Council authorizes renewal of Bayhealth fiber lease to use city's unused fiber capacity

Milford City Council on Monday authorized the mayor to execute a renewal of the city’s 2019 fiber license agreement with Bayhealth, allowing the health system to continue using available city fiber capacity.

Senior accountant Lou Vitola presented the item and said staff and counsel reviewed the agreement and rate structure, and that Bayhealth and its counsel had agreed to modest contractual updates. Lou said insurance language and an escalator clause in the rates were among the updates negotiated with the licensee and that the renewal does not require new capital work by the city.

Tony Chipola, the city’s electric director, was listed in the staff discussion as a reviewer of the terms. Staff recommended council authorize the mayor to execute the renewal.

Council moved and approved the authorization by voice vote with no dissent. The renewal will permit Bayhealth to continue leasing dark fiber capacity under the updated license and rate schedule; staff said the arrangement had been in place since 2019 and the renewal represents continuation with clarifying updates.

Speakers quoted in this story are those who made presentations to council.