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CITY OF COLTON <br />AGENDA REPORT <br />For the City Council Meeting of October 6, 1998 <br />TO: Honorable Mayor and City Council <br />APPROVAL: Henry T. Garcia, City Mana <br />FROM: Thomas K. Clarke, Utility Director'�v� <br />SUBJECT: APPROVE METRICOM FRANCHISE AGREEMENT <br />DATE: Tuesday, September 22, 1998 <br />BACKGROUND: <br />Metricom is a new, publicly traded (NASDAQ) company seeking to establish a wireless data <br />communications network, primarily for the connection of laptop computers to the Internet regardless of the <br />laptop's location. <br />DISCUSSION/ANALYSIS: <br />Metricom is seeking a standard agreement with all municipalities in California. A noteworthy "Most - <br />Favored Nation Status" clause essentially promises all cities that if a smaller or similarly sized city <br />negotiates better terms, a city will receive those better terms upon request. Typical users would be real <br />estate agents and field engineers. Even the City might conceivably use the proposed network as part of <br />its implementation and maintenance of a Geographic Information System. <br />ALTERNATIVES: <br />The City Council could disapprove the agreement and simultaneously direct staff to negotiate terms or not. <br />FINANCIAL IMPACT: <br />Annual attachment fee revenue would be approximately $4500 per year. Annual franchise fee revenue is <br />entirely subject to the presence of customer billing addresses in the City for the service. Franchise <br />revenues would most likely be insignificant in the early years of the agreement. <br />RECOMMENDATION: <br />That the City Council approves the Attachment Permit Agreement with Metricom, Inc. <br />Attachment: Copy of Attachment Permit Agreement <br />Report Prepared by Timothy C. Trewyn, P.E., Assistant Electric Utility Director <br />Page 1 of 1 <br />Item # 7 <br />