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ANALYSIS <br />The proposed agreement will require MCImetro to comply with all local ordinances, <br />including the requirement to apply for an encroachment permit each time work is <br />performed in the right-of-way. Under the framework laid out by the agreement, <br />MCImetro will provide a financial guarantee that it will perform its work in accordance <br />with the agreement and any associated permits. All other fees, deposits and securities <br />will still be due with each permit. <br /> <br />By entering into the proposed agreement, current and future staff will be aware of the <br />authority granted to MCImetro by the state’s CPCN, and MCImetro will carry out its work <br />in accordance with the specific terms laid out in the agreement. The agreement <br />provides a predictable, existing set of terms that cover all work performed by MCImetro, <br />however each time MCImetro intends to perform work in the City, staff may also apply <br />permit-specific conditions consistent with local ordinances. Currently, the City is <br />evaluating a potential “Dig Once” policy to implement a city-wide fiber network which <br />could be included into permits related to this work. Additionally, MCImetro will maintain <br />membership in Underground Service Alert so that its facilities can more easily be <br />identified, similar to all other utility companies operating in the City. The initial <br />agreement term is set for ten years and will automatically renew for additional one-year <br />periods. <br /> <br />ALTERNATIVES <br />Council may choose not to approve the agreement, or direct staff to renegotiate the <br />terms of the agreement. <br /> <br />FISCAL IMPACT <br />There is no fiscal impact to the City as a result of this action. MCImetro will pay all <br />required fees and deposits for any future permits issued under the proposed agreement. <br /> <br />ENVIRONMENTAL REVIEW <br />The activity is not a project under CEQA as defined in CEQA Guidelines, section 15378, <br />because it has no potential for resulting in either a direct or reasonably foreseeable <br />indirect physical change in the environment. <br /> <br /> <br />JAMES O’CONNELL, PE <br />SENIOR CIVIL ENGINEER <br /> <br /> <br /> <br />6.1.A. - Page 2