HomeMy WebLinkAboutFCS-11-020 - WREPNET - Renewal of Fibre OpticStaff Report
KITCHENER finance and Corporate Services Department www.krtrhenerca
REPORT TO:
Committee of the Whole
DATE OF MEETING:
January 24, 2011
SUBMITTED BY:
Lesley MacDonald, Director of Legal Services &
City Solicitor, 519 - 741 -2267
PREPARED BY:
Lesley MacDonald, Director of Legal Services &
City Solicitor, 519 - 741 -2267
WARD(S) INVOLVED:
N/A
DATE OF REPORT: January 18 2011
REPORT NO.: FCS -11 -020
SUBJECT: WREPNet — Authorization to execute renewal of Fibre Optic
Cable Facilities Lease Agreement and a Consent and
Waiver
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute the second renewal agreement
pertaining to the Fibre Optic Cable Facilities Lease Agreement with Atria Networks LP,
Waterloo Region District School Board, Waterloo Catholic District School Board, The
Corporation of the City of Waterloo, The Corporation of the City of Cambridge,
Kitchener Public Library Board, Cambridge Public Library Board, Waterloo Public
Library Board, The Regional Municipality of Waterloo, Conestoga Institute of
Technology and Advanced Learning, Grand River Hospital, Women's Crisis Services of
Waterloo Region and Family and Children's Services of the Waterloo Region
incorporated as the Children's Aid Society of the Regional Municipality of Waterloo, for
the continued provision of Fibre Optic Cable Facilities as part of WREPNet; said
agreement to be to the satisfaction of the City Solicitor; and further
That the Mayor and Clerk be authorized to execute a Consent and Waiver on behalf of
the City of Kitchener, as one of the participants in WREPNet, with respect to the
acquisition by Rogers Communication Inc., and /or an affiliate of Rogers of the equity in
Atria Network LP; said document to be to the satisfaction of the City Solicitor.
BACKGROUND:
The City is part of a joint venture with the Waterloo Region District School Board, Waterloo
Catholic District School Board, The Corporation of the City of Waterloo, The Corporation
of the City of Cambridge, Kitchener Public Library Board, Cambridge Public Library
Board, Waterloo Public Library Board, The Regional Municipality of Waterloo,
Conestoga Institute of Technology and Advanced Learning, Grand River Hospital,
Women's Crisis Services of Waterloo Region and Family and Children's Services of the
Staff Report
KITCHENER finance and Corporate Services Department www.kitrhenerca
Waterloo Region incorporated as the Children's Aid Society of the Regional Municipality
of Waterloo, created for the purpose of establishing a high volume telecommunication
network in the Region, referred to as WREPNet, the Waterloo Region Education Public
Network.
REPORT:
The participants of WREPNet entered into a Fibre Optic Cable Facilities Renewal
Agreement with Atria Networks Inc. which was subsequently assigned to Atria Networks
LP, for the lease of Dark Fibre on which the network operates, the term of which will
expire August 2011. The participants wish to execute a second renewal agreement to
maintain the contract and establish the pricing for the next ten years.
Atria is requesting that the WREPNet participants sign a consent and waiver with
respect to the acquisition by Rogers Communication Inc., and /or an affiliate of Rogers of
the equity in Atria Network LP and the other participants support this approach. This in
effect acknowledges the transfer of equity and addresses those clauses that speak to
the participants rights in the event of a transfer.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Strategic Priority: Leadership and Community Engagement
Strategic Direction: That the City partners with citizens, businesses, agencies,
organizations, school boards and all orders of government, as appropriate, in all Healthy
Community initiatives
WREPNET represents a successful partnership which has expanded the reach of a
local information and community network at a more affordable cost to the partners than
would be otherwise be feasible on their own
FINANCIAL IMPLICATIONS:
The renewal will lock in the price at the current rates for the first 5 year term of the renewal
(Sept. 1, 2011 to Aug. 31, 2016) and will increase for the subsequent term (Sept. 1, 2016 — Aug
31, 2021) by CPI.
COMMUNITY ENGAGEMENT:
N/A
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO and City Treasurer, Finance &
Corporate Services