CITY OF LOS ANGELESTED M. ROSSGENERAL MANAGER

CHIEF IN FORMATION OFFICERITA

CALIFORNIA INFORMATION TECHNOLOGY AGENCY

JOYCE J. EDSONASSISTAN T GENERAL MANAGER CITY HALL EAST

200 N MAIN ST, ROOM 1400 LOS ANGELES, CA 90012

213.978.3311

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3 !,JEANNE M. HOLMASSISTANT GENERAL MANAGER

-i, \Vita.lacity.orgANTHONY MOORE

ASSISTAN T GENERAL MANAGEROt

ERIC GARCETTIMAYOR

LAURA ITOASSISTAN T GENERAL MANAGER

February 26, 2019 REF: CEB-044-19

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

Attn: Information Technology and General Services Committee

Subject: PALISADES VILLAGE CO., LLC, PRIVATE LINE TELECOMMUNICATIONS FRANCHISE APPLICATION AND RECOMMENDATION OF APPROVAL -­COUNCIL DISTRICT 11 (BONIN)

RecommendationITA has reviewed the application of Palisades Village Co., LLC, 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). Palisades Village Co., LLC, 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 buildings and facilities located at 1038, 1050, 1052, 1056, 1060, 1062 and 1067 Swarthmore Avenue, Los Angeles, CA 90272, through four (4) four inch (4”) conduits, two (2) two inch (2”) conduits, and two (2) one inch (1”) conduits, each conduit 156 feet in length, crossing Swarthmore Avenue at Monument Street and 182.5 feet in the sidewalks thereby, in the City’s PROW.

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 fee payment amount is calculated as follows:

AN EQUAL EMPLOYMENT AFFIRMATIVE ACTION EMPLOYER

Honorable Members of the City Council February 26, 2019 Page 2

8 conduits x $5/linear foot x 46.5625 linear conduit feet = $1,862.50/yr. Total annual franchise fee payment = $1,862.50/year 15 years/franchise term x $1,862.50/yr. = $27,937.50

Fiscal ImpactIf approved, granting of this private line telecommunications franchise will generate revenue in the amount of $1,862.50 per year. If Palisades Village Co., LLC, elects to pay the full amount due for the fifteen year term of the franchise, the revenue due will be $27,937.50. In addition, Palisades Village Co., LLC, is required to provide a franchise performance bond in the amount of $185,000.

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

Sincerely,

—-

Ted RossGeneral Manager and Chief Information Officer

Honorable Mayor Eric GarcettiHonorable Ron Galperin, City ControllerHonorable Richard H. Llewellyn, Jr., City Administrative OfficerCheryl Banares Soriano, Office of the Chief Legislative AnalystMike Dundas, Office of the City AttorneyHonorable Councilmember & Chair, Monica RodriguezHonorable Councilmember, Bob BlumenfieldHonorable Council Member, Mitch O’FarrellJeanne Holm, ITAWilliam Imperial, ITA

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