| ITEM #: 9. DATE: 01/26/2026 AI #:3076 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | RESOLUTION AUTHORIZING THE LICENSE AGREEMENT WITH LIGHT SOURCE COMMUNICATIONS, LLC TO INSTALL A FIBER OPTIC NETWORK WITHIN THE CITY’S RIGHTS-OF-WAY
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| STAFF PRESENTER(S): | Philip Cochran, Assistant City Attorney |
SUMMARY
The five-year license authorizes Light Source Communications, LLC, a Michigan limited liability company, 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 (included as Exhibit A).
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
ADOPT RESOLUTION NO. 2026-2501 AUTHORIZING THE CITY MANAGER AND OR THEIR DESIGNEE TO EXECUTE A LICENSE AGREEMENT BETWEEN THE CITY OF GOODYEAR AND LIGHT SOURCE COMMUNICATIONS, LLC, A MICHIGAN 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. (Phillip Cochran, Assistant City Attorney)
FISCAL IMPACT
Light Source Communications (LSC), under the license agreement, 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. LSC is responsible for all costs related to the construction, installation, operation, and maintenance of the fiber network within the right-of-way. Additionally, LSC 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, LSC 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 of LSC’s gross revenues attributed to the fiber optic network within the city’s right-of-way. Additionally, LSC must pay an annual fee of $1,000.00 to cover the city's administration and monitoring costs. The issuance of the license agreement does not require any city expenditure.
Following the installation of the fiber optic network, LSC 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 of LSC’s gross revenues attributed to the fiber optic network within the city’s right-of-way. Additionally, LSC must pay an annual fee of $1,000.00 to cover the city's administration and monitoring costs. The issuance of the license agreement does not require any city expenditure.
BACKGROUND AND PREVIOUS ACTIONS
LSC 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.
STAFF ANALYSIS
LSC 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. LSC 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 LSC 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 No. 2026-2501 is 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 LSC 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 No. 2026-2501 is included as Attachment A.