City of Alexandria, Virginia
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MEMORANDUM
DATE: OCTOBER 2, 2024
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: ADRIANA CASTAÑEDA, DIRECTOR, TRANSPORTATION AND ENVIRONMENTAL SERVICES
DOCKET TITLE:
TITLE
Receipt of Franchise Proposal in Response to City Grant for a Non-exclusive Franchise for use of the public rights-of-ways by companies to design, install, provide, operate, maintain, repair, control, upgrade, construct and remove a fiber network for the purpose of providing Telecommunications Services within the City.
BODY
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ISSUE: Receipt of franchise proposal to use the City’s public rights-of-way by companies to design, install, provide, operate, maintain, repair, control, upgrade, construct and remove a fiber network for the purpose of providing Telecommunications Services within the City and referral to staff of such proposal for review.
RECOMMENDATION: That City Council:
1. Receive a summary of the proposal submitted to the City (see summary in Discussion section below);
2. Receive any additional proposals from bidders at the Council meeting;
3. Refer all proposals to the City Manager for evaluation, review, and consideration in the manner prescribed by law, including the negotiation of a franchise agreement with the preferred bidder; and
4. Direct the City Manager to recommend to City Council at the earliest feasible City Council meeting after which franchise can be negotiated with a bidder to award a franchise by City Council.
BACKGROUND: On June 15, 2024, City Council adopted an ordinance to solicit proposals for a franchise for the use of the City’s public rights-of-ways by companies to design, install, provide, operate, maintain, repair, control, upgrade, construct and remove a fiber network for the purpose of providing Telecommunications Services within the City (Refer to Attachment 1). Pursuant to the Ordinance, the City Clerk placed advertisements in local newspapers over the course of two consecutive weeks. The deadline for proposals of July 15, 2024, was published and made known to prospective bidders for the receipt of proposals. The City received one proposal from Crown Castle by the posted deadline.
DISCUSSION: State law requires that the Mayor read summaries in open session at the City Council meeting scheduled for October 8, 2024, meeting and then inquire as to whether any other bidders are present with additional proposals. City Council then would refer all proposals to the City Manager for review. Staff will evaluate the proposals, select a preferred bidder, and negotiate a franchise agreement for recommendation to City council as soon as feasible to award a franchise agreement.
The language the Mayor shall read in open session is set forth below:
“As of October 8, 2024, City staff has received timely responses to the Ordinance from Crown Castle. Crown Castle submitted proposed telecommunications franchise for review and evaluation by City staff. Are there any other companies who, at this time, wish to submit a proposal in response to the Ordinance? Accordingly, at this time, the proposal is referred to the City Manager to be reviewed and further evaluated by City staff. After negotiations with Crown Castle, the City Manager is to return with a proposed recommended telecommunications franchise agreement for approval by City Council.”
FISCAL IMPACT: The successful franchisee will be required to pay the City proposed right-of-way fees of $1.88 per access line as of July 1, 2024, through June 30, 2025, pursuant to Va. Code §56-468.1 and City Code § 5-2-161.
ATTACHMENTS:
1. Ordinance No. 5549
STAFF:
Emily A. Baker, Deputy City Manager
Tarrence Moorer, Assistant Director, Internal Services, T&ES
Lalit Sharma, Deputy Director, Engineering and Right-of-Way Services, T&ES
Vanetta Pledger, CIO Director, Department of Information Technology Services, ITS
Alex Boulden, Division Chief, T&ES
Cheran Ivery, City Attorney
Karen Snow, Senior Assistant City Attorney