Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

General Manager of Engineering Services

SUBJECT:

Interim Municipal Access Agreement for Wispra Networks Inc.

 

RECOMMENDATION

POLICY

Execution of legal agreements by the Director of Legal Services and General Manager of Engineering Services requires Council approval.

On July 30, 1996, when dealing with a report on Telecommunications Policies, Council approved a number of goals including one to ensure that the City maintains its authority to regulate equitable access to rights-of-way, secure valuable compensation for their use, minimize negative impacts associated with their use, and utilize them in a manner that furthers other telecommunications policy objectives.

PURPOSE
This report seeks Council approval to authorize staff to negotiate and execute an agreement with Wispra Networks Inc.("Wispra") to allow them to install fibre optic cable in the City of Vancouver (the "City").

BACKGROUND

Wispra is a new telecommunications company that intends to provide broadband communications services to small and medium-sized downtown businesses. They will be providing this service through a combination of wireless transmission and fibre optic cables. Wispra was successful in obtaining a 24 GHz wireless license from Industry Canada through its spectrum auction process. This license will enable Wispra to provide high-speed broadband telecommunications services in Vancouver.

Over the past year, Council has approved general terms for interim agreements to allow Worldwide Fiber Inc. (affiliate of Ledcor Industries Limited), Novus Telecom Inc., and Bell Intrigna Inc. to install fibre optic cable in the City. The interim agreements expire 90 days after the final decision on Vancouver's application to the CRTC concerning access to City streets by Worldwide Fiber Inc., Telus, Bell Canada, and Call-Net. At that time, a new agreement with these companies will be negotiated based on that decision. Under the interim agreement, the companies pay the City for up-front costs associated with permit application reviews, inspection of construction, traffic signing costs, lost parking meter revenues and street pavement repairs. While the City will recover these up-front costs, no amount is collected for street access fees until the final resolution of Vancouver's application to the CRTC, when such fees will be determined in accordance with the final decision and collected retroactively from the date of installation of fibre optic cable. Council also recently approved terms and conditions for an interim agreement with TeraSpan Networks Inc. to do a pilot fibre optic installation in Gastown. This differs from the other agreements in that TeraSpan agreed to pay a nominal fee rather than have a fee apply retroactively based on the CRTC decision, to provide more certainty on the fee amount

The CRTC has initiated a public proceeding on appropriate terms and conditions for telecommunications companies' use of City streets. To date, city staff have made submissions outlining the City's proposed terms and conditions and methodology for recovering costs and charging street access fees. The Federation of Canadian Municipalities, other cities, and telecommunications companies have also made submissions and exchanged responses to questions requesting clarification of the various submissions. It is expected that it will take at least until the end of the year for the CRTC to issue its decision.

DISCUSSION

To allow Wispra to install and operate a fibre optic network in the City of Vancouver it is proposed to enter into an agreement with this company which is substantially in the form of the interim agreement approved by Council for Worldwide Fibre Inc., Novus Telecom Inc., Bell Intrigna and TeraSpan Networks Inc.

No municipal access agreement with Wispra would be required for its wireless services providing the equipment used to provide those services is not located on City streets. If Wispra plans to install equipment for its wireless services on City streets in the future, this would be reported back to Council for approval of the terms of an agreement covering that access.

Similar to the terms of the other interim agreements recently approved by Council, no street access fees would be collected from Wispra until the final resolution of Vancouver's application to the CRTC, when such fees will be determined in accordance with the final decision and collected retroactively from the date of installation of fibre optic cable. Other proposed terms and conditions in the agreement with Wispra would be as follows:

· Term to be limited to 90 days after the final CRTC ruling
· City to approve the locations of fibre and other equipment
· Wispra to pay the City for up-front costs associated with permit application reviews, inspection of construction, traffic signing costs, lost parking meter revenues and street pavement repairs.
· Wispra to provide as-built information relating to their facilities
· Wispra to indemnify the City to the satisfaction of the Director of Legal Services
· Wispra to pay for relocation costs where requested by the City

CONCLUSION
Staff recommend that Council allow installation of fibre optic networks in the City by Wispra subject to the execution of an interim Municipal Access Agreement to the satisfaction of the General Manager of Engineering Services and the Director of Legal Services.

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