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of the law going into effect, the City Council approved on August, 22, 2017, ordinance numbers 2017-042, 2017-043 (repealed by 2017-277), 2017-244, and 2017-245, that locally codified the implementation of Chapter 284 of the Texas Local Government Code.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