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ITEM 9

City Council Memorandum Development Services Memo No. DS23-019

Date:

November 9, 2023

To:

Mayor and Council

Thru:

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

From:

Dennis Aust, Telecommunications and Utility Franchise Manager

Subject:

Adoption of Resolution No. 5750, Authorizing a License Agreement between Ubiquity Arizona, LLC, and the City of Chandler for the Use of Public Property for the Establishment of Class 4 and Class 5 Communications Systems

Proposed Motion:

Move City Council pass and adopt Resolution No. 5750, authorizing the Mayor to execute the license agreement between Ubiquity Arizona, 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 Communications Systems, and authorizing the City Manager or designee to execute other documents as needed to give effect to the agreement.

Background:

Ubiquity has filed an application with the city to install, operate and maintain an underground fiber optic communications system that may provide both Class 4 (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. This item is for a five-year nonexclusive agreement. Ubiquity’s build plan includes building fiber-to-the-home throughout the majority of Chandler neighborhoods within five years.

Financial Implications:

The city has received a $3,000 application fee to cover the city’s cost for the processing of this application. 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 $2.55 per linear foot fee as prescribed by the City’s Fee Schedule capped at a maximum of 2% of Ubiquity’s gross revenues for services provided within the City of Chandler.

Attachments

Resolution No. 5750 and Agreement for Use of the Right-of-Way