CC SR 20210615 04 - So Cal Gas Master License Agreement
CITY COUNCIL MEETING DATE: 06/15/2021
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consideration and possible action to approve a Master License Agreement with Southern
California Gas Company to install advanced gas meter Data Collector Units.
RECOMMENDED COUNCIL ACTION:
(1) Authorize the Mayor and City Clerk to execute the Master License Agreement
between the City and California Gas Company approved as to form by the City
Attorney.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Charles Eder, PE, Senior Engineer
REVIEWED BY: Ramzi Awwad, Director of Public Works
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. SoCalGas Master License Agreement (forthcoming)
B. Proposed Site Locations Map (page B-1)
C. Model Units (page C-1)
BACKGROUND:
Southern California Gas Company (SoCalGas) is proposing to enter into a Master
License Agreement (Agreement) with the City to install 12 Data Collector Units (DCU) at
various locations throughout the City. The DCUs are part of SoCalGas’ advanced
metering system, which is designed to automatically transmit gas usage to SoCalGas’
centralized customer service and billing center. The DCUs will work in conjunction with
the existing gas meters in commercial and residential properties. The advanced meter
system will allow for faster detection of abnormal gas usage and prompt an earlier
investigation. It will also provide more frequent detailed information to help customers
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better manage energy use and costs. Reducing gas usage will conserve energy and
enhance air quality. The proposed locations of these units are shown in Attachment B.
The DCUs are wireless telecommunications devices installed on existing poles in the
public right-of-way and use electricity from an existing power source (illustration shown
in Attachment C). The proposed 12 DCUs are strategically located to achieve optimal
communication among residential/commercial gas meters, adjacent DCUs, and
SoCalGas’ communication centers. There is a possibility that two new poles with solar
powered DCUs will be needed at a later date.
SoCalGas previously introduced the advanced meters wireless telecommunications
technology to the City Council at the November 4, 2014 meeting. SoCalGas introduced
the concept of the advanced meter and outlined the project’s proposed construction,
which included 19 solar powered DCUs in the City. The City Council received and filed
the presentation and asked SoCalGas to conduct further research to make the units less
intrusive. On March 15, 2016, SoCalGas updated the City Council on the Advanced Meter
Project. After SoCalGas’ further research, the number of proposed DCU locations was
reduced to 16. The City Council received and filed the presentation and asked SoCalGas
to come back to show more camouflaging and compliance with the City’s Wireless
Telecommunications Facilities Ordinance (Ordinance) Title 12.18 of the Rancho Palos
Verdes Municipal Code. The revised plan does show a less intrusive design with the
removal of solar panels and reduced number of proposed DCU locations. The DCUs’
appearance remains the same as the technology has not changed, but camouflaging was
achieved by moving some sites to strategic locations hidden within trees.
SoCalGas is authorized to install and maintain service under the Certificate of Public
Convenience and Necessity, issued by the California Public Utilities Commission (CPUC).
This project to install DCUs was authorized by the CPUC. The Master License Agreement
(Attachment A) under consideration is a mechanism to facilitate the installation of the
DCUs while complying with the City’s Ordinance regarding wireless telecommunications
facilities. Without a Master License Agreement, SoCalGas may pursue eminent domain
and have legal authority over items regulated in the proposed Agreement.
The Agreement protects the interests of the City by requiring SoCalGas to obtain permits,
indemnify and hold the City harmless, carry appropriate insurance, maintain the DCUs in
good condition, and remove them upon termination of the Agreement.
The Agreement is for a 10-year term with up to two successive five-year extensions and
incudes a license and administrative fee of $2,700 per facility. Staff also added a
requirement for SoCalGas to review available technology every three years and
determine if there are smaller or more aesthetically pleasing DCUs that are compatible
with SoCalGas’ operational needs. If new technology is available that meets these
criteria, then SoCalGas is required to replace its existing units with new ones within two
years.
In the event that SoCalGas did not properly complete its installations, or remove DCUs
when required, the City typically would pursue bonds to recover the cost of removing the
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DCUs on behalf of SoCalGas. However, SoCalGas requested that the City not require
performance and removal bonds as part of the Agreement. Staff agrees with SoCalGas
that such a scenario is extremely unlikely given the reputation of SoCalGas a s a utility
governed by CPUC. Also considering the low cost of remediation action, Staff
recommends eliminating the bond requirement in the Agreement.
The Agreement is currently being finalized, and has been reviewed and approved by the
City Attorney’s Office for use in the installation of the DCUs for the SoCalGas advanced
meter system and will be submitted as late correspondence prior to the June 15 meeting.
Staff recommends adopting the resolution approving the Agreement with SoCalGas for
the installation of communication equipment on existing City-owned poles.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available for
the City Council’s consideration:
1. Identify concerns or modifications to the Master License Agreement for
consideration at a future meeting.
2. Take other action, as deemed appropriate.
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Total DCU’S Needed In RPV
➢Proposed 12 streetlight attachments
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B-1
About the Communication Network –
Data Collection Units (DCUs)
▪Installing approximately 4,600 DCUs
throughout SoCalGas’ service
territory
▪Mixed between pole mounted &
streetlight attachments
▪Antennas mounted 24 feet or higher
(licensed 462-467 (800/1900
cellular) MHz frequency)
▪A/C or Solar Powered
▪21.5” H x 13.6” W x 8.25” D
▪Built-in Redundancy: advanced
meters will communicate with two to
three DCUs
PHOTO FOR DISCUSSION PURPOSES ONLY
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C-1