalldocumentsandrecords pertainingtothisAgreementthattheCityAttorneyrequeststoassistindeterminingLicensee's compliancewiththisAgreement,withtheexceptionofthosedocumentsmadeconfidentialby federalorStatelaworregulation. 15.15.AMBIGUITIES IfanytermofthisAgreementisambiguous,itshallnotbeconstruedfororagainstanyPartyon thebasisthatthePartydidordidnotwriteit. 15.16.SURVIVAL LicenseeandtheCityshallremainobligatedtotheotherPartyunderallprovisionsofthis Agreementthatexpresslyorbytheirnatureextendbeyondtheterminationorexpirationofthis Agreement,including,butnotlimitedto,theprovisionsregardingwarranty,indemnificationand confidentiality. AllrepresentationsandwarrantiescontainedinthisAgreementshallsurvivethetermofthe Agreement. 15.17.RESERVED 15.18.PARTIESININTEREST ThisAgreementdoesnotbestowanyrightsuponanythirdparty,butbindsandbenefitstheCity andLicenseeonly. 15.19.REMEDIESCUMULATIVE UnlessotherwisespecifiedelsewhereinthisAgreement,therightsandremediescontainedin thisAgreementarenotexclusive,butarecumulativeofallrightsandremedieswhichexistnow orinthefuture.NeitherpartymayterminateitsdutiesunderthisAgreementexceptin accordancewithitsprovisions. 15.20.LICENSEEDEBT IFCITYMANAGERBECOMESAWARETHATLICENSEEOWESANYDELINQUENTSUMOFMONEY INANAMOUNTGREATERTHAN$100.00TOTHECITYORANYAFFILIATEENTITYFORAD VALOREMTAXESONREALORPERSONALPROPERTYLOCATEDWITHINTHEBOUNDARIESOFTHE CITYΛͻ59.ͼΜͲITSHALLNOTIFYLICENSEEINWRITING.IFLICENSEEDOESNOTPAYTHEDEBT WITHIN30DAYSOFSUCHNOTIFICATION,THECITYMANAGERMAYDEDUCTFUNDSINAN AMOUNTEQUALTOTHEDEBTFROMANYPAYMENTSOWEDTOLICENSEEBYTHECITYUNDER THISAGREEMENT. 36 15.21.PARTSINCORPORATED AlloftheabovedescribedsectionslistedintheTableofContentsandthelistedexhibitsaremade apartofandincorporatedintothisAgreement. 15.22.CONTROLLINGPARTS IfaconflictbetweenthesectionsoftheAgreementandanyoftheexhibitsarises,thesectionsof theAgreementcontrolovertheexhibits. 15.23.SIGNATURES INWITNESSWHEREOF,theOriginalSignatories,throughtheirdulyauthorizedofficers, haveexecutedthisAgreementinmultiplecounterparts,eachofequalforceandeffect,effective asoftheasofthedatesignedbytheCityManager. LICENSEE/NETWORKPROVIDER:CITY: CITYOFDENTON,aTexashomerulemunicipal corporation ______________ Signedby: ______________________________________________________________ Name:ToddHileman,CityManager DateSigned._______________ Title: TaxIdentificationNo.:ATTEST: ATTEST/SEAL: _______________________________ _______________________________CitySecretary Name: DateSigned._______________ APPROVEDASTOFORM: _______________________________ CityAttorney DateSigned._______________ 37 1 ThedefinitionsasusedinTx.Loc.Gov.Code,Chapter284,Sec.284.002shallbeusedandcontroloverany conflictswiththeAgreement. Tx.Loc.Gov.Code,Chapter284,Sec.284.002.DEFINITIONS.Inthischapter: (1)"Antenna"meanscommunicationsequipmentthattransmitsorreceiveselectromagneticradio frequencysignalsusedintheprovisionofwirelessservices. (2)"Applicablecodes"means: (A)uniformbuilding,fire,electrical,plumbing,ormechanicalcodesadoptedbyarecognized nationalcodeorganization;and (B)localamendmentstothosecodestotheextentnotinconsistentwiththischapter. (3)"Collocate"and"collocation"meantheinstallation,mounting,maintenance,modification,operation, orreplacementofnetworknodesinapublicrightofwayonoradjacenttoapole. (4)"Decorativepole"meansastreetlightpolespeciallydesignedandplacedforaestheticpurposesand onwhichnoappurtenancesorattachments,otherthanspeciallydesignedinformationalordirectionalsignageor temporaryholidayorspecialeventattachments,havebeenplacedorarepermittedtobeplacedaccordingto nondiscriminatorymunicipalcodes. (5)"Designdistrict"meansanareathatiszoned,orotherwisedesignatedbymunicipalcode,andfor whichthecitymaintainsandenforcesuniquedesignandaestheticstandardsonauniformandnondiscriminatory basis. (6)"Historicdistrict"meansanareathatiszonedorotherwisedesignatedasahistoricdistrictunder municipal,state,orfederallaw. (7)"Law"meanscommonlaworafederal,state,orlocallaw,statute,code,rule,regulation,order,or ordinance. (8)"Macrotower"meansaguyedorselfsupportedpoleormonopolegreaterthantheheight parametersprescribedbySection284.103andthatsupportsoriscapableofsupportingantennas. (9)"Micronetworknode"meansanetworknodethatisnotlargerindimensionthan24inchesinlength, 15inchesinwidth,and12inchesinheight,andthathasanexteriorantenna,ifany,notlongerthan11inches. (10)"Municipallyownedutilitypole"meansautilitypoleownedoroperatedbyamunicipallyowned apublicrightofway. utility,asdefinedbySection11.003,UtilitiesCode,andlocatedin (11)"Municipalpark"meansanareathatiszonedorotherwisedesignatedbymunicipalcodeasapublic parkforthepurposeofrecreationalactivity. (12)"Networknode"meansequipmentatafixedlocationthatenableswirelesscommunications betweenuserequipmentandacommunicationsnetwork.Theterm: (A)includes: (i)equipmentassociatedwithwirelesscommunications; (ii)aradiotransceiver,anantenna,abatteryonlybackuppowersupply,and comparableequipment,regardlessoftechnologicalconfiguration;and (iii)coaxialorfiberopticcablethatisimmediatelyadjacenttoanddirectlyassociated withaparticularcollocation;and (B)doesnotinclude: (i)anelectricgenerator; (ii)apole;or (iii)amacrotower. (13)"Networkprovider"means: (A)awirelessserviceprovider;or (B)apersonthatdoesnotprovidewirelessservicesandthatisnotanelectricutilitybutbuilds orinstallsonbehalfofawirelessserviceprovider: (i)networknodes;or (ii)nodesupportpolesoranyotherstructurethatsupportsoriscapableofsupporting anetworknode. (14)"Nodesupportpole"meansapoleinstalledbyanetworkproviderfortheprimarypurposeof 38 supportinganetworknode. (15)"Permit"meansawrittenauthorizationfortheuseofthepublicrightofwayorcollocationona servicepolerequiredfromamunicipalitybeforeanetworkprovidermayperformanactionorinitiate,continue,or completeaprojectoverwhichthemunicipalityhaspolicepowerauthority. (16)"Pole"meansaservicepole,municipallyownedutilitypole,nodesupportpole,orutilitypole. (17)"Privateeasement"meansaneasementorotherrealpropertyrightthatisonlyforthebenefitofthe grantorandgranteeandtheirsuccessorsandassigns. ofway"meanstheareaon,below,oraboveapublicroadway,highway,street,public (18)"Publicright sidewalk,alley,waterway,orutilityeasementinwhichthemunicipalityhasaninterest.Thetermdoesnot include: (A)aprivateeasement;or (B)theairwavesaboveapublicrightofwaywithregardtowirelesstelecommunications. (19)"Publicrightofwaymanagementordinance"meansanordinancethatcomplieswithSubchapterC. (20)"Publicrightofwayrate"meansanannualrentalchargepaidbyanetworkprovidertoa publicrightofway municipalityrelatedtotheconstruction,maintenance,oroperationofnetworknodeswithina inthemunicipality. (21)"Servicepole"meansapole,otherthanamunicipallyownedutilitypole,ownedoroperatedbya municipalityandlocatedinapublicrightofway,including: (A)apolethatsupportstrafficcontrolfunctions; (B)astructureforsignage; (C)apolethatsupportslighting,otherthanadecorativepole;and (D)apoleorsimilarstructureownedoroperatedbyamunicipalityandsupportingonlynetwork nodes. (22)"Transportfacility"meanseachtransmissionpathphysicallywithinapublicrightofway,extending withaphysicallinefromanetworknodedirectlytothenetwork,forthepurposeofprovidingbackhaulfor networknodes. (23)"Utilitypole"meansapolethatprovides: (A)electricdistributionwithavoltageratingofnotmorethan34.5kilovolts;or (B)servicesofatelecommunicationsprovider,asdefinedbySection51.002,UtilitiesCode. "Wirelessservice"meansanyservice,usinglicensedorunlicensedwirelessspectrum,includingthe (24) useofWiFi,whetheratafixedlocationormobile,providedtothepublicusinganetworknode. (25)"Wirelessserviceprovider"meansapersonthatprovideswirelessservicetothepublic. 39 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1140,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton authorizing the City Attorney to negotiate and draft municipally owned utility pole wireless network node collocation attachment license agreement with network providers as needed; authorizing the City Manager or designee to execute an effective date. City of DentonPage 1 of 1Printed on 8/18/2017 powered by Legistar™ City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ 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 authorizing the City Attorney to negotiate and draft municipally owned utility pole wireless network node collocation attachment license agreement with network providers as needed; authorizing the City Manager or designee to execute an effective date. BACKGROUND th In the 85 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 internal review processes to be in compliance 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, traffic 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 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 determine 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 determine completeness; 21 days to approve or deny, and if not acted upon in this timeframe the permit is granted o If a permit is denied for being incomplete the applicant may resubmit a completed 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 manual would establish the 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 mandate established by the 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 Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While 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 Respectfully submitted: Mario Canizares Assistant City Manager PA���17 �I*�l� A.I''PI�UUVEI� ihis �l�e ctay +��' , 201?'. r ♦ � ATTEST; JET�iIF�I� WALT�RS, �I�"Y S�CI�L;TAZ��' � A�p�CiV�I� AS TC► L�GAL �'C>R.�: AAR�7�d LEA�L, 1NTE� �M CIT"�" A`��T��1�EY By: