AgdaPkt 2016-01-11 Closed and Joint SA PFA

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6.1.A. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager January 11, 2016 SUBJECT Agreement with opticAccess LLC for the Installation of Fiber Optic Facilities RECOMMENDATION By motion, approve and authorize the City Manager to execute an agreement with opticAccess LLC for the installation of fiber optic facilities, and approve and authorize the City Manager to make any necessary technical alterations to such agreement prior to execution BACKGROUND OpticAccess, LLC is a privately held, fiber optic-based communications provider serving the west coast of the United States. The California Public Utility Commission issued opticAccess a Certificate of Public Convenience and Necessity (CPCN) to provide telecommunication services throughout the state of California. The CPCN gives opticAccess authority at a state level to operate in the public right-of-way in accordance with its terms. In early 2015 opticAccess approached staff to install, maintain and operate its facilities within Redwood City in accordance with its CPCN. Those facilities, for example, would include fiber optic communication lines that opticAccess customers use to communicate with data centers, exchange information between customer buildings, and access the internet. Staff and opticAccess negotiated an agreement to provide a general framework for opticAccess facilities. Within this framework opticAccess will apply for the necessary permits and approvals to install, maintain and operate its facilities in compliance with state law and local ordinances. The City has entered into at least eight similar agreements with other communications companies since the year 2000, and many of those companies continue to install, maintain and operate their systems in the public right-of-way. ANALYSIS The proposed agreement will require opticAccess to comply with all local ordinances, including the requirement to apply for an encroachment permit each time work is performed in the right of way. Under the framework laid out by the agreement, opticAccess will provide a financial guarantee that it will perform its work in accordance with the agreement and any associated permits. All other fees, deposits and other securities will still be due with each permit.