[BoulderCouncilHotline] Item 3D - Zayo Lease Amendment

[Carr, Thomas]

Boulder first entered into an agreement with Zayo in March 2008.  That first agreement included the lease of city conduit in exchange for fiber, a lease of city right-of-way for Zayo facilities, and a one- time lease payment of $722,271.  The agreement was amended in 2015 to clarify specifics regarding connecting points.  The second amendment, which is before the council tonight, extends the lease another 10 years and adds an exhibit showing the location of all Zayo fiber currently installed or which is planned to be installed.  It also includes a provision permitting the city manager to approve and execute future amendments to the Lease Agreement.  The intent of that provision is to permit amendments to the Lease Area to show new installations of Zayo fiber in the right-of-way.  Staff would come back to Council for any extension of the lease.  On the dais tonight will be a revised motion that clarifies the limited extent of this intended delegation to the city manager.
Since the initial lease was signed, the Colorado General Assembly passed S.B. 10, "Access to Public Rights-of-Way for Telecommunications Providers," which is codified at C.R.S. 38-5.5-101 et seq.  Section 38-5.5-103 prohibits discrimination against telecommunications providers or broadband providers.  However, section 38-5.5-106 requires those providers to obtain the consent of political subdivisions of the state prior to installing their facilities in public rights-of-way.  The city recently updated the Boulder Revised Code to adopt regulations related to these providers.  Finally, Section 38-5.5-107 prohibits political subdivisions of the state from charging telecommunications providers for the use of rights-of-way.  Only fees "reasonably related to the costs directly incurred by the political subdivision in providing services related to the granting or administration of permits" may be charged.

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