HomeMy WebLinkAboutIR 8325 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8325
0%ATE46, Date: May 15, 2001
To the Mayor and Members of the City Council
J Page 1 of 2
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SUBJECT: Contract With CityNet Telecommunications. Inc to Allow the
taT� Installation of a Fiber Optic Network in City's Sanitary and Storm Drain
Sewers in the Downtown Area
On December 12, 2000 the City Council was briefed on emergency procedures and preparations associated on
potential damages that may result from directional boring contractors working in public rights-of-way near
city utilities. In September 2000, an incident in Dallas involving a directional boring contractor caused
millions of dollars in damage when a large water main was broken. This incident brought to our attention the
need to take a look at the City's practices and procedures related to directional boring. As part of the
investigation, CityNet Telecommunications, Inc., a fiber optics network provider, presented to staff a new
technology involving the installation of fiber through the sanitary sewer and storm drain systems that would
provide an alternative to the directional boring and open cut methods of fiber optics installation being used in
most city streets downtown.
This technology involves using the current sanitary sewer and storm drain systems to run high capacity fiber
to potential users in the downtown area with minimal or no directional boring needed. The system would be
installed in a loop around the downtown area and buildings would be connected to the looped system using
current connections from the building to the sanitary sewer system. CityNet will then lease individual fibers
in its installed network to third party telecommunications providers, which will enable those providers to
offer their services to end use customers without the necessity of street excavation.
Over the past four months, staff has been involved in determining the feasibility of allowing such a system to
be installed in Fort Worth's downtown area and has been negotiating with CityNet in allowing the use of the
City's infrastructure and facilities. At this time a contract has been drafted and is being finalized that will
allow CityNet to begin installation of their system in the sanitary and storm drain systems and other portions
of the public rights-of-way in the downtown area. The contract is relatively similar to others entered into by
the City with other fiber optics providers.
Specifically, the major points of the contract are as follows:
• CityNet will pay the City cash compensation equal to 2.5% of CityNet's gross revenue
derived from the system, which primarily will be generated through the leasing of individual
Fiber to third party telecommunications providers. A S50,000 advance payment will be made
prior to the installation of the system
• CityNet will provide an array of``in-kind" services, including repairs to portions of the sewer
and storm drain systems that may need repairs prior to installation of f
the sanitary sewer lines being used by CityNet for the life of the contra t �
�,.., GIS mapping of the system being used; and periodic jet-washing of th slvi, ape u A ij
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8325
0-100. Date: May 15, 2001
+} To the Mayor and Members of the City Council
!gage 2 of 2
xxs SUBJECT: Contract With CityNet Telecommunications. Inc to Allow the
raz3 Installation of a Fiber Optic Network in City's Sanitary and Storm Drain
Sewers in the Downtown Area
• CityNet will also provide the City with two fiber optic pairs for the City's exclusive use, and
construct an institutional network connecting five City-owned buildings and facilities in the
downtown area and providing the City with connections to the looped system downtown.
• The contract will prohibit CityNet from leasing, selling or conveying fiber to any third party
unless that third party has obtained a franchise, license or other written agreement required by
the City for provision of various telecommunications services in the City by that provider.
• The term of the contract will commence upon execution and expire on September 30, 2025.
• CityNet will provide the same level of bonding and insurance coverage as other
telecommunications providers excavating in the public rights-of-way.
Staff estimates that the value of the in-kind services will be equal to, if not exceed, the estimated gross
-a, revenue-based cash payments that the City will receive, thereby ensuring that the total compensation paid by
- CityNet equals at least 5% of the gross revenue that CityNet is projected to receive from its system.
At this time the agreement with CityNet is being finalized and will be brought forward along with an M&C
for City Counc pproval on May 22, 2001. Please feel free to contact me if you have any questions or
would lik iti nal information.
Gary ac son
City Manager
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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