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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />May 22, 2017 <br />SUBJECT <br />Agreement with ExteNet Systems (California) LLC for the Installation of Fiber Optic <br />Facilities <br /> <br />RECOMMENDATION <br />By motion, approve and authorize the City Manager to execute an agreement with <br />ExteNet Systems (California) LLC for the installation of fiber optic facilities in Redwood <br />City <br /> <br />BACKGROUND <br />ExteNet Systems (California) LLC (“ExteNet”) designs, owns and operates fiber optic <br />communications infrastructure for wireless service providers to deliver wireless services <br />to their customers. The California Public Utilities Commission issued ExteNet a <br />Certificate of Public Convenience and Necessity (CPCN) to provide telecommunication <br />services throughout the State of California. The CPCN gives ExteNet authority at a state <br />level to operate in the public right-of-way in accordance with its terms. <br /> <br />Earlier this year ExteNet approached staff to install, maintain and operate its facilities <br />within Redwood City in accordance with its CPCN. The CPCN allows ExteNet facilities <br />in the Redwood City public right-of-way in a manner similar to telephone and cable <br />companies. ExteNet facilities would include fiber optic communication lines that allow <br />multiple wireless service provers to communicate with above-ground wireless <br />communication facilities such as antennas and wireless access points. <br /> <br />Staff and ExteNet negotiated an agreement to provide a general framework for ExteNet <br />facilities (Attachment 1). Within this framework, ExteNet will apply for the necessary <br />permits and approvals to install, maintain and operate its facilities in compliance with <br />state law and local ordinances. The City has entered into at least ten similar <br />agreements with other communications companies since the year 2000, and many of <br />those companies continue to install, maintain and operate their systems in the public <br />right-of-way. <br /> <br />ANALYSIS <br />The proposed agreement will require ExteNet to comply with all local ordinances, <br />including any applicable wireless communications facilities ordinance and the <br />requirement to apply for an encroachment permit each time work is performed on the <br />right-of-way. Restoration requirements for encroachment permits covering such work <br />are summarized in Attachment 2. Under the framework laid out by the agreement, <br />6.1.D. - Page 1