Last week the City Council in Burnsville approved a Dark Fiber License Agreement with TTM Operating Corporation, Inc. It’s interesting to see more local governments looking at ways to help facilitate or reduce barriers to folks bringing fiber into the community. Here is more info from City Council notes…
FACTS
TTM Operating Corporation, Inc. (TTM) is currently constructing fiber optic infrastructure in Burnsville for their business purposes. Most of the construction proposed would have occurred in City Right of Way (ROW), and on City property. City staff working with TTM staff, proposed options to utilize City excess dark fiber optic strands. An agreement with TTM is mutually beneficial for both parties. TTM can reduce the amount of overall fiber infrastructure construction necessary to achieve their goals and the City reduces the amount of ROW and city property construction disturbance and receives revenue for the utility fund.
The initial term of the license is for ten (10) years, and will commence on Jan 5, 2011. After the initial ten (10) year term, if both parties consent, they may extend the term for two additional five-year terms. Under the proposed license, TTM would be required to pay license fees to the City for the use of two strands of dark fiber in specific areas of interest. The amount of fees proposed to be paid to the city under this agreement is approximately: $4,555 annually. Any revenue generated from charging a fee to utilize the fiber infrastructure would be considered revenue to the city’s sewer and water fund. The sewer and water fund provided the revenue to pay for the city fiber infrastructure, which was built for municipal utility purposes and is fulfilling that need.
RECOMMENDATION
Staff recommends the council approve a Fiber License Agreement with TTM Operating Corporation, Inc. for the use of excess dark fiber and empty conduit infrastructure per the terms set forth in License (Dark Fiber) Agreement – 155371