Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
CC:	Cynthia Wagner, Assistant City Manager Randy Larkin, Staff Attorney Jim Wisdom, Director of Information Systems
Date:	December 23, 2011
RE:	Community Wireless Communication Agreements with the City of Lawrence

Please place the following item on the January 10, 2012 City Commission meeting agenda:

Authorize the Mayor to execute a Lease and License Agreement and a Lease Agreement with Community Wireless Communication (CWC) granting access to certain City owned facilities, rights of way and a portion of fiber optics installed within the City in exchange for a $30,000 contribution from CWC to the fiber project and a 5% fee on gross revenues, if appropriate.

Background:

In April 2011, the City received a request from Community Wireless Communications (CWC) seeking an agreement with the City to allow CWC access to various City-owned infrastructure throughout the community, including traffic installations, fiber optic cable installations, and fiber optic conduit, in exchange for providing new fiber optic installations within City conduit, and 5% of CWC’s gross revenue.

The City Commission, at its May 24, 2011 meeting, directed staff to work with CWC on the legal documents to accommodate this request. In addition, CWC agreed to contribute $30,000 toward the fiber project. City staff has worked with CWC to develop two agreements that meet the direction of the City Commission.

Agreement Summaries:

Lease and License Agreement: This agreement provides CWC with non-exclusive access to certain city-owned facilities to which Freenet currently has agreements with the City. These facilities include the Kasold water tower, the Stratford water tower, the 6^th Street water tower, the Harper Street water tower, certain traffic control signals and certain street light poles in the downtown area. Additionally, the agreement provides CWC with access to the City’s rights of way for the purpose of communications. Minor modifications to the existing uses do not require the City’s prior written consent. However, major modifications, relocation or expansion of equipment and structures requires the City’s consent and is subject to land use regulations. The agreement provides that CWC’s equipment will not interfere with the equipment and facilities of the City or other users. The agreement further requires CWC to provide records of its facilities within the City’s rights of way or on City property and includes insurance provisions related to liability. CWC will provide the City with connectivity for its water tower cameras at no cost to the City. The term is for an initial five (5) year period and includes mutual options to extend the agreement an additional four (4) successive five (5) year option periods for a total of twenty five (25) years. The agreement requires payment from CWC of 5% of gross receipts to the City on a quarterly basis and maintains requirements that CWC will offer free service to qualifying low income households. The agreement may not be sold, transferred or sublet without the written consent of the City Commission.

Lease Agreement: This agreement provides CWC with a lease of a 12-strand buffer tube of fiber optic cable in certain locations within the City. As payment for the lease, CWC will pay the City a one-time fee of $30,000, payable within 180 days of execution of the agreement. This agreement also requires that CWC offer free service to qualifying low income households. The term of the agreement is twenty five (25) years. Under the agreement, the City retains ownership of the fiber and CWC will be responsible for all inter-connections between the City-owned fiber and CWC’s fiber. The agreement also includes insurance provisions. The agreement may not be sold, transferred or sublet without the written consent of the City Commission.

Requested Action:

Staff recommends that the City Commission authorize the Mayor to execute the agreements with CWC.