Memorandum

City of Lawrence

Legal Services Dept.

TO:	David Corliss, Assistant City Manager and Director of Legal Services Department
FROM:	Toni Ramirez Wheeler, Staff Attorney
CC:	Mike Wildgen, City Manager
Date:	February 2, 2006
RE:	Lawrence Freenet, Inc.’s Proposal to Install Equipment on City Property

In October 2005, the City entered into an agreement, approved by the City Commission, authorizing Lawrence Freenet, Inc., (“Lawrence Freenet”) to install equipment on and at the base of the City’s water tower at 18^th and Kasold.  Lawrence Freenet now proposes to install equipment on the roof of City Hall, and the water towers at 18^th and Stratford and 6^th and Kasold.  The Planning Department is reviewing these applications.

If Lawrence Freenet obtains the appropriate land use approvals and the City Commission authorizes Lawrence Freenet to install its equipment on City Hall and the water towers located at 18^th and Stratford and 6^th and Kasold, City staff recommends the Commission authorize the City Manager to execute agreements in substantially the form of the attached agreements for each of the three sites.

The attached agreements contain the following changes from the 18^th and Kasold agreement with Lawrence Freenet:

· In paragraph 2 (Term) there is language permitting the agreements to be extended, upon the mutual consent of the parties.

· The termination provision (Paragraph 9) has been altered to add language authorizing the City to terminate the agreement if the City Commission determines the service provided by Lawrence Freenet is not a significant value to the community.  Thereafter, the parties have 30 days to negotiate an agreement under reasonable commercial terms.  If an agreement is not reached, Lawrence Freenet has 60 days to remove its equipment, or the City will cause the equipment to be removed.

· New reporting requirements have been added (Paragraphs 10 and 11).  Lawrence Freenet representatives advised the City Commission in August 2005 that Lawrence Freenet was a non-profit community networking project that had a goal of providing free internet service to the entire Lawrence community.  Joshua Montgomery reported to City staff on January 23, 2006, that approximately 10% of Lawrence Freenet’s customers receive free or discounted internet service.  Paragraph 10 will require Lawrence Freenet to provide quarterly reports of customers receiving service at a free or discounted rate.

Paragraph 10 further provides for the City to have access to the names and addresses of Lawrence Freenet customers receiving free or discounted service.  The new requirements will assist the City in measuring the benefits the community receives from Lawrence Freenet  since the City is making its property available to Lawrence Freenet for nominal compensation (ten dollars ($10) per year). 

· Paragraph 11 requires Lawrence Freenet to provide annual financial reports to the City.

City staff will have Lawrence Freenet’s plans reviewed by a licensed professional engineer before authorizing Lawrence Freenet to install its equipment on the water towers to ensure the structures can support the equipment.

Finally, Lawrence Freenet has advised City staff that it plans to propose installing equipment on several City light and traffic control poles on Massachusetts Street and other downtown City streets, as well as on the City’s water tower property on Harper Street.