| ITEM #: 14. DATE: 08/25/2025 AI #:2787 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | ADOPTION OF RESOLUTION AUTHORIZING THE LICENSE AGREEMENT WITH MCIMETRO ACCESS TRANSMISSION SERVICES LLC, DOING BUSINESS AS VERIZON ACCESS TRANSMISSION SERVICES, FOR THE INSTALLATION OF 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 MCImetro Access Transmission Services LLC, d/b/a Verizon Access Transmission Services, a Delaware limited liability company (Verizon), 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. 2025-2486 AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE A LICENSE AGREEMENT WITH MCIMETRO ACCESS TRANSMISSION SERVICES LLC, DBA VERIZON ACCESS TRANSMISSION SERVICES, AND TO ENTER INTO SEPARATE AGREEMENTS FOR IN-KIND EXCHANGES WHICH MAY INCLUDE FIBER AND CONDUIT FOR THE CITY’S EXCLUSIVE USE. (Philip Cochran, Assistant City Attorney)
FISCAL IMPACT
Under the license agreement, Verizon 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. Verizon is responsible for all costs related to the construction, installation, operation, and maintenance of the fiber network within the right-of-way. Additionally, Verizon must pay all applicable city fees for plan reviews, permit issuance, and inspections of its work within the right-of-way.
As a telecommunication corporation that offers telecommunications services directly to the public, the city must follow federal and state law regarding fees charged to any telecommunications corporation providing services directly to the public. Following the installation of the fiber optic network, Verizon 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 that carry interstate traffic between and among Verizon’s interstate points of presence and exclusive of facilities used by the local network. The issuance of the license agreement does not require any city expenditures.
As a telecommunication corporation that offers telecommunications services directly to the public, the city must follow federal and state law regarding fees charged to any telecommunications corporation providing services directly to the public. Following the installation of the fiber optic network, Verizon 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 that carry interstate traffic between and among Verizon’s interstate points of presence and exclusive of facilities used by the local network. The issuance of the license agreement does not require any city expenditures.
BACKGROUND AND PREVIOUS ACTIONS
Verizon 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. Verizon previously entered into an agreement with the city in 2019 and has been operating in the city’s right-of-way since that time. This is a new license.
STAFF ANALYSIS
Verizon 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. Verizon 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 costs of the fiber and/or conduit will be borne by Verizon 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 cable and/or conduit that can be utilized for city facilities and departments without any expenditure of funds from the city. Resolution No. 2025-2486 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 exclusive use. The total costs of the fiber and/or conduit will be borne by Verizon 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 cable and/or conduit that can be utilized for city facilities and departments without any expenditure of funds from the city. Resolution No. 2025-2486 with Exhibit A is included as Attachment A.