Title
Authorization to Amend License Agreement 122932 with Zayo Group, LLC (Ordinance S-50382)
Description
Request to authorize the City Manager, or his designee, to amend License Agreement 122932 with Zayo Group, LLC, to extend the term by five years and to provide for two additional five-year automatic renewal options to extend. Further request authorization for the City Treasurer to accept all funds related to this item.
Report
Summary
Zayo Group, LLC, formerly 360networks (USA), Inc., has licensed space since 2008 for a fiber conduit system to accommodate telecommunication services at 2120 N. Central Ave., and is currently in good standing. The term of the license will be extended by five years with two additional five-year automatic renewal options to extend. The license fee during the first five-year extension is $150 per month, plus applicable taxes, with a three percent increase at each automatic renewal term, which is within the range of market rates as determined by the Real Estate Division.
All other terms and conditions of the license will remain the same.
Contract Term
The license will be extended for a five-year term, beginning Jan. 9, 2024, through Jan. 8, 2029, and will provide for two additional five-year automatic renewal options to extend.
Financial Impact
Annual revenue during the first extended term will be $1,800, plus applicable taxes.
Concurrence/Previous Council Action
City Council authorized:
- Agreement 122932 (Ordinance S-34393) on Sept. 19, 2007;
- Agreement 122932-001 (Ordinance S-44157) on Dec. 13, 2017; and
- Agreement 122932-002 (Ordinance S-45245) on Dec. 12, 2018.
Location
2120 N. Central Ave.
Council District: 4
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Human Services and Finance departments.