R2021-123 Resolution Authorizing an Indefeasible Right of Use Agreement and Associated Sales Order with Pontus LLC, a Series LLC for the Individually Protected Sunna Fiber LLC, DBA Sunna Fiber LLC to obtain Dark Fiber from the City of Decatur Fiber Networ

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Information Technology DATE: 7/6/2021 MEMO: 2021-6 TO: Honorable Mayor Julie Moore Wolfe and City Council FROM: Scot Wrighton, City Manager James Edwards,Director Information Technology Department SUBJECT: Authorization for Mayor to enter into an Indefeasible Right of Use (IRU)Agreement and associated Sales Order with Pontus LLC,a series LLC for the individually protected Sunna Fiber LLC,DBA Sunna Fiber LLC (Sunna Fiber)to obtain Dark(unlit)Fiber from the City of Decatur Fiber Network. SUMMARY RECOMMENDATION: Staff recommends that City Council approve the attached resolution, authorizing the Mayor to execute a 20-year Indefeasible Right of Use Agreement and associated Sales Order with Sunna Fiber to provide two strands of Dark Fiber between Richland Community College (RCC) and the Right of Way ground box at 861 West William Street(Sunna Fiber). BACKGROUND: This IRU Agreement gives Surma Fiber the right to use two strands of City Fiber between RCC and the Sunna Fiber location for an initial term of 20 years. The IRU Agreement further demands up-front payment for the right to use these dark fibers in addition to a fiber maintenance fee paid annually. Sunna Fiber is paying to splice and use the fiber only, no electronics is provided in this agreement. Fiber construction is required for this project and will be brought to City Council when work and material estimate is complete. Work will begin when the IRU Agreement is signed by both Parties,received,and filed by the City of Decatur. The city will need to extend its existing fiber network to provide service to this location on West William Street. This can be financed with ARP broadband funds. Moving forward,however,the city is likely to receive more requests in the years ahead for broadband services than it can offer--given that the city's existing network serves only a limited portion of the city. A rapid build- out of the municipal fiber system to meet Smart City objectives will likely require more partnerships with private broadband providers. PRIOR COUNCIL ACTION: The City has executed five other like agreements with others. The language in this IRU agreement is the same except the language that is specific to this Customer. POTENTIAL OBJECTIONS: None Anticipated INPUT FROM OTHER SOURCES: None STAFF REFERENCE: Jim Edwards, IT Director,450-2236 BUDGET/TIME IMPLICATIONS: Revenue from Sunna Fiber demanded by this IRU Agreement is a one-time payment to the City of$16,480. Fiber splicing costs are listed in the associated Sales Order. A reoccurring fiber maintenance fee of $593.28 will be billed to Sunna Fiber after the fiber is turned over to them and will be billed annually thereafter. ATTACHMENTS: Description Type