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REQUEST FOR COUNCIL ACTION DATE: 02/14100 ITEM NO.:F-2 Department Approval: Manager Reviewed: Agenda Section: 9 Reports Item Description: Agreement with Metricom to allow the installation of a wireless network in Roseville Background: Metricom, Inc. proposes to install a wireless network throughout the Twin Cities and to offer its new wireless intemet service, called Ricochet, to City businesses and residents. This new network will require the installation of shoebox size radios on existing utility poles. A typical system requires approximately seven such radios per square mile. The installation of the basic system will not require any additional poles or trenching in the right-of-way. Metricom, however, will need to use the right-of-way to access the facilities. Over the past several years, much discussion has occurred regarding a city's right to control utility use within public right-of-ways. For many years, Roseville has maintained a franchise agreement with NSP and Media One that controls the natural gas, electric and cable TV utilities within the City. In 1999, Roseville enacted a new right-of-way management ordinance that allows more control over all utilities including non-franchisable utilities like US West and other telecommunications providers. Metricom, and its Ricochet wireless service, is one such non- franchisable utility. It is unlikely that Roseville could, if it wanted, prohibit Metricom from developing in the community. Roseville's only direct control is through the right-of-way ordinance. While not required, Metricom is proposing to enter into a standardized agreement with individual cities. This approach will avoid the fee variation in right-of-way ordinances and make their operations consistent across all metro area cities. The proposed agreement in Roseville has been negotiated with both the League of Minnesota Cities and the Suburban Rate Authority and is the same agreement being offered to other metro area cities. It is not intended to supercede any local right-of-way ordinances. Rather it has been written to match the League of Minnesota Cities model right-of-way ordinance — the basis for Roseville's Right-of-way Management Ordinance. The following provisions are included in the attached agreement: • Term - Nine (9) years with three (3) five (5) year extensions • Compensation City to receive 1% of annual adjusted gross revenues to reimburse right-of-way management costs. Based on Metricom estimates, this will be approximately $300 per year. The agreement allows the City to charge actual costs if they exceed this amount. City to receive $60.00 annually for each municipal facility on which a Metricom radio is located (note: most power poles located in Roseville are owned by other utilities not Roseville)