Council Passes Fiber Lease Agreement, Police Uniforms as Part of Consent Calendar

The City Council on Monday voted to allow the city manager to enter into a 10-year fiber lease agreement with Level 3 Communications LLC.

The sweep motion could result in $1.3 million in revenue over the term of the agreement.

In 1999, following the installation of the city’s original fiber optics system, the city leased a significant portion of the fiber to GST Telecom, Inc (GST). The fiber lease, which resulted from a competitive request for proposal process, was designed to recoup the city’s cost of installing the fiber network and to bring competitive telecommunications services to the local business market.

The original lease agreement had a 20-year term with one optional 10-year renewal term and generated more than $4.8 million for the city.

The item, along with all the other items on the council’s consent calendar, could be part of a sweep motion and a single vote by the council.

The vote also authorized the increase of a contract with Software One by $1.1 million for a total not to exceed $4.4 million for Microsoft Software licensing and services.

Mayor Victor Gordo recused himself from one item involving Mayfield Senior School because his daughter will attend the school. Gordo said he discussed his recusal with the City Attorney although he legally could take part in the discussion, he recused himself out of an “abundance of caution.”

The remaining City Council approved the tax equity and fiscal responsibility resolution approving financing to be undertaken by the California Enterprise Development Authority (CEDA) for the benefit of Mayfield Senior School of The Holy Child Jesus in a maximum $17 million contract for the purpose of financing, refinancing, and/or reimbursing the cost of designing, constructing, renovating, remodeling, installing, equipping, and furnishing educational facilities for the benefit of Mayfield Senior School of the Holy Child Jesus.

Mayfield requested that the CEDA incur one or more tax-exempt loans not to exceed $17,000,000 for the purposes of using the proceeds of the obligations to finance several projects at the school, including designing, constructing, renovating, remodeling, installing, equipping and furnishing Strub Hall.

The council also approved a purchase order with Galls LLC for police equipment and uniforms and equipment.

The purchase order not-to-exceed $1,024,675 for a period of four years with two one-year extensions and requiring approval by the city manager, would be subject to Consumer Price Index adjustments.

Finally, City manager Steve Mermell is authorized to enter into an agreement with Clean Energy for the supply of environmentally friendly renewable natural gas (RNG) for city fleet fueling and for management of natural gas fuel revenue credit over a three-year period with the option for two additional one-year extensions at the discretion of the city manager.