Add wireless facility operators to the Utility Operators Code and amend fee schedule to include wireless facilities in the right-of way (amend Code Title 12)

The City of Portland ordains.

Section 1. The Council finds:

1. On June 7, 2023, Bureau of Planning and Sustainability (BPS) staff presented an ordinance to add a Right of Way Code to Title 12 of the Portland City Code to the Council for consideration. Based on concerns raised by wireless service providers, the ordinance was withdrawn; and
2. The Council directed BPS staff to revise the ordinance to remove the provisions relating to the wireless service providers and to conduct a fee study for small cell facilities; and 
3. On January 31, 2024, the Council adopted Ordinance No. 191613 that added a new Chapter 12.15 to City Code, creating a Utility Operators Code governing utility access to and use of the City’s right-of-way (ROW Code), effective April 1, 2024; and 
4. The new ROW Code covered most of the utility operators, except for the wireless service providers; and 
5. In conjunction with the finalization of the ROW Code, BPS worked with the wireless service providers on developing a small cell cost study, and BPS staff provided wireless companies the opportunity to give feedback on the scope of work for the small cell cost study; and
6. In June 2024, BPS selected a vendor to conduct a small cell cost study after a competitive bid procurement process; and
7. During the months of July through September 2024, BPS staff held weekly workshops with the wireless companies to engage them on the small cell cost study and work through code edits to add them into ROW Code (Code Title 12); and
8. BPS held 8 total workshop meetings (4 meetings for code edits and 4 for small cell fee cost study) plus 1:1 engagements with company representatives; and
9. On September 18, 2024, BPS held the final workshop for the code edits and came to mutual agreement on the code edits with the wireless companies; and
10. On September 24, 2024, BPS and the cost study consultant for the small cell fee analysis held the final workshop with wireless companies to present the cost study research, findings, and BPS cost recovery fee of $650.57 per small cell site for access to the City’s ROW; and
11. Since the completion of the cost study, the wireless companies have requested that the City conduct a comprehensive cost study that would include both the BPS ROW access costs and the PBOT permitting and maintenance costs attributable to small cells in the ROW; and
12. When a comprehensive cost study is completed that includes the City’s costs for both access to and maintenance of small cell facilities in the ROW, BPS staff will work with other City partners to make updates and changes for the small cell fee that is charged under Portland City Code Title 12’s fee schedule; and
13. Until a holistic cost study is complete, the annual fee for small cell access to the ROW will be $322.40 per site for calendar year 2025. The fee of $322.40 is calculated by taking the current small cell fee of $313 per site and adjusting for inflation by adding 3% for the next billing cycle for wireless facilities; and 
14. This Ordinance adds wireless service providers that own and operate cellular facilities in Portland’s ROW into Portland City Code Title 12 and amends Title 12 to align with the City Charter changes approved by the voters, as shown in Exhibit A; and
15. The Ordinance also adopts a revised right-of-way fee schedule that includes wireless facilities for macro and small cells as shown in Exhibit B.

NOW, THEREFORE, the Council directs:

1. Amend City Code Title 12, Utility Operators, as shown in Exhibit A. 
2. Adopt revised Annual Rights-of-Way Fee Schedule as attached in Exhibit B per Portland City Code Section 12.15.110. 
3. Exhibit B, Annual Rights-of-Way Fees is binding City policy.