Staff recommends approval of a resolution changing the Telecommunications Rate Schedule for Dark Fiber service from a minimum one mile charge to a minimum four mile charge.
The City approved Ordinance No. 02-74 on October 28, 2002, which created a new Chapter 22, Article V, and Division 7 of the Code of Ordinances for the City of Leesburg, entitled “Telecommunications Services”. This ordinance gave approval for service rates to be charged by the City for various Telecommunications Services. The rates were consolidated on October 25, 2004 by Resolution 7232, as well as on September 12, 2005 by Resolution 7440. The current rate for Dark Fiber Service is $102.00 per fiber mile, per month, with a minimum one mile charge. The one mile minimum is no longer sufficient to recover the City’s investment cost of installation within a reasonable time frame. The four mile minimum will allow the City to continue to serve its customers by providing a return on the City’s installation investment in a reasonable time frame [12-18 months]. The unit cost of $102.00 per fiber mile will remain the same.
1. Authorize a resolution to modify the current Telecommunications Rate for Dark Fiber Service, changing the minimum mileage charge from one mile to four miles; or
2. Such alternative action as the Commission may deem appropriate
This Resolution will increase revenue on new dark fiber accounts that provide service over a one, two, or three mile run. Typically, the City installs 3 – 5 dark fiber connections in this mileage range per year. The Resolution will provide additional revenue of approximately $15,000.00 per year.
Department: IT / Communications
Prepared by: Kevin Cochrane
Attachments: Yes____ No X
Advertised: ____Not Required X
Attorney Review : Yes___ No X
Reviewed by: Dept. Head ________
Finance Dept. _______JB_________
Deputy C.M. ________EFS________
City Manager ___________________
Account No. 045-0000-343-92.12
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING A CHANGE IN THE TELECOMMUNICATIONS RATE SCHEDULE FOR DARK FIBER SERVICE, CHANGING THE MINIMUM DISTANCE FOR DARK FIBER SERVICE FROM ONE MILE TO FOUR MILES; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT pursuant to the provisions of Chapter 22, Article V, Division 7 of the Code of Ordinances of the City of Leesburg, the following rates and charges for Telecommunications Services shall apply, unless and until adjusted by subsequent Resolution.
· Dark Fiber Service (minimum 4 mile charge) $102.00 per fiber mile
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 14th day of July, 2008.