Submitted By: Lourdes Ramos
presenter
Presentation By: Mel Poole
end
Department: Ocala Fiber Network
STAFF RECOMMENDATION (Motion Ready):
title
Approve five-year renewal with CenturyLink Communications, LLC d/b/a Lumen Technologies Group for leasing dark fibers in the amount of $121,950
end
OCALA’S RELEVANT STRATEGIC GOALS:
Economic Hub
PROOF OF PUBLICATION:
N/A
body
BACKGROUND:
In 1998, the City entered into a contract to lease four dark fibers from CenturyLink Communications, LLC d/b/a Lumen Technologies (formerly Level 3 Communications, LLC) for resale purposes. The agreement included four (4), five-year (5-Year) renewal options. This fiber lease supports guaranteed resale contracts with $150,000 in revenue over the five-year period. These lines support an additional month-to-month resale contract that provides a monthly revenue of $8,700. Ocala Fiber Network (OFN) is seeking approval to exercise the fourth, five-year renewal option (2023 - 2028).
FINDINGS AND CONCLUSIONS:
The continued lease of these dark fibers will produce revenues for OFN through the resale of services utilized with these fibers. The fourth renewal term provides a $6,300 reduction in fees from the previous renewal term.
FISCAL IMPACT:
The Fiscal Year 2023 expenditure of $6,098 will be paid from account #490-031-290-539-53-34050 - Fiber for Resale. The remaining $115,852 will be appropriated during the future budget processes.
PROCUREMENT REVIEW:
N/A. The Renewal Form has been reviewed in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny