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• CITY OF ARDEN HILLS <br /> MEMORANDUM <br /> DATE: March 13, 2000 <br /> TO: Operations and Finance Committee <br /> FROM: Joe Lynch, City Administrator4-404&-- <br /> SUBJECT: Right-of-Way Issues <br /> Enclosed within is a copy of a Right-of-Way Permit and Facility Use Agreement with <br /> MetriCom, a wireless Internet provider. <br /> This company has approached the City of Arden Hills wanting to locate their equipment on <br /> utility poles owned by Northern States Power and/or the City of Arden Hills. I have enclosed <br /> some information from U.S.News and World Report, Telephony, and a telecommunications <br /> article from the Wall Street Journal, giving some background and basic information on the <br /> company. <br /> • I would like the Operations and Finance Committee to review the proposed Right-of-Way Permit <br /> and Facility Use Agreement, in light of the educational information provided to determine what <br /> steps, if any,the City of Arden Hills should take at this time with MetriCom. My understanding <br /> of the situation is that the company would locate radio boxes on the light poles within the right- <br /> of-wayof the Cityof Arden Hills. <br /> These radio boxes transmit at the 900-megahertz level at <br /> various intervals to locations in and throughout the City of Arden Hills for wireless Internet <br /> users. <br /> The Customer Service Representative has indicated that this is not subject to a franchise <br /> agreement, but has indicated a willingness to give the City of Arden Hills ten(10) free wireless <br /> service accounts as part of the installation in the City of Arden Hills. As well,they have <br /> indicated that the City can purchase ten (10) modems that will pick up the radio frequencies and <br /> deliver the wireless internet service to wherever the City has located the modems. <br /> In addition, MetriCom will give the City of Arden Hills, on an annual basis, one percent (1%) of <br /> their gross revenues of sales within the City of Arden Hills. At first blush,this may seem to be <br /> quite a bit, but their Customer Service Representative indicates that market penetration is usually <br /> between two and four percent (2—4%), which leaves the City with only about $400 net as a <br /> result of this "gift." MetriCom will also reimburse the City of Arden Hills up to $1,000 for our <br /> legal fees for review of the enclosed Permit and Agreement. <br /> • <br />