Explanation
This ordinance authorizes the Director of the Department of Technology to enter into an agreement with Columbus FiberNet LLC (CFN) for fiber optic cable maintenance services in the amount of $88,201.27 for the CFN fiber duct system, in support of the City’s fiber optic infrastructure. The original agreement (EL010409 and EL011025) was authorized by Ordinance 1296-2009, passed October 5, 2009, and Ordinance 1327-2010, passed October 4, 2010. These ordinances authorized the City to acquire a portion of the conduit system, known as FiberNet, which at that time consisted of one-point-nine-inch (1.9") duct with ninety-six (96) strand single mode installed fiber. This ordinance funds year sixteen (16) of a twenty (20) year agreement, authorized by Ordinance 1296-2009. At the time of purchase, maintenance fees were waived for a period of five years. However, starting in 2015 contract terms for scheduled annual maintenance (with an annual maintenance fee) were authorized. These terms are as follows:
“Section 9.1 references: "Scheduled Maintenance Seller shall use commercially reasonable methods to maintain the property in a secure and good condition. Such routine maintenance (“Scheduled Maintenance”) shall include, but is not limited to, locating and marking the property and pumping, venting, air quality testing, and proofing the property when necessary. Buyer shall pay to Seller for Seller’s services under this Section 9.1, an amount equal to $0.19 (cents) a year per foot of conduit owned by Buyer (the “Maintenance Fee”) for the period commencing 5 years from the closing date and continuing thereafter for a period of 12 months (“Initial Term”). The first 5 years of this contract the fees will be waived. After the Initial Term expires, the Maintenance Fee shall increase annually by the change in CPI. This fee shall continue for so long as Seller is providing Scheduled Maintenance services to Buyer hereunder. Such payments are due up front on the first day of ...
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