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HomeMy WebLinkAbout1997-10-06 City CouncilTO: ATTENTION: FROM: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL POLICY AND SERVICES COMMITTEE CITY MANAGER DEPARTMENT: UTILITIES 3 AGENDA DATE: October 6, 1997 CMR:369:97 SUBJECT:PROPOSED TELECOMMUNICATIONS POLICY STATEMENTS REQUEST This report requests that the Policy and Services Committee review a set of four policy statements as a first step in the development and implementation of a comprehensive telecommunications policy for Palo Alto. RECOMMENDATIONS Staffrecommends that the Policy and Services Committee approve the following telecommunications policy statements and recommend that the City Council adopt these policies and direct staffto prepare any necessary revisions to the City’s goveming documents for Council review and approval. General - It is the policy of the City of Palo Alto to facilitate the competitive delivery of conventional and advanced telecommunications services throughout Palo Alto in an environmentally sound manner, while ensuring cost recovery and enhancement of revenues derived from the use of the City’s assets. Siting and Installation of New Telecommunications Facilities - The City is the owner of the public right-of-way over which it has control and the regulatory body for the development of facilities within its jurisdictional boundaries. It is the policy of the City to regulate the location and manner of construction, manage the safe, orderly, and efficient use ofPalo Alto’s public right-of-way, and to facilitate timely installation of telecommunications infrastructure in an environmentally sound manner. CMR:369:97 Page 1 of 7 o Use of Utilities Infrastructure - The City allows the use of Utilities infrastructure and Utilities-owned or -leased facilities to promote the delivery of telecommunications services provided that any telecommunications use does not impinge upon the City’s ability to provide safe and reliable electric, gas, water, wastewater, and storm drainage services and does not interfere with the City’s planned use of the facility or property. o Use of Ci.ty Facilities and Property. - The City owns and leases property and facilities, in addition to Utilities facilities, that could be used to support the deployment of affordable telecommunications services while limiting the potential adverse impacts associated with the development of the necessary infrastructure. It is the policy of the City to encourage qualified outside parties to use designated City-owned or -leased property and facilities for siting telecommunications infrastructure that is compatible with the primary use of the property, and in a manner that is consistent with City real estate policy, zoning, legal, environmental, and other requirements as necessary. POLICY IMPLICATIONS These recommended policies will have a number of policy implications and may require revisions and/or additions to the City’s governing documents. Draft 1996-2010 Comprehensive Plan The currently adopted Comprehensive Plan does not contain any policies or programs that directly relate to telecommunications policy; however, the Draft Comprehensive Plan does include the four policies listed below. The policies recommended in this CMR are an extension of these policies from Goals B-3 and B-4 of the Business and Economics Element: Policy B-12. Support the development of technologically-advanced communications infrastructure and other improvements that will facilitate the growth of emerging telecommunications industries. Policy B-13. Work with electronic information network providers to maximize potential benefits for Palo Alto businesses, schools, residences, and other potential users. Policy B-14. Allow the creative use of City utilities and rights-of-way to ensure competition among networks in providing information systems infrastructure. Policy B-15. Encourage streamlining of City administrative and regulatory processes wherever possible. Reduce inefficiencies, overlap, and time delays CMR:369:97 Page 2 of 7 associated with these processes. Telecommunications Strategy On August 5, 1996, the City Council approved a telecommunications strategy directing the Electric Utility to develop a fiber optic backbone and make fiber strands available for license to interested parties (CM1~:361:96). The goal of this strategy was to accelerate the competitive delivery of low cost, high quality telecommunications services throughout Palo Alto. The recommended policies will help further this goal and strengthen the City’s commitment to promoting the availability of world class telecommunications services in Palo Alto. Policy and Procedures The City’s existing policy regarding the leased use of City land and facilities (Policy and Procedures 1-11) may need to be revised and/or a new Policy and Procedure may need to be developed to specifically address telecommunications uses of City land and facilities. Issues that may need to be addressed include acceptable uses, access hours and procedures, and compensation. Zoning Ordinances Existing zoning ordinances regulate the use of land and placement of buildings and improvements within Palo Alto and will need to be reviewed to determine if any revisions or additions are necessary to facilitate the development of telecommunications facilities in an environmentally sound manner. EXECUTIVE SUMMARY Following the passage of the Telecommunications Act of 1996, the California Public Utilities Commission (CPUC) certified a number of Competitive Local Exchange Carriers (CLECs) to provide local telephone and other telecommunications services that previously had been provided in Palo Alto by only Pacific Bell. As of August 1997, 96 CLECs had been certified; with 78 of them authorized to provide "facilities-based services" that would require construction of new wireline (i.e., fiber optic cables, coaxial cables, or twisted pair cables) or wireless facilities. While only a fraction of these companies will likely target Palo Alto, this would nevertheless be a significant change from the status quo. The increase in competition promises to benefit consumers by reducing costs and improving service quality. In order to achieve this increased competition, however, much new construction may be necessary. Unchecked, this could cause negative impacts such as road degradation due to street cuts, negative aesthetic impacts resulting from above- CMR:369:97 Page 3 of 7 grade telecommunications infrastructure, and increased noise and traffic congestion during construction. The cost of constructing new telecommunications infrastructure, combined with public reaction to the negative impacts of such construction, could impede any realization of the benefits of competition. To ensure that the benefits are realized in a timely manner while negative impacts are limited to an acceptable level,’ staff recommends that the following four telecommunications policy statements for the City of Palo Alto be adopted by the Council: General-It is the policy of the City of Palo Alto to facilitate the competitive delivery of conventional and advanced telecommunications services throughout Palo Alto in an environmentally sound manner, while ensuring cost recovery and enhancement of revenues derived from the use of the City’s assets. This general statement is intended to serve as the guiding principle of the City’s comprehensive telecommunications policy. It acknowledges the competition that has begun in the telecommunications industry since the passage of the Telecommunications Act of 1996 and recognizes the City’s need to protect the environment and prudently manage its finances. This statement also supports the following objectives approved by the City Council on February 26, 1996 as a part of the Telecommunications Strategy Study (CMR: 150:96): Accelerated deployment of a broad range of advanced broadband telecommunications services to all of the citizens and businesses in Palo Alto. Decrdased costs for both conventional and advanced telecommunications services (as compared to the costs for similar services if provided without City involvement). High quality for both conventional and advanced telecommunications services. Enhanced competition among telecommunications service providers and increased telecommunications choices for consumers (who are currently limited to monopoly ’service providers for telephone and cable television service). Limited or no financial risk exposure to the City. CMR:369:97 Page 4 of 7 Siting and Installation of New Telecommunications Facilities -The City is the owner of the public right-of-way over which it has control and the regulatory body for the development of facilities within its jurisdictional boundaries. It is the policy of the City to regulate the location and manner of construction, manage the safe, orderly, and efficient use of Palo Alto’s public right-of-way, and to facilitate timely installation of telecommunications infrastructure in an environmentally sound manner. The telecommunications carriers that have been certified by the CPUC as CLECs are granted certain rights by the State of California to construct underground facilities such as conduits, vaults, and related substructures, and above-grade facilities such as antennas, base station equipment, and cabinets, provided that they adhere to the permitting requirements of local agencies. Local governments maintain the right to regulate the location and manner in which such construction may occur, provided that such regulations are reasonable and non-discriminatory. These policy statements formalize the City’s role in facilitating telecommunications infrastructure development while effectively managing the public right-of-way and preserving the visual character of the community. Use of Utilities Infrastructure- The City allows the use of Utilities infrastructure and Utilities-owned or -leased facilities to promote the delivery of telecommunications services provided that any telecommunications use does not impinge upon the City’s ability to provide safe and reliable electric, gas, water, wastewater, and storm drainage services and does not interfere with the City’s planned use of the facility or property. Once the City has developed the necessary goveming documents, the City should consider requests by certified telecommunications carriers for access to the City’s pole space, communications conduits, or other utilities infrastructure. Any such telecommunications use, however, must occur under strict conditions developed by the City to ensure that .the telecommunications use does not unduly interfere with the primary purpose of the infrastructure for the provision of utilities or other City services. For safety and security reasons, direct access will not be allowed to electric substations or traffic signal control systems. The policy statement extends the City’s intent to leverage existing utilities infrastructure to facilitate the competitive delivery of telecommunications services. Use of Ci~_ Facilities and Proper~ - The City owns and leases property and facilities, in addition to Utilities facilities, that could be used to support the deployment of affordable telecommunications services while limiting the potential adverse impacts associated with the development of the necessary infrastructure. It is the policy of the City to encourage qualified outside parties to use designated CMR:369:97 Page 5 of 7 City-owned or -leased property and facilities for siting telecommunications infrastructure that is compatible with the primary use of the property, and in a manner that is consistent with City real estate policy, zoning, legal, environmental, and other requirements as necessary. The City has a substantial amount of property and numerous facilities dispersed throughout Palo Alto that could help facilitate telecommunications network deployment. Such expanded use of City facilities could both decrease the adverse impacts associated with telecommunications infrastructure development and generate additional revenues for the City. Other cities and counties have designated their facilities as preferred sites for co-location of antennas and, in so doing, successfully reduced the total number of sites needed by wireless service providers. This policy statement establishes the intent of the City to leverage existing City property and facilities to facilitate the competitive delivery of telecommunications services. FISCAL IMPACT The City could establish a new source of revenue from the expanded use of the City’s real property and facilities. For example, other cities that allow antennas to be sited on their rooftops and other facilities cite annual lease revenues that range from $10,000 to $20,000 per user per site, depending upon the location. In addition, the City may gain new sources of revenue from the use of utilities poles and conduits for the installation of telecommunications cables and/or antennas. However, these new revenues may be offset by decreased fiber license revenues. NEXT STEPS Following approval of these policy statements, staff will review and propose revisions to pertinent City governing documents (e.g., Municipal Code; policies and procedures; permit fee schedules; Utilities rate schedules, rules, and regulations) as necessary to implement these policies. Council approval of the proposed revisions to the City’s governing documents will be requested prior to the implementation of each policy. Ultimately, staff intends to compile all relevant materials in a comprehensive telecommunications manual that will clearly and concisely present the guidelines under which telecommunications infrastructure may be developed in Palo Alto. ENVIRONMENTAL ASSESSMENT These policies do not constitute a project for the purposes of the California Environmental Quality Act. CMR:369:97 Page 6 of 7 ATTACHMENTS 1. City of Palo Alto.Policy and Procedures 1-11.Revised April 1994. PREPARED BY: Tom Habashi, Assistant Director of Utilities Van Hiemke, Telecommunications Manager REVIEWED BY:Glenn Roberts, Director of Public Works Ken Schreiber, Director of Planning and Community Environment Edward J. Mrizek, Director of Utilities Melissa Cavallo, Acting Director of Administrative Services PROJECT COORDINATOR: CITY MANAGER APPROVAL: Emi~)-Han:ison City Fleming" Manager CMR:369:97 Page 7 of 7 POLICY AND PROCEDURES I-iI Page I of 6 REVISED: April 1994 LEASED USE OF CITY LAND/FACILITIES POLICY STATEMENT The purpose of this policy is to ensure that decisions regarding use of city property are made in the best interests of the citizens and taxpayers of Palo Alto. This policy and its implementing procedures were approved by the city Council on November 23, 1981. The development and operation of facilities by others (profit and/or non-profit entities) on city-owned property is appropriate only when such development and operation will further public use or provide a public benefit. Such facilities and operations must be consistent with existing city policies, plans, services and/or procedures. Open competitive and/or bid processes will be used to solicit proposals or provide opportunities to others prior to awarding an option to Lease. This policy shall not apply to short term interim leases where no significant change in use is proposed° PROCEDURE ~riteria for Permittinq Leased Use of city Property by Others The proposed leased use must be compatible with, incidental to, and/or supportive of, the primary public use of the City- owned property, e.g. a snack stand in a district park, or the pro shop and coffee shop at the Golf Course. In the event of park dedicated land, the proposed use shall be consistent with the provisions set forth in the Charter of the~ City of Palo Alto, Article VIII, and the Palo Alto Municipal Code (PAMC), Sections 22°04 and 22.08 eto seqo, which require that uses of park dedicated land be park, playground, recreation or conservation related uses. B.9ption to Lease In all cases where there are significant approval requirements (significant tenant construction and/or rehabilitation), financing requirements (fundraising drives, obtaining financing from lending institutions, etco), or other tenant pre-operation conditions, the Council shall award an Option to Lease setting forth all pre-construction/operation conditions as conditions to the tenant’s obtaining the lease° The option term shall be for a reasonable period of time consistent with the nature of the conditions of the option° POLICY AND PROCEDURES Page 2 of 6 REVISED: April 1994 Prior to awarding an Option to Lease for a specific use, consideration shall be given to particular information. (Specific application and the relative importance of each of the following considerations will vary from site to site and by specific uses proposed). Applications for leased use shall provide the following information: The extent to which the proposed leased use satisfies a public need (e.g., by a significant number of Pal. Alto residents and taxpayers) for the proposed services and/or uses. o Consistency of the proposed use with existing City goals and objectives (set forth in the Comprehensive Plan, Zoning Ordinance, Municipal Code, and general municipal services objectives). Consistency of the proposed use with existing plans for the property or facility (e.g., an approved Master Plan) o The impact of the proposed use (compatible services and uses, traffic impacts,noise impacts,energy conservation, etc.) upon: the immediate neighborhood; the community generally; and the environment (The proposed tenant shall, during the Option period, satisfy the city’s environmental review process.) o The degree of public access, including City shared use of the facility or co-sponsorship of programs and/or services, i.e., the numbers of people, especially Pal. Alto residents and taxpayers, that will be served by the proposed use and/or service. (It is the general intent of the City to maximize public access to its facilities and services, especially if park land is involved). The fees that will be charged to Pal. Alto citizens° (It is the intent of the City to provide public access to its facilities at prices and/or fees that are fair and reasonable to the public° In the case of parklands, any fees and charges should be minimum and consistent with the fees and charges of comparable City-provided services.) 7. The monetary consideration to be provided to the City° POLICY AND PROCEDURES 1-11 Page 3 of 6 REVISED: April 1994 o The history and assessment of the proposed group’s ability to carry out the construction, if any, and operation of the facility and services as proposed. A five-year pro-forma finanOial analysis of the proposed use, setting forth the project revenues and expenses for this period Of time. public Notification Prior to awarding an Option to Lease (or Lease if there are no pre-construction or pre-operation conditions), the city shall provide a reasonable and appropriate opportunity to other groups or entities to respond to possible use of city facilities. Such reasonable and appropriate opportunities shall take one of the following forms: A Notice of Intent to Award an Option to Lease (or Lease if there are no pre-construction or pre- operation conditions) generally outlining the conditions of the Option and Lease, shall be published twice in the Palo Alto Weekly. The Notice shall provide at least 30 days notice to the public prior to a public hearing for Council action to award the Option to Lease. In addition, copies of the notice shall be mailed to residential property owners in accordance with Section 18.90.030 of the Municipal Code. Generally, this notice and hearing process shall be used when the proposed user is a non-profit entity proposing i specific use providing a significant public benefit and when it appears that there are no other competing users. A Request for Proposals will be sent to groups or entities likely to have an interest in submitting a proposal), subsequent to a public hearing and Notice of Intent to Request Proposals being published in the appropriate media. At a minimum, the Notice of Request for Proposals shall be announced in the Palo Alto WeeklZ and copies of the notice mailed to residential property owners in accordance with Section 18.90.030 of the Municipal Code. The Notice shall provide at least 30 days notice to the public prior to the public hearing. o POLICY AND PROCEDURES I-ii Page 4 of 6 REVISED: April 1994 In preparation for public noticing, the applicant must provide the city Real Estate Division with: A Zone of Interest ,Map showing the property proposed to be leased by the applicant/proposer and showing all parcels or properties within a distance of 91.4 meters (300 feet) from the exterior boundaries of the subject property. This map can be obtained from the Planning Department. or the Public Works Department, Engineering Division, at the Civic Center, 250 Hamilton Avenue. .If more than one map is required to show the zone of interest, applicant/proposer must combine the maps into a single map of not more than 18" x 30" size. Do A list of street addresses, by block, for all properties within the zone of interest, for example: Street Name Addresses Zip Codes Bryant Street Hamilton Avenue i00 through 251 203 through 373 94301 94301 The names and addresses, including zip codes for each parcel or property owner within the 91.4 meter (300 feet) zone of interest properly typed on adhesive mailing labels. The Planning Department or Public Works Engineering Division can provide a source of such addresses. do In the event that the City is the project proponent of such leased use, the sponsoring City department/division, e.g. Department of Community Services, will provide this information to the Real Estate Division. To ensure that notices will be mailed to tenants as.well as owners, the Real Estate Division will provide the Information Resources Department, Data Processing, with the list of addresses provided in 2b above and request mailing labels for all utility accountscharged to these addresses. The mailing lists generated by steps 2 and 3 above will be examined by the Real Estate Division for accuracy and to eliminate duplications. Notices will then be mailed POLICY AIqD PROCEDURES Page 5 of 6 REVISED: April 1994 Do ¯ by the Division. In the event that the project falls within the jurisdiction of an operating department, the operating city department/division, e.g., Department of Community Services for recreational, projects, will perform these functions° The newspaper advertisement announcing the public hearing shall be prepared and placed by the Real Estate Division with the assistance of the operating department, if any, involved with the project. The costs of complying with the above notice procedures shall be borne by the successful applicant/proposer and such sum shall be due and payable upon the awarding of the Option of Lease (or Lease, if there are no significant pre-operation conditions to be satisfied by the proposer). In the event the City is the project proponent, such costs will be borne by the spons6ring department. Tenant Improvements o Construction of tenant improvements shall take place only after having received Council approval (as well as Planning Commission and Architectural Review Board approval when otherwise required by City procedures) of plans for such tenant proposed construction. Inthe event of park dedicated lands, Council approval shall be by Ordinance subject to referendum (PAMC Sections 22.08.005 and 22.08.006)° Generally, improvements to the real property shall become the property of the City upon termination of the Lease. Tenant-provided fixtures shall remain the property of the tenant. Terms of the Lease Tenant shall be required to provide City with adequate compensation for the rights granted by City to the tenant. Determination of appropriate consideration shall begin with the estimated fair market rental value of the lease premises for the use proposed° Consideration shall, however, be given to non-monetary benefits to be POLICY AND PROCEDURES 1-11 Page 6 of 6 REVISED: April 1994 provided by the tenant. These proposed non-monetary public benefits must be clearly articulated and must provide an actual benefit to a significant portion of the citizens and taxpayers of Palo Alto. NOTE: The lease term shall be the minimum period of the time required to: amortize tenant’s investment in any permitted and approved tenant construction; and be consistent with the nature of the proposed tenant operation. Questions and/or clarification of this policy should be directed to the Manager, Real Property.