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06/30/2015 - City Council Public Works CommitteeAGENDA PUBLIC WORKS COMMITTEE MEETING TUESDAY, JUNE 30, 2015 6:00 P.M. CITY HALL SECOND FLOOR CONFERENCE ROOM ADOPT AGENDA II. CENTURY LINK FIBER PROJECT III. ADJOURNMENT Agenda Information Memo Public Works Committee Meeting June 30, 2015 II. CenturyLink - Apical Expansion Direction to Be Considered: Provide recommendations for the City Council regarding consideration of the installation of private fiber optics facilities within the bituminous pavement of city streets as part of an endeavor to provide high speed fiber to the home to residences in Eagan. Recommendations may be incorporated as part of a future proposed amendment to City Code 7.06, the Public Right -of -Way Regulations for City Council consideration. Background: • CenturyLink is the third largest telecommunications carrier in the U.S. • In August, 2014,.it undertook a small-scale installation of fiber optics within an Eagan neighborhood to determine, on a trial basis, the suitability in a northern climate of newly developed methods and materials used for installation within a city street. • Based upon the successful analytical results of the previous installation, and utilizing its innovative technology, CenturyLink has approached the City with interest in a significantly wider -scale installation of fiber optics within the pavement of city streets which would deploy fiber to the home with gigabit speeds. • The City Code does not currently allow for ROW users to install fiber in City streets in the manner proposed by CenturyLink. • CenturyLink anticipates market success with this cost-effective approach. Based on actual return from its 2015 implementation, CenturyLink looks forward to continued expansion in 2016 of fiber to the home deployments in Eagan utilizing its proprietary technology. • It has long been a priority of the City Council to ensure the provision of "state of the art broadband service in the City of Eagan." Currently there is very little provision of fiber to homes in Eagan and it is a topic residents inquire about. • The CenturyLink deployment method represents the first approach the City has had by a private provider desiring to install fiber to the home at its own expense to extensive areas within Eagan and, if successful, to continue that build out. • In addition, Eagan would be only the second city in the country to have a Gigabit -level speed deployment to the home using Century Link's new Apical technology. • CenturyLink's deployment represents a new type of construction method that involves micro -milling in the street. While the street is part of the Right of Way, it has not typically been utilized in favor of telecomm installations guided to within the boulevard portion of the ROW. • CenturyLink has provided staff with extensive technical testing of its methodologies attesting to its durability. Staff desires to allow the use of the City's public rights-of-way in a manner that will not adversely impact other right-of-way users, or result in a barrier to entry for any other qualified telecommunications providers. • Staff has prepared and the Committee may have additional public policy questions that will enable it to evaluate the "total -package" of benefits and impacts of the Gigabit fiber system deployment within city infrastructure. • City staff and legal counsel have worked closely with CenturyLink representatives to craft a draft Memorandum of Understanding for the Committee's consideration and recommendations to the full Council. • The MOU is necessary to allow CenturyLink immediate access to the streets for its Micro - milling installation while the City determines how best to amend the City Code to permit this type of installation by other ROW users on a nondiscriminatory basis. • CenturyLink representatives will provide a brief presentation at the Public Works Committee regarding the proposed fiber optics improvements and will be present to answer questions. • Staff will then be prepared to discuss with the Committee the public policy considerations, to answer questions and receive direction. Attachments: (3) • Draft Memorandum of Understanding • Public Policy Considerations • CenturyLink PowerPoint {Copo�C- DRAFT MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOU") is made as of the _ day of , 2015 by and between Qwest Corporation dba CenturyLink QC ("CenturyLink") and the City of Eagan, Minnesota ("City"). RECITALS 1. CenturyLink has announced plans to supplement its fiber network in the City in an effort to improve Internet access and foster new -high speed applications through broadband Internet services. 2. CenturyLink desires to design, incrementally construct, install and maintain a fiber network within the City to provide, among other services, a broadband Internet service offering upload and download speeds of up to 1 Gbps ("Gigabit Network"). 3. City desires to permit the lawful use of the City's public rights-of-way to allow telecommunications providers to install and improve telecommunications infrastructure which will provide benefits to the City's residents and businesses. 4. City recognizes that improved access to high-speed Internet services is a key infrastructure improvement for the City and its citizens for the 21 st century. 5. CenturyLink holds a Certificate of Need and Convenience from the Minnesota Public Utilities Commission to provide telecommunications services and possesses authority under Minnesota State law to utilize the City's public rights-of-way to install telecommunications facilities in accordance with the City code and other applicable laws. 6. CenturyLink has proposed a new type of facility installation in the right-of-way, generally referred to as Micro -Milling which will require amendments to the City Code to accommodate certain construction applications and right-of-way occupation. 7. The City desires to allow the use of Micro -Milling (described herein) in a manner that will not adversely impact other right-of-way users, result in a discriminatory impact on other right-of-way users or result in a barrier to entry for any other qualified telecommunications providers. 8. Due to the short construction season in Minnesota and CenturyLink's desire to immediately commence installation of certain telecommunications facilities using Micro -Milling, the City has agreed to enter into this MOU with the understanding that amendments to the City code will be implemented as soon as reasonably possible that will govern the use of this same type of facility installation by any qualified telecommunications provider or right-of-way user. 9. The City and CenturyLink have agreed to reference CenturyLink's Gigabit Network and 1 Gbps service in this MOU solely for context purposes, recognizing that the City has jurisdiction over its rights-of- way, but has only such authority over the provision of telecommunications services as permitted by applicable law. NOW, THEREFORE, the Parties agree as follows: Section 1. Network Design and Construction. This MOU shall apply only to facilities constructed in the rights of way related to CenturyLink's Gigabit Network. CenturyLink will comply with the City code for all other construction practices in the City and nothing herein shall waive any rights of the City to fully enforce the City code. In constructing its Gigabit Network, CenturyLink shall be entitled to use CenturyLink's proprietary Micro -Milling systems in accordance with the terms of this MOU and subject to 2870830v4 final permit approval from the City for each specific installation which approval shall be handled consistent with the City's normal individual or bulk permitting practices and shall not be unreasonably delayed. This section applies to the allowance of underground facilities used to construct the Gigabit Network. Section 2. Specific Process/Procedures for construction and installation of the Gigabit Network. In connection with the construction and installation of CenturyLink's Gigabit Network, CenturyLink agrees to work cooperatively with the City to avoid any adverse impacts to City streets. The following process/procedures apply to the construction and installation of CenturyLink's Gigabit Network: a. Permit Submittal: CenturyLink shall be allowed to submit a permit application electronically via Email, with the contingency that lawfully imposed fees are paid in advance and that required plans and other documents must accompany the application. Permits for this application will be issued only to CenturyLink, and will not be issued directly to contractors or other agents of CenturyLink. b. Response Medium: The City may grant or deny the permit application electronically via Email. Any denial shall contain sufficient detail to allow CenturyLink to correct the cause and provide a reasonable time period for resubmittal. C. Permit Duration: 180 days maximum or as otherwise agreed to by the Parties. Permits which are not closed within the allotted time period will be subject to resubmittal in accordance with standard procedures and fees. d. Applicable Permit Area: The City agrees to issue permits based on a neighborhood or subdivision (i.e. bulk permitting). The City will define the process and establish fees in a separate document. e. Response Time: The City shall respond to CenturyLink's bulk permit application within 20 calendar days of submittal. f. Permit Communication: The City will work with CenturyLink in assigning a single point of contact within the City with respect to the permits addressed in this section. g. Traffic Control Plans: Standard City traffic control plans may apply to the permit area. However, due to the nature of the construction process listed in this MOU, standard traffic control plans may not be necessary. As such, the City will work with CenturyLink to make appropriate modifications when necessary. h. Inspections: The City agrees to work with CenturyLink to expeditiously inspect facilities constructed for the Gigabit Network. Due to the nature of the special construction process used, the City will work with CenturyLink to define the appropriate methods of inspection and review of final work. However, CenturyLink shall follow standard inspection procedures regarding the scheduling of inspections. Section 3. Construction Methods. In addition to any construction process that may be permitted by City Code and this MOU, CenturyLink may use their Micro -Milling solution for construction of the Gigabit Network as described herein. Further, the City and CenturyLink agree that they will meet to discuss additional construction processes and methodologies that may be used in the future. a. For Micro -Milling, CenturyLink will use fiber optic cable and/or micro -duct with a slot no less than 3" below the top of the existing asphalt pavement and no greater than 2" below the bottom of the existing asphalt pavement. The Micro -Milling will be no wider than 1-1/4" without approval by the appropriate City entity. The Micro -Milling will be placed 12" (+/- 4") from the curb/road surface joint. Micro -Milling installations will be allowed in sidewalk, curb, gutter, valley gutter, and driveway areas. Cutting System must be able to cut a 20ft per minute and have the ability to adjust blade depths over curbs and other road construction to maintain a constant depth 2870830v4 for cut. None of the referenced installation methodologies will be allowed to pass parallel within a designated bike lane, or less than 6" outside of the bike lane boundaries. However, the referenced installation methodologies may past perpendicularly (-90 Degrees) through a designated bike path. b. Micro -Milling is a fiber plant construction process whereby a milled slot is formed in the roadway surface with one or more communication lines/micro-ducts positioned in the milled slot, and backfilled with a material that restores the asphalt to its original strength. A capping material is disposed at least partially in the groove and with overbanding to protect the system from surface impacts such as snow plows and other common events. The system is placed in the asphalt rather than below the road bed. Section 4. Micro -Milling backfill methods. A structural backfill material approval by the City will be placed to within 1/2" of the asphalt road top surface. The structural backfill will also be topped with a protective top coat the will be approximately 1/2" deep in the micro -milled slot with a 2" to 3" overband that is approximately 1/8" in height above the existing asphalt road surface. Reasonable aesthetic concerns will be addressed by CenturyLink, and CenturyLink will ensure that overbanding patch material is near flush to the pavement surface. The backfill materials used will provide an expected 20 -yr life cycle for the Micro -Milling solution and will for all practical purposes restore the asphalt road to its original strength or better. The visual top coat/overbanding material has an expected life cycle of >8 -years and will require some maintenance during this period due to mechanical impacts such as snow blades, etc. Section 5. Testing Requirements. All backfill materials will be independently tested in accordance with the following Standards. This testing is required to gain approval from the City for use of the structural backfill material selected by demonstrating the ability to the system to meet or exceed ASHTO and/or DOT standards. The following testing methods shall serve as a basis for demonstrating to the City the suitability of back fill material used: a. ASTM D 638 --Standard test method for tensile properties of plastics. b. Cyclic H-20 Load Testinq - This test mimics incidental H-20 traffic loading C. ASTM C 666 - Wet Freeze Thaw Cycle Testing. d. Hamburg Wheel Tracking Test (HWTT) - A multifunctional loaded wheel tester used for evaluating rutting, fatigue cracking, and moisture susceptibility of both hot and cold asphalt mixes. e. ASTM D 1833 California Bearing Ratio (CBR) - A test where a compressive load is applied to the asphalt road surface with the backfill material in place. f. Modified ASTM D 952 Cohesion/Bonding - ASTM D 952 is a standard test method for bond or cohesive strength of sheet plastics and electrical insulation materials. g. Modified ASTM D 143 Bending of Backfill Material with Fiber Optic Cable in-situ - ASTM D 143 is a test method to evaluate the different mechanical and physical properties for small clear specimens. h. Modified ASTM D 873M Compression Test of Backfill material - ASTM D 873M is a standard test method for compressive strength of concrete/asphalt cylinders cast in place in cylindrical molds. i. Temperature Profile in the Backfill material Encapsulation / Apical Fiber Project - This test will determine the insulating effect of backfill material on an encapsulated fiber. 2870830v4 j. Numerical Evaluation of Thermal & Mechanical Loads on Selected Components in the Apical Fiber Deployment System - Numerical simulation is performed using the commercial finite element model ANSYS with a steady-state analysis option. k. ASTM D 412/ISO37 - Standard Test Methods for Vulcanized Rubber and Thermoplastic Elastomers. I. ASTM D 2240-05 (2010) - Standard Test Method for Rubber Property — Durometer Hardness. Section 6. Restoration. In the event of damage to facilities in the rights of way related to CenturyLink's Gigabit Network, CenturyLink will at all times comply with Section 7.06 of the City code, specifically subd. 12, regarding Public Right -Of -Way Restoration. Section 7. Traffic Control Facilities. CenturyLink does not expect to cut traffic facilities in the installation, but if any damage does occur, CenturyLink will be responsible for repairing the facilities in accordance with the City code. Section 8. Electronic location. Facilities in the rights of way related to CenturyLink's Gigabit Network will contain a locate wire or other systems to locate such facilities. Section 9. Unless otherwise agreed to by the Public Works Director, this construction method will not be used in streets where major construction activity is planned within the next five (5) years. The City will work with the CenturyLink to identify and coordinate construction of the Micro -Milling fiber plant with the Cities road repair and other affected public works as to determine the deferred time frame for construction of the CenturyLink's Gigabit Network. The City will work with CenturyLink to place CenturyLink's Gigabit Network at these deferred locations as the civil/public works is taking place as part of the construction process. Section 10. Where CenturyLink installs facilities pursuant to Micro -Milling as permitted by this MOU, it will work with the Gopher State One -Call Center to develop a distinct marking for Micro -Milling facilities and to provide appropriate training on locating techniques for the Micro -Milling system. Section 11. The parties acknowledge and agree that applicable law generally requires the City to manage the public rights-of-way on a competitively neutral and nondiscriminatory basis, for use of public rights-of-way on a nondiscriminatory basis. Further the City is not permitted to impose regulations or requirements which may prohibit, or have the effect of prohibiting, the ability of any entity to provide any interstate or intrastate telecommunications service. Therefore CenturyLink and the City agree that nothing in this MOU is intended to prevent any other telecommunications providers from using the City's rights-of-way or create a barrier to entry for any other telecommunication provider. If the City or a court or regulatory authority of appropriate jurisdiction determines otherwise, the parties agree to modify the terms of this MOU to comply with applicable law. The City reserves the right to withhold future permit approvals if CenturyLink should fail to comply with this obligation. Section 12. Miscellaneous. a. This MOU shall be governed in all respects by the laws of the State of Minnesota b. The provisions of this MOU shall be liberally construed to promote the public interest C. CenturyLink shall be responsible for the actions or inactions of its contractors and subcontractors and the terms of this MOU shall apply to CenturyLink's contractors and subcontractors. d. This MOU may be amended at any time by written agreement between the parties. Once the City amends the code to incorporate the construction and right-of-way standards set forth 2870830x4 herein, any inconsistent terms set forth in this MOU shall be of no force and effect and the Parties shall be governed by the City code. e. CenturyLink shall not have any monetary recourse against City or its officials, boards, commissions, agents or employees for any loss, costs, expenses or damages arising out of any provision or requirement of this MOU or the enforcement thereof, in accordance with the provisions of applicable federal, state and local law. The rights of the City and CenturyLink under this MOU are in addition to, and shall not be read to limit, any rights or immunities the City or CenturyLink may enjoy under federal, state or local law. IN WITNESS WHEREOF, the Parties hereto have set their hands the day and year set forth below. ATTEST: By: ACCEPTED AND AGREED TO: SWORN TO BEFORE ME this day of 12015. NOTARY PUBLIC 2870830v4 CITY OF EAGAN, MINNESOTA a Municipal Corporation By: Its: QWEST CORPORATION By: Its: Public Policy Questions for Consideration Eagan Public Works Committee Meeting June 30, 2015 1) Does the proposed MOU adequately protect the City and City taxpayer's investment in the roadway infrastructure? 2) Does the MOU contain sufficient protection to allow additional qualified telecommunication providers to utilize the limited ROW in the street? 3) Should direction be given to staff to update City Code to ensure appropriate standards for entry into the street are met? 4) Are there any other conditions which should apply or concerns regarding CenturyLink's installation of Gigabit fiber via Micro -Milling or regarding CenturyLink's communication with residents prior to and during the construction process? 5) While CenturyLink has provided extensive technical analysis of its methods and materials to undertake a possible deployment now, staff believes it may be necessary to secure an independent expert to provide technical guidance for the appropriate final standards to include in a subsequent City Code update that would apply to all ROW users equally. 6) In return for allowing the MOU to proceed now, should the City request that CenturyLink cover the City's out-of-pocket costs, or a portion of those costs? 7) In 2010, as numerous cities were seeking to have Google select their municipality to deploy fiber to the home the City Council gave direction to implement a policy to waive City Right of Way fees for applicants reaching more than 100 premises with fiber optic deployment. When Google did not select any Minnesota city, no formal policy was ever drafted and the directive was never implemented. Does the Public Works Committee wish to recommend to the City Council that it waive fees for CenturyLink as they are requesting or must the formal policy be in place first? Should any additional considerations be contained in a formal policy? June 2015 I% 11 CenturyLink- Introduction and Overview of Apical Fiber Deployment Program Purpose: Public Works approval and support for City Council consideration on July 7, 2015 Discussion Points • Industry Challenge • Apical Overview • Phase 1 Trial Review • Phase 2 Proposal • Communication CenturyLink- 6/26/2015 47,00061,141 New app downloads Hours of music on Pandora 204 million Emails sent 1,300 New mobile users 135 Botnet infections 3 20 million Photo views on flickr $83,000 In sales on Amazon 100,000 New tweets on Twitter 6 million Facebook views Cisco's view of global Internet traffic growth across all access mechanisms 132 lk 2t+4 r_+s nu 2ov 20w It B2201e WW rant w.e be 2 trey 1Y9W2Y12014. i ManWy Traft Unb Leg&14 'Q—M —M. 1 EB (exabyte) = 1018 = a billion gigabytes .a v? CenturyLink- By 2018... 46 users (51 % of world) 21 B networked devices 79% of all traffic streaming video 57% of traffic to non -PC devices kir CenturyLink- 6/26/2015 2 -Enhance the City's vibrancy and attractiveness to a broad range of cultures, lifestyles, and generations. -Improve the City's physical connections by strengthening the walkability and bike friendliness of routes among retail centers, schools, transit, neighborhoods and parks. -Reform the City's Financial Assistance Policy to enhance the City's flexibility and ability to pursue City priorities and amenities. -Encourage partnerships that enhance the community's identity through public art, culture, and historical preservation initiatives. -Strengthen the City's engagement with citizens, and particularly school age youth, to further improve understanding and participation in local government. -Renew the strategic efforts to broaden fiber-optic access and use by Eagan businesses and residents. Problem Solution - Copper and Coax cable networks are reaching their technological limits - High Speed Fiber Networks are generally not available to residential and small business customers - Economics are a gating factor to constructing and expanding tomorrows technologies • Today's technologies constrain existing and future footprints and speeds 0 CenturyLink- - Leverage proven Fiber -to -the -Premise (FTTP) technology already in use Greenfield (newly constructed neighborhoods) - Introduce advanced architecture and construction techniques that change the economics and velocity of deployments • Brownfield (existing neighborhoods) CenturyUnk 6/26/2015 3 •A Multi-year research project between CenturyLink and Louisiana Tech University -Apical Fiber is a cast -in-place fiber technology -It is placed in a roadbed using a shallow Micro Slot and a special polymer with an asphaltic mastic sealer on top -This creates a composite road structure that has the same or better structural strength as the original road bed -Eagan Residential Neighborhood Selected • Brownfield fiber deployment • Resident Informational Session • 2014 Construction • Existing Customer s Only; Opt -in • Fiber -to -the -home (FTTP) • 1 -Gig Speeds • Winter Climate Trial deemed a Success V E. F CenturyUnk- Elllll8 0 0 0 L& I a 1 a db.s TO s g Q Q a Q -a Q 42 R Q a, a Bringing Fiber to YOul Q&Q 0 ,A L° CenturyLink~ 6/26/2015 0 -Goals • Supply Chain — custom designed and manufactured material • Weather Challenges • Scaling resources • Accelerated City approval, permitting • Speed of construction • Validate business case assumptions -Multiple identified locations — Eagan? -Scope • Commence in August, 2015 • HH targets dependant upon materials, weather, resources and City Approval CenturyLink- -Target is residential neighborhoods • City or commercial locations may participate opportunistically • Details to follow -Jointly vetted by CenturyLink and City • Leverage existing CenturyLink fiber • City preference -Consideration for stage of road lifecycle -Existing utility placement reviewed and considered (water, sewer, gas) -Multiple Site Walks -Memorandum of Understanding CenturyLink- 6/26/2015 It Maplewood Retail Store available to answer questions: 651.770.2843 Construction Notice • 14-30 days prior to construction post card notification • 2-3 days prior construction door hanger/post it note reminder • 2-3 days prior No Parking notifications Post Construction • Business as usual CenturyLink marketing to all qualified addresses • Voice, 1 GIG high speed internet • PRISM TV pending franchise approval Y..Y,�• n.MYN.4 r r.mw a �.•YYY.M.VY.W,bYofC Mxs+wrw�e.1Y«csia~i rr.a�ra. CallObI.70.2849 AP CenturyLink ��w-r.wu,wn«xM �Y.p.rrr..•a...ro hr.Y,rY.MW.WfL1r111t ���• •During the process of site assessment and design of micro -milling projects, the City of Eagan may request extension of facilities to certain non-residential buildings or points of interest in the relative project area. These requests will result in a quote for facility extension and finished services from CTL. -if the City accepts the quote, payment for construction of facilities to CTL will be required Net 30 days of project construction completion, with an order rendered for CTL services Win 30 days. The City's requests must be rendered in the design phase of projects, as the facilities are 'custom designed' to the specific area covered, and are not changeable once material has been ordered by CTL. Quote requests not responded to prior to material ordering, or requests after material ordering will not be honored by CTL. -The intent of this option and opportunity is to facilitate network coverage of select buildings/areas within the City of Eagan. Timely communication of points of interest, to be considered in the design phase of the specific areas/neighborhoods is critical to the successful quoting and delivery of options to the City of Eagan. CenturyLink- 6/26/2015 1.1 6/26/2015 qtr �ej 7 CenturyUnk- Agenda Information Memo March 16, 2010 Eagan City Council Meeting C. DIRECT IMPLEMENTATION OF A POLICY T!3 WANE Cla RIGHT OF WAY FEES FOR APPLICANTS DEPLOYING DIRECTLY TO .MORE THAN 100 EAGAN HOMES OR BUSINESSES ACTION TO BE CONSIDERED: Council Directs staff to implement a policy in furtherance of its adopted broadband goals by encouraging fiber optic deployment directly to premises by waiving City Right of Way fees for applicants reaching more than 100 homes or businesses. FACTS: ➢ In its adopted 2009-2010 goals the City Council called for: Ensuring "the economic competitiveness of Eagan's business and residential communities in the global marketplace by anticipating and addressing the evolving `infostructure' bandwidth, capacity and speed needs of Eagan's residents, businesses and employers." With the announced Google Community Fiber program and interest from emerging local Internet Service Providers (ISF,$), there is an opportunity for Eagan to further encourage next generation Fiber to the Home (FTTH) and Fiber to the Premise (FTTP) business deployments by directing implementation of a policy waiving City Right of Way fees for providers willing to deploy high speed fiber optic cables directly to Eagan homes or businesses. ➢ Staff recommends that a threshold be set for such a policy [proposed at a minimum of more than 100 Eagan homes or businesses), to encourage providers seriously intent on fiber optic infrastructure deployment directly to a large number of Eagan premises. ➢ Directing implementation of such a policy not only demonstrates the City of Eagan is serious about attracting next generation broadband providers, but also the policy is another concrete step toward achieving the City Council's adopted broadband goals. ➢ Communications Director Garrison will be present to answer questions or provide further updates if needed. ATTACITMENTS- ➢ None a#/