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APPROVE A FINDING REGARDING ENVIRONMENTAL REVIEW, ADOPT AN ORDINANCE AMENDING TITLE 16 OF THE STOCKTON MUNICIPAL CODE RELATED TO WIRELESS COMMUNICATION, ADOPT A RESOLUTION AMENDING SECTION 100 OF THE CITY STANDARD SPECIFICATIONS AND PLANS, AND AMEND THE FY 2021-22 ADOPTED FEE SCHEDULE
recommended action
RECOMMENDATION
Staff recommends the City Council:
1. Approve by motion, a finding that the proposed Amendments to Title 16 (Development Code) and Section 100 of City Standard Specifications and Plans are not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 15060 (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment), and 15303(e) (similar Project fall under “small facilities”); and
2. Adopt an ordinance amending Title 16 (Development Code) of the Stockton Municipal Code (SMC) Chapters 16.44 (Communications Facilities) and 16.72 (Public Improvements), Section 16.72.125 (Encroachment Permit); and
3. Adopt a Resolution amending Section 100 of the City Standard Specifications and Plans; and the Fiscal Year (FY) 2021-2022 Adopted Fee Schedule to incorporate two new fees for Small Wireless Facilities Permit and Small Wireless Facilities Reservation Fee.
It is further recommended that the City Manager, or designee, be authorized to execute and take appropriate and necessary actions to carry out the purpose and intent of the proposed actions.
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Summary
Communities and businesses rely upon the internet to thrive. One of the new ways this is occurring is through the deployment of small-cell wireless networks by communications companies. One of the most common methods involves leasing space on municipal infrastructure, such as streetlights, to use for placing antenna equipment. This gives new value to City-owned property as revenue-generating assets and opens opportunities for Cities to expand access. As Cities build out networks and improve connectivity, they also use increased bandwidth for a host of activities managed automatically through intelligent sensors. These efforts fall under what are known as SMART City strategies. Stockton is in the early stages of its SMART City efforts and building out networks is a top priority.
As a foundational action for advancing SMART City efforts, staff recommends approval of an amendment to Title 16 related to wireless communication facilities, incorporating small-cell wireless. As corresponding actions, staff also recommends that Council approve an amendment to Section 100 of the Standard Specification and Plans to establish a coordination process on street excavations known as “dig once”; and an amendment to the FY 2021-2022 Community Development Engineering and Transportation Planning Fee Schedule to incorporate new fees for Small Wireless Facilities Permit and Small Wireless Facilities Site Reservation.
DISCUSSION
Background
Wireless communications are regulated at the Federal level by the Federal Communications Commission (FCC) and at the State of California level by the California Public Utilities Commission (CPUC).
Although local permitting agencies, such as Stockton, do not have a role in deciding what wireless communication utilities may do business within their jurisdiction, a local agency can specify standards for where and how wireless communication utilities may be located within its public rights-of-way and on private property. The Stockton Municipal Code (SMC) Chapter 16.44 - Communication Facilities, provides standards for the location and installation of traditional wireless communication facilities. These are predominantly located on private property and generally consist of multiple antennas, mounted on 60’ to 85’ tall poles, towers, or on a pole disguised as a tree (Attachment B - Photo of Traditional Wireless Communication Facilities).
Increasing customer demand has driven the wireless communication industry to upgrade and expand their infrastructure capabilities, particularly in high-demand areas like Stockton. A result is the introduction of new infrastructure, commonly knowns as “Small Cell”, that is proposed for installation on municipal streetlights (Attachment C - Photos of Small Cell Facilities). To support the wireless industry, Federal and State laws have been enacted to facilitate the rapid deployment of wireless communication infrastructure. These laws also limit local jurisdictions from imposing regulations that can effectively impede deployment. Between industry expansion and new legislation, it is necessary for the City to revise existing code, City policy and fees. At the same time, the City can also strategically take advantage of these changes by the manner in which it sets standards and negotiates financial terms for the use of City-owned assets.
On January 19, 2021, the Community Development Department shared a draft amendment with public utility companies and wireless communication providers, and on January 26, 2021, the City held a webinar to discuss the proposed amendment. Written comments were received from Comcast, T-Mobile, Verizon, and New Cingular. Staff reviewed the comments and incorporated the recommended changes into the proposed code amendment as appropriate.
On February 25, 2021, the Planning Commission conducted a duly noticed public hearing to amend Title 16 Chapter 16.44 (Communication Facilities) and Chapter 16.72, Section 16.72.125 (Encroachment Permit) and forwarded a recommendation that the City Council adopt the proposed amendment to Chapter 16.44. On March 25, 2021, the Planning Commission conducted a continued public hearing and heard and considered a presentation by staff and all relevant testimony and evidence and recommended that the City Council adopt an amendment to Title 16, Chapter 16.72, Section 16.72.125 (see Attachment A - PC Approved Resolution).
Present Situation
The City needs to adapt to the expansion of the small cell market and to take advantage of revenue opportunities resulting from small cell deployment on City infrastructure. To that end, staff recommends changes to municipal code, City policy and permit fees. Staff recommends the City Council adopt the proposed amendments to the Development Code, Chapter 16.44 “Communication Facilities” and Section 16.72.125 Encroachment Permit. Attachment D includes the existing Code language that will be changed with the proposed amendment. Attachment E - Proposed Ordinance - Redline Version consists of the proposed Code changes in redline format for comparative analysis with the existing Code, clarifying new language that is being added and existing language that is being deleted.
The proposed code amendments are generally summarized as follows:
• Wireless Communication Facilities (16.44) - The proposed amendment brings the Code into compliance with the Federal and state mandates and compatibility with small wireless facilities. The following are key additions and changes in the amendment:
o Section reorganization and addition to provide clarity, e.g., new section for definitions of certain words and phrases.
o Identification of the type of wireless communication facilities and their respective review authority and permitting and appeal process per existing codes.
o Expansion of the required standards for facilities to be located in private and public right-of-way.
o Reference made to Small Cell Design and Deployment Standards that will reside outside of the SMC and be maintained by the Public Works Director to ensure uniform compliance with a standard installation design.
o Reference to a Master License Agreement that will be negotiated under the City Manager’s authority with each wireless communication utility to allow placement and maintenance of small wireless facilities on City streetlights.
• Encroachment Permit (16.72.125) - The proposed amendment adds procedural requirements to promote coordination of roadway excavation work and joint “dig once” trench practice. The following are key additions and changes included in the proposed amendment:
o Section reorganization and addition to provide clarity and new Definitions of certain words and phrases.
o Submittal requirement for Annual Utility Work Plan from the utility companies that show the location of their existing facilities and planned work in public rights-of-way, which to be used in conjunction with the City’s Roadway Maintenance Plan, for coordination of trenching and excavation work.
o Process established to minimize multiple excavations and encourage utility providers to join the same open trench in City’s right-of-way.
• Amendment to Section 100 - City’s Standard Specifications and Plans
Section 100 of the City’s Standard Specification and Plans provides for the street opening and pavement restoration standards. Amendment to the section is proposed to address the deployment of small wireless facilities that entail excavating trenches in the City’s rights-of-way to place fiber optic cabling and electrical wiring to supply power. The update includes joint “dig once” trench provisions, and requirements for the coordination of work to minimize excavations, and traffic disruptions in the City’s rights-of-way (Attachment F - Section 100 - Redline Version).
• Master License Agreement
A Master License Agreement (MLA) is proposed for execution with individual wireless communication utility providers (Attachment G - Master License Agreement Template). The agreement establishes standard procedures and uniform terms and conditions for allowing wireless communication providers to reserve specific streetlight locations, install and maintain communication equipment on City streetlights. The City retains its right to terminate any Site License that interferes with City Municipal function or threatens public health or safety.
• Permit Fees
Two new fees, Small Wireless Facilities Permit and Small Wireless Facilities Site Reservation are proposed to defray costs for staff time associated with site reservation, permit plan check, issuance, and inspection. The fees were developed based on the hourly staff rate involved in a typical small wireless facilities deployment application.
Environmental Analysis
The proposed amendment complies with federal and state law, implements the General Plan goals, and intends to efficiently regulate the deployment of a wireless communication facility and its supporting infrastructures. Furthermore, the proposed amendment is not subject to review under the California Environmental Quality Act (CEQA) pursuant CEQA Guidelines sections 15060 (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment), and 15303(e) (similar Project fall under “small facilities”).
FINANCIAL SUMMARY
Approving an amendment to the FY 2021-2022 Adopted Fee Schedule will incorporate the following two new fees, which will be placed in the Planning and Engineering work group’s permit fees account:
• Small Wireless Facilities Reservation Fee (per City-owned asset) $ 187.00
• Small Wireless Facilities Permit (per application) $1,025.00
Attachment A - PC Approved Resolutions
Attachment B - Photo of Traditional Wireless Communication Facilities
Attachment C - Photo of “Small Cell” Wireless Communication Facilities
Attachment D - Existing Code
Attachment E - Proposed Ordinance - Redline Version
Attachment F - Section 100 - Redline Version
Attachment G - Master License Agreement Template