ADMINISTRATIVE REPORT
Date: February 24, 1997
Dept. File No.
CC File No. 1203-1
TO: Vancouver City Council
FROM: General Manager of Engineering Services
SUBJECT: Municipal Access Agreement with Broadband Solutions Network
Inc.
RECOMMENDATION
A. THAT the General Manager of Engineering Services and Director
of Legal Services be authorized to conclude negotiations of,
and execute and deliver, a legal agreement with Broadband
Solutions Network Inc. incorporating the general terms and
conditions outlined in this report and such other terms and
conditions satisfactory to the General Manager of Engineering
Services and the Director of Legal Services.
B. THAT Broadband Solutions be permitted to install and operate a
fibre optics network in the City of Vancouver once it has
executed a legal agreement with the City of Vancouver and
performed any preconditions to such installation and operation
as are set out in such legal agreement.
COUNCIL POLICY
Execution of legal agreements by the Director of Legal Services requires
Council approval.
The terms of this agreement are consistent with the Telecommunications
Policy as adopted by Council on July 30, 1996.
PURPOSE
This report seeks Council approval to permit Broadband Solutions to
install a fibre optic network in the City of Vancouver subject to the
execution of a Municipal Access Agreement by the General Manager of
Engineering Services and the Director of Legal Services; the general
terms and conditions for which are described in this report.
BACKGROUND
In adopting the Telecommunications Policy in July of last year, the City
formally recognized the increasingly important role that
telecommunications plays in the economy of Vancouver. The City
committed to facilitate the rapid deployment of advanced
telecommunications services, to encourage the development and use of
such services, and to work toward making access equitable and
affordable. The City further committed to maintain its authority to
regulate equitable access to rights-of-way, secure valuable compensation
for their use, and minimize negative impacts associated with their use.
Consistent with this Telecommunications Policy is the introduction of
competition into the Vancouver market. On January 28, 1997 Council
authorized staff to execute a Municipal Access Agreement with MetroNet,
a telecommunications company and potential competitor to Broadband
Solutions. Bringing more competition to Vancouver has the potential to
improve the affordability and accessibility of advanced
telecommunications services for all sectors of the economy. It will
further help position Vancouver as a world class business environment.
Broadband Solutions is a Vancouver-based telecommunications company that
provides broadband and other advanced telecommunication services to
commercial and institutional customers. The company will offer local
private-line services special access digital communication services,
advanced high speed data communication services and switched services,
all running over fibre optic networks. Broadband Solutions is starting
its network operations in Vancouver and plans to provide similar
telecommunication services across Canada with future expansion into the
United States.
MUNICIPAL ACCESS AGREEMENT
Broadband Solutions has approached the City for permission to install a
fibre optics network for the provision of telecommunication services
throughout the City of Vancouver. Staff started discussions with
Broadband Solutions late in 1996 and anticipate that this Agreement will
contain similar terms and conditions to those in the Metronet agreement.
In summary these terms and conditions are:
TERM: 20 years.
TAXES: Broadband Solutions to pay all municipal taxes and all
other City-imposed fees, such as those for parking
clearance, temporary special zone and other permits
except encroachment fees under the Encroachment Bylaw.
LICENCE FEE: 2% of the gross revenue attributable to Broadband
Solution s fibre optic network within Vancouver as set
out in the agreement.
DARK FIBRE: Within each backbone fibre optic cable installed by
Broadband Solutions (which excludes the connections
running from the street to a private customer's site),
the City will receive a licence to use four fibres for
its own use. The licence will be for 20 years at a
nominal fee of $1.00 per year.
RELOCATION: Costs of relocating the fibre optic cable where required
by the City would be borne by Broadband Solutions.
LIABILITY: The City would not assume liability for loss or
damage to the cable or Broadband Solutions s
operations, except as set out in the agreement.
OTHER TERMS Any other terms and conditions as are deemed
AND acceptable or necessary by the General Manager
CONDITIONS: of Engineering Services and the Director of Legal
Services.
Broadband Solutions is anxious to proceed quickly with installation and
will commence construction as soon as the municipal access agreement is
executed.
IMPACT OF THE REQUEST FOR INFORMATION FOR BROADBAND SERVICES
On July 30, 1996, staff reported to Council on the potential of
establishing a partnership arrangement in the provision of
telecommunication infrastructure. As a result of Council's
support, a Request For Information (RFI) was issued on October 31, 1996,
to determine interest in this partnership by telecommunication interest.
The RFI closed on November 29, 1996, and Broadband Solutions has
indicated an interest by responding. A progress report on this issue
along with recommendations for proceeding will be before Council
shortly.
It is not expected that the Municipal Access Agreement with Broadband
Solutions would impact the RFI for the following reasons:
- No commitments will be made to Broadband Solutions
in the municipal access Agreement with regard to
City telecommunications.
- The RFI is not intended to grant exclusivity in the
use of public right-of-way. Even if Broadband
Solutions is unsuccessful in the RFI, they would
have rights to access the City's rights-of-way.
CONCLUSION
Staff recommend that Council allow installation of the fibre optic
network to proceed subject to the execution of a Municipal Access
Agreement to the satisfaction of the General Manager of Engineering
Services and the Director of Legal Services.
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