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ITEM 12

City Council Memorandum Development Services Memo No. DS24-017

Date:

October 14, 2024

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Andy Bass, Deputy City Manager
Kevin Snyder, Development Services Director
Ryan Peters, Strategic Initiatives Director
Louis Kneip, Development Engineering Manager

From:

Dennis Aust, Telecommunications and Utility Franchise Manager

Subject:

Resolution No. 5844, Authorizing an Amended and Restated License Agreement between Crown Castle Fiber, LLC, and the City of Chandler for the Use of Public Property for the Establishment of Class 4 and Class 5 Telecommunications Systems

Proposed Motion:

Move City Council pass and adopt Resolution No. 5844, authorizing the Mayor to execute the amended and restated license agreement between Crown Castle Fiber, LLC, and the City of Chandler for the use of facilities in the city’s rights-of-way and public places to establish Class 4 and Class 5 Telecommunications Systems, and authorizing the City Manager or designee to execute other documents as needed to give effect to the agreement.

Background:

Crown Castle Fiber has filed an application with the city to renew, with modified terms, its license to install, operate and maintain an underground communications system that may provide both Class 4 telecommunications services (lit fiber/active services) and Class 5 non-telecommunications services (dark fiber/internet services). The agreement provides terms for both services and is similar to agreements the city has with other providers.

As part of the modified terms of this renewal agreement, the city has received payment satisfying Crown Castle Fiber's outstanding balance for work completed under the existing agreement. The city and Crown Castle Fiber have additionally agreed to conduct a pilot project allowing the installation and evaluation of Crown Castle's "rapid connect" microtrenching construction method, subject to city oversight for constructability, safety, and aesthetics.

This item is for a five-year nonexclusive agreement. Crown Castle Fiber has been a provider of fiber services in Chandler since 2020 and seeks to expand its network in coming years, which may include providing fiber connections within the term of this agreement.

Financial Implications:

The city has waived the $3,000 application fee to cover the city’s cost for the processing of this application, as part of the modified terms. A transaction privilege tax of 2.75% will be paid on any non-interstate telecommunications services (Class 4). Fiber that is not exempted by federal or state law and is used for non-telecommunications services (Class 5) is subject to an annual $2.65 per linear foot fee as prescribed by the City’s Fee Schedule or 2% of Crown Castle Fiber’s gross revenues for services provided within the City of Chandler, whichever is less. The company will also pay permit, inspection and pavement damage fees.

Attachments

Resolution No. 5844 and Agreement for Use of Public Property