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ITEM 9
City Council Memorandum Development Services Memo No.
DS22-009
Date:
August 15, 2022
To:
Mayor and Council
Thru:
Joshua H. Wright, City Manager
Andy Bass, Deputy City Manager
Ryan Peters, Strategic Initiatives Director
Derek D. Horn, Development Services Director
Louis Kneip, Development Engineering Manager
From:
Dennis Aust, Telecommunications and Utility Franchise Manager
Subject:
Adoption of Resolution No. 5602, authorizing a license agreement between Wyyerd Connect, LLC, dba Wyyerd Fiber, 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 adopt Resolution No. 5602, authorizing the Mayor to execute the license agreement between Wyyerd Connect, LLC, dba Wyyerd Fiber, 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:
Wyyerd Fiber has filed an application with the City to install, operate and maintain an underground fiber communications system that may provide both Class 4 telecommunications (lit fiber/active services) and Class 5 non-telecommunications services (dark fiber/future 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. Wyyerd’s initial plan includes two backbone loop projects. One loop will be in south Chandler and one loop will be in north Chandler. Both loops will originate on the east side of the service area, run to the west side, and then loop back to the east. These projects will result in approximately 211,200 total linear feet, or about 40 miles, of fiber within the City of Chandler right-of-way within the first 1-2 years, followed by a series of fiber to the home projects branching off into neighborhoods throughout the city within the term of this agreement.
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 telecommunication 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 $2.46 per linear foot fee as prescribed by the City’s Fee Schedule. Based on the 211,200 linear foot build proposed for 2022-2023, Wyyerd is expected to pay $519,552 annually to the City, with this amount growing as more fiber is constructed within Chandler.
Attachments
Resolution No. 5602
Agreement for Use of Public Property
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