City of Los AngelesTED M. ROSS

Generalmanager chief information officer

information technology agency

CALIFORNia

*** w\ROOM 1400, CITY HALL EAST

200 NORTH MAIN STREET LOS ANGELES, CA 90012

(213) 978-33 1 1 FAX (213) 978-33 10

&JOYCE J. EDSONassistant general manager ref.

? flJEANNE M. HOLM

ASSISTANT GENERAL MANAGER B

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ita.lacity.orgGREG STEINMEHL

ACTING ASSISTANT GENERAL MANAGERERIC GARCETTI

MAYOR

REF: CEB-099-17May 16, 2017

Honorable Members of the City Council City of Los Angeles Room 395, City Hall Los Angeles, Ca 90012

Attn: Entertainment and Facilities Committee

Subject: GOOGLE INC., PRIVATE LINE FRANCHISE APPLICATION AND RECOMMENDATION OF APPROVAL

RecommendationITA has reviewed the application of Google, Inc., for the City of Los Angeles’ (City) grant of a private line telecommunications franchise and subject to the consent of City Council and Mayor, recommends approval of that application request as set forth below in this amended report.

BackgroundA private line telecommunications facility is an encroachment permit that provides for the interconnection between two points in the public rights-of-way (PROW), utilized solely for signal transmission and not to serve any customer within the City of Los Angeles (City). Google, Inc., is requesting that the City grants a limited franchise to operate a private line telecommunications facility using the City’s PROW. That facility will connect the Franchisee’s building (publicly known as the Spruce Goose Hangar) located at 5865 S. Campus Center Drive and YouTube Spaces LA, located at 12422 Bluff Creek Drive, Los Angeles, CA 90094, through 1 set of three-4 inch conduits, 91 feet in length, crossing on the west side of Bluff Creek Drive and 1 set of three-4 inch conduits, 97 feet in length, crossing on the east side of Bluff Creek Drive in the City’s PROW as set forth in the draft ordinance to be prepared and filed to the City Council by the City Attorney’s Office.

PRICING RATESThe regular franchise fee rates that apply to the City’s private telecommunications franchisees is $5/linear foot for fiber and conduit in City’s PROW, $2.50/linear foot for aerial installations and $15/cubic foot for other telecom facilities such as vaults and boxes in the City’s PROW. The annual franchise payment amount is calculated as follows:

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Honorable Members of the City Council May 16, 2017 Page 2 of 2

91 linear feet x three-4 inch conduits/$5/linear feet = $1365.00/year 97 linear feet x three-4 inch conduits/$5/linear feet = $2,820.00/year Total annual franchise fee payment = $4,185.00/year 15 years/franchise term x $4,185.00/yr = $62,775.00

Fiscal ImpactIf approved, renewal of this private line telecommunications franchise will generate revenue in the amount of $4,185.00 per year. If Google, Inc., elects to pay the full amount due for the fifteen year term of the franchise, the revenue due will be $62,775.00. In addition, Google, Inc., is required to provide a franchise performance bond in the amount of $42,000.00.

If you have any questions, please contact Jeanne Holm at (213) 978-3311 or William Imperial at (213) 922-8383.

Respectfully submitted,

Ted Ross .General Manager and Chief Information Officer

Honorable Mayor Eric GarcettiHonorable Ron Galperin, City ControllerBen Ceja, Acting City Administrative OfficerCheryl Banares Soriano, Office of the Chief Legislative AnalystMike Dundas, Office of the City AttorneyHonorable Councilmember & Chair, Bob BlumenfieldHonorable Council Member, Mike BoninJeanne Holm, ITAWilliam Imperial, ITA

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