Memorandum
City of Lawrence
City Manager’s Office
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TO: |
Diane Stoddard, Interim City Manager |
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FROM: |
Brandon McGuire, Assistant to the City Manager |
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CC: |
Randy Larkin, James Wisdom, Mark Thiel, Todd Lohman, Micah Seybold, Dave Wagner |
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DATE: |
June 17, 2015 |
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RE: |
Kansas Fiber Network request for dark fiber lease |
Background
Resolution 7097 (“Fiber Policy”) establishes the City’s policy regarding the administration of the City’s fiber optic infrastructure, fiber partnerships with community anchor institutions (CAIs) (I.e. education, government, hospitals), and the lease of dark fibers to private entities. According to the Fiber Policy, the City Commission shall consider for approval, requests from private entities for the lease of City-owned dark fibers. Kansas Fiber Network (KFN) has requested a lease of 12 dark fibers in the City’s dark fiber runs. KFN’s request satisfies the objectives stated in the Fiber Policy regarding the lease of excess City-owned dark fibers. Additionally, due to KFN’s history of service to CAIs, the request addresses the objectives stated in the Fiber Policy regarding service to CAIs that benefit the public interest.
KFN is a mature Kansas corporation, owned and operated by an association of 29 independent rural Kansas telecommunications companies. KFN provides a state-wide backbone network, capable of up-to 100 gigabits per second (Gbps), with points of presence in over 40 communities.
According to its business model, KFN is not primarily an internet service provider (ISP). KFN provides a backbone network that enables clients to access national ISPs, thus increasing market competition in Kansas communities that are underserved by incumbent providers. KFN partners with CAIs to meet the bandwidth needs of organizations in the education, government and healthcare sectors. Business customers utilize KFN’s network to meet large bandwidth needs through bandwidth contracts or directly through ISPs. Telecommunications companies, including ISPs, utilize KFN’s backbone network to provide high-speed broadband and internet services to residential and business customers in underserved rural and suburban markets.
KFN currently serves businesses and CAIs in the Lawrence market. KFN plans to utilize the leased dark fibers to expand its network within Lawrence to serve additional businesses and CAIs located in the community. The company has developed a robust state-wide high-speed backbone network and has earned a positive reputation in the telecommunication industry. Approval of the lease agreement is expected to enable businesses and CAIs in Lawrence to access a backbone network capable of up-to 100 Gbps. Additionally, the request is expected to increase competition among ISPs by enabling businesses and CAIs to utilize KFN’s network to access service from national ISPs.
Staff Recommendation
City staff recommends approval of the proposed KFN dark fiber lease agreement. Pursuant to the Fiber Policy, KFN would pay $16,762.50 annually for the lease of 12 dark fibers in each run if the City Commission approves the lease agreement.
Action
Approve the lease of 12 dark fibers in the City’s dark fiber runs to Kansas Fiber Network and authorize the City Manager to execute the dark fiber lease agreement, addendum number one to lease agreement, and the dark fiber leasing memorandum of understanding.
Attachments: Lease Agreement