Staff is seeking comment and direction regarding potential terms and/or prescriptions of the Council for a Request For Information (RFI) process.  Seeking direction regarding parameters for a Request for Information which could generate master lease opportunities for small cell antennas and other wireless communication equipment in the right of way.*

Other Arizona cities are currently in lease agreements with wireless providers for the use of street lights and other structures and facilities in the Right of Way (ROW) as locations for small cell antennae and other communications equipment.  The lease agreements not only provide revenue, but also enhance communications services provided in the community.  The RFI will allow staff to reach out to potential wireless providers, specifically those licensed by the Federal Communications Commission, to solicit information regarding equipment technical specifications and possible lease terms and revenue generation. Should there be opportunities potentially favorable to the City then staff will bring Master Lease Agreements to City Council for consideration.     

There is no financial impact of the RFI; however, should opportunities be identified for lease agreements there could be substantial revenue generation for the City over time with limited or no cost.  Additionally, often street light poles are replaced by the providers which could provide savings.

There has been no previous City Council decision on this issue.

Council's guidance has a number of options, some of which may include:

• Include facilities only within the ROW or consider City owned facilities both in and out of the ROW.
• Develop an agreement exclusively with one provider or consider agreements with numerous providers based on individual needs and opportunities.
• Restrict the potential providers to specific types of communication equipment or consider all options presented.
• Not release the RFI and not proceed with this strategy.
• Not release the RFI and use a different procurement method.

The RFI seeks to assist staff in understanding what opportunities are available and to receive information regarding those potential opportunities rather than having staff release an Invitation For Bids or a Request For Proposals that may be unintentionally limiting.

The RFI may lead to negotiated Master Leases that would be brought to City Council for consideration.

In other communities the Master Leases have provided the general terms and then had supplemental leases specific to each site.

The City would retain the right to approve or deny any specific site or location.

Depending on the requested location and facility, the proper due diligence regarding weight and other specifications would be critical.

Over time and with each new site the potential long term revenue generation would increase.  Lease terms, depending on the community and the type of equipment, have ranged from $700 per year to over $20,000 per year.

The potential lease agreements would generate revenue for the City and could have the additional benefit of increasing the quality of communications services in the community.

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