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| DATE:
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12/4/2018 7:00:00 PM |
| SUBJECT: |
| Council Consideration to Authorize the Mayor to Sign Amendment No. 2 to the Telecommunications Raceway Lease Agreement Between the City of Gillette and Visionary Communications, Inc. |
| BACKGROUND: |
| Enclosed is Amendment No. 2 to the original Telecommunications Raceway Lease Agreement. The original agreement was signed February 7, 2018 and Amendment No. 1 was signed October 22, 2018. Amendment No. 2 will allow Visionary Communications, Inc. to lease additional fiber optic raceway in the City of Gillette's multi-raceway fiber optic backhaul system. Visionary will install fiber optic cable in the City's raceway system to serve their customers. |
| ACTUAL COST VS. BUDGET: |
Revenue received from the Raceway Lease Amendment No. 2 shall be deposited in the City's Fiber Fund No. 506.
Per the terms of the original agreement, the City will lease its raceway at a unit cost of $0.47 per lineal foot with an inflationary increase of 3% per calendar year. Upon execution of Amendment No. 2, the annual lease revenue will increase by an estimated $2,300.00. |
| SUGGESTED MOTION: |
| I Move for Approval to Authorize the Mayor to Sign a Telecommunications Raceway Lease Amendment No. 2 between the City of Gillette and Visionary Communications, Inc. |
| STAFF REFERENCE: |
Michael H. Cole, P.E., Utilities Director;
Anthony Reyes, City Attorney |
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