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ITEM 6
City Council Memorandum Development Services Memo No.
DS24-005
Date:
April 18, 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:
Resolution No. 5796, Authorizing a License Agreement between Light Source Communications 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. 5796, authorizing the Mayor to execute the license agreement between Light Source Communications 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:
Light Source Communications 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 of Light Source Communications’ current build plan is 12 months. Construction is planned to commence in May 2024 and end in May 2025 for the first 26,420 linear feet for a fiber backbone ring in the area near the Chandler Municipal Airport. Light Source primarily intends to serve business and institutional customers and does not anticipate utilizing micro-trenching construction methods.
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 Light Source Communications’ gross revenues for services provided within the City of Chandler.
Attachments
Resolution No. 5796
Agreement for Use of Public Property
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