17 Infor-Tech
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City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
(408) 777-3354
FAX (408) 777-3333
CI OF
CUPEIQ1NO
PUBLIC WORKS DEPARTMENT
Summary
AGENDA ITEM --1J
AGENDA DATE April 4. 2006
SUBJECT AND ISSUE
Adoption of Resolution No. 06- , authorizing the City Manager to Negotiate
and Execute a Non-Exclusive Encroachment Agreement between the City and Infor- Tech
Communications, Inc., a wholly owned subsidiary of OnFiber Communications, Inc., for
the installation of telecommunications facilities throughout the City.
BACKGROUND
OnFiber Communications, Inc., which designs, constructs, and manages communications
network systems for third party customers, wishes to install fiber optic cable and
associated equipment in City right of way in order to provide its services in the City of
Cupertino and neighboring communities. In order to do so, OnFiber and its subsidiary
Infor-Tech Communications, Inc., must enter into an encroachment agreement with the
City. OnFiber intends to make use of excess capacity in existing conduit owned by SBC
Communications or install new conduit as needed, to accommodate the fiber optic cable
OnFiber seeks to install.
The encroachment agreement will require OnFiber to submit a facilities location map and
engineered plans of proposed installations for approval by the City. OnFiber will be
required by the agreement to pay the City an encroachment fee that will cover any and all
direct expenses for inspection, plan check, etc., incurred by the City in connection with
the installations, to submit to the City an encroachment bond sufficient to cover
OnFiber's faithful performance of the work permitted by the agreement, and to pay the
City an annual installation fee, subject to an annual 5% escalation, based on the linear
footage of conduit and cable installed in City right of way by or for the benefit of
OnFiber.
The proposed term of the agreement is three years, with an. option to renew for three
additional years.
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Printed on Recycled Paper
FISCAL IMPACT
If the agreement is executed the City will receive an annual installation fee of $1.75 per
linear foot of fiber optic cable installed by OnFiber in City right of way. The installation
fee will increase by 5 % per year for each year the agreement is in effect.
STAFF RECOMMENDATION
Staffrecommends that City Council adopt Resolution No. 06- , authorizing the
City Manager to Negotiate and Execute a Non-Exclusive Encroachment Agreement
between the City and Infor-Tech Communications, Inc., a wholly owned subsidiary of
OnFiber Communications, Inc., for the installation of telecommunications facilities
throughout the City.
Submitted by:
Approved for submission:
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~ Ralph A. Qualls, Jr.
Director of Public Works
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David W. Knapp
City Manager
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DRAFT
RESOLUTION NO. 06-066
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE AN
ENCROACHMENT AGREEMENT BETWEEN THE CITY OF CUPERTINO AND
INFOR-TECH COMMUNICATIONS, INC., A WHOLLY OWNED SUBSIDIARY OF
ONFIBER COMMUNICATIONS, INC., FOR THE INSTALLATION OF
COMMUNICATION FACILITIES THROUGH OUT THE CITY
WHEREAS, there has been presented to the City Council a proposal ITom
OnFiber Communications, Inc., to install fiber optic cable and associated equipment in
City right of way in order to provide its communications network systems services in the
City of Cupertino and neighboring communities; and
WHEREAS, the provisions, terms, and conditions of an encroachment agreement
need to be negotiated and approved by the City in order for the aforementioned
installation to occur and the aforementioned services be provided,
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Cupertino hereby authorizes the City Manager to negotiate and execute said
encroachment agreement and take all necessary associated actions on behalf of the City
of Cupertino.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 4th day of April 2006, by the following vote:
Vote Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
APPROVED:
City Clerk
Mayor, City of Cupertino
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