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6.B. - Page 2 of 22 <br />Staff and Sonic negotiated an agreement to provide a general framework for Sonic facilities. Within this <br />framework, Sonic will apply for the necessary permits and approvals to install, maintain and operate its <br />facilities in compliance with state law and local ordinances. The City has entered into at least eleven similar <br />agreements with other communications companies since the year 2000, and many of those companies <br />continue to install, maintain and operate their systems in the public right-of-way. <br />ANALYSIS <br />The proposed agreement will require Sonic to comply with all local ordinances, including the requirement <br />to apply for an encroachment permit each time work is performed in the right-of-way. Under the <br />framework laid out by the agreement, Sonic will provide a financial guarantee that it will perform its work <br />in accordance with the agreement and any associated permits. All other fees, deposits and securities will <br />still be due with each permit. <br />By entering into the proposed agreement, current and future staff will be aware of the authority granted <br />to Sonic by the state's CPCN, and Sonic will carry out its work in accordance with the specific terms laid <br />out in the agreement. The agreement provides a predictable, existing set of terms that cover all work <br />performed by Sonic, however each time Sonic intends to perform work in the City, staff may also apply <br />permit -specific conditions consistent with local ordinances. Currently, the City is evaluating a potential <br />"Dig Once" policy to implement a city-wide fiber network which could be included into permits related to <br />this work. Additionally, Sonic will maintain membership in the Underground Service Alert so that its <br />facilities can more easily be 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 periods. <br />FISCAL IMPACT <br />There is no fiscal impact to the City as a result of this action. Sonic will pay all required fees and deposits <br />for any future permits issued under the proposed agreement. <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA <br />Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably <br />foreseeable indirect physical change in the environment. <br />PUBLIC NOTICE <br />Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 <br />hours prior to the meeting. <br />Page 2 of 3 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />12 <br />