08-11-2020 Ordinance8/11/2020 1
ExteNet Systems LLC
Franchise Ordinance
Public Works Department
Policy Question
Should the City grant ExteNet Systems LLC
a Franchise to install, operate, maintain and
repair a telecommunications network
consisting of small wireless and wireline
facilities in, across, over, along, under,
through and below the City of Federal Way?
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Background Information
•ExteNet requested a franchise in order to install a
small wireless and wireline telecommunications
network.
•The application was posted on the City’s website.
•10 year term.
•Franchise bond of $50,000.00
•Work guaranteed through performance and
maintenance bonds.
•Insurance consistent with city standards.
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Background Information
•Wireless demand has seen exponential increase in past few years.
•To be competitive, cities must keep up with technology.
•Demand will be met through implementation of 5G networks.
•5G relies on densification of system through small wireless.
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Background: Small Wireless
(street light replacement)
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Background Information
Financial Impacts
•$5,000.00 deposit for franchise development.
•Master License = outlines terms for leasing
city property. Maximum fee $270.00 per year
/ location.
•Small cell permits = addendum to the Master
License and specific to each deployment
•Right-of-way permits for installation.
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Options Considered
1)Recommend adoption of the proposed
ExteNet Systems LLC Franchise
Ordinance and forward it for second
reading and enactment.
2)Do not adopt the proposed ordinance and
provide direction to staff.
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Mayor’s and Committee’s
Recommendation
Option 1: Franchise ordinance adoption.
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Questions?
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