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SR-400-005-03 (4) F: ATTY/MUNI/CES/WIRELESS MORATORIUM Council Meeting: February 24, 2004 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Emergency Interim Ordinance Imposing a Temporary Moratorium Related to Installation of Wireless Communications Facilities in the Public Rights of Way Introduction This report recommends that the City Council adopt a temporary moratorium on installation of wireless communications facilities in the public rights of way. The purpose of this moratorium is to allow the City to explore whether wireless facilities have a legal right to locate in the public right of way and, if so, to provide wireless companies and other utilities additional time to comment on the right of way management ordinance proposed by staff. This moratorium will go into effect immediately after adoption and will last for six months unless extended by Council. Background The City owns and manages the public rights of way (PROW) traversing throughout the City. These PROW resources are limited and given the City’s large density and built out nature, it is likely that the amount of area devoted to PROW will remain limited. PROWs have historically been reserved for City-owned utilities, such as sewer, water, street lighting, traffic signals, and storm drains; gas, electric and phone lines; as well as franchised cable television. As a result, the City’s PROWs have become increasingly 1 crowded with existing infrastructure serving a variety of public and private purposes. While historically wireless companies have elected to locate on private property, subject to the City’s detailed zoning regulations, very recently there has been an apparent industry shift towards locating on PROW. This location trend is due to a number of factors including reduced rental rates, fewer regulations and the general increase in wireless demand. The demand for wireless technology has skyrocketed since the Federal government adopted the 1996 Telecommunications Act. This law was enacted to encourage the rapid deployment of new telecommunications technologies. According to the Cellular Telecommunications & Internet Association, since the 1996 Telecommunications Act, the number of wireless subscribers in the nation has increased from approximately 38 million to over 148 million. Industry estimates show that 30 percent of calls that were previously placed on landline phones are now transmitted wirelessly, accounting for the 400 billion wireless minutes used in 2003. In order to accommodate the demand, the number of cell sites nationwide has increased from 24,802 in 1996 to 147,719 in 2003. In addition to the increased usage of wireless technology, the equipment technology is also evolving at a rapid rate. Technology such as micro cells and repeaters now permit downsized installations which can be incorporated into existing infrastructure so as to significantly camouflage its placement. 2 As a result of these changes in federal law and the quick expansion of the telecommunications field, the City has begun receiving increased requests for permits to excavate in the PROW. During the time period of 1996 to December 2002, the City received only one application for a wireless installation in the PROW. In 2003, the City received multiple applications from wireless carriers to locate wireless facilities in the PROW. The City has also received inquiries from additional wireless companies, and the City expects that this recent influx of applications will continue. The current municipal code sections related to excavations in the public right of way were last modified by Resolution 1187 (CCS) on November 12, 1980, well before the changes in federal law and the shift in the industry’s facility location policy. As such, the City’s current Code does not adequately address the installation of wireless facilities in the PROW. The recent changes in federal law, the City’s need to update its current PROW regulations to accommodate wireless installations, the recent influx of applications by wireless companies to locate in the PROW, the continued demand for the space above and below the PROW by other utility providers, and the needs of vehicular/pedestrian access and private businesses and other public institutions make it necessary for the City to take a comprehensive look at how to manage the PROW. Discussion The City’s public streets, sidewalks, parkways, courts, pedestrian paths, bikeways and 3 other easements, have become increasingly crowded with telecommunication, gas, and electrical lines as well as City-owned utilities such as sewer, water, street lighting, traffic signals, and storm drains. In addition to these more traditional uses of the PROW, wireless carriers are beginning to assert that they have legal authority to locate facilities in the PROW pursuant to Public Utilities Code Section 7901. However, since this Code section was enacted long before the invention of wireless technology, it is unclear whether this law applies to wireless companies and to the traditionally large antennas associated with this technology. However, recognizing the public demand for wireless services and the technology’s similarities to other utilities, other cities are slowly starting to permit wireless facilities to locate on the PROW, subject to reasonable time, place and manner regulations. Because the inclusion of this new technology into the PROW could impact the existing infrastructure and result in aesthetic and other impacts, a comprehensive study of the PROW should be performed prior to implementing specific regulations pertaining to this new technology. Any management of the PROW will require a careful study of the following overarching policies: ? Preserving the integrity and aesthetic quality of the City’s PROW; ? Addressing the long-term management of the PROW; ? Addressing concerns about Public Works Projects encountering unknown utilities in the PROW during construction; 4 ? Ensuring that the manner in which the PROW is accessed minimizes disruption to the community; ? Ensuring utilities (including telecommunication and wireless companies) competitively neutral and non-discriminatory access to the PROW; and ? Ensuring compliance with State and Federal laws allowing access to the PROW. In addition to the legal and policy issues, residents have expressed significant concern relating to the location of wireless communication facilities within the City. These concerns relate, among other things, to the aesthetic effects of such facilities on neighboring properties and the community as a whole, and the appropriate locations for these facilities. Staff has already begun this analysis and, in fact, is concurrently proposing a comprehensive PROW management ordinance which it believes appropriately balances these concerns. In developing this ordinance, staff has had two meetings with industry representatives and one meeting with the general public to hear concerns and receive feedback on proposed regulations. However, given the complexity of the issues involved, the current objections to the proposed ordinance voiced by portions of the industry and the fact that Council has not previously had the opportunity to give direction to staff on these issues, staff believes that additional industry and public feedback and dialogue would result in a more community serving ordinance. 5 A short moratorium on wireless installations, as proposed here, would allow the City additional time to study, among other things, (1) how the City’s overarching management right of way policies apply to wireless technology; (2) whether wireless utilities have current legal authority to locate in the PROW; (3) notwithstanding the lack of such authority, whether it nevertheless serves the public interest to permit such location in the PROW; (4) the compatibility of wireless technology with existing right of way improvements; (5) the potential interference such technology would have with existing right of way improvements; (6) mitigations, such as co-location, which can reduce aesthetic impacts; and (7) appropriate time, place and manner regulations for such facilities. The City has a very limited number of potential sites which would be acceptable for the installation of wireless communication facilities in that the geographic area of the PROW is limited and already contains a variety of existing infrastructure. Therefore, while the City is soliciting industry and public input, a temporary six month moratorium is suggested in order to ensure that all installations comply with any new regulations adopted by the Council, to ensure capacity for future public and private utilities as well as competing wireless carriers, to ensure that the City’s limited resources are not wasted and to avoid the interference with existing infrastructure. Courts have upheld local imposition of short moratoria such as the one proposed here. Budget/Financial Impact There are no budget or financial impacts. 6 Recommendation It is recommended that the Council adopt the attached emergency ordinance which will go into effect immediately upon adoption and which will impose a six-month moratorium on the installation of wireless communications facilities. Prepared by: Craig Perkins, Director of Environmental and Public Works Management Anthony Antich, P.E., City Engineer Marsha Jones Moutrie, City Attorney Joseph Lawrence, Assistant City Attorney Cara E. Silver, Deputy City Attorney Kathryn Vernez, Assistant to the City Manager, Government Relations Dave Britton, P.E. Principal Engineer Donald Patterson, Senior Administrative Analyst Attachment: Ordinance (See adopted Ordinance No.2118 (CCS) 7