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AGENDA ITEM REVIEW FORM
6.F.
Regular City Council Meeting
Meeting Date:
01/10/2018
Department Head:
Kay Macuil
Submitted By:
Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion

ITEM:

Discussion and possible action regarding emergency passage of Ordinance No. 377.  An Ordinance of the Mayor and City Council of the City of San Luis, Arizona, approving the Wireless Facilities Standard Terms and Conditions; authorizing and Approving forms of Wireless Provider Right of Way License Franchise Agreements between the City of San Luis and wireless providers; approving 2018 City of San Luis Design Standards, Concepts and Requirements for Small Wireless Facilities in the Right- of-Way; authorizing the City Manager and the Director of Planning and Zoning to execute wireless provider license agreements and issue small wireless provider license permits; repealing any conflicting provisions;  providing for severability; and declaring an emergency. (Kay Marion Macuil, City Attorney)

A.  Approval of Reading of Ordinance No. 377 by title only
    (City Clerk to read the ordinance by title only)
B.  Approval and adoption of Ordinance No. 377

SUMMARY:

New Arizona Legislation Requiring City Regulation
In 2017, the Arizona Legislature passed HB 2365 which allows small cell wireless facilities to be installed “by right” in all zoning districts and on any public street.  The new law also establishes conditions, time limits, and maximum fees related to applications by wireless companies to install these facilities, including on city-owned poles.  The statute requires the license agreements, design standards, and fees to be in effect on February 9, 2018. 
Why staff chose to follow the City of Chandler’s Approach
Different cities have taken different approaches to the regulatory concerns about the right to put things on city-owned street lights, poles, and equipment.   Although called small cells, the wireless equipment can be as big as a refrigerator. Because of the regulatory deadline, staff felt it needed to find a city with expertise and follow their lead. The City of Yuma is the only city exempt from this new law.  San Luis cannot copy Yuma. 
The City of San Luis adopted an encroachment permit process by Ordinance No. 228 on April 13, 2005.  It requires an encroachment permit for building, construction, or occupation of city property, rights of way, and easements.  The City of San Luis used the City of Chandler as its model for this permit process.  Since the regulations for small cell facilities are a type of encroachment, it was determined that Chandler would be a good fit for the system of regulation here. 
Also, Chandler staff has experience in telecommunications regulation due to the technology industry presence in their city.  Chandler has adopted different forms for license agreements to be used in small cell wireless facilities to be on city property including on city-owned poles.  These agreements, in turn, incorporate Standard Terms and Conditions.  These Standard Terms and Conditions refer to and incorporate Design Standards.  Chandler sent drafts of these agreements, standard terms and conditions, and design standards to wireless industry representatives, and received comments by Anycomm, AT&T, Mobilite, T-Mobile, and Verizon.  In this process, Chandler has ensured that major players have had a say in the final regulatory product.
Timing for Fees – March Meeting
Because there must be a posted 60-day notice before Council can adopt any new fee or charge, and because that notice did not get on the city’s website until January 2, the City cannot adopt fees and rates for small wireless providers until its first meeting in March.

Reason for Declaring an Emergency
San Luis can have the form of regulation in place before the Legislature’s deadline of February 6, 2018, by adopting the resolution declaring certain documents a public record and the ordinance by emergency. 

Attached to this Agenda Item
Attached to this agenda and self-explanatory are:

1) The ordinance,
 2) the standard terms for wireless providers,
3)  the form license agreements for wireless providers and
4)  the design standards for placing small cell wireless facilities on city right-of-way and city-owned poles.
 

RECOMMENDATION / SUGGESTED MOTION:

I MOVE TO APPROVE READING OF ORDINANCE NO. 377 BY TITLE ONLY
(City Clerk to read Ordinance No. 377 by title only)
I MOVE TO APPROVE AND ADOPT ORDINANCE NO. 377

Fiscal Impact

IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
No
CITY/STATE/FEDERAL FUNDS:
N/A
TOTAL:
N/A
BUDGETED AMOUNT:
N/A
AVAILABLE AMOUNT TO TRANSFER:
N/A
ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
N/A

FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):

There is no fiscal impact to creating these regulations. A permit fee will be proposed after the 60-day notice requirement is fulfilled.

Attachments