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Item # 9.

Work Session and Regular Meeting

Meeting Date:	11/13/2018
Department:	Public Works

AGENDA CAPTION:

Consider Action to Approve a Resolution for a Conduit Occupancy License Agreement Between the Town of Addison and MCImetro Access Transmission Services Corp. d/b/a Verizon Access Transmission Services, for Occupancy of the Town of Addison Underground Conduit System on Belt Line Road Between Midway Road and Marsh Lane, and Authorizing the City Manager to Execute the Agreement.

BACKGROUND:

As part of the Belt Line Underground Electrical project, the Town installed extra conduit within the underground duct system that can be leased to telecommunications companies or other similar users. The intent of adding this conduit is to limit the disturbance to the right-of-way and the improvements that were installed during the undergrounding project. Having the extra conduit, also provides the Town an additional source of revenue for future technology installations.

Verizon contacted the Town in the summer of 2018 to discuss using the Belt Line Road right-of-way for their proposed underground telecommunications project. The project would install fiber starting in Carrollton west of Marsh Lane and, using the Belt Line Road right-of-way, would go east to the intersection of Belt Line Road and Midway Road, and then continue along Midway Road through Addison and into Carrollton and Farmers Branch. This network would connect with both potential Addison customers and Verizon’s existing facilities in surrounding municipalities. Staff told Verizon that instead of tearing up the right-of-way, they would be required to use the extra conduit that was installed during the undergrounding project.

In order to use the conduit, a Conduit Occupancy License Agreement (Agreement) is needed with Verizon. The initial term of the Agreement is 7 years, with two, 5-year automatic renewals unless either party terminates the agreement. Verizon will pay an annual rental of $1.00 per linear foot of conduit space used. Verizon will occupy approximately 5,280 linear feet. The annual rental is estimated to be $5,280.00. Verizon will also pay a one-time, non-refundable rental payment of $1,500.00. The agreement also includes termination, maintenance, insurance and removal terms.

Staff and the City Attorney have negotiated the terms of the Agreement with Verizon. If approved, Verizon will be required to submit updated plans for review by the Town.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Verizon Agreement