To: MAYOR AND CITY COUNCIL
From: MIKE COOK, INFORMATION TECHNOLOGY DIRECTOR
TITLE
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APPROVE A REVENUE SHARING FACILITY LICENSE AGREEMENT WITH CROWN CASTLE FIBER LLC FOR WIRELESS TELECOMMUNICATIONS INFRASTRUCTURE TO BE INSTALLED AT THE REDONDO BEACH PIER AND INTERNATIONAL BOARDWALK (PORTIONS OF APN # 7503-002-913 AND 7503-033-905)
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EXECUTIVE SUMMARY
Staff recommends approval of a Facility License Agreement with Crown Castle Fiber LLC (Crown Castle) to install, operate and maintain carrier-neutral wireless telecommunications infrastructure serving the Redondo Beach Pier and International Boardwalk.
The Waterfront has long experienced poor cellular coverage due to its unique geography, surrounding development, and distance from existing cellular infrastructure. While the City improved internet connectivity through the deployment of public Wi-Fi in 2024, visitors and businesses continue to experience challenges with cellular voice, text, and data services, particularly during periods of high visitation.
The proposed project would install antenna arrays at the Police Department Pier Substation and International Boardwalk elevator structure, connect the facilities via fiber optic infrastructure, and establish a shared telecommunications facility capable of supporting all major wireless carriers. The project is intended to substantially improve cellular coverage throughout the Waterfront while minimizing visual impacts through a carrier-neutral design.
The proposed agreement has an initial term of 15 years and represents an opportunity to address a longstanding infrastructure deficiency at one of the City's most heavily visited destinations through private-sector investment, while generating ongoing revenue for the City.
BACKGROUND
The Redondo Beach Waterfront sits substantially below the elevation of much of the surrounding community. Large residential buildings, parking structures, and other dense development between the Waterfront and existing cellular facilities create significant signal obstructions. As a result, cellular coverage from several major carriers is often weak or unavailable throughout portions of the area.
Over the past several years, the City has worked with wireless carriers to explore opportunities to improve service. While providers have made adjustments to existing facilities nearby, those efforts have resulted in only marginal improvements. In 2024, the City completed deployment of public Wi-Fi service throughout the Pier and Waterfront areas. That investment significantly improved internet connectivity for visitors who choose to connect to the network. However, public Wi-Fi requires users to actively join the network and accept terms of service, and it does not fully address the need for reliable voice, text messaging, and cellular data services.
Cellular service remains the primary means by which residents and visitors communicate, access emergency services, utilize mobile applications, and conduct everyday business. Recognizing the continuing need for improved cellular service, staff continued exploring alternative solutions and identified Crown Castle as a potential partner capable of delivering a comprehensive, long-term solution.
Crown Castle is one of the nation's largest telecommunications infrastructure providers and specializes in the development of shared wireless communications facilities. Under the proposed Agreement, Crown Castle will design, construct, own, operate, and maintain telecommunications infrastructure intended to substantially improve cellular coverage throughout the Pier and International Boardwalk.
The proposed project includes:
• Installation of a wireless antenna array on, or near, the Police Department Pier Substation oriented toward the Pier and Waterfront.
• Installation of a second wireless antenna array on the International Boardwalk elevator structure oriented toward the Pier and Waterfront.
• Construction of fiber optic infrastructure connecting the two facilities.
• Installation of telecommunications equipment within an existing storage area beneath the Police Department Pier Substation.
• Development of carrier-neutral infrastructure capable of supporting multiple wireless providers (including T-Mobile, AT&T and Verizon) from a single shared facility.
Crown Castle would be responsible for all costs associated with the design, permitting, construction, operation, maintenance, and future upgrades of the facility. The City would not be required to make a capital investment or assume ongoing operational responsibilities associated with the telecommunications infrastructure outside of reasonable electrical usage to power equipment. The proposed Facility License Agreement provides Crown Castle the right to install and operate telecommunications infrastructure on designated City facilities for an initial term of 15 years. In turn, Crown Castle would provide the City with a revenue share equal to 25% of monthly gross receipts generated from carrier utilization of the facility.
Key benefits of the proposed Agreement include:
• Improved public safety through more reliable access to emergency communications and 911 services.
• Enhanced visitor experience and convenience through improved cellular voice, text and data coverage.
• Improved support for Waterfront businesses that rely on mobile communications and electronic payment systems.
• Increased communications resiliency during special events and periods of peak visitation.
Staff recommends the City Council approve the proposed Agreement with Crown Castle.
COORDINATION
The Information Technology Department worked directly with Crown Castle to coordinate project scope and coordinated the proposed equipment installation with the Public Works, Waterfront and Economic Development, and Community Services Departments. The Agreement was drafted in partnership with the City Attorney’s Office and outside counsel, and has been approved as to form by the City Attorney’s Office.
FISCAL IMPACT
The Agreement commits the City to fund additional electrical utility costs which are projected to be negligible. Revenues from the 25% cost share with Crown Castle are expected to significantly exceed any additional electrical utility costs.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Agmt - Facility License Agreement with Crown Castle Fiber LLC
• Order Form - Crown Castle Fiber LLC
• Certificate of Insurance - Crown Castle Fiber LLC