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Highland staff present amendment to 2014 fiber IRU with Bluebird, citing $24,300 one-time revenue
Summary
Director Angela Imming explained proposed amendments to a 2014 Indefeasible Right of Usage with Bluebird Networks to assist an AT&T upgrade and add a redundant fiber route; staff said the amendment yields $24,300 one-time and $10,000 annual revenue through August 2034.
Director Angela Imming told the council the city's 2014 Indefeasible Right of Usage (IRU), originally with PEG and now held by Bluebird Networks, is being amended to add two services: temporary splices to assist an AT&T network upgrade and an additional fiber pair to create a virtual redundant route between St. Louis and Chicago.
Imming described an IRU as a long-term, often 15–25 year right to use capacity in fiber or other network infrastructure that functions like an ownership interest for the contract term. She said the amendment includes an escalated monthly price intended to encourage AT&T to release original fiber back to the city once upgrades are complete.
Financial terms presented in the minutes show a total one-time revenue of $24,300 for the amendment and annual recurring revenue of $10,000 coterminous with the existing IRU until August 2034. Imming said the additional fiber and the technology (MPLS) will improve redundancy and regional connectivity.
The council received the presentation as information; no vote on the amendment is recorded in the minutes for this meeting.
Next steps identified in the meeting record: staff explanation and council discussion during staff reports; any final contract amendments or approvals will appear on a future agenda if required.
