Fiscal Note
In exchange for the provision of additional City conduit space, the City will receive additional fiber/digital communication capacity. In addition, City General Fund revenues may increase as the agreement provides for the payment by WINmetro, LLC to the City of 5% of gross commercial receipts, but the magnitude of such revenues is unknown. Costs to connect schools and neighborhood centers and complete a proof of concept fiber to the home project are estimated at $750,000 to $1,200,000. These are projects that the City would like to do in the future and this contract will eliminate these future costs for the City. The 12 existing neighborhood centers will also be provided with free Internet service for the life of the contract, at an estimated value of $200 per month, for a total of $576,000. The 6 projected neighborhood centers would also receive free Internet service at an estimated value of $200 per month.
Title
Contract for Network Fiber Installation Services
Body
WHEREAS, the City of Madison would like to facilitate the installation of fiber to all Madison Metropolitan School District schools, and the twelve (12) existing and six (6) projected neighborhood centers in the City of Madison and a small fiber to the home proof of concept project; and
WHEREAS, Wisconsin Independent Network (WIN), dba WINmetro, LLC, is an Eau Claire based business that currently owns and operates a state-wide fiber-optic network and has proposed installation of fiber-optic cable for the schools, neighborhood centers and proof of concept fiber to the home project for the City; and
WHEREAS, the City's current MUFN commercial entity is Mad City Broadband through a non-exclusive contract; and
WHEREAS, the City would like to have another commercial option for the MUFN consortium that would help manage the network and provide cost effective service alternatives to non-profit and local businesses; and
WHEREAS, the terms of WINmetro, LLC's use and access to city-owned infrastructure will be established by the City of Madison; and,
WHEREAS, under Section 4.26, MGO, service contracts over three (3) years in duration require approval of the Common Council if not chosen through a competitive process; and
WHEREAS, in return for the use of City conduit, WINmetro, LLC will provide 12 fibers free of charge in all fiber optic cable installed by WINmetro, LLC, as well as the ability to purchase additional fibers in the future for the cost of installation; and
WHEREAS, the City shall have the option of taking ownership of conduit installed by WIN in the public right of way; and
WHEREAS, WIN shall pay the City five percent (5%) of gross receipts derived from commercial use of WIN fibers located in City conduit; and
WHEREAS, WIN shall provide free Internet service for the twelve (12) existing and six (6) projected neighborhood centers; and
NOW THEREFORE LET IT BE RESOLVED that the Mayor and City Clerk are authorized to execute a twenty (20) year contract with Wisconsin Independent Network, under the terms described above.