City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 1, 2017
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: JAMES L. BANKS, JR./s/
CITY ATTORNEY
KAREN S. SNOW /s/
ASSISTANT CITY ATTORNEY
CC: Mark B. Jinks, Jr.
City Manager
DOCKET TITLE:
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Introduction of a License Agreement with Mobilitie, LLC to Install Small Cell Facilities on Third Party Owned Poles in the Public Rights of Way in Various Locations Within the City of Alexandria.
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ISSUE: Consideration of a five-year license agreement with Mobilitie, LLC (“Mobilitie”), to authorize the installation of small cell facilities on third party owned poles in the public rights-of -way in the City of Alexandria, Virginia (“Alexandria” or “City”).
RECOMMENDATION: That City Council set this matter for a public hearing on Saturday, June 24, 2017 and after hearing public testimony, approve the attached five year license agreement with Mobilitie, and authorize the City manager to execute the license agreement and to take any other actions that are necessary to implement the agreement.
DISCUSSION: Mobilitie is a California, privately held corporation. It has been certificated by the Virginia State Corporation Commission as a certificated provider of telecommunications services. Mobilitie seeks this license to install small cell facilities on third party owned poles in the City to improve the coverage and capacity of wireless networks. The small cell facilities are generally comprised of small wireless antennas and associated equipment. As anticipated by the license, Mobilitie has negotiated agreements with Dominion and Comcast to attach its facilities to a total of 22 poles in the City’s public rights-of-way.
The significant provisions of the proposed agreement are summarized below.
The term of the agreement is for five years and runs from June 1, 2017 through May 31, 2022. It is not renewable. However, the agreement gives Mobilitie the right to negotiate with the City for an additional five (5) year term, upon City Council approval.
Second, as compensation for use of and access to the City’s public rights-of-way, Mobilitie will pay to the City a one time administrative fee of $750 to defray the City’s administrative costs incurred in connection with the negotiation and approval of the license agreement. In addition, over the term of the license, Mobilitie shall pay to the City a negotiated fee of $76.80 per pole it installs its equipment on. The “per pole attachment fee’ is based on the fees that Mobilitie is paying to Dominion and Comcast to attach to their poles and a schedule of fees that has been approved by the Federal Communications Commission.
Third, the license agreement requires Mobilitie, prior to installing any equipment on third party owned poles to submit as built drawings to the City and identify the poles in which it is seeking to install the equipment. Included in this documentation is a requirement that Mobilitie provide to the City its agreements with the third-parties who have granted Mobilitie permission to attach to their poles.
Fourth, the agreement provides that the City can require Mobilitie to remove, relocate or reconfigure at Mobilitie’s expense to the extent permitted by law, any of its equipment when City staff has determined that the equipment must be removed, relocated or reconfigured. The agreement also provides that upon termination or non-renewal of the agreement, Mobilitie may be required to remove its equipment from the City’s rights-of-way.
Fifth, the agreement provides that Mobilitie is subject to the City’s undergrounding regulations.
Sixth, the agreement provides that, upon its termination or non-renewal, Mobilitie will remove all of its equipment from the City’s rights-of-way.
Finally, the agreement provides that Mobilitie must maintain adequate insurance to protect the City and any residents against claims arising from the system or the company’s work on the system.
We will be pleased to answer any questions that you may have about this matter.
FISCAL IMPACT: The annual fee for this License Agreement is $76.80 per pole, which will result in approximately $1700 for this term (June 1, 2017 through May 31, 2018) and will fluctuate each year depending on the number of poles. Additionally they will pay a one-time administrative fee of $750.
ATTACHMENTS:
Proposed Telecommunications Facility License Agreement with Mobilitie
Photos of Proposed Small Cell Equipment
STAFF:
Yon Lambert, Director, Transportation and Environmental Services
Lisa Jaatinen, Division Chief, Transportation and Environmental Services
Wayne Lightfoot, Civil Engineer, Transportation and Environmental Services