TO: Mayor and City Council
THROUGH: Krishna Namburi, Interim City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Approval of Telecommunications Franchise Agreement, granting Ezee Fiber the non-exclusive right to construct, use, operate and maintain a telecommunications system in the City’s rights-of-way (ROW).
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy.
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SUMMARY:
summary
The attached Telecommunications Franchise Agreement grants Ezee Fiber the non-exclusive right to construct, use, operate, and maintain a telecommunication system in the City’s ROW. The agreement will be effective June 1, 2025, through May 31, 2035, with one automatic five-year extension.
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ISSUE:
Shall City Council authorize the City Manager to execute the Telecommunications Franchise Agreement between the City of Salem and Ezee Fiber for the provision of telecommunication service in the City’s ROW?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute the Telecommunications Franchise Agreement between the City of Salem and Ezee Fiber for the provision of telecommunication service in the City’s ROW.
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FACTS AND FINDINGS:
Salem Revised Code (SRC) Chapter 35 requires public utilities to have an agreement with the City to occupy the City’s ROW and to pay a fee to the City for its use of the ROW.
In accordance with SRC 35, the agreement (Attachment 1) grants Ezee Fiber the non-exclusive right and franchise to occupy the City’s ROW for the purpose of construction, use, operation, and maintenance of a telecommunications system for the sole purpose of providing telecommunications service as defined in SRC 35.010.
The agreement will be effective June 1, 2025, through May 31, 2035. The agreement will automatically renew for one five-year term, unless terminated by either party as set forth in the agreement.
As compensation for the benefits and privileges granted in the agreement, Ezee Fiber shall pay to the City the greater of either a) $10,000 - the minimum annual fee, or b) an amount equal to seven percent of gross revenue earned annually.
The Terms of the agreement address those matters generally addressed in an agreement granting authority to use the City’s ROW and public property for the placement of telecommunications system facilities.
BACKGROUND:
Ezee Fiber is a fiber-optic telecommunications company originally based in Houston, TX and has expanded into Washington, New Mexico, and soon to be Oregon. Ezee Fiber delivers multi-gig internet service to residential, business, and government customers.
As part of its $400M investment in the Pacific Northwest, Ezee Fiber plans to build a comprehensive fiber-optic network throughout the entire City of Salem, bringing high-speed connectivity to residents, businesses, schools, government facilities, healthcare centers, cell towers and other bandwidth-intensive users.
RYAN ZINK
FRANCHISE ADMINISTRATOR
Attachments:
1. Telecommunications Franchise Agreement with Ezee Fiber