| ITEM #: 5. DATE: 11/17/2025 AI #:2923 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | RESOLUTION AUTHORIZING THE LICENSE AGREEMENT WITH CROWN CASTLE FIBER LLC TO INSTALL A FIBER OPTIC NETWORK WITHIN THE CITY’S RIGHTS-OF-WAY |
| STAFF PRESENTER(S): | Philip Cochran, Assistant City Attorney |
SUMMARY
The five-year license agreement authorizes Crown Castle Fiber LLC, a New York limited liability company (Crown Castle), the ability to install, operate, and maintain a fiber optic communication system within the city of Goodyear rights-of-way. The agreement includes the option for three additional five-year renewal terms.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
ADOPT RESOLUTION NO. 2025-2942 AUTHORIZING THE CITY MANAGER AND OR THEIR DESIGNEE TO EXECUTE A LICENSE AGREEMENT WITH CROWN CASTLE FIBER LLC, A NEW YORK LIMITED LIABILITY COMPANY AND TO ENTER INTO SEPARATE AGREEMENTS FOR IN-KIND EXCHANGES WHICH MAY INCLUDE FIBER AND OR CONDUIT FOR THE CITY’S EXCLUSIVE USE. (Philip Cochran, Assistant City Attorney)
FISCAL IMPACT
Under the license agreement, Crown Castle must pay a $2,500.00 application fee to install a fiber optic network within the city of Goodyear. Each subsequent five-year renewal term requires an extension application fee. Crown Castle is responsible for all costs related to the construction, installation, operation, and maintenance of the fiber network within the right-of-way. Additionally, Crown Castle must pay all applicable city fees for plan reviews, permit issuance, and inspections of its work within the right-of-way.
Following the installation of the fiber optic network, Crown Castle is required to pay an annual fee of $0.89 per linear foot of trench within the right-of-way where it installs copper, fiber optic, or other cable conductors and/or conduit. The total payment to the city, based on the linear feet of trench, shall not exceed five percent (5%) of Crown Castle’s gross revenues attributed to the fiber optic network within the city’s right-of-way. Unless and until Crown Castle has any gross revenues, they shall pay the entire $0.89 per linear foot in full. Additionally, Crown Castle must pay an annual fee of $1,000.00 for any year in which an application fee is not paid to cover the city's administration and monitoring cost related to the agreement. The issuance of the license agreement does not require any city expenditure.
Following the installation of the fiber optic network, Crown Castle is required to pay an annual fee of $0.89 per linear foot of trench within the right-of-way where it installs copper, fiber optic, or other cable conductors and/or conduit. The total payment to the city, based on the linear feet of trench, shall not exceed five percent (5%) of Crown Castle’s gross revenues attributed to the fiber optic network within the city’s right-of-way. Unless and until Crown Castle has any gross revenues, they shall pay the entire $0.89 per linear foot in full. Additionally, Crown Castle must pay an annual fee of $1,000.00 for any year in which an application fee is not paid to cover the city's administration and monitoring cost related to the agreement. The issuance of the license agreement does not require any city expenditure.
BACKGROUND AND PREVIOUS ACTIONS
Crown Castle is seeking a fiber license agreement from the city of Goodyear to install, operate, and maintain a fiber optic network within the city's rights-of-way. The planned connection locations are distributed throughout the city limits. Crown Castle previously entered into an agreement with the city in 2020 and has been operating in the city’s right-of-way since that time.
STAFF ANALYSIS
Crown Castle is requesting a fiber license agreement from Goodyear to install, operate and maintain a fiber optic network within the city’s rights-of-way. The locations planned for connections are throughout the city limits of Goodyear. The license will grant access to the necessary rights-of-way to enable the required permitting and inspections for installation, operation and maintenance of the network. Crown Castle must obtain all necessary permits through the city’s standard procedures.
The license has an initial five-year term, with the option for three additional five-year renewals. It is a non-exclusive agreement, allowing the city to grant licenses to other users within the right-of-way, including additional fiber optic network providers.
The license allows the city to enter into a separate agreement for in-kind contributions of fiber and/or conduit for the city’s exclusive use. The total cost of the fiber and/or conduit will be borne by Crown Castle and the city will credit those expenses towards the annual fee associated with the amount of trench in the right-of-way. This option allows the city to have access to fiber optic cables and/or conduits that can be utilized for city facilities and departments without any expenditure of funds by the city. Resolution 2025-2942is included as Attachment A.
The license has an initial five-year term, with the option for three additional five-year renewals. It is a non-exclusive agreement, allowing the city to grant licenses to other users within the right-of-way, including additional fiber optic network providers.
The license allows the city to enter into a separate agreement for in-kind contributions of fiber and/or conduit for the city’s exclusive use. The total cost of the fiber and/or conduit will be borne by Crown Castle and the city will credit those expenses towards the annual fee associated with the amount of trench in the right-of-way. This option allows the city to have access to fiber optic cables and/or conduits that can be utilized for city facilities and departments without any expenditure of funds by the city. Resolution 2025-2942is included as Attachment A.