April 25, 2006
SUBJECT: Amendment to Street Light Pole Contract & Franchise Agreement with MetroFi, Inc.
REPORT IN BRIEF
Approval is requested for a first amendment to the Street Light Pole Contract & Franchise Agreement with MetroFi, Inc. (Attachment A). The requested amendment would encompass other public places for MetroFi to install its communications equipment in addition to street light poles.
BACKGROUND
On December 7, 2004, Council granted a non-exclusive franchise agreement to MetroFi, Inc. to provide wireless Internet services in the residential areas of Sunnyvale (RTC #04-416). MetroFi is currently providing free and low cost wireless Internet services to about two-thirds of the residential areas in the City.
In addition, on December 20, 2005, Council directed staff to work with MetroFi to provide free wireless services in the downtown area (RTC #05-390). In order for MetroFi to deliver these services, a network operations center is needed in the downtown area. The network operations center consists of communications equipment including an equipment cabinet, a dish antenna, radio devices on the top of three light poles and microwave link.
MetroFi approached the City to determine the feasibility of installing the communications equipment on the top level of the Caltrains parking structure. The City is currently working with MetroFi on a lease agreement for use of this space. This location will enable MetroFi to deploy wireless services to the downtown area as well as to build out wireless network to the residential areas in the northern sections of the City.
EXISTING POLICY
Telecommunications Policy, 1996 – Goal D: Promote use of telecommunications technology, where appropriate and within the scope of available resources, to enhance the economic vitality of Sunnyvale.
Telecommunications Policy, 1996 – Goal E: Facilitate the creation of an advanced telecommunications network infrastructure, within given resources, for Sunnyvale citizens, businesses, and industries.
DISCUSSION
MetroFi has completed deployment of its wireless network to approximately two-thirds of the residential areas of the City. In order to complete deployment in the remaining residential areas of the City and to provide wireless services in the downtown area, MetroFi searched for the most appropriate site to install a network operations center. MetroFi explored commercial options, which are limited due to the need to install the equipment on a building with some height and approached the City as to the feasibility of using space on the Caltrains parking structure. The Caltrains parking structure provides the height needed for the communications equipment and is in an area that will cover downtown and the northern sections of the City.
City staff reviewed the Cooperative Agreement for Ownership, Operation, and Maintenance of Sunnyvale Multimodal Transit Station between the City and Peninsula Corridor Joint Powers Board (JPB) and determined that the City has the authority to approve placement of antennas on the structure as long as the placement does not interfere in any way with JPB’s rights under the easement.
City Planning and Information Technology staff met with MetroFi to discuss the proposed installation of equipment. MetroFi subsequently applied for a minor use permit to the Planning Division. An Administrative Hearing was held on March 15, 2006, at which time a use permit was granted to MetroFi with the condition that a separate lease agreement for the space is required.
Although it isn’t anticipated that MetroFi will need to install another communications site in the City, the amendment will enable City staff to approve locations for equipment on public places other than street light poles if MetroFi submits requests in the future. MetroFi will apply for all required permits and approvals for these installations as well as enter into any lease agreements as appropriate.
FISCAL IMPACT
If Council approves the amendment, the City will receive compensation in the form of rent payments for any space leased by the City to MetroFi to place communications equipment on public property. The estimated annual rent payments for the proposed location on the Caltrain parking structure are $3,600.
CONCLUSION
The amendment will enable City staff to approve MetroFi’s requests to place transmitters on public places in addition to street light poles. MetroFi must obtain all necessary permits and approvals before any equipment can be installed or enter into a separate lease agreement with the City before locating communications equipment on City-owned property other than street light poles.
Approval of the amendment will enable the City to finalize negotiations on a lease agreement with MetroFi to install communications equipment on the Caltrains parking structure. This installation is essential in order for MetroFi to complete deployment of its wireless network in the downtown area as well as to deploy wireless Internet services throughout the northern residential areas of the City.
PUBLIC CONTACT
Public Contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the Library and City Clerk’s Office.
ALTERNATIVES
Alternative #1 – Approve an amendment to the Street Light Pole Contract & Franchise Agreement to encompass other public places in the City for MetroFi to install equipment subject to obtaining the required permits and approvals.
Alternative #2 – Do not approve an amendment to the Street Light Pole Contract & Franchise Agreement with MetroFi, Inc.
RECOMMENDATION
Approve Alternative #1, Approve an amendment to the Street Light Pole Contract & Franchise Agreement to encompass other public places in the City for MetroFi to install equipment subject to obtaining the required permits and approvals.
Reviewed by:
Shawn Hernandez, Director, Department of Information Technology
Prepared by: Marilyn Crane, Manager, Information Technology Services
Approved by:
Amy Chan
City Manager
Attachments
A. Draft First Amendment to Street Light Pole Contract & Franchise Agreement with MetroFi, Inc. (.pdf)