RPVCCA_SR_2011_07_05_H_MOU_NextG_Networks_To_Use_City_Street_Sign_PolesCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
MAYOR AND CITY COUNCIL
CAROL LYNCH,CITY ATTORNEY
JULY 5,2011
SUBJECT:MEMORANDUM OF UNDERSTANDING WITH NEXTG NETWORKS
REVIEWED:CAROLYN LEHR ~
RECOMMENDATION
Approve the Site License Agreement with NextG Networks of California,Inc.,for the
installation of radio and antenna equipment on the City street sign pole located in the
public right of way at 2693 Palos Verdes Drive South for the sum of $1,000 per year
with annual CPI increases.
EXECUTIVE SUMMARY
NextG Networks of California (NextG)has received approval from the California Public
Utilities Commission (CPUC)to construct a Distributed Antenna System (DAS).The
DAS allows NextG to provide RF-over-Fiber transport solutions that enable wireless
carriers such as MetroPCS to expand their coverage and/or capacity in the area.As
part of this network,the company has requested to install a micro-antennae and other
associated equipment on the above referenced City-owned street sign pole,as depicted
in the attached photo-simulation.
BACKGROUND
NextG has a Certificate of Public Convenience and Necessity (CPCN)granted by the
CPUC which authorizes NextG to provide limited facilities-based and resold inter-
exchange telecommunications services as a non-dominant inter-exchange carrier and
limited facilities-based and resold exchange services as a competitive local carrier.
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Memorandum of Understanding with NextG Networks
Page 2 of 2
July 5,2011
DISCUSSION
Based on the above status,NextG has gone through the City process for this site.The
mock up has been in place since December 23,2010,and staff has received no
complaints from residents.The attached Memorandum of Understanding allows NextG
to construct its equipment at this site while the City and NextG negotiate a broader
agreement that will allow other City-owned poles to be used for this purpose in
appropriate circumstances.Provided that residents'views are not impaired or that the
use of a site does not adversely affect the City's use of its pole,this shared use is
beneficial because it avoids having NextG install new poles in the public right-of-way to
accommodate their equipment.Thus,this MOU allows NextG to install a micro-
antennae and other associated equipment on the City street sign pole located on Palos
Verdes Drive South that is owned by the City of Rancho Palos Verdes.The CPCN
distinguishes NextG from other wireless carriers,and the terms of the MOU reflect that
distinction.NextG has agreed to provide an annual rental fee of $1,000 per year with
annual CPI increases.
Attachments:
•Photo simulation of Proposed NextG Project
•Proposed Memorandum of Understanding
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MEMORANDUM OF UNDERSTANDING
THIS MEMORANDUM OF UNDERSTANDING (the "Memorandum")is made on this 5th
day of July,2011 (the "Execution Date"),
BETWEEN:
NextG Networks of California,Inc.,a Delaware corporation,hereinafter referred to as
"NextG",and
City of Rancho Palos Verdes,a California municipal corporation,hereinafter referred to
as "City"
(collectively the "Parties")
WHEREAS NextG and the City desire to enter into a Right of Way Agreement whereby
NextG would gain the right to attach its equipment to certain City infrastructure,and the
City would share in the revenues generated by NextG within its jurisdictional borders;
AND WHEREAS the Right of Way Agreement may take an extended period of time to
negotiate and execute,thus both Parties agree to enter into the Memorandum in order
to address a critical path site and demonstrate good faith.
BACKGROUND AND SERVICES
NextG provides a fiber-based network system,with an optical-to-radio frequency ("RF")
conversion and RF transport services.NextG is not a wireless service provider and
does not own spectrum nor sell wireless services directly to consumers.NextG's
customers are the wireless carriers themselves.When an operator cannot cover an
area with traditional antenna/cell sites,they often turn to NextG's service to fill this gap
in coverage and to increase their network capacity.NextG's services extend carrier RF
signals in these areas.NextG customers then offer improved services to their
customers typically consumer wireless phone users.NextG constructs and operates
the fiber-fed node networks.NextG's equipment includes small antennae,which allows
NextG to interface and convert its customer's RF signal into an optical signal for
transport over NextG's fiber network.
NextG is a state regulated utility,having been granted certificate of public convenience
and necessity ("CPCN")#U-6745-C from the Public Utilities Commission of the State of
California.This certificate classifies NextG as a Competitive Local Exchange Carrier
(CLEC)providing state regulated telecommunication services.NextG is a public utility,
engaging in regulated telecommunication services entirely within the public right of way.
NextG is not a cellular,PCS or other wireless service,but a fiber optic company.
NextG's facilities depend on the ability to attach to existing utility infrastructure.As a
public utility,NextG is a member of the Southern California Joint Pole Committee
(SCJPC).NextG has a vested ownership interest in the utility poles within the SCJPC
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territory.This interest includes the right to attach its equipment to utility poles,subject
to SCJPC's approval.In addition,should the City be interested in making any
City-owned streetlight,street sign and traffic light poles (collectively "poles")available
for the deployment of the network equipment,NextG shall be willing to do so in lieu of
installing new utility poles.
PURPOSE
This Memorandum will establish some basic terms to be used in a future Right of Way
Agreement between the Parties.The terms contained in this Memorandum are not
comprehensive and it is expected that additional terms may be added,and existing
terms may be changed or deleted.The basic terms are as follows:
Prior to entering into a Right of Way Agreement,the City agrees to issue NextG a
permit to construct the critical path site,known as:VZ1 018CA-SP01,street name sign,
located at 2693 Palos Verdes Drive South,which has been reviewed and approved by
City Staff through the City's standard process.The issuance of said permits for the
critical path site and the construction of the sites shall be covered by the Right of Way
Agreement negotiated between NextG and the City.NextG further acknowledges and
accepts the potential risk that if a Right of Way Agreement is not reached by the Parties,
NextG may be required by the City to remove its equipment from the critical path site,at
NextG's sole expense.NextG agrees to remove its equipment from the critical path site
within thirty days of the date when City issues written notice to NextG to remove its
equipment.
In order for the City to issue the permits to NextG,NextG agrees to comply with all of
the terms of the permit and post any and all insurance requirements required by the
City.NextG shall post any required construction bond.In addition,NextG shall post a
faithful performance bond in the amount of $2,500.00 per node to ensure the right of
way is restored after a node is decommissioned.
COMPENSATION
In order to compensate City for NextG's attachment to City infrastructure,NextG shall
pay to the City an annual license fee of $1 ,000.00 for each individual telecommunication
facility that it places on any of the Municipal Facilities,which amount shall automatically
increase each and every year of this Agreement upon the anniversary of the Effective
Date by the greater of:(1)3%of the License Fee in effect immediately preceding the
increase,or (2)the annual increase in the Consumer Price Index (All Items,Base 1982-
84 =100)based upon the most recent report by the U.S.Bureau of Labor Statistics for
all urban consumers in the Los Angeles-Riverside-Orange County area.NextG must
make the first annual payment within 10 business days of the Effective Date.
Subsequent license fee payments must be made on or before each anniversary of the
Effective Date.
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APPLICABILITY
The terms and conditions of any future agreement will supersede any terms and
conditions contained in this Memorandum.
Mutually agreed to and accepted by:
NEXTG NETWORKS OF CALIFORNIA,INC.
Robert Delsman Date
Senior Vice President and General Counsel
CITY OF RANCHO PALOS VERDES
Thomas D.Long,Mayor
ATTEST:
City Clerk
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Date
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