Report Prepared by: Nathalie Valenzuela, Temp Administrative Analyst I, Information Technology
Title
SUBJECT: Approval of a Zero Dollar In-Kind Telecommunications Conduit Trade Agreement Between CVIN, LLC D.B.A. Vast Networks and the City of Merced for a Duration of Fifteen (15) Years
REPORT IN BRIEF
Considers approving the In-kind Telecommunication Conduit Trade Agreement between CVIN, LLC D.B.A. Vast Networks and the City of Merced conduit for a duration of Fifteen (15) years.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the in-kind trade lease agreement with CVIN, LLC dba VAST NETWORKS; and,
B. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff or;
2. Deny or;
3. Refer to staff for reconsideration of specific items.
AUTHORITY
Merced City Charter, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2024-25 Adopted Budget.
DISCUSSION
In August and November of 2019, Council approved two lease agreements between CVIN and the City for a lease and in-kind trade agreement of telecommunications conduit. One of the agreements provided CVIN access to 50 feet of under-utilized conduit near Bob Hart Square to connect the Mondo building, owned by Merced County Office of Education, to their educational network. The other agreement traded access to City conduit in exchange for access to CVIN conduit on Olive Avenue between R Street and Highway 59. The Olive Avenue telecommunications conduit will be utilized for a signal light traffic synchronization project approved by Council last year.
CVIN approached the City in the summer of 2024 about new construction they have planned for telecommunications infrastructure to connect the downtown UC Merced Campus building and the Merced College Business Resource Center building. CVIN knows the City wants to have a direct fiber optics telecommunications circuit to UC Merced for public safety needs with the recent annexation. They proposed an in-kind trade agreement like the City authorized in 2019. This agreement would benefit both parties. It would allow CVIN to construct and provide services at a reduced cost to UC Merced and Merced College. At the same time, it would give the City direct high speed telecommunication access to UC Merced, Merced College, and the adjacent parking garage structure.
The lease will provide CVIN access to approximately 500 feet of under-utilized telecommunications conduit on 18th Street between M Street and N Street. In exchange the City will get access to approximately 500 feet of CVIN conduit between 18th Street and N Street to UC Merced, Merced College and the adjacent parking garage. In addition to access to the conduit CVIN will provide six (6) strands of dark fiber for telecommunications use to connect to the other entities. The term of the agreement is for fifteen (15) years. The approval of this new agreement will not prevent the City from utilizing its own conduit that CVIN wishes to enter. There is enough conduit space to safely operate both telecommunications infrastructures within the conduit.
At the termination of agreement, CVIN would be required to remove their fiber optics cabling from the City conduit at their expense, or via mutual agreement the City can acquire and obtain ownership of the fiber optic infrastructure at no cost. The City will have the ability to cancel services at any time with no penalties.
IMPACT ON CITY RESOURCES
No budget appropriation is required.
ATTACHMENTS
1. Conduit Lease Agreement