To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
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APPROVE THE SIXTH AMENDMENT TO THE AGREEMENT WITH TATA COMMUNICATIONS (US) INC. TO EXTEND THE AGREEMENT THROUGH DECEMBER 31, 2027
APPROVE AN AGREEMENT WITH GU HOLDINGS (GOOGLE) FOR THE OPERATION OF TELECOMMUNICATIONS NETWORK FACILITIES IN THE CITY'S RIGHT OF WAY FOR A TERM ENDING DECEMBER 31, 2027
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EXECUTIVE SUMMARY
Tata Communications (US) Inc. (Tata) has requested an extension of their Agreement with the City for installation and operation of telecommunications network facilities in the City rights-of-way between Herondo Street and 811 N Catalina Ave as part of a global fiber-optic network. In 2011, Tata sold a portion of their telecommunications network facilities to Gu Holdings (Google) and now Google must enter into a stand-alone agreement with the City for those network facilities that were established prior to the sale. The network is used to provide wholesale capacity, collocation, managed bandwidth, and related services on a global basis. There are no plans to offer retail services over the network. Upon contract execution, Tata and Google will pay the City $142,877.69 and $175,795.56 respectively, for fees that had not been paid since 2012. The City will receive approximately $19,000 in FY 2026-27 for the two agreements, which will increase by 5% annually during the duration of the term.
BACKGROUND
The City and TyCom Networks (US) Inc, known as Tyco Telecommunications (US) Inc. (Tyco) entered into an Encroachment Agreement (Agreement) on December 17, 2002 for approximately 1,045 lineal feet from Herondo Street to 811 N Catalina Ave. On September 6, 2005, the City Council consented to the assignment of the Agreement to VSNL Telecommunications (US) Inc. (VSNL). Subsequently, on March 28, 2008, the company changed its name to Tata, the current controlling entity. On December 2, 2008, the City Council approved the first amendment to the Agreement t...
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