The URL can be used to link to this page

Home My WebLink AboutRESO 7941. . follows: RESOLUTION NO. 7941 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING NEW UTILITY RATE SCHEDULES EDF-1 OF THE CITY OF PALO ALTO UTILITIES RATES AND CHARGES PERTAINING TO DARK FIBER LICENSING SERVICES The Council of the City of Palo Alto does hereby RESOLVE as SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, new Utility Rate Schedule EDF-1 (Dark Fiber Licensing Services) is hereby added to read in accordance with Sheets EDF-1-1 through EDF-1-4, inclusive, attached hereto and incorporated herein. The foregoing Utility Rate Schedule shall become effective March 15, 2000. SECTION 2. The Council finds that the revenue derived from the authorized adoption enumerated herein shall be used only for the· purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, California Public Resources Code section 21080, subdivision (b) (8). INTRODUCED AND PASSED: March 6, 2000 AYES: BEECHAM, BURCH, FAZZINO, KLEINBERG, KNISS, LYTLE, MOSSAR, OJAKIAN NOES: ABSENT: NOT PARTICIPATING: EAKINS ABSTENTIONS: A~'-. (fi City Clerk 1 ~ APPROVED AS TO FORM: _. ~t1e"~ -( Senior Asst. CitY Aftorney 000301 syn 0071831 A. APPLICABILITY: DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 This rate schedule applies to Dark Fiber Services that are provided to various public agencies and private entities. The schedule specifies interconnection fees that must be pre-paid by the customer to connect their facilities or buildings to the City's Dark Fiber Backbone (Backbone). The schedule also specifies the annual usage fees in return for the privilege of using the Backbone. B. TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. C. PREPAYMENTOFFEES: All interconnection fees must be paid, in advance, prior to the scheduling of any construction or connection to the City's Backbone. Customers are responsible for the actual costs where an estimate is shown herein. Adjustments will be made if actual costs vary significantly from estimated costs. All recurring annual Backbone License Fees must be paid to the City annually, and in advance, in return for the privilege to use the Licensed Fibers D. DARK FIBER PRICING METHODOLOGY: The City will license Dark Fiber to all interested parties that are willing to agree to the terms and conditions associated with the Council-approved license agreement. Access and pricing will be offered in a competitively neutral, non-discriminatory manner. Actual prices paid by a licensee will be established on a case-by-case basis in accordance with a consistent set of pricing principles that will be used to determine the pricing for all licensees. The Annual License Price is a calculated value resulting in a value that is described by the following parameters: $ per Fiber-Mile-Year ($/FMY). The Annual License Fee is equivalent to Price X Quantity. Quantity refers to the number of Fiber-Miles (FM) actually licensed by the customer. The charge for licensed Dark Fiber on the Backbone will be calculated in accordance with a formula equal to the greater of the minimum charge for the Licensed Fibers or the maximum charge for the Licensed Fibers, reduced by the sum total of all price discounts to which the Licensee may be entitled The Fiber Price for a given licensee will be determined in accordance with the following formula: Issued by the City Council Effective 3/15/00 CITYOFPALOALTo Original Sheet No. EDF-1-1 UTILITIES DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 Fiber Price= max [ Pmin, Pmax-Discounts] Licensees are entitled to the following Dark Fiber discounts. The discounts are applicable to those Licensees who: (1) use larger quantities ofDark Fiber along a given segment; (2) simultaneously acquire Dark Fibers in groups of 12 (i.e., complete buffer tubes) along a given segment; (3) use greater route distances; (4) completelyutilize one or more of the available route-diverse rings; (5) sign an agreement with a term of more than 1 year; and ( 6) provide a substantial public benefit. E. SUMMARY OF FEES: 1. ADVANCED ENGINEERING FEES: The Advanced Engineering Fee is a non-refundable fee required to cover the cost of preparing an Advanced Engineering Study which produces a detailed estimate (to within +/-10%) of the cost and time required for the City of Palo Alto Department of Utilities to complete the interconnection of the customer's building(s) to the Backbone. If the project is constructed, the Advance Engineering Fee will be credited against the Interconnection Fee. This Fee is required to start any project and is charged in multiples, based on the number of buildings proposed or singularly if only the existing Backbone is involved. Advanced Engineering Fee (per new drop cable proposed) .................................... $500.00 2. DARK FIBER INTERCONNECTION FEES: The Dark Fiber Interconnection Fee covers the cost of installing drop cables and associated equipment between the customer's building and the Backbone Splice Point. The Dark Fiber Interconnection Fee is project-specific, the value of which is a resultant of the Advanced Engineering Study. Dark Fiber Licensees have the option to spread the Interconnection Fee over the term of their contract up to a maximum of 5 years. Customers electing to take this option will be billed at the beginning of the year, and will pay an annual payment which includes the principal plus interest. Dark Fiber Interconnection Fees .................................................................. By Estimate Interest Rate for an Extended Repayment Plan of the Interconnection Fees ............ Applicable Rate Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 3/15/00 Original Sheet No. EDF-1-2 '. <' 3. DARK FIBER DISCONNECTION FEES: DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 (Continued) A Dark Fiber Disconnection Fee will be charged to disconnect any Drop Cable from the Backbone. Dark Fiber Disconnection Fees (per Fiber) ............................................................ $25.00 4. DARK FIBER BACKBONE LICENSE FEES: The current values or ranges, which may be revised from time to time, for each of these pricing components are shown below in 2000 dollars. The License Fee includes the cost of splicing the Backbone at all intermediate Splice Points. Fiber Price Range: Pmin = $500/FMY Pmax = $2,792/FMY Fiber Discounts: Dfiber quantity= $0 -$558/FMY Dbuffertube = $558/FMY Droute distan~= $0 -$726/FMY Dring topology= $223/FMY Dterm = 0$ -$450/FMY Dpublic benefii = $500/FMY Dpublic benefit is a place holder that is reserved to allow an extra discount for licensees that provide a substantial public benefit in Palo Alto (e.g., a provider of advanced telecommunications on a universal service basis). 5. DARK FIBER CUSTOM CABLE FEES: If a Custom Cable requested by the Licensee cannot be installed in existing conduit or attached to existing poles from the first demarcation point to the second demarcation point, then the Licensee may request that the City install new conduit and cable at the Licensee's sole expense, and then the Licensee shall pay an annual Customer Cable Management Fee. Custom Cable Management Fees (per Foot, for the first 12-Fibers) .............................. $2.69 Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 3/15/00 Original Sheet No. EDF-1-3 DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 Custom Cable Management Fees (per Foot, each additional set of 12-Fibers) .................... $0.54 (Continued) 6. OTHER DARK FIBER FEES: If the License Fees, or Custom Cable Management Fees for a full or partial Contract Year or other charges are not paid as required, an Administrative Charge for processing and simple interest on the unpaid shall accrue until paid. Fee for Unpaid Balance of Fees (per month) ............ ; ............................... 1% of the Balance Administrative Charge due to Unpaid Balance ..................................................... $200.00 Minimum Total Annual Dark Fiber License Fee ................................................... $4,191.00 F. SPECIAL NOTES: ' 1. The minimum term for all License Agreements is 1 year. The maximum term is currently limited to 10 years. Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 3/15/00 Original Sheet No. EDF-1-4