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Item 26 - Appropriation of Funds for Legal Svs Pacific Bell Fiber-Optic Upgrade AGENDA REPORT SUMMARY - TO: Honorable Mayor and Members of the City Council FROM: James 1.. Bowersox, City Mana~ - INITIATED BY: John D. Fitch, Assistant City ManllflW '1\~ Robert 1.. Thomas,. Director of CommJuity servi~ Patrick R. Foley, Principal Management Analys DATE: June 27, 1995 SUBJECT: Appropriation of Funds for Legal Services Relative to the Preparation of an Agreement with Pacific Bell Concerning the Proposed Fiber-Optic Upgrade ABSTRACT At the May 18, 1995 City Council Workshop, a presentation was made by Pacific Bellon its planned fiber-optic upgrade in Poway. The new fiber-optic network will have many potential benefits for Poway. However, as stated in the staff's report, there are environmental, health and safety, and other City issues that must be addressed in an agreement with Pacific Bell. At the conclusion of the item, the City Council authorized the City Manager to negotiate a contract with William Marticorena of the law firm Rutan & Tucker. Under the terms of the contract, William Marticorena will provide the necessary legal services to develop a draft agreement and negotiate a final agreement with Pacific Bell for the construction of its network upgrade in Poway's - public rights-of-way. Staff is recommending that the City Council appropriate up to . $17,500 for William Marticorena's legal services to prepare an agreement with Pacific Bell. ENVIRONMENTAL REVIEW This item is not subject to CEQA review. FISCAL IMPACT The legal services of William Marticorena will require an appropriation of up to $17,500. Should the cities of Del Mar and Solana Beach decide to participate, the cost would be shared by the three cities. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Additional notification sent to William Marticorena, Rutan & Tucker, and Sharon Terrill, Pacific Bell. RECOMMENDATION It is recommended that the City Council appropriate up to $17,500 for William Marticorena's legal services to prepare an agreement with Pacific Bell concerning the proposed fiber-optic uparade in Poway. ACTION - II JUN 27 100<: lT~lA ?., 1 of 3 ~ AGENDA REPOR'J. CITY OF POW A Y This report is included on th~ Consent Calendar. There will be no separate discussion of the report prior to approval by the City Council unless members of the Council, staff or public request it to be removed from the Consent Calendar and discussed separately. If you w;sh to have this report pulled for discussion. please fill out a slip indicating the report number and give it to the City Clerk prior to the beginning of the City Council meeting. TO: Honorable Mayor and Members~e City Council FROM: James L. Bowersox, City Man INITIATED BY: John D. Fitch, Assistant City Manager1'lt Robert L. Thomas, Director of Community servi~~ Patrick R. Foley, Principal Management Analys DATE: June 27, 1995 SUBJECT: Appropriation of Funds for Legal Services Relative to the Preparation of an Agreement with Pacific Bell Concerning the Proposed Fiber-Optic Upgrade BACKGROUND On May 18, 1995, Pacific Bell made a presentation to the City Council on its proposed fiber-optic network upgrade for Poway. During its presentation, Pacific Bell showed a video which demonstrated a variety of telecommunications services that would be available in the near future once its fiber-optic network upgrade is completed. As a result of this telephone network upgrade, Pacific Bell will be able to provide advanced telecommunications services including voice, data, video, and video dial tone services. According to the representatives of Pacific Bell, the advanced telecommunications network will carry a variety of services in addition to traditional voice telephony. Some of these new services will include: ISDN, video telephony, service for both data and voice, cellular, personnel communication services (PCS), interactive services, and video dialtone services. At the conclusion of Pacific Bells presentation, the staff outlined a number of issues that will need to be addressed in an agreement with Pacific Bell prior to construction of the network. The agreement will articulate the process by which Pacific Bell can proceed with its fiber-optic installation in Poway in a timely fashion and in a manner acceptable to the City. The agreement will also address the issues that were outlined in the staff's May 18, 1995 report. Based on staff's May 18 recommendation, the City Council authorized the City Manager to negotiate a contract with William Marticorena of the law firm Rutan & Tucker. Under the terms of the contract, Mr. Marticorena will provide the necessary legal services to develop a draft agreement and negotiate a final agreement with Pacific Bell for the construction of its network u rade in Pow a ' s ublic ri hts-of-wa . ACTION: 2 of 3 JUN 2 7 1995 ITEM 26 .- Agenda Report June 27, 1995 Page 2 FINDINGS The staff has negotiated a contract with William Marticorena for the services outlined previously in this report. The costs for developing a draft agreement acceptable to the City and presenting it to City Council at a workshop session would be at an hourly rate of $195; not to exceed $7,500. The direct negotiations with Pacific Bell may require between 25 and 50 hours to produce a mutually acceptable agreement. Therefore, staff is recommending that the City Council allocate up to $17,500 for legal services. It is expected that the cities of Del Mar and Solana Beach will join with the City of Poway in utilizing the legal services of Mr. Marticorena. If this occurs, the cost of his services will be shared. In addition, Pacific Bell would be expected to reimburse the cities for technical and legal services associated with the fiber-optic upgrade. ENVIRONMENTAL REVIEW This item is not subject to CEQA review. FISCAL IMPACT The legal services of William Marticorena will require an appropriation of up to $17,500. Should the cities of Del Mar and Solana Beach decide to _. participate, the cost would be shared by the three cities. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Additional notification sent to William Marticorena, Rutan & Tucker and Sharon Terrill, Pacific Bell. RECOMMENDATION It is recommended that the City Council appropriate up to $17,500 for William Marticorena's legal services to prepare an agreement with Pacific Bell concerning the proposed fiber-optic upgrade in Poway. JLB:JDF:RLT:PRF (C:\OATA\AGENDA\MARTCANA.FEE) JUN 2 7 1995 HEM 26 3 of 3