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ITEM 11
City Council Memorandum Development Services Memo No.
DS24-001
Date:
February 22, 2024
To:
Mayor and Council
Thru:
Joshua H. Wright, City Manager
Andy Bass, Deputy City Manager & 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. 5766, Authorizing a License Agreement between Zoom Technology Arizona Limited, 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. 5766, authorizing the Mayor to execute the license agreement between Zoom Technology Arizona Limited 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:
Zoom Technology Arizona 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. The expected time frame for Zoom Technology's current build plan is twelve months. Construction is planned to commence in March 2024 and end in March 2025 for service to the first 29,400 residential units. Depending on other fiber to the home provider builds in Chandler, further deployment may occur in the northern and western areas of the city over the next two or three 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 $2.65 per linear foot fee as prescribed by the City’s Fee Schedule, capped at a maximum of 2% of gross revenues for services provided within Chandler.
Attachments
Resolution No. 5766
Agreement for Use of Public Property
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