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Proposed Amendment to Master Agreement for Shared Use ProjectsCity of Dubuque City Council Meeting Action Items # 5. Copyrighted November 1, 2021 ITEM TITLE: Proposed Amendment to Master Agreement for Shared Use Projects between the City of Dubuque and Comelec Internet Services SUMMARY: City Manager recommending approval of an Amendment to the Master Agreement for Shared Use Projects with Comelec Internet Services for a conduit collaboration to expand fiber services to the growing commercial and residential areas on and near Cedar Cross Road and facilitate fiber to the home extensions. SUGGESTED Suggested Disposition: Receive and File; Approve DISPOSITION: ATTACHMENTS: Description Type Comelec Amendment to Master Agreement for Shared City Manager Memo Use Projects-MVM Memo amendment to Master Agreement for Shared Use Projects between the City of Dubuque and Comelec Staff Memo Internet Services memo to the City Manager Comelec 2nd Amendment Master Services Agreement Supporting Documentation Comelec 2nd Amendment to MSA Penn to Cedar Supporting Documentation Cross Map with Distances Comelec 2nd Amendment to MSA calculator of annual Supporting Documentation payments with inflation THE C Dubuque DUj!BQTE WAWca 914 Masterpiece on the Mississippi � pp aoo�•o 13 Z017*20*2Q19 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proposed Amendment to Master Agreement for Shared Use Projects between the City of Dubuque and Comelec Internet Services DATE: October 26, 2021 Comelec Internet Services is a locally owned and operated telecommunication and internet services provider. It is contemplating expansion of its high-speed speed internet service to southern portions of the community. Comelec has expressed interest in collaborating with the City of Dubuque to accomplish this. In 2016 the City of Dubuque undertook its Broadband Acceleration Initiative. The Initiative focuses on public/private collaborations and includes a comprehensive strategy to reduce the cost and time required for broadband expansions in Dubuque. One effort within that strategy is the use of "Master Sharing Agreements", where an overall legal, structural, and financial relationship is established between the City and broadband providers and approved by City Council for co -location and fiber optic and conduit builds. Comelec and the City entered into such a Master Agreement on April 1, 2019, and have successfully completed several collaborations. These collaborations reduce Comelec and City costs, accelerate fiber access and competition for citizens and businesses while preserving City right-of-way, and are consistent with the overall strategy of the City's Initiative. Attached is an amendment to the existing Master Agreement that will license to Comelec excess City conduit capacity to reach its intended expansion area on and near Cedar Cross Road. Information Services Manager Chris Kohimann, Civil Engineer II Dave Ness and Sustainable Innovation Consultant David Lyons recommend City Council approval of an Amendment to the Master Agreement for Shared Use Projects with Comelec Internet Services for a conduit collaboration to expand fiber services to the growing commercial and residential areas on and near Cedar Cross Road and facilitate fiber to the home extensions. Approval of this request would have a positive budgetary impact to the City. Comelec would be charged $87,500 for the license over a 20-year term. It would make annual payments beginning in 2021. The first payment would be $4,375 and each subsequent annual payment would be adjusted up 3% for inflation. I concur with the recommendation and respectfully request Mayor and City Council approval. Micliael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Dave Ness, Civil Engineer II Chris Kohlmann, Information Services Manager David Lyons, Sustainable Innovation Consultant 2 THE CITY OF DUBQE Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Dave Ness, Civil Engineer II Chris Kohlmann, Information Services Manager David Lyons, Sustainable Innovation Consultant Dubuque �IFAmm'iw G� m.irnx� 2007-2012.2013 2017*2019 SUBJECT: Proposed amendment to Master Agreement for Shared Use Projects between the City of Dubuque and Comelec Internet Services DATE: October 25, 2021 INTRODUCTION The purpose of this memo is to request approval of an amendment to the Master Agreement for Shared Use Projects for a conduit collaboration to expand fiber services to the growing commercial and residential areas on and near Cedar Cross Road and facilitate fiber to the home (FTTH) extensions. T_T6] 20]:19111 Z I ki Comelec Internet Services is a locally owned and operated telecommunication and internet services provider. It is contemplating expansion of its high-speed speed internet service to southern portions of the community. Comelec has expressed interest in collaborating with the City of Dubuque to accomplish this. DISCUSSION In 2016 the City of Dubuque undertook its Broadband Acceleration Initiative. The Initiative focuses on public/private collaborations and includes a comprehensive strategy to reduce the cost and time required for broadband expansions in Dubuque. One effort within that strategy is the use of "Master Sharing Agreements", where an overall legal, structural, and financial relationship is established between the City and broadband providers and approved by City Council for co -location and fiber optic and conduit builds. Comelec and the City entered into such a Master Agreement on April 1, 2019 and have successfully completed several collaborations. These collaborations reduce Comelec and City costs, accelerate fiber access and competition for citizens and businesses while preserving City right-of-way, and are consistent with the overall strategy of the City's Initiative. Attached is an amendment to the existing Master Agreement that will license to Comelec excess City conduit capacity to reach its intended expansion area on and near Cedar Cross Road. BUDGETIMPACT Approval of this request would have a positive budgetary impact to the City. Comelec would be charged $87,500 for the license over a 20-year term. It would make annual payments beginning in 2021. The first payment would be $4,375 and each subsequent annual payment would be adjusted up 3% for inflation. I have attached a scheduled of annual payments. ACTION REQUESTED Please review this Memo and Agreement and let us know if you have any questions. We would respectfully request your approval and would ask that you forward this information to the Dubuque City Council with a recommendation for their approval to enter into the amendment to the Master Co -Location and Shared Services Agreement with Comelec Internet Services. Thank you. CC Crenna Brumwell, City Attorney Barry Lindahl, Senior Counsel Steve Brown, Engineering Barry Lindahl, Senior Counsel Second Amendment to Master Co -location and Shared Services Agreement between Comelec Internet Services and the City of Dubuque Pursuant to the Master Co -location and Shared Services Agreement between City of Dubuque (CITY) and Comelec Internet Services (COMELEC), dated and attached hereto, the Parties hereby agree to the following PROJECT STATEMENT: Narrative description of co -location and service sharing: CITY will provide COMELEC access to existing conduit and micro -duct running from the NE corner of the intersection of Riley Drive and Pennsylvania Avenue to the Tower located at approximately 3100 Cedar Cross Court and as further described on the attached Exhibit. Charges and Payment Terms: As estimated, the total cost to the CITY for fulfilling its services under this Project Statement which shall be paid by COMELEC is $87,500 (conduit: 12,500 If X $7 = $87,500) Twenty (20) year term beginning , 2021 and running through , 2041. COMELEC or CITY may request up to two five-year extensions of the agreement at the same annual cost, and such extension shall not be unreasonably denied. Exchange of Value: The value provided by CITY to COMELEC is $87,500. The value provided by COMELEC to CITY is $87.500. Project Statement Accepted: Dated: November 2. 2021 CITY OF DUBUQUE By: Michael C. 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C � • [ 41 ^ 3 �r WNW I4IN Am F `� 'A r, a 1` r •R Not' f ^� r IN r PP NoIt NNW If Itq NI �Lt �p r aItI. > d IN ' " ♦ ty ;.. t ''? Year Payment Date Payment 3% annual Inflator 1 12/1/2021 4,375.00 - 2 11/30/2022 4,506.25 131.25 3 11/30/2023 4,641.44 135.19 4 11/30/2024 4,780.68 139.24 5 11/30/2025 4,924.10 143.42 6 11/30/2026 5,071.82 147.72 7 11/30/2027 5,223.98 152.15 8 11/30/2028 5,380.70 156.72 9 11/30/2029 5,542.12 161.42 10 11/30/2030 5,708.38 166.26 11 11/30/2031 5,879.63 171.25 12 11/30/2032 6,056.02 176.39 13 11/30/2033 6,237.70 181.68 14 11/30/2034 6,424.83 187.13 15 11/30/2035 6,617.58 192.75 16 11/30/2036 6,816.11 198.53 17 11/30/2037 7,020.59 204.48 18 11/30/2038 7,231.21 210.62 19 11/30/2039 7,448.14 216.94 20 11/30/2040 7,671.59 223.44 117,557.89