06-15-2000 Agenda - Laserfiche WebLink

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• • • 1. Reimbursement of the City's Right-of-Way Management Costs. We negotiated language in Minneapolis that would include bad debt that is ultimately collected in the calculation of the right-of-way management reimbursement fee that would be paid to cities. This particular revision would maximize the reimbursement amount that is received by a particular jurisdiction, and would prevent Metricom from excluding revenues that should be included in fee calculations. We are also recommending that the annual fee paid to cities for the use of their poles be increased annually, rather than every five years, by any increase in the consumer price index. This would ensure that the annual fee paid to cities keeps pace with inflation, and does not decrease, as would happen under Metricom's proposal. Finally, we included language that would require Metricom to reimburse municipalities for the reasonable costs of an audit if the results of any audit show that Metricom underpaid the right-of-way management reimbursement fee by more than five percent. 2. Management of Public Rights-of-Way and Public Property. In several areas, Metricom's standard agreement does not make clear that Metricom's rights are subject to a municipality's power to maintain its public rights-of-way and public facilities. We have rectified this deficiency in the model agreement by expressly stating that Metricom's operations are subject to a city's right to maintain its public rights-of-way and municipal facilities. We also included a change which states that Metricom cannot interfere in any manner with the operation, installation, maintenance, construction and reconstruction of all public rights-of-way and public facilities. In addition, our revisions make clear that Metricom will not obtain any property interest in municipal facilities (e.g., poles) and public rights-of-way. Lastly, we added language to Metricom's agreement which would require Metricom to notify a municipality, in writing, whenever it removes or relocates its radios. 3. Scope of Authorization. Our revisions expressly provide that Metricom is only authorized to use municipal facilities for the sole purpose of operating its system and providing mobile digital data services. Metricom is not authorized to provide telephone or cable television service. The specific language we added ensures that Metricom cannot expand its service offerings without obtaining a separate authorization from a municipality. 4. Reimbursement of Municipal Project Review Expenses. Metricom's standard agreement specifies that Metricom will reimburse cities for reasonable attorney's fees and other expenses up to a maximum amount of$1,000. Since this is a small amount that likely would not cover our clients' actual expenses, we increased the amount of the reimbursement to $2,000. This amount is fairly arbitrary and was increased to reflect greater expenses in Minneapolis. Your jurisdiction or member cities should feel free to reduce the reimbursement back to $1,000 if they make that policy decision. 5. Most-Favored Municipality Clause. We revised Metricom's "most-favored -9-