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Report regarding a resolution approving and authorizing the City Manager to execute a fifteen-year lease agreement with New Cingular Wireless PCS, LLC for the construction of a wireless communication facility at 323 Miller Avenue and authorizing the City Manager to approve the agreement. (Tony Barrera, Director of Information Technology)
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RECOMMENDATION
Recommendation
Staff recommend approving a fifteen-year lease agreement with New Cingular Wireless PCS, LLC for the construction of a wireless communication facility to improve cellular coverage in the downtown area and provide a new revenue stream for the City.
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BACKGROUND/DISCUSSION
The City’s downtown area has experienced substantial growth over the years, including development of numerous large apartment complexes. As the population continues to expand, there will be an increased demand for improved cellular coverage and data services in the area. Additionally, the construction of new buildings often disrupts existing antenna signals, requiring the installation of new antennas to enhance signal strength.
In 2023, New Cingular Wireless PCS approached the City with a proposal to use the downtown parking structure located at 323 Miller Avenue for their cellular network infrastructure. The City was receptive to this proposal, and New Cingular Wireless PCS, submitted plans to the Planning Division for review and approval. The proposed plans were presented to the Design Review Board on June 20, 2023, then approved by the Chief Planner.
The proposed wireless facility was approved by the Chief Planner in accordance with South San Francisco Municipal Code (SSFMC) Chapter 20.370 (“Antennas and Wireless Communications Facilities”) and Chapter 20.510 (“Waivers and Modifications”). All proposed wireless facilities located on property owned or leased by the City and that comply with the required location, design, and operation requirements found in SSFMC Section 20.370.005 are permitted by right and require a Building Permit only. However, the project included a request for a modification to height requirements under SSFMC Section 20.510.002 to allow an increased height so that the new facility would not exceed the radio frequency (RF) exposure limits on neighboring properties mandated by the Federal Communications Commission (FCC). The Waivers and Modification request was approved by the Chief Planner on August 14, 2023, permitting a maximum 10% increase to the maximum height allowed on the project site in order to allow the new facility to operate in compliance with FCC regulations.
The key aspects of the plans include:
• 20 panel antennas (five per sector) and 16 remote radio heads (RRUs) (four per sector)
• Installing a facade around the rooftop to match the building's colors
• Running fiber optic cabling to AT&T equipment
• Use of 3 parking spaces on the 3rd floor
In addition, the IT Department and the City Attorney’s office reviewed and finalized the lease terms. The key terms of the lease agreement include:
• Lease 294 square feet on the 3rd floor
• Rooftop space measuring 23 contiguous linear feet in width and 25 contiguous linear feet in depth
• Fifteen-year lease term, with option to renew terms after fifteen years.
• Monthly rent of $6,700 with a 3% annual increase. Rent begins to become due upon commencement of construction.
Below is a rendering of how it will intend to look:
FISCAL IMPACT
The lease agreement is expected to generate over $80,000 in new general fund revenue annually.
RELATIONSHIP TO STRATEGIC PLAN
Improving cellular service in South San Franciso will contribute to the City’s Strategic Plan under Priority #2 Quality of Life.
CONCLUSION
The City downtown area has experienced growth over the years and will demand improved connectivity. By installing new antennas in the downtown area, residents of the City would benefit from enhanced network capacity, better signal coverage, and faster, higher-quality data speeds. Additionally, the City will gain a new revenue stream over the next fifteen years or more.