HomeMy WebLinkAbout2003-04-14 City Council5
TO:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
CITY MANAGER
APRIL 14, 2003
~TDEPARTMEN : UTILITIES
CMR: 116:03
ADOPTION OF A RESOLUTION REVISING RATE SCHEDULE
EDF-1 FOR DARK FIBER LICENSING SERVICES
RECOMMENDATION
Staff recommends that the City Council adopt a resolution revising Rate Schedule EDF-1
for dark fiber licensing services.
BACKGROUND
The City of Palo Alto established the dark fiber-optic system in Palo Alto in 1996 .The
original purpose of the fiber system was to provide dark fiber services to
telecommunication service providers.
The fee structure developed for dark fiber services provided by the City includes advance
engineering fees (for construction studies), interconnection fees (for actual construction),
annual backbone license fees (usage fees) and drop/custom cable management fees
(usage fees). The fee structure was originally approved by Council in the City’s first dark
fiber license agreement in April 1997. On March 15, 2000 (CMR:164:00), the Council
revised the dark fiber services fees to make dark fiber licensing more price competitive
with alternative providers. On September 19, 2001 Council (CMR:326:01) adopted a
resolution revising the dark fiber licensing fees to include annual consumer price index
(CPI) adjustments and to incorporate some minor changes for clarification.
CMR:116:03 Page 1 of 3
DISCUSSION
Staffhas identified areas in the rate schedule that need modification to provide customers
with clarification of items addressed in the rate schedule and the dark fiber license
a~’eement. This proposed rate schedule does not raise existing fees. The purpose of this
document is to provide customers with a concise schedule of all fees related to dark fiber
service.
The proposed changes to the dark fiber services rate schedule EDF-1 are as follows:
i Section:Description of Change:Comments/Explanations:
A:o Removed redundant content Simplify the rate schedule.
o Language added to clarify the application of $500 Advance Clarify customer responsibilities related to
I C.1 Engineering Fee Advance Engineering Fee.
o Language added to clarify the application of $320 Clarify customer responsibilities related to
, C-5:Disconnection Fee Disconnection Fee,
¯Language added regarding the application of other Relate provisions in the license agreement to
C-6:connection and configuration fees current pricing.
o Language added describing the applicability of early Clarify customer responsibility related to early
C-7:termination fees termination of fiber projects.
o Language added describing applicability of minimum Clarify customer responsibilities related to
C-8:annual license fee minimum annual license fee.,
o Removed language for adjustments provisions for jobs
I D-I:done based on estimates.Reflects current business practices.
RESOURCE IMPACT
Approval of the revised Rate Schedule EDF-1 will define business practices in the
cm-rent rate schedule and provide customers with a clear and COlnprehensive explanation
regarding dark fiber fees. This rate schedule provides clarification of existing fees and
does not impact revenues.
POLICY IMPLICATIONS
This recommendation does not represent any change to existing City policies and is
consistent with the Council approved Utilities Strategic Plan to deliver products and
services for competitive markets.
CMR:116:03 Page 2 of 3
ENVIRONMENTAL REVIEW
Adoption of the resolution to establish Rate Schedule EDF-1 does not constitute a project
under the California Environmental Quality Act.
ATTACHMENTS
A: Resolution
B: Rate Schedule EDF-1
PREPARED BY:
CAN
Senior Resource Planner, Telecommunications
DEPARTMENT HEAD:
Did/i/ of Utilities
CITY MANAGER APPROVAL:
HARRISON
Assistant City Manager
CMR:116:03 Page 3 of 3
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO
ALTO AMENDING UTILITY ~hTE SCHEDULE EDF-I OF THE
CITY OF PALO ALTO UTILITIES RATES AND CHARGES
PERTAINING TO DAR_K FIBER LICENSING SERVICES
The Council of the City of Palo Alto does hereby RESOLVE
as follows:
SECTION i. Pursuant to Section 12.20.010 of the Palo
Alto Municipa! Code, Utility Rate Schedule EDF-I (Dark Fiber
Licensing Services) is hereby amended to read in accordance with
Sheets EDF-I-I through EDF-I-4, inclusive, attached hereto and
incorporated herein. The foregoing Utility Rate Schedule shall
become effective on Apri! 14, 2003.
SECTION 2. The Council finds that the revenue derived
from the authorized adoption enumerated herein shal! be used
used only for the purposes set forth in Article VII, Section 2,
~ r ¯of the Charge 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 Environmenta! Quality Act, California Public
Resources Code section 21080, subdivision (b) (8).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Mayor
City Manager
Senior Asst. City Attorney
Director of Utilities
Director of Administrative
Services
030321 syn 0072242
Ao
Bo
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FIBER LICENSING SER~,,qCES
UTILITY RATE SCHEDULE EDF- 1
APPLICABILITY:
This rate schedule applies to various customers receiving Dark Fiber services from the City.’ of Palo Alto Utilities
(CPAU) pertaining to the CiD"s Dark Fiber network (Backbone).
TERRITORY:
Within the incorporated linaits of the Cib’ of Palo Alto and land owned or leased by the City.
FEES:
1.ADVANCE ENGLNEERING FEES:
The Advance Engineering Fee is a non-refundable fee required for preparing an engineering study, which
produces a detailed estimate of the cost and time required for the City, of Palo Utilities to provide customers
dark fiber connectivity. If the project is constructed, the Advance Engineering Fee wi!l be credited against
the Lnterconnection Fee. The Payment of Advance Engineering Fee is required to start any project.
Advance Engineering Fee (per project with up to one lateral) ............................................................$500.00
(Per each additional lateral) ......................................................................$500.00
Special Conditions (projects requiring expert assessment) .........................(labor and materials) By’ Estimate
DARK FIBER INTERCONNECTION FEES:
o
The Dark Fiber Interconnection Fee covers the cost of installing lateral connections and associated
equipment as specified in the Advanced Engineering Study,. The Dark Fiber Imerconnection Fee is project-
specific, the value of which is the result of the Advance Engineering Study.
Dark Fiber Interconnection Fees .................................................................(labor and materials) By’ Estimate
DARK FIBER BACKBONE LICENSE FEES:
The current values or ranges for each of these price components are shown below for 2003 billing. The
License Fee includes the cost of splicing the Backbone at all intermediate splice points.
Fiber Price Range:
The minimum rate (Pmin) is $522 per fiber mile per year ($FFM-Y)
The maximum rate (Pmax) is $2,905 per fiber mile per year ($/FMY)
Fiber Discounts: The following discounts apply.
Fiber quantiD" discount: The discount for quantities of fibers licensed on a specific path ranges from $0 ~o
$581 per fiber mile per year ($/FMY).
Buffer tube discount: The Discount for numbers of full buffer tubes licensed on a specific path ranges from
$0 to $581 per fiber mite per year ($/FMY).
Route length discount: The route length discount ranges from $0 to $755 per fiber mile per year ($CFMY).
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supercedes Sheet No.EDF-I-1 dated 9-19-2001 CITY OF ,--ALO ALTO
UTILITIES
Effective 4-14-2003
Sheet No.EDF-I-1
DARK FIBER LICENSING SER~rICES
UTILITY RATE SCHEDULE EDF-1
Ring topolog5 discount: The ring topology discount for customers contracting for complete rings ranges
from $0 to $232 per fiber mile per year ($/Fg,W).
Len~h of term discount: The discount for contracting for terms of greater than one year ranges from $0 to
$454 per fiber mile per year ($/FMY).
Public benefit discount: The discount for public facilities providing substantial public benefit ranges from
$0 to $2,383 per fiber mite per year ($/FM-Y).
DAIKK FIBER LATERAL CONNECTION FEES:
If a lateral connection 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 Cib’ install new conduit and cable at the Licensee’s sole expense. In either occasion, the
Licensee shall pay an annual Drop/Custom Cable Management Fee.
Drop Cable Management Fees (per Foot, for the first 12-Fibers) ...............................................$0.10-$0.55
Drop Cable Management Fees (per Foot, each additional set of 12-Fibers)$0.55
Custom Cable Management Fees (per Foot, for the first !2-Fibers) ......................................................$2.81
Custom Cable Management Fees (per Foot, each additional set of 12-Fibers) ......................................$0.55
DARK FIBER DISCONNECTION AND RECONFIGURATION FEES:
A Dark Fiber Disconnection Fee will be charged to disconnect any, lateral connection from the Backbone.
This fee is required to disconnect any, project and is charged based on the number of laterals requested.
Dark Fiber Discotmection Fees (per project up to one disconnection) ................................................$320.00
(Per each additional disconnection ....................................................S320.00
Reconfiguration Fee ....................................................................................(labor and materials) By Estimate
OTHER CONNECTION ,4~ND CONFIGLFRATION FEES:
Charges for other connection and configuration activities are priced based on CPAU’s cost of time and
materials as stated in the Utilits’ Rate Schedule C-1. Unless specifically’ authorized in writing by the
Licensee, work witl not be performed outside of normal working hours.
EARLY TERI~IINATION FEES:
If the Licensee chooses to tem~inate for convenience the License Ageement 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 A~eement, 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:
o Annual fee of the contract year that the Licensee chooses to terminates in full without term
discounts, or
CITY OF PALO ALTO UTILITIES
Issued by the Cit? Counci!
Supemedes Sheet No.EDF-1-2 dated 9-!9-2001 CITY OF PALO ALTO
UTILITIES
Effect:ire 4- t 4-~.00.~
Sheet No.EDF-1-2
D~RK FIBER LICENSING SERVICES
UTILITY RATE SCHEDULE EDF-1
o Remaining fees of the project term as indicated in the License Agreement.
8.OTHER DARK FIBER FEES:
If the above fees for a full or partial Contract Year are not paid as required, an administrative charge for
processing and simple interest on the unpaid shall accrue and shall be payable 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 ............................................................................$4,378.00
Minimum total annual dark fiber license fee will be assessed against the f~rst pr~ect of the license
ageement.
SPECIAL NOTES:
1.PREPAYMENT OF FEES:
All advance engineering fees must be paid, in advance, prior to the scheduling of any investigation and
project estimation. Adjustments will be made if the project requires special conditions. (e.g., high voltage
expertise, pole assessments expertise, etc.).
All intercormection fees must be paid, in advance, prior to the scheduling of any construction or connection
to the Backbone.
All recurring Dark Fiber License Fees must be paid to the CiD~ annually, and in advance, in return for the
priv’ilege to use the Licensed Fibers.
2.DARK FIBER PRICLNG METHODOLOGY: .
Access and pricing will be offered in a competitively neutral, non-discriminator’ manner. Actual prices
paid by a licensee wil! 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 Fee is a calculated value described by the following parameters: $ per fiber mile per
year ($/FM~). The Annual License Fee is equivalent to [Price] x [QuantiD,]. QuantiD’ refers to the number
of fiber-miles (FM) actually licensed by the customer.
The annual charge for licensed Dark Fiber on the Backbone will be calculated to be the g-rearer of:
1. the minimum charge for the Licensed Fibers, or
2.the ma:dmum charge for the Licensed Fibers, reduced by the sum of all price discounts to which the
Licensee may be entitled, in accordance with the following formula:
Fiber Price = max [ Pmin, Pmax - Applicable Discounts]
3.TERM OF LICENSE:
CITY OF PALO ALTO UTILITIES
Issued by the CiD’ Council
Supercedes Sheet No.EDF-1-3 dated 9-19-2001 CiTY OF PALQ ALTO
UTILITIES
Effective 4-t4-2003
Sheet No.EDF-1-3
D.~RK FIBER LICENSING SER~CES
UTILITY tL~_TE SCHEDULE EDF-1
4o
The minimum term for a License A~eement is ! year. The maximum term is currently timited to !0 ?,ears.
ANNUAL FEE ADJUSTMENTS:
All fees are subject to annual consumer price index (CPI) adjusn-nents as of Januar?, 1 of each ?,ear.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supercedes Sheet No.EDF-1-4 dated 9-19-2001
CITY OF PALO ALTO
UTILITIES
Effective 4-14-2003
Sheet No.EDF-1-4