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Home My WebLink AboutRESO 10302027060426 1 Resolution No. 10302 Resolution of the Council of the City of Palo Alto Amending Rate Schedules EDF-1 (Dark Fiber Licensing Services) and EDF-2 (Dark Fiber Connection Fees) The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule EDF-1 (Dark Fiber Licensing Services) is hereby amended to read as shown in Attachment F, Exhibit 1. Utility Rate Schedule EDF-1, as amended, shall become effective July 1, 2026. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule EDF-2 (Dark Fiber Connection Fees) is hereby amended to read as shown in Attachment F, Exhibit 1. Utility Rate Schedule EDF-2, as amended, shall become effective July 1, 2026. 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, consistent with any limitations imposed by Article XIII C and Article XIII D of the California Constitution. // // // // // // Docusign Envelope ID: 99E79B93-18D5-8FD4-826A-34FF996A685F 027060426 2 SECTION 4. The Council finds that the adoption of this resolution amending Dark Fiber utility 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 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 15, 2026 AYES: BURT, LAUING, LU, LYTHCOTT-HAIMS, RECKDAHL, STONE, VEENKER NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Utilities Director of Administrative Services Docusign Envelope ID: 99E79B93-18D5-8FD4-826A-34FF996A685F 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 07-01-20265 dated 07-01-20254 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 Schedule applies to Fiber Optic Service from the City of Palo Alto Utilities (CPAU) pertaining to the City's Dark Fiber Infrastructure and Fiber Optic Backbone. B. TERRITORY: All 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…………………………………………………………. $ 490.75 476.46 /fiber mile/month (2) Quantity discount ………………………………………………… $0 to $59.84/fiber mile/month (3) Buffer tube discount………………………………………………….. $0 to $59.84/fiber mile/month (4) Route length discount……………………………………………….. $0 to $77.80/fiber mile/month (5) Ring topology discount…………………………………………………$0 to $23.94/fiber mile/month (6) Length of term discount……………………………………………… $0 to $46.80/fiber mile/month Minimum Backbone License Fee ...................................................................................... $ 742.24 720.62 /month Project Minimum Backbone License Fees apply to any project proposal signed after September 18, 2006 in which the project connects with the Fiber Optic 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 Dark Optical Fiber Backbone License Agreement 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) …………………………… $0.04-$0.09/ft/month (2) Custom Cable Management Fees (for the first 12-Fibers) …………………… .......... $ 0.47 0.46/ft/month (3) Fees for additional Drop or Custom Cable fibers (each additional set of 12-Fibers) . $0.09/ft/month Attachment F, Exhibit 1Docusign Envelope ID: 99E79B93-18D5-8FD4-826A-34FF996A685F 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 07-01-20265 dated 07-01-20254 Sheet No. EDF-1-2 Minimum Drop or Custom Cable Management Fees .................................................. $ 366.75 356.07/month Minimum Drop Cable Management Fees apply to any project proposal signed after September 18, 2006. Attachment F, Exhibit 1Docusign Envelope ID: 99E79B93-18D5-8FD4-826A-34FF996A685F DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-1-3 Effective 07-01-20265 dated 07-01-20254 Sheet No. EDF-1-3 3. EARLY TERMINATION FEES: If the Licensee chooses to terminate for convenience the Dark Fiber Licensing Agreement (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 terminate 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 Licensing Agreement, the Customer’s project proposals and all applicable Utilities Rates, Rules, and Regulations. 2. All fees and 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 will be based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland-Hayward MSA, published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment is calculated by dividing the most recent calendar year’s December CPI by the December CPI in the year rates last changed. In the event that the change between December CPIs indicates an adjustment of less than 1% is required, a rate change may not be made for the upcoming year. {End} Attachment F, Exhibit 1Docusign Envelope ID: 99E79B93-18D5-8FD4-826A-34FF996A685F 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 07-01-20265 dated 07-01-20254 Sheet No. EDF-2-1 A. APPLICABILITY: This Rate Schedule applies to all connections, expansions, and upgrades to the City's Dark Fiber Infrastructure and Fiber Optic Backbone. B. TERRITORY: All territory within the incorporated limits of the City of Palo Alto 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 ..................................................................... $ 1,1721,138.00 (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 Infrastructure and Fiber Optic Backbone (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- Hayward MSA, published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment is calculated by dividing the most recent calendar year’s December CPI by the December CPI in the year rates last changed. In the event that the change between December CPIs indicates an adjustment of less than 1% is required, a rate change may not be made for the upcoming year. {End} Attachment F, Exhibit 1Docusign Envelope ID: 99E79B93-18D5-8FD4-826A-34FF996A685F Certificate Of Completion Envelope Id: 99E79B93-18D5-8FD4-826A-34FF996A685F Status: Completed Subject: RESO 10302 - Resolution for the FY 2027 Fiber Optic Utility Source Envelope: Document Pages: 6 Signatures: 6 Envelope Originator: Certificate Pages: 2 Initials: 0 Christine Prior AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Christine.Prior@PaloAlto.gov IP Address: 170.85.155.40 Record Tracking Status: Original 6/23/2026 5:58:48 PM Holder: Christine Prior Christine.Prior@PaloAlto.gov Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Signer Events Signature Timestamp Aylin Bilir Aylin.Bilir@paloalto.gov Assistant City Attorney Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 170.85.155.5 Sent: 6/23/2026 6:00:49 PM Viewed: 6/25/2026 2:56:43 PM Signed: 6/25/2026 2:57:30 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Lauren Lai Lauren.Lai@paloalto.gov Director Administrative Services/CFO COPA Security Level: Email, Account Authentication (None) Signature Adoption: Drawn on Device Using IP Address: 170.85.54.89 Sent: 6/25/2026 2:57:30 PM Viewed: 6/25/2026 5:15:19 PM Signed: 6/25/2026 5:15:30 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Alan Kurotori Alan.Kurotori@paloalto.gov Director of Utilities City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 170.85.54.101 Sent: 6/25/2026 5:15:31 PM Viewed: 6/26/2026 11:39:56 AM Signed: 6/26/2026 11:40:00 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Ed Shikada Ed.Shikada@paloalto.gov City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 170.85.54.89 Sent: 6/26/2026 11:40:01 AM Viewed: 6/29/2026 12:17:02 PM Signed: 6/29/2026 12:17:07 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Signer Events Signature Timestamp Vicki Veenker Vicki.Veenker@paloalto.gov City of Palo Alto Security Level: Email, Account Authentication (None)Signature Adoption: Uploaded Signature Image Using IP Address: 174.249.145.203 Sent: 6/29/2026 12:17:09 PM Viewed: 7/1/2026 10:08:08 PM Signed: 7/1/2026 10:08:28 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Mahealani Ah Yun Mahealani.AhYun@paloalto.gov City Clerk Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 170.85.155.5 Sent: 7/1/2026 10:08:29 PM Viewed: 7/2/2026 3:41:07 PM Signed: 7/2/2026 3:41:19 PM Electronic Record and Signature Disclosure: Not Offered via Docusign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/23/2026 6:00:49 PM Certified Delivered Security Checked 7/2/2026 3:41:07 PM Signing Complete Security Checked 7/2/2026 3:41:19 PM Completed Security Checked 7/2/2026 3:41:19 PM Payment Events Status Timestamps