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HomeMy WebLinkAbout06/10/2008 25 Fiber Optic Cable Installation Space and Access Agreement wtih Noel Communications BUSINESS OF THE CITY COUNCIL • YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 25 For Meeting Of June 10, 2008 ITEM TITLE: An Ordinance authorizing the City to enter into an agreement specified in the Ordinance with Noel Communications, Inc. ( "Noel ") for the purpose of leasing to Noel access to and space in the conduit within the conduit system owned by the City of Yakima that is located under the sidewalks along Yakima Avenue from Ninth Street to Seventh Avenue in the City of Yakima, Washington, for the purpose of Noel's installing, operating and maintaining Noel's fiber optic cable, in exchange for consideration as described in the Ordinance; and setting forth provisions, terms and conditions accompanying the access to and space in the conduit; and setting an effective date. SUBMITTED BY: Chris Waarvick, Director of Public Works, 575 -6005 Rick Pettyjohn, Information Systems Manager, 575 -6098 CONTACT PERSON/TELEPHONE: Chris Waarvick, 575 -6005 and Rick Pettyjohn, 575 -6098 SUMMARY EXPLANATION: The attached Ordinance (the "Ordinance ") authorizes the City of Yakima ( "City ") to lease to Noel Communications, Inc. ( "Noel ") access to and space in • conduit within the conduit system owned by the City of Yakima that is located under Yakima Avenue from Ninth Street to Seventh Avenue in the City of Yakima, Washington, in exchange for consideration as described in the Ordinance. The consideration for the grant of the lease in the leased conduit consists of an exchange of services. The exchange of services shall remain in effect for the term of the agreement. The City shall provide Noel access to and space in the leased conduit, and Noel will install, operate and maintain Noel's fiber optic cable in the conduit. Noel shall provide 50Mb (Megabits per second) of DIA (Direct Internet Access) to the City. The DIA delivery location will be specified in the Ordinance. The initial 10 -year term value of DIA service is valued at $39,000 a year, or a total of $390,000. The term authorized by the Ordinance is for a period of ten (10) years, subject to an option to extend for ten (10) additional years if the City and Noel can reach a mutually satisfactory agreement on the value of the services for the additional ten -year (10) period. Resolution Ordinance X Other (Specify) Contract Mail to (name and address): Phone: Funding Source APPROVED FOR SUBMITTAL: '"� \ City Manager 411 STAFF RECOMMENDATION: Pass Ordinance. BOARD /COMMISSION /COMMITTEE RECOMMENDATION: COUNCIL ACTION: