HomeMy WebLinkAboutResolution 58-11RECORD OF RESOLUTIONS
Blank, Inc.. Fan No M45
Reso[utiorn No.
58 -11
Passed 2 0
A RESOLUTION AUTHORIZING THE RENEWAL OF
AN AGREEMENT WITH DUBLINK DEVELOPMENT
COMPANY LLC, WHICH SERVED TO AUTHORIZE
DUBLINK DEVELOPMENT COMPANY LLC TO
MANAGE AND OPERATE A CONDUIT SYSTEM
WITHIN THE CITY OF DUBLIN.
WHEREAS, the City of Dublin ( "Dublin's, on December 14, 1998, entered into
an agreement ("Agreement') with DubLink Development Company, LLC
( "DDC "), which served to authorize DDC to build and operate a conduit system
under Dublin right -of -way ( "DubLink Fiber System "); and
WHEREAS, the Agreement has an initial term of twenty-five (25) years and a
renewal option of an additional twenty-five (25) years; and
WHEREAS, DDC desires to exercise its renewal option in the Agreement; and
WHEREAS, the Agreement has been mutually beneficial to Dublin and DDC,
and DDC has been a partner and valuable asset to Dublin through the
development of the DubLink Fiber System; and
WHEREAS, this Resolution serves as an acknowledgement from Dublin that
the Agreement is hereby renewed.
NOW, THEREFQRE, BE IT RESOLVED by the Council of the City of Dublin,
State of Ohio, ' I of the elected members concurring that:
Section 1. The Agreement between Dublin and DDC is hereby renewed until
December 14, 2048.
Section 2. This Resolution shall take effect and be in force from and after the
earliest date permitted by law.
Passed this Z� &6 day of Zo U e_ - f, , 2011.
• ��. Officer
ATTEST:
0'1 -v _
Clerk of Council
SZD
MEMORANDUM
TO Dublin City Council
Marsha I. Grigsby, City Manager
FROM Dam McDaniel, Deputy City Manager /Director of Economic Development
Gregory J. Dunn
DATE: November 10, 2011
RE: Resolution No. 58 -11
Agreement Renewal with DubLink Development Company LLC
LIE" N DI Did D@Yr 8110 R ®RG"01r
The City of Dublin ( "Dublin ") began its DubLink project by entering into an agreement with a
subsidiary of the Fishel Company ("Agreement"), DubLink Development Company LLC
( "DDC "). This Agreement, effective December 14, 1998, allowed DDC to build and operate a
conduit system under Dublin right -of -way, and in return, Dublin received free of charge one
conduit for its exclusive use. The term of the Agreement was for 25 years, with DDC having an
option to renew for an additional 25 years (the "Option").
BENEFITS OF THE AGREEMENT:
Dublin has received great value from this Agreement. The conduit system is the foundation
upon which all of the DubLink services and utilities are based. Dublin began by placing between
96 and 400 fibers in the new conduit. The conduit system also prevented communications
companies from cutting and digging up streets and right -of -way, minimizing damage and traffic
disruption. The conduit system also encouraged competitive communications companies to
invest in fiber optics in Dublin by making the initial construction cost more affordable. Today,
Dublin has robust availability of privately owned and operated communications services. All of
this was accomplished with Dublin only paying for the installation of fiber in the free conduit.
The DubLink conduit system was ultimately connected to a larger conduit system built by the
Fishel Company which, upon the purchase of one of the new conduits, enabled Dublin to build
the fiber ring which it owns throughout Franklin County. The DubLink system is connected to
three data centers, three AT &T points of presence, and OARnet. It also provides the backbone
for the Dublin Wi -Fi network.
Fishel, too, has benefited from the Agreement. Fishel has created a successful business
operating and leasing its conduit system.
Memo re. Resolution 58 -11 — DubLink Agreement Renewal
November 4, 2011
Page 2 of 2
ACTION REQUESTED:
The matter before Council today is a simple one. Fishel would like to execute its Option and
have Dublin City Council acknowledge that renewal. The reason Fishel would like an
acknowledgement is that the Agreement can be interpreted to require that the notice of renewal
occur only one year before expiration of the Agreement. Some of Fishel's lessees have
expressed concern that Fishel may not renew. Since the term of some of the leases may extend
beyond the initial term of Dublin's Agreement with Fishel, Fishel needs to confirm the extension
now to allay those concerns, thereby making its conduit more marketable.
RECOMMENDATION:
Since Dublin is merely acknowledging a renewal term it previously agreed to, and since Fishel
has been a great partner with Dublin on the DubLink project, staff recommends adoption of
Resolution No. 58 -11.
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