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ITEM 22
City Council Memorandum Development Services Memo No.
DS22-015
Date:
September 22, 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:
Resolution No. 5613, authorizing a license agreement between Teleport Communications of America, 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 approve Resolution No. 5613, authorizing the Mayor to execute the license agreement between the Teleport Communications of America, 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:
Teleport Communications of America (TCA), a subsidiary of AT&T, Inc., 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 services) and Class 5 non-telecommunications services (dark fiber). 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. TCA currently has approximately 51 miles of fiber running throughout Chandler. TCA has been a provider of fiber services in Chandler since 2014 and seeks to expand its network in coming years, which may include providing fiber connections to Small Wireless Facilities followed by a series of fiber-to-the-home projects branching off into neighborhoods around the city within the terms of this agreement.
Financial Implications:
The City has received a $3,000 application fee to cover its cost for the processing 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 $2.46 per linear foot fee as prescribed by the City’s Fee Schedule. Based on the existing 51 linear miles, TCA is expected to pay $662,428.80 annually to the City, with this amount growing as more fiber is constructed within the City. The company will also pay permit, inspection and pavement damage fees.
Attachments
Resolution No. 5613
Agreement for Use of Public Property
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