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REQUEST FOR COUNCIL ACTION <br />COUNCIL MEETIHO <br />f EB 2 6 2000 <br />CITY OF ORONO <br />DATE: February 24,2000 <br />ITEM NO: /V <br />Department Approval: <br />Name Ron Moorse <br />Title City Administrator <br />Administrator Reviewed:Agenda Section: <br />City Administrator’s <br />Report <br />Item Description: Right-of-Way Agreement with Metricom, Inc. <br />Metricom, Inc. is a provider of wireless Internet and data services using a network of shoebox-sized <br />radio transmitters, located in the public right-of-way on light poles or similar facilities, at a density <br />of five to seven transmitters per square mile. Although Metricom, Inc. has the right to use the public <br />right-of-way, they have an obligation to reimburse the City for its costs related to managing the right- <br />of-way. Because these costs are difficult to project, Metricom has proposed a right-of-way <br />agreement under which it would compensate the City for the use of the right-of-way through a <br />payment equal to 1% of its adjusted gross revenues, and the provision of ten free subscriptions to <br />its wireless Internet and data service. The agreement has an initial term of nine years with three <br />extensions of five years each. This agreement has been reviewed by both the League of Mirmesota <br />Cities and the Suburban Rate Authority, and reflects revisions made in response to that review. <br />If Metricom receives approval of the right-of-way agreement by Orono and adjacent cities, the next <br />phase is to locate antennas on water towers and other authorized communication facilities similar <br />to the cellular and PCS antennas currently on the City’s water towers. If Metricom was to locate its <br />antennas on an Orono tower, it would be required to enter into a lease agreement with the City <br />similar to the PCS antenna lease agreements. <br />Staff Recommendation <br />Based on the low impact of the Metricom radio system on the City’s right-of-way, the benefits to the <br />City and the City’s residents and businesses of providing a wireless service, and the review of the <br />right-of-way agreement by the League of Minnesota Cities and the Suburban Rate Authority, staff <br />recommends approval of the right-of-way agreement with Metricom, Inc. <br />COUNCIL ACTION REQUESTED: <br />Motion to approve the right-of-way agreement with Metricom, Inc., and to authorize the Mayor and <br />City Administrator to sign the agreement.