Issue - meetings

Network Lease Agreement Extension - Digital Strategy

Meeting: 09/04/2019 - Cabinet (Item 135)

135 Network Lease Agreement Extension - Digital Strategy pdf icon PDF 94 KB

Report of the Deputy Chief Executive (People)

Minutes:

The Cabinet considered a report of the Executive Director (People) that sought approval of the extension of the Network Lease Agreement with City Fibre.

 

A corresponding private report was also submitted to the meeting setting out the commercially confidential matters of the proposals. (Minute 140 below refers.)

 

Prior to 2014 the Council had developed and installed a 140km Metropolitan Area Network (MAN) of fibre across the city. This was to connect council sites and schools to the council’s core network and provide services such as internet connectivity. In 2014 the MAN was sold to City Fibre following approval at Council on 10th April 2014 (minute 162/13 refers). The Council received a capital receipt for the sale as well as retaining a right of use (“the Network Lease Agreement”) over the network for the term of agreement ending in June 2029.

 

In 2018 City Fibre announced an investment of £60m into the City to provide Fibre to the Home in a partnership with Vodafone – providing internet connectivity for residents.

 

Due to the economy of scale derived from the Fibre to the Home partnership with Vodafone, City Fibre had also submitted a proposal to the Council for an expansion and extension of the council’s existing lease agreement for the network.

 

A fibre network was important to the Council, as an organisation it was a fundamental part of the computer network, connecting all Council buildings to the relevant systems, files and the internet. Having a high speed, resilient fibre network for the organisation was a building block for the digital transformation of the council which directly supported the aims and objectives of the One Coventry programme.

 

As stated in the council’s Digital Coventry strategy having access to high speed internet was now often described as the fourth utility and was an important consideration for residents and businesses when considering living, working or investing in a city. In supporting the City Fibre Fibre to the Home programme residents would have the potential to access very high quality and speed internet connections. This had onwards benefit to us as an organisation as it opened up more possibilities for greater digital engagement with citizens.

 

RESOLVED that the Cabinet:

 

1)  Approves that the terms of the current Network Lease Agreement with City Fibre are amended as detailed in the private report.

 

2)  Delegates authority to the Deputy Chief Executive (People), following consultation with the Director of Finance and Corporate Services, to undertake the necessary due diligence and to enter into the necessary legal agreement to secure the amendments to the Network Lease Agreement with City Fibre.