| ITEM #: 15. DATE: 08/25/2025 AI #:2788 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | ADOPTION OF RESOLUTION AUTHORIZING THE LICENSE AGREEMENT WITH COGENT FIBER LLC FOR THE INSTALLATION OF A FIBER OPTIC NETWORK WITHIN THE CITY’S RIGHTS-OF-WAY |
| STAFF PRESENTER(S): | Philip Cochran, Assistant City Attorney |
SUMMARY
This five-year license agreement authorizes Cogent Fiber LLC, a Delaware limited liability company, frequently known as Sprint Communications Company L.P. (Cogent), to install, operate, and maintain a fiber optic communication system within rights-of-way located within the city of Goodyear. The agreement includes the option for three additional five-year renewal terms.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
ADOPT RESOLUTION NO. 2025-2487 AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE A LICENSE AGREEMENT WITH COGENT FIBER LLC, A DELAWARE LIMITED LIABILITY COMPANY (FKA SPRINT COMMUNICATIONS COMPANY L.P.), 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, Cogent 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. Cogent is responsible for all costs related to the construction, installation, operation, and maintenance of the fiber network within the right-of-way. Additionally, Cogent 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, Cogent 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 Cogent’s gross revenues attributed to the fiber optic network within the city’s right-of-way. Unless and until Cogent has any gross revenues, they shall pay the entire $0.89 per linear foot in full. Additionally, Cogent 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 costs related to the agreement. The issuance of the license agreement does not require any city expenditures.
Following the installation of the fiber optic network, Cogent 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 Cogent’s gross revenues attributed to the fiber optic network within the city’s right-of-way. Unless and until Cogent has any gross revenues, they shall pay the entire $0.89 per linear foot in full. Additionally, Cogent 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 costs related to the agreement. The issuance of the license agreement does not require any city expenditures.
BACKGROUND AND PREVIOUS ACTIONS
Cogent 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. Cogent previously entered into an agreement with the city in 2019 under their predecessor in interest, Sprint Communications L.P., and has been operating in the city’s right-of-way since that time.
STAFF ANALYSIS
Cogent 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. Cogent 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 Cogent 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. 2025-2487 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 Cogent 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. 2025-2487 with Exhibit A is included as Attachment A.