Title
Ordinance to Approve the Franchise Agreement Between the City of Greensboro and MCI Communication Services, Inc: FIRST APPROVAL
Body
Department: Engineering and Inspections
Council District: All
Public Hearing: No
Advertising Date/By: N/A
Contact 1 and Phone: Jane Nickles, Director Information Technology, 373-2314
Contact 2 and Phone: John Gribble, Franchise & Right of Way Manager, 373-2464
PURPOSE:
To give the first approval of the franchise agreement between the City of Greensboro and MCI Communication Services, Inc.
BACKGROUND:
North Carolina General Statute §160A-76 requires that all franchise grants, renewals, extensions, or amendments be made by ordinance and also requires that all such ordinances be passed at two regular meetings of the City Council.
The City of Greensboro and MCI Communication Services, Inc. have entered into a franchise agreement which will receive its first approval by ordinance at the June 21, 2016 City Council meeting. This is the first of two regular meetings of the City Council at which the franchise agreement may be approved.
The franchise agreement begins retroactively on July 1, 2015 for a term of ten (10) years with an option for MCI Communication Services, Inc to renew for an additional five (5) year period by notifying the City in writing. This retroactive is due to earlier settlement with MCI and franchise negotiation during FY 16.
The proceeds of the franchise agreement have been incorporated into the current fiscal year budget.
BUDGET IMPACT:
The City will receive an annual franchise fee based on the amount of linear footage of MCI Communication Services, Inc’s installations in the City’s rights-of-way. Currently, the franchise fee is $13,073.70 per year for 43,579 linear feet. The total linear footage and the franchise fee will be calculated and adjusted yearly through the regular process. These fees for FY 16 will be deposited into account number 101-6010-01.7217 and fees for FY 17 will be deposited into account number 101-0701-02.7217.
RECOMMENDATION / ACTION REQUESTED:
It is recommended that City Council give the first approval of the franchise agreement between MCI Communication Services, Inc and the City of Greensboro.
COMMITTEE ACTION: This item was referred to Council by the Infrastructure Committee.