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course at this time is to leave these restrictions in place, observe the policy implementation process, and bring a proposed revision at a later date if necessary. The City Council also may direct one or more changes to be made prior to the adoption of the urgency ordinance and/or introduction of the regular ordinance, which would not require a continuance. 9. Pole License Agreement In order to utilize the City's vertical infrastructure (e.g., City light poles or traffic poles), small wireless providers will be required to enter into a Pole License Agreement with the City. The Agreement (see Attachment 4) addresses a variety of issues, including but not limited to, fees payable to the City, an acknowledgment that the City may need to change a street width or make other changes requiring the licensee to remove or relocate equipment, indemnification and insurance requirements, etc. 10.Annual License Fee Pursuant to the Pole License Agreement, licenses are required to pay the City an annual fee of $270 per site. That fee is set to automatically increase by 3% each year. (The City also has the option to adjust the license fee in the future if it determines that the City's actual costs incurred in connection with the license are greater and are reasonable. Licensees would have the right to appeal any adjustment to the City Council.) PUBLIC NOTICE A display ad for this item was published in The Valley Times. At the time this report was published, staff had received two letters, one from AT&T and one from Verizon and also had discussions with industry stakeholders. Those letters are attached. Any comments that are subsequently received will be made available to the Council. ENVIRONMENTAL ASSESSMENT The proposed code amendment is not considered a "project" under the California Environmental Quality Act (CEQA) because the proposal is not an activity that has the potential for a direct physical change or reasonably foreseeable indirect physical change in the environment. Moreover, if the code amendment were to qualify as a "project" subject to CEQA, it would be exempt from further environmental review in accordance with CEQA Guidelines section 15061(b)(3) because the project involves the adoption of regulations for small cell wireless facilities and does not directly or indirectly authorize or approve any actual physical changes in the environment. CONCLUSION The proposed ordinance and policy are necessary for compliance with new FCC regulations. Although these new regulations are intended to restrict local authority, staff has worked with outside counsel to develop a flexible approach that preserves as much of the City's authority as possible while still achieving compliance. Staff recommends that the Council adopt the ordinance effective immediately, adopt the resolution approving the Council Policy, and approve use of the Pole License Agreement. Page 6 of 7