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ITEM 11

City Council Memorandum Development Services Memo No. DS24-016

Date:

October 14, 2024

To:

Mayor and Council

Thru:

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

From:

Dennis Aust, Telecommunications and Utility Franchise Manager

Subject:

Resolution No. 5841, Authorizing a License Agreement between Cablevision Lightpath, LLC, and the City of Chandler for the Use of Public Property for the Establishment of Class 4 and Class 5 Telecommunications Systems

Proposed Motion:

Move City Council pass and adopt Resolution No. 5841, authorizing the Mayor to execute the license agreement between Cablevision Lightpath, 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 Telecommunications Systems, and authorizing the City Manager or designee to execute other documents as needed to give effect to the agreement.

Background:

Cablevision Lightpath has filed an application with the city to install, operate and maintain an underground fiber optic communications system that may provide both Class 4 telecommunications services (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 Cablevision Lightpath's current build plan is 18 months. Construction is planned to commence as soon as permits are issued and the construction schedule will be determined by permit release for the first 200,000 linear feet for a fiber backbone ring through key central parts of the city.

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 or 2% of Cablevision Lightpath's gross revenues for services provided within the City of Chandler, whichever is less. The company will also pay permit, inspection and pavement damage fees.

Attachments

Resolution No. 5841 and Agreement for Use of Public Property