Explanation
Background: The City through its Department of Public Utilities, Division of Power, owns and controls several conduits located under Wall Street between Gay Street and Elm Street and allows that one conduit may be used for fiber optic telecommunications cable. CenturyLink Communications, LLC (“CenturyLink”) has utilized one conduit for its fiber optic cable since 2001. CenturyLink’s initial use of the conduit was under the terms of a lease agreement that expired in 2016. The following ordinance authorizes the Director of the Department and Finance and Management on behalf of the Department of Public Utilities, Division of Power, to execute a license agreement specifying the terms and conditions for CenturyLink’s continued use of this conduit and to establish compensation to the City for this continued use and for CenturyLink’s use of the City’s conduit beyond the term of the original lease agreement. The term of the new license agreement will be fifteen (15) years, with an option to renew the term for an additional fifteen (15) year period with the license fee for the renewal term to be negotiated if the licenses is renewed.
Fiscal Impact: CenturyLink will pay the City a lump sum license fee of $30,000.00 for the fifteen-year term of the License Agreement and an additional $10,000.00 for CenturyLink’s use of the City’s conduit beyond the term of the initial lease agreement. These fee will be deposited in Fund 6300, the Power Operating Fund.
Emergency action is requested to allow the City to receive the income from the license fees at the earliest date possible.
Title
To authorize the Director of the Department of Finance and Management to enter into a License Agreement with CenturyLink Communications, LLC specifying the terms and conditions for CenturyLink Communications, LLC’s use of City-owned conduit, and to declare an emergency.
Body
WHEREAS, the City, through its Department of Public Utilities, Division of Power, owns and cont...
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