Wireless Site Collocation Agreements
You’ll hear about wireless site collocation agreements referred to in two different ways. One context is on existing communications sites where other antennas are already present, including under an existing MLA between the new carrier on the site and the site owner. The other context is on existing structures without the prior presence of antennas. Local communities prefer collocations on existing structures with qualifications but possibly without regard to whether any existing wireless antennas have already been placed on the structure.
One caveat to note is that Section 6409(a) of the Middle-Class Tax Relief and Job Creation Act of 2012 limits local jurisdictions only from imposing a discretionary process for minor modifications to existing wireless structures.1 Since November 2020, structures without existing antenna attachments have been considered the same as existing wireless structures.2 This action took away the ability of jurisdictions to restrict the original placement of antennas on a structure.
The discussion of collocations in this chapter and in Module 17 Collocations Applications, was narrowed to existing structures with existing antennas in place and, more specifically, to those collocations accomplished under existing MLAs. This is not to exclude non-MLA collocations; just that where MLAs are in place a prescribed process to obtain the space rights agreement on the existing structure has been pre-specified. That is the process I will discuss here.
Master Lease Agreements (MLAs) and Site Lease Agreements (SLAs)
Module 1 Industry Structure, introduced the idea that large wireless carriers have established MLAs with each other and tower companies. These MLAs may have been executed in one region of the country and then extended to include sister organizations in other regions across the US. Over time the agreements are amended or restated, recognizing new entity names, mergers, and acquisitions. Current MLAs are made available to site acquisition consultants on a need-to-know basis for review and reference during the collocation application process.
MLAs include relevant language common to ground and tower leases and establish technical rules and practice for site occupancy, the process for applications, and templates for entry and test agreements. MLAs provide context for SLAs so that each SLA can be limited to a page or two plus exhibits and signature pages. MLAs should address the process for structural modifications resulting from a failed structural analysis and how the SLA language is modified when structural modifications are necessary. This includes the sequence of events regarding how mods will be performed and how the mod costs will be paid or split.
Underlying Site Agreements
Wireless developers require the ability to sublease the space they lease. The sublease authority is included in the (non-negotiable) assignment provision.
How would a tower company do business without the rights to sublease?
What good would jurisdiction efforts to encourage collocation on existing sites be if subleasing were not a contract right for structure owners?
Sublease rights are considered non-negotiable by site developers, wireless carriers, and tower companies. Nevertheless, the underlying agreements for each proposed collocation must be reviewed and understood regarding the context of the sublease rights.
While the project attorney makes a final determination about whether the underlying agreement interferes with the development of an SLA, some basic conditions can easily be gleaned through review.
Structural Analysis (SA)
Structural analysis for collocation was briefly discussed in Module 17 Collocation Applications. SAs normally take three to five weeks to complete; however, they might take longer. The structure owner may take additional time to review the results of the SA for accuracy and consensus before releasing it. A passing SA means the proposed antennas can be added to the structure without the risk of structural failure (due to wind or weight loading).
With a passing SA, the project attorney can complete the SLA review without further language revision. I’ve seen passing SAs where the new antennas will load the structure to as much as 115 percent of capacity. If the first SA fails, read more…
Structural Modifications
Structural modification (structural mod) analysis costs an additional fee over and above the SA. The results of the structural mod study specify what modifications are needed for the structure to accommodate the proposed loading. The modification study results are then provided to industry contractors with a request to bid on the fortification work.
The cost of the work required to complete the modifications comes from the bid results. read more…
Notice to Proceed (NTP)
Upon the completion and full execution of the SLA and satisfaction of building permit requirements for a collocation, the site acquisition consultant secures a letter from the structure’s site manager, explaining the notice to proceed (NTP) requirements. Completion of the NTP requirements is necessary to receive the NTP and for the wireless carrier/client to start installing equipment on the existing structure. The NTP process involves the site acquisition consultant providing documentation to the site manager, showing that the site acquisition work is completed. “Real estate complete” is another phrase used to say that all real estate entitlement documentation has been secured and validated.
Upon the site management company’s acceptance that real entitlement documentation is complete, read more…
Post Construction
After equipment installation is complete the wireless carrier provides to the structure owner proof that installation details comply with the structural analysis and SLA, the facility as-built drawings, photos of the installation, and a certification of the installed antenna elevation(s) using a measuring tape to confirm, also called a tape drop. The tape drop certification might be accomplished by a drone.