| ITEM #: 5. DATE: 06/08/2026 AI #:3344 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | RESOLUTION AUTHORIZING THE LICENSE AGREEMENT WITH ZAYO GROUP 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 authorizes Zayo Group, a Delaware 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 of three additional five-year renewal terms.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
ADOPT RESOLUTION NO. 2026-2524 AUTHORIZING THE CITY MANAGER AND OR THEIR DESIGNEE TO EXECUTE A LICENSE AGREEMENT WITH ZAYO GROUP, A DELAWARE LIMITED LIABILITY COMPANY AND TO ENTER INTO SEPARATE AGREEMENTS FOR IN-KIND EXCHANGES WHICH MAY INCLUDE FIBER AND OR CONDUIT. (Philip Cochran, Assistant City Attorney)
FISCAL IMPACT
Zayo Group (Zayo), 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 of $2,500.00. Zayo is responsible for all costs related to the construction, installation, operation, and maintenance of the fiber network within the right of-way. Additionally, Zayo 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, Zayo is required to pay an annual fee of $0.89 per linear foot of trench within the right-of-way where Zayo installs copper, fiber optic, or other cable conductors and/or conduit that carry interstate traffic, licensed fiber or conduit and/or dark fiber. The total annual fee payment to the city, based on the linear feet of trench, shall not exceed five percent (5%) of Zayo’s gross revenues attributed to the fiber optic network within the city’s right-of-way. Additionally, Zayo must pay an annual fee of $1,000.00 to cover the city's administration and monitoring costs during any year an application fee is not paid. The issuance of the license agreement does not require any city expenditure.
Following the installation of the fiber optic network, Zayo is required to pay an annual fee of $0.89 per linear foot of trench within the right-of-way where Zayo installs copper, fiber optic, or other cable conductors and/or conduit that carry interstate traffic, licensed fiber or conduit and/or dark fiber. The total annual fee payment to the city, based on the linear feet of trench, shall not exceed five percent (5%) of Zayo’s gross revenues attributed to the fiber optic network within the city’s right-of-way. Additionally, Zayo must pay an annual fee of $1,000.00 to cover the city's administration and monitoring costs during any year an application fee is not paid. The issuance of the license agreement does not require any city expenditure.
BACKGROUND AND PREVIOUS ACTIONS
Zayo previously entered into a license agreement with the City in 2019. Under the previous agreement Zayo has installed a fiber network within the city right-of-way with connection locations distributed throughout the city limits.
STAFF ANALYSIS
This fiber license agreement will allow Zayo to operate and maintain the installed fiber optic network and to add additional fiber and/or conduit within the city’s rights-of-way. The locations of the previously installed network have been provided to the city and future locations are allowed throughout the city limits of Goodyear. The license will continue to allow access to the necessary rights-of-way to enable the required permitting and inspections for installation, operation and maintenance of the network. Zayo 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 use. The total cost of the fiber and/or conduit will be borne by Zayo and the city will credit those expenses towards the annual fee associated with the amount of trench in the right-of-way where Zayo installs copper, fiber optic, or other cable conductors and/or conduit that carry interstate traffic, licensed fiber or conduit and/or dark fiber. 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. 2026-2524 with Exhibit A 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 use. The total cost of the fiber and/or conduit will be borne by Zayo and the city will credit those expenses towards the annual fee associated with the amount of trench in the right-of-way where Zayo installs copper, fiber optic, or other cable conductors and/or conduit that carry interstate traffic, licensed fiber or conduit and/or dark fiber. 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. 2026-2524 with Exhibit A is included as Attachment A.