Title
State Law Changes Concerning Small Wireless Facilities in City Right-of-Way
Description
This report provides the Transportation and Infrastructure Subcommittee with information regarding a new state law concerning wireless communication facilities in City right-of-way, the impacts to the City, and the steps City staff is taking to ensure compliance with the new law. This report is for information only; staff will present the proposed ordinance changes for discussion and possible action at the Nov. 14, 2017 T&I Subcommittee meeting.
THIS ITEM IS FOR INFORMATION ONLY.
Report
Summary
On Aug. 9, 2017, House Bill 2365 (HB 2365) became law. The bill makes the installation of small wireless facilities (SWF) in right-of-way a matter of right, provides strict timelines for application and permitting of installations, and significantly restricts the rates and fees the City may charge wireless providers for the use of City right-of-way. The bill impacts cities and counties throughout the State, but does exempt some entities including Arizona Public Service (APS), Salt River Project (SRP), and the City of Yuma. The bill grants cities and counties until Feb. 9, 2018 to establish and publish rates, fees and procedures for SWF installations, and to come into compliance with state law.
Small Wireless Facilities
Small wireless facilities are used by wireless providers to equip their Fourth Generation (4G) wireless networks with wider coverage and greater capacity, and are used to complement larger wireless network towers. Although the coverage of each 4G SWF is not as broad as larger network towers, each 4G SWF can cover several thousand feet. As such, 4G SWF are in greater concentration and number in comparison to wireless network towers.
Currently, wireless providers are planning and preparing for the roll-out of their Fifth Generation (5G) networks, which are not anticipated to be in place for another 3-5 years. The details and specifications of 5G networks are relatively unknown and not yet defined. However, it is commonly assumed that 5G networks will operate at higher bandwidths, and that 5G SWF will cover significantly less area than comparable 4G SWF. Wireless providers have indicated that each 5G SWF will cover only several hundred feet, with a concentration of 5G SWF ten times that of 4G SWF. The anticipation of the 5G network infrastructure needs is the primary reason the wireless providers advocated for the passage of HB 2365 in Arizona, as well as similar legislation in other states.
Current City Ordinance and Procedures
In 2012, the City adopted an amended ordinance to establish a rate and fee structure specific for wireless communications equipment, or SWF, in the right-of-way. In crafting the ordinance, City staff worked closely with wireless providers. To date, the City has approximately 200 active permitted SWF installations and is processing approximately 100 additional SWF installations to support wireless provider installations. SWF installations in the City have utilized street light and traffic signal poles for the placement of SWF equipment.
Although the ordinance and the partnership between the City and wireless providers have been successful, the City will need to amend its current ordinance to comply with the new state law. The City has until Feb. 9, 2018, to adopt new procedures, rates and fees that will govern the City’s review and permitting of SWF in the right-of-way.
House Bill 2365 - State Law Requirements
State law grants authority for wireless providers to locate SWF in the right-of-way as a matter of right in the State of Arizona, and SWF installations will generally fall into four categories of City owned infrastructure:
1. Installations on existing traffic signal, street light, or other utility poles in the right-of-way;
2. Installations on existing traffic signal, street light, or other utility poles in the right-of-way that must be modified or replaced to accommodate the installation of SWF;
3. Installations that will include a new utility pole in the right-of-way; and
4. Installations that will include a new large monopole (more than 50’ tall and up to 40” in diameter at ground level) in the right-of-way.
Although monopole installations are included in the new state law, during recent meetings with City staff, various wireless providers indicated they do not plan to install monopoles in the City right-of-way.
SWF installations in the right-of-way consist of two components: the antenna and related equipment. Although the antenna is pole-mounted, the related equipment may be installed on the ground adjacent to the pole or mounted on or inside the pole. The antenna and equipment sizes and placement vary between wireless providers. State law limits SWF antennas and related equipment to six cubic feet and twenty-eight cubic feet, respectively.
Although the law includes many provisions and requirements regarding the installation of wireless facilities in the right-of-way, it also establishes strict timelines for City staff to review and approve new installations. Under existing City ordinance and procedures, City staff review each installation site application to ensure the site and planned installation are safe and compliant with the Americans with Disabilities Act (ADA), sight visibility, underground utility conflicts, site location in right-of-way and overall wireless site design. In addition, a public notification and outreach process is incorporated into each installation site application. Under the new state law, City staff has 75 days to review and approve each application, but wireless providers can submit up to 25 sites per application.
State law also significantly limits the amount a City can charge a wireless provider for use of City right-of-way and for the City’s review and approval of SWF installation applications. For the use of City right-of-way, the City can charge only $50 to $100 per location per year for most SWF installations. Similarly, the fee the City can charge for processing a SWF application ranges from $50 to $750 per application, which does not cover the time staff typically spends to conduct due diligence on proposed SWF installations.
By comparison, under current City ordinance and agreements with wireless providers, SWF providers are charged $3,700 per site per year for use of City right-of-way, and reimburse the City for staff time spent to review, process, and inspect each SWF installation.
City Ordinance Modifications
Per state law, the City must modify its current ordinance, SWF license agreements, and its application procedures. To meet the Feb. 9, 2018 deadline, City staff plan to present recommended ordinance changes to the Transportation and Infrastructure (T&I) Subcommittee on Nov. 14, 2017, and to Council on Dec. 13, 2017. The new rates and fees will also be publicly posted 60 days prior to Council action in accordance with state law. Modifications to SWF license agreements and application procedures will be completed in January 2018 based on the Council-adopted ordinance changes.
Although the timeline to adopt new ordinance language is extremely restrictive, staff plans to review the proposed ordinance changes with the wireless providers prior to the Nov. 14, 2017 T&I Subcommittee meeting.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua, the Street Transportation Department, and the City Engineer.