SUBJECT: CITY MANAGER AUTHORITY TO EXECUTE STANDARDIZED PROPERTY USE AGREEMENTS WITH TELECOMMUNICATIONS COMPANIES

COUNCIL DISTRICT: Citywide

RECOMMENDATION

Adoption of a resolution authorizing City Manager to execute standardized nonexclusive property use agreements on behalf of the City for placement of telecommunications equipment on City facilities and within the San José International Airport and adopting rate schedules for said use agreements.

BACKGROUND

In October of 1996, the City Council adopted a policy for “allowing Ccity-owned property to be leased or used for placement of communications facilities.” The purpose of this policy was to support the expansion of telecommunications services to businesses and residents of the City of San José and to establish guidelines for the lease or use of City- owned land, buildings, or other facilities for the placement of communication facilities by private telecommunications companies. Since that time, the Citywe hasve entered into agreements at the Airport and at fFire stations, as well as on light poles, on water tanks , as well asand other City facilities. The current process requires individual, time consuming negotiations for each agreement and makes it quite difficult to provide uniformity and fairness to each requestor.

ANALYSIS

The wireless telecommunications industry is fast growing and the need to accommodate their need for rapid turnaround of requests for use of City-owned facilities has become very apparent. The City Attorney’s Office Office, in coordination with the Department of Public Works’ Real Estate Division, has prepared and approved three standard Nonexclusive Property Use Agreements:

1. Standard Agreement Airport

2. Standard Agreement City Structures and Facilities

3. Standard Monopoly Agreement

Additionally, the following proposed standard rate schedules for use with the agreements have been prepared:

1. Airport Rate Schedule

2. Rate Schedule to Attach to City Structures and Facilities

3. Rate Schedule for Attachment to Light poles and Traffic Signals) to be used for leasing various City owned real estate for telecommunications purposes

Council is being asked to delegate to the City Manager the authority to sign these agreements without substantive modification, excepting such changes as are necessary to make changes in the names and/or titles of responsible City officers, update insurance requirements, correct typographical errors or change the agreements to reflect minor, non-substantive changes in the law (for example, recodifications that require different citation). In individual cases when substantive business terms are other than what has been adopted as standard, staff will be required to bring such exceptions before the Council for individual consideration and approval. It is anticipated that there will be 10 to 12 of these agreements per year.

The approval of standardized agreements and rate schedules would facilitate the processing of agreements and add fairness and uniformity to the process. With the exception of the Airport, the attached proposed standard agreements and rate schedules do not address placement of telecommunications equipment inside ofwithin City-owned buildings. Staffstaff proposes to bring such agreements to the Council for each such facility on a separate basis.

PUBLIC OUTREACH

Not applicable.

COORDINATION

Agreements for placement of telecommunication equipment at City-owned facilities, which have served as the basis for the proposed standard agreements, have been coordinated with Departments of Airport, Conventions, Arts and Entertainment, Fire, General Services, and Information Technology and the Office of the City Attorney.

Future agreements will be processed through the City Manager by a joint memo recommending approval. Such memo is to be signed by the Director of the department with operational authority for the specific site and the Director of Public Works as is currently the practice.

COST IMPLICATION

Implementation of this Council action will result in the personnel and non-personnel costs in the Real Estate Division.

BUDGET REFERENCE

Funds received from individual contracts will go either to the General Fund or to the Special Fund which controls the specific City-owned site at which the telecommunications facility will be installed.

CEQA

Placement of telecommunications facilities at specific sites may require CEQA clearance including. Planning, Building and Code Enforcement Department will review of specifically each proposed sites and assurance that all CEQA requirements have been satisfied prior to any project action commencement of equipment or facilities installation.

RAJEEV BATRA

Acting Director, Public Works Department