HomeMy WebLinkAboutResolution 083-15RECORD OF RESOLUTIONS
Dayton Legal Blank, Inc., Form No. 30045
Resolution No. 83 -15 Passed
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO ENTER INTO A CAPITAL LEASE WITH FIBER
TECHNOLOGIES NETWORK, LLC FOR THE PURPOSE
OF LEASING CERTAIN FIBER OPTICS
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WHEREAS, Fiber Technologies Network, LLC possesses certain dark fiber assets
within the City of Dublin; and
WHEREAS, the City of Dublin seeks the opportunity to expand its existing system of
fiber optics in a cost efficient manner and is willing, from time to time, to lease such
fibers rather than constructing new fiber systems; and
WHEREAS, the City of Dublin desires to lease four (4) fiber strands from Fiber
Technologies Network, LLC; and
WHEREAS, it is necessary for the City of Dublin to execute a Capital Lease with
Fiber Technologies Network, LLC to memorialize this engagement.
NOW THEREFORE, BE IT RESOLVED by the Council, of the City of Dublin, State of
Ohio, of the elected members concurring that:
Section 1. The City Manager is hereby authorized to execute a Capital Lease
with Fiber Technologies Network, LLC authorizing the City of Dublin to utilize four (4)
strands of optical fiber for negotiated consideration to be paid to Fiber Technologies
Network, LLC.
Section 2. Payment for the capital lease will come from a budgetary allocation in the
annual capital improvement program from the "Other Projects" account (account
401 - 0314 - 780 - 2579).
Section 3. This Resolution shall take effect upon passage in accordance with
Section 4.04(a) of the Revised Charter.
Passed this 1&41N day of , W L)1ZM off` , 2015.
Mayor - Presiding Officer
ATTEST:
Clerk of Council
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017
Phone: 614- 410 -4400 • Fax: 614- 410 -4490
CITY OF DURIN
To: Members of City Council
From: Dana L. McDaniel, City Manager
Date: November 12, 2015
Memo
Re: Resolution 83 -15 — Authorizing the Capital Lease of Fiber Optics from
Fiber Technologies Network, LLC
Background
As City Council is aware, the City possesses a 125 -mile conduit and fiber optic system throughout
Central Ohio known as Dublink. It has been staffs desire to extend the Dublink system to critical City
facilities. It recently has come to staffs attention that Fiber Technologies Network, LLC possesses
certain fiber optic infrastructure along the route shown in Attachment "A." This fiber route can be easily
and very inexpensively connected to the existing Dublink fiber optic system.
The City has an opportunity to execute a Capital Lease with Fiber Technologies Network, LLC for four
strands of optical fiber along this route. Leasing these fiber along this route will achieve the following:
• Extend the City's optical fiber backbone along Avery Road connecting the City's Avery Park,
Avery Park Water Tower, and Dublin Road Water Tower.
• Extend the City's optical fiber backbone in a cost efficient manner. The Capital lease is a 15-
year lease at $1,100 per month plus CPI. The lease allows for an extension beyond the initial 15
years. The City currently is leasing its own optical fiber to others at $3,000 per month. Leasing
from Fiber Technologies Network, LLC will represent a significant savings to the City. We also
estimate the cost to build the same fiber line to be between $300- 350,000. Leasing will result
in significant savings.
• The City's current radio system repeater on the Avery Road water tower is served by T -1 lines.
Those T -1 lines currently cost the City nearly $10,000 per year. Once the optical fibers are in
place via this Capital Lease, the City will be able to terminate the T -1 line service and avoid this
cost completely. As you can see, the City will nearly pay the annual lease via this cost
avoidance beginning almost immediately.
• Optical fiber access to the Avery Road and Dublin Road water towers will enable the City to
connect to existing 1 gigabit wireless bridges placed there in support of the City -wide WiFi
system.
• The City may be able to reimburse itself for some of this Capital Lease from the State Capital
Funds the City is to receive for the 100 gigabit project.
• The City could potentially leverage funding from the State Capital Funds intended for the 100
gigabit project to extend laterals to Jerome High School, Grizzell Middle School, and Deer Run
Elementary School. This could be of great fiscal benefit to Dublin City Schools while connecting
them to the State -wide 100 gigabit backbone.
As Council can see, the extension of the City's optical fiber backbone in this manner is extremely cost
effective and sets the conditions for many opportunities and return on investment.
— Puthobg Me Capital Lease of Fbert 6
ptlfiom Fiber Technologies Network, LLC
Peters on November N 5 N2, 2015
Page 2of2
Reeonmendatrm
Staff remmmaitls Counal approve Ratlutlm No 8315. Please mrbact Dana M9anl9 wltlr any
puaeon :.
(Note '. the mute to be leased is in purple, from Post Road at Avery ms not alien Avery Road
and then east along Glick Road, term facing at the Dublin Road water Tower. The mute north of
G1ld Road is not part ef thlslease arrangement)