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Agenda Item 20.

City Council Meeting

Meeting Date:	02/05/2019
FROM:	Bill Gallardo

Subject:

Resolution Establishing Recurring and Non-Recurring Fees for Small Wireless Facilities

RECOMMENDATION

Conduct a Public Hearing and approve a Resolution establishing fees for processing permit applications and administering permits for small wireless facilities.

BACKGROUND/DISCUSSION

On September 27, 2018, the FCC released its Declaratory Ruling and Third Report and Order (“Order”). The Order significantly limits cities’ ability to manage small wireless facilities proposed to be installed in the public rights-of-way (each, a “SWF”). The Order specifies the maximum amount of recurring and non-recurring fees that are presumed to be “reasonable” with respect to regulation of SWFs.

In order to more fully protect the public health and safety with respect to its public rights-of-ways, on January 15, 2019, the City Council adopted an urgency ordinance regulating SWFs, consistent with the Order. The ordinance provides for the payment of fees, as established by City Council resolution, to process permit applications, and administer permits for SWFs proposed to be attached to City-owned infrastructure.

On or about August 21, 2018, the City Council adopted the City of Brea, Citywide User Fee Study dated October 3, 2017, prepared by NBS (“Fee Study”). The Fee Study establishes the fully-burdened costs to the City in providing various municipal services, by category. The proposed resolution incorporates the Fee Study by reference. Based on the Fee Study, and analysis of the reasonable estimated time to perform the services for which the proposed fees are to be collected, the resolution would establish SWF administrative fees in the following amounts:

$500 for a single up-front SWF permit application that includes up to five (5) SWFs (i.e., per each individual facility to be attached to any existing pole or structure), plus an additional $100 for each SWF beyond five (5)
$1000 per pole for any new pole (i.e., not a collocation) intended to accommodate one or more SWFs proposed to be installed by a wireless provider in the City’s rights-of-way.

The fees do not exceed the “presumed reasonable” amounts set forth in the Order. Furthermore, the resolution sets forth the City Council’s finding that the fee amounts do not exceed the reasonable estimated costs to the City in providing the services to which the fees apply. See Attachment A for an analysis of the estimated time to perform the services for which the fees are to be collected. This estimate is based on hours spent for management, plan check and inspection on similar encroachment permits issued in the past.

Notice of a Public Hearing to consider adoption of this resolution and establishment of fees, was published as required by law on January 24, 2019.

FISCAL IMPACT/SUMMARY

Since the ordinance provides for the recovery of administrative costs, the adoption of this fee resolution will provide for cost recovery and, therefore, should create no significant fiscal impact. Staff recommends that the resolution be adopted. Staff has already begun to receive inquiries concerning the City’s SWF regulations and receipt of applications for SWFs is anticipated to promptly occur. Having established fees will ensure that cost to the City in processing and administering permits for SWFs will be minimized.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Michael Ho, P.E., Deputy Director of Public Works/City Engineer
Concurrence: Tony Olmos, P.E., Public Works Director

Attachments
Resolution
Cost Analysis