DEPARTMENT: Information Technology Services Department
DEPARTMENT HEAD: Craig Hopkins
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
License agreement with Gigabit Communications, LLC, for communication equipment installation in the City Rights-Of-Way. Revenue generated by this ordinance is estimated at $20,000.00 annually, the revenue generated will be deposited into the Information Technology Services Department Fund in accordance with the FY 2020 Adopted Budget.
SUMMARY:
Ordinance approving a license agreement with Gigabit Communications, LLC ("GIGABIT") for the use of city rights-of-way for the installation of a communications network. Revenue generated by this ordinance is estimated at $20,000.00 annually, the revenue generated deposited into the Information Technology Services Department Fund in accordance with the FY 2020 Adopted Budget. Installations are proposed to begin in the Medical Center area and in the downtown area along North Main Street, expanding later to other areas of the city.
BACKGROUND INFORMATION:
Local Government Code Chapters 283 and 284 grant access to the City's rights-of-way (ROW) for communication companies to install equipment for local exchange telephone service and small-cell networks respectively. Those chapters prescribe regulatory and compensation methodologies for that ROW access. However, some communications companies are installing equipment beyond the scope of Chapters 283 or 284, for which the City receives no compensation under state law. Examples of these services include data center collocation, Ethernet and cloud services.
City Staff negotiated a non-exclusive license agreement with GIGABIT to provide compensation of 3% of gross revenues for those services not addressed by Chapters 283 or 284. The compensation amount agreed to by GIGABIT is identical to that previously agreed to by Zayo, Google Fiber, and Unite Private Networks. The agreement includes an audit provision and provides for compliance with Ci...
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