Title
Network Infrastructure Services License Agreement with PRIME Fiber (Ordinance S-52125) - Citywide
Description
Request to authorize the City Manager, or his designee, to execute a non-exclusive, revocable license with PRIME Fiber to construct, install, operate, maintain, and use the Public Highways and public utility easements in the City of Phoenix to provide fiber optic facilities in, under, over, and across public rights-of-way and public utility easements in the City, subject to the terms and conditions contained in the license and Phoenix City Code. Further request to authorize the City Treasurer to accept all funds related to this item. Additionally request that the Licensee sign the license within 60 days of Council action, or this authorization will expire.
Report
Summary
PRIME Fiber desires to install facilities in the City of Phoenix rights-of-way and public utility easements to provide fiber-optic based services to the public. The license will be for a period of five years with an option for a one-time five-year renewal, contain appropriate insurance and indemnification provisions, require a performance bond and a security fund, provide for terms of transfer and revocation, and provide compensation for the commercial use of public rights-of-way while permitting the City to manage the rights-of-way.
Contract Term
The request is for a five-year Network Infrastructure Services License with an option for a one time five-year renewal.
Financial Impact
There is no financial impact to the City. Licensee will pay an annual fee based on a formula using number of homes passed or a percentage of monthly gross revenues, with the fees subject to increases based on the Consumer Price Index.
Department
Responsible Department
This item is submitted by Assistant City Manager Inger Erickson, the Street Transportation Department and the City Engineer.