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Home My WebLink AboutRESO 95926053774 Resolution No. 9592 Resolution of the Council of the City of Palo Alto Adopting a Dark Fiber Rate Increase and Amending Rate Schedules EDF1 (Dark Fiber Licensing Services) and EDF2 (Dark Fiber Connection Fees) R E C I T A L S A. The City of Palo Alto administers three different fiber rates. Fiber Rate schedule EDF1 applies to customers with fiber optic licenses that began prior to September 18, 2006, and is closed to new customers. Fiber rate schedule EDF2 applies to customer engineering, construction and connection expenses. Fiber rate schedule EDF 3 applies to customers who obtained licenses since 2006. B. The original Councilapproved Dark Fiber Licensing Agreement annually increases both the EDF1 and EDF2 rates by the Consumer Price Index for all Urban Consumers for the San FranciscoOaklandSan Jose Metropolitan Statistical Area (CPI). EDF3 has no CPI adjustment factor. C. The last time Council adopted a resolution incorporating CPIadjusted rates into the EDF1 and EDF2 rate schedules was June 15, 2015 [Resolution 9523]. The Council of the City of Palo Alto hereby RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule EDF1 (Dark Fiber Licensing Services) is hereby amended to read as attached and incorporated. Utility Rate Schedule EDF1, as amended, shall become effective July 1, 2016. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule EDF2 (Dark Fiber Connection Fees) is hereby amended to read as attached and incorporated. Utility Rate Schedule EDF2, as amended, shall become effective July 1, 2016. SECTION 3. The Council finds that the revenue derived from the adoption of this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. SECTION 4. The Council finds that the adoption of this resolution increasing dark fiber rates by the Consumer Price Index to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to (SGY7MKR)RZIPSTI-(%%*)%%())&(()'* 6053774 Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: June 13, 2016 AYES: BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH NOES: ABSENT: BERMAN ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Utilities Director of Administrative Services (SGY7MKR)RZIPSTI-(%%*)%%())&(()'* DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-1-1 Effective 07-01-2016 dated 7-01-2015 Sheet No.EDF-1-1 A. APPLICABILITY: This rate schedule applies to customer accounts established prior to September 18, 2006, unless the customer elects to apply the EDF-3 rate to the entire customer account. This rate applies to Fiber Optic services from the City of Palo Alto Utilities (CPAU) pertaining to the City's network (Backbone and associated connections). B. TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. C. FEES: 1. DARK FIBER BACKBONE LICENSE FEES: The values or ranges for each of these price components are shown below: (1) Fiber Price………………………………………………………………. $356.32/FM/month (2) Quantity discount ……………………………………………………… $0 to $59.84/FM/month (3) Buffer tube discount……………………………………………………….. $0 to $59.84/FM/month (4) Route length discount…………………………………………………….. $0 to $77.80/FM/month (5) Ring topology discount………………………………………………………$0 to $23.94/FM/month (6) Length of term discount…………………………………………………… $0 to $46.80/FM/month Minimum Backbone License Fee......................................................................................$538.92/month Project Minimum Backbone Fees apply to any project proposal signed after September18, 2006 in which the project connects with the Backbone. Description for Discounts: Quantity discount: based on an array of discounts for quantities of fiber licensed on a specific path. Buffer tube discount: discount for numbers of full buffer tubes licensed on a specific path. Route length discount: based on the route length licensed on a specific project. Ring topology discount: The ring topology discount for customers contracting for complete rings. Term discount: based on an array of discounts for contracts greater than one and less than ten years. 2. DARK FIBER LATERAL CONNECTION FEES: Customer responsibilities and fees for drop and custom cable construction are described in the CPAU Rules and Regulations, Rate Schedule EDF-2, project proposals and other associated documents. In all cases, the Licensee shall pay an annual Drop/Custom Cable Management Fee based on the follow per foot fees: (1) Drop Cable Management Fees (for the first 12-Fibers) …………………………… $0.03-$0.07/ft/month (2) Custom Cable Management Fees (for the first 12-Fibers)……………………….. $0.34/ft/month (3) Fees for additional Drop or Custom Cable fibers (each additional set of 12-Fibers) $0.07/ft/month Minimum Drop or Custom Cable Management Fees........................................................ $266.29/month Minimum Drop Cable Management Fees apply to any project proposal signed after September 18, 2006. (SGY7MKR)RZIPSTI-(%%*)%%())&(()'* DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-1-2 Effective 07-01-2016 dated 7-01-2015 Sheet No.EDF-1-2 3. EARLY TERMINATION FEES: If the Licensee chooses to terminate for convenience the License Agreement or the term of any project under the License Agreement, then the Licensee shall pay the applicable termination payment as specified in this schedule or in the License Agreement, as provided below. Unless otherwise provided in the License Agreement, the Licensee shall pay a termination fee in one of the following amounts, whichever is less: Annual fee of the contract year that the Licensee chooses to terminates in full without term discounts, or Remaining fees of the project term as indicated in the License Agreement. D. SPECIAL NOTES: 1. All fees must be paid to the City in accordance with the terms of the Dark Fiber License Agreement, the customer’s project proposals and all the applicable Utilities Rates, Rules, and Regulations. 2.All feesand minimum charges are subject to Consumer Price Index (CPI) adjustments, to be applied annually, except as defined by Section D.3 of this Rate Schedule. Discounts will not be modified by changes to CPI. 3.The CPI adjustment willbe based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland-San Jose MSA, published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment is calculated by dividing the most recent calendar year December CPI by the December CPI in the year rates last changed. In the event that the change between December CPI’s indicates an adjustment of less than 1% is required, a change to rate schedules may not be made for the upcoming year. Future rate changes will take the last year of change as the new base year for purposes of calculation. {End} (SGY7MKR)RZIPSTI-(%%*)%%())&(()'* DARK FIBER SERVICE CONNECTION FEES UTILITY RATE SCHEDULE EDF-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-2-1 Effective 7-01-2016 dated 7-01-2015 Sheet No.EDF-2-1 A. APPLICABILITY: This schedule applies to all connections, expansions, and upgrades to the City's Dark Fiber network (Backbone). B. TERRITORY: All territory within the incorporated limits of the City and land owned or leased by the City. C. FEES: 1. ADVANCE ENGINEERING FEES: Advance engineering (AER) fees must be paid to start the engineering process and are non-refundable. The fees will be credited against the estimated project cost prior to the collection of the project construction fees. (1) Commercial/Industrial AER minimum fee..................................................................... $851.00 (2) Special conditions (requiring expert assessment)........................................................... By Estimate 2. ESTIMATED SERVICE CONNECTION AND RECONFIGURATION FEES All estimated service connection and reconfiguration fees must be paid prior to the scheduling of any construction or reconnections to the City's Dark Fiber network. (1) Service connection (Interconnection) fee...................................................... By Estimate (2) Reconfiguration Fees..................................................................................... By Estimate Labor rates are subject to change as stated in the Utility Rate Schedule C-1. D. NOTES: 1.The Customer is responsible for the installation and maintenance of all ducts and pathways from the facility to the property line in compliance with City of Palo Alto Utilities Rules and Regulations and contract agreements. 2.The City shall not be held liable for delays or interruptions in service, but will make reasonable efforts to provide timely continuous service. 3.All fees are subject to Consumer Price Index (CPI) adjustments, to be applied annually. The CPI adjustment will be based on the Consumer Price Index for All Urban Consumers (CPI-U)for the San Francisco-Oakland- San Jose MSA, published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment is calculated by dividing the most recent calendar year December CPI by the December CPI in the year rates last changed. In the event that the change between December CPI’s indicates an adjustment of less than 1% is required, a change to rate schedules may not be made for the upcoming year. 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