TO: Mayor and Members of City Council
THRU: Adam Lindsay, Assistant City Manager
FROM: Sheila Thomas-Ambat, Public Services Director
DATE: August 12, 2024
RE:
Title
Master Operations Agreement with Brightspeed of NC LLC
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal II: Responsive City Government Supporting a Diverse and Viable Economy
Goal III: City Investment in Today and Tomorrow
Goal IV: Desirable Place to Live, Work and Recreate
Executive Summary:
Brightspeed is proposing to upgrade its existing fiber network infrastructure, covering a substantial portion of the City. This upgrade to their existing network will bring capabilities of delivering reliable, high speed connections to the residents of Fayetteville.
The MOA outlines the commitments of both the City and Brightspeed as it relates to items such as construction permitting, construction procedures, and the project timeline.
Background:
The City has the legal authority to manage the public-right-of-way to include the maintenance of poles in the public right-of-way. A portion of the Brightspeed proposed utility upgrade will fall within the public right-of-way. City staff and Brightspeed have communicated on processes and expectations of what should be submitted and approved via construction permitting as well as expectations and standards when it comes to construction procedures in the public right-of-way. The MOA outlines these items.
Issues/Analysis:
Brightspeed, after completing the acquisition of incumbent local exchange carrier assets and operations, is the Incumbent Local Exchange Carrier (ILEC) in Fayetteville and is not required to enter into a MOA to perform this work. However, ascribing to be good partners, with discussion with City staff, have agreed to the construction permitting and procedures set forth in the MOA.
Budget Impact:
Brightspeed will invest its own capital in order to upgrade the existing fiber network.
G.S. 160A-296 & 160A-206 prohibits the City from charging a permitting fee for the proposed construction activities, however Brightspeed is subject to a combined state and local sales tax that is remitted to the state who then in turn distributes back to the municipalities for the purpose of administering the right-of-way.
Options:
1. Adopt the Master Operations Agreement
2. Reject the Master Operations Agreement
Recommended Action:
Staff recommends that Council adopt the Master Operations Agreement
Attachments:
Master Operations Agreement