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Council Meeting, Apnl 27. 1999 Santa MOnica, California
TO Mayor and City CounCil
FROM CIty Staff
SUBJECT Authonze the City Manager to Negotiate a Non-exclusive Agreement with
Metncom, Inc to Install, Operate and Mamtaln ItS "Ricochet" Wireless Digital
RadiO Communications Network within the City of Santa Monica and Direct
the City Attorney to Prepare all Appropnate Implementing Agreements or
Documents
INTRODUCTION
ThiS report recommends that City CounCil authonze the City Manager to negotIate a non-
exclUSive agreement with Metncom. Inc to Install, operate and maintain Its "Ricochet"
wireless, micro cellular digital radiO communications network for the provISIon of data
service wlthm the City of Santa MOnica and direct the City Attorney to prepare all
appropnate Implementing agreements or documents Including as appropnate a franchise
agreement The proposed agreement Will allow access to Wireless dIgital radiO data
commu n Icatlons service not presently available to Santa MOnica businesses, reSidents and
Institutions
BACKGROUND
City staff were initially approached by representatives of Metncom, Inc approximately two
years ago regarding Metncom's mterest In gaining access to the public rrght-of-way Within
the City of Santa MOnica for the purpose of installing a new type of Wireless
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telecommu n Icatlons system These preliminary diScussions between Metncom and the
City have now reached the pOint where It may be In the best Interests of the City to enter
Into an agreement with Metncom
DISCUSSION
Greater demand for Internet access, fax lines and additional phone service has begun to
exceed the available telecommumcatlons Infrastructure In many locations The Metncom
networks are part of a growing move mto Wireless mobile digital data commUnications
Wireless networks such as Metncom's proVIde Internet, e-mail and local area network
access at speeds comparable to an ISDN connection For many computer users, thiS type
of Wireless data connection takes the place of an additIonal phone line The cost for
Wireless services may be lower than the additional line and separate Internet access
through a commercial provider
Customers of thiS type of service plug their computers Into small Wireless modems about
the size of a televIsion remote control The modems relay a signal to pole-mounted radio
deVices which In turn relay signals to base station equipment mounted on pnvate bUildings
and then to leased telephone lines The signals are then linked to the Internet
Currently Metncom has entered Into agreements with over one hundred and eIghty (180)
public entities throughout Callforma In Southern Callforma more than one hundred public
entities have entered Into non-exclUSive agreements with Metncom These Cities Include
Los Angeles, Culver City, Burbank, Beverly HIlls, Long Beach, Inglewood and Redondo
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Beach Actual deployment ofthe system In many ofthese Cities has not yet occurred The
system has begun to be deployed In northern California, primarily In the San FrancIsco Bay
area
The Metncom system does not Involve any trenching or underground cable Installation In
the public nght-of-way The system consists of shoe-box Sized radio transceivers mounted
on utility poles or streetlights Radios are generally mounted on less than three percent of
available utility poles In a given service area The radio devices do not cause any
Interference With other radio or telecommunicatIOns equipment which may be present
Expanding coverage for new customers IS achieved through mounting new radiO
transceivers to Increase network capacity
Metncom IS completely responsible for the design. installation and maintenance of the
radiO devices, the City Incurs no direct costs In addition I Metncom has offered Its
subSCription baSIC services to the City at a 50% discount off the regular subscnptlon rate
When negotiations are complete staff will return to CounCIl for approval ofthe agreement
The proposed non-exclusive a9 reement would permit Metrlcom to operate ItS system Within
Santa MOnica by uSing Southern California Edison poles The agreementwould likely have
an Initial term With two discretIonary renewal penod options In return. Metncom would pay
the City a fee based on theIr gross revenues collected from Santa Monica customers In
addition, Metrlcom Will collect any applicable local taxes from the users of these services
and remit them to the City If Metflcom deCided at any time to cease use of any of the
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radio devices, the devices would have to be removed from the utility poles on which they
were Installed under the terms of the proposed agreement
At thiS time, staff recommends that Southern Callforma Edison poles be used rather than
City streetlight poles The use of City streetlIght poles IS not recommended currently due
to the incompatibility of many streetlight CircUits to the power needs of the radio
transceivers and the Increased complexity of streetlight maintenance and repair which
would be caused by the attached radio devices City staff IS currently preparing proposed
modIfications to zonmg regulations relatIve to antennas and wIreless telecommunicatIons
facilities which will deal with appropnate use of public property Since the proposed
agreement with Metncom does not Involve the use of City property and will be a franchise
or other related agreement, and will conform to current zoning, we recommend that CounCil
approve the deployment of the Metncom network In advance of final approval of these
zoning changes
BUDGET/FISCAL IMPACT
There are no budget or financial Impacts assOCiated With authonzlng the City Manager to
negotiate an agreement With Metncom as descnbed above A franchise or other
agreementwould result In a fee being paid to the City and may also result In the application
of the City's UtIlity Users Tax
RECOMMENDATIONS
It IS recommended that City CounCil authonze the City Manager to negotiate an agreement
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with Metncom, Inc to Install, operate and maintain a wireless, micro cellular digital radio
communications network wlthm the City of Santa MOnica for data service and direct the
City Attorney to prepare all appropnate Implementmg agreements or documents, mclud Ing
as appropnate a franchIse agreement
Prepared by Kathryn Vernez, Assistant to the City Manager for
Intergovernmental Relations
Joseph Lawrence, Assistant City Attorney
Mike Denms, Finance Director
CraIg Perkins, Director of Environmental and Public Works
Management
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