AgdaPkt 2006-01-09 - Laserfiche WebLink

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7~¿-Z By providing - through its carrier customers - for improved cell phone coverage and capacity, fewer "dropped" calls, and a reduction in the need for larger, more-obtrusive cell phone towers, the service provided by NextG is of value to Redwood City's citizens, institutions, and businesses that utilize cell phone service. NextG's facilities in Redwood City will only provide coverage within Redwood City, as they are very low power and designed to provide only very localized coverage, not wide area coverage. In exchange for its use of the City's rights-of-way, NextG will compensate the City as set forth in the attached agreement, which also provides stipulations and provisions for how NextG will install and maintain its equipment in Redwood City. A "model" right-of-way use agreement was prepared by the legal counsel of the San Mateo County Telecommunications Authority (SAMCAT). SAMCAT members were then able to modify the model agreement to fit their City's specific needs. This agreement has been reviewed by staff in Redwood City's planning division and its engineering and construction division, as well as the Public Works Services and Finance Departments. In summary, the compensation provided to the City from NextG consists of: 1. A Municipal Facilities Annual Fee of $300 per standard installation and use on a Municipal Facility. 2. A Right of Way Monthly Fee of 5% of NextG's Gross Revenues received by NextG from the provision of services or the sale of services within the City of Redwood City market. The agreement also requires that NextG give priority to utilizing municipal facilities on which defunct wireless carrier or data communications components are already in place, and to remove the defunct components from that facility prior to installation of NextG's equipment. Further, even if not using a pole which has defunct equipment, NextG will be required to remove defunct wireless carrier or data communications equipment from one municipal facility for each facility on which it installs new equipment. The City's downtown decorative streetlight poles will not be used as part of NextG's network. Other key elements of the agreement include: a. Prior to any installation, NextG will be required to obtain both written approval and any permits required by the City. b. The agreement is for a 10 year term, renewable for one additional five year period. c. NextG will pay all utilities costs (power for their equipment). d. Effective with the 5th year, the Annual Fee will be adjusted by the change in the Bay Area CPI over the first 5 years. Afterwards, the Annual Fee will be adjusted by the change in the CPI on a yearly basis. e. Appropriate terms relative to insurance, indemnification, surrender, security, termination, default and liability, have been included. Alternative The Council could choose not to adopt the draft Right-of-Way Agreement with NextG, and direct staff to continue negotiations with NextG.