Title
Approval of a Resolution to Amend the Ziply Fiber Master Use Permit
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the Resolution acknowledging Ziply Fiber Pacific LLC’s transfer to NFC Northwest LLC of certain rights under a Master Use Permit granted by the City, and approve an Amendment to that Master Use Permit, and authorize the City Manager to sign the Amendment.
Report
Issue:
Whether to acknowledge Ziply Fiber Pacific LLC’s transfer of certain rights under its Master Use Permit granted by the City to its business affiliate, NFC Northwest LLC, and whether to approve an Amendment to that Master Use Permit to reflect that transfer and to address a minor technical issue with the Master Use Permit that has become apparent in the course of administering that Permit.
Staff Contact:
Jeff Johnstone, P.E., City Engineer, Public Works Engineering, 360.753.8290
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Ziply Fiber Pacific, LLC (Ziply Fiber) is a telecommunications company providing telecommunications services to residential and business customers in the City of Olympia through a Master Use Permit. The City issued the Master Use Permit to Ziply Fiber in 2024.
Ziply Fiber was recently bought by BCE, Inc. (a holding company for Bell Canada); however Ziply Fiber continues to operate as an independent subsidiary of BCE, Inc. with its headquarters in Kirkland, WA.
In May 2025, BCE and PSP Investments (Public Sector Pension Investment Board, one of Canada's largest pension investors) formed Network FiberCo, LLC, a partnership to accelerate the development of Ziply Fiber’s network through PSP’s investment. PSP Investments owns 51 percent of Network FiberCo LLC and BCE (through Ziply Fiber) owns the remaining 49 percent. Network FiberCo LLC in turn owns another entity called NFC Management, LLC, and that entity owns NFC Northwest, LLC (“NFC Northwest”). NFC Northwest is now a partner entity with Ziply Fiber.
Under this partnership structure, Ziply Fiber and NFC Northwest each play a role in the build-out, operation, and management of Ziply Fiber’s network, including within the City of Olympia. Ziply Fiber will continue to own and manage the network connecting to individual customers at their homes or places of business, while NFC Northwest will own and manage the distribution network connecting customers to Ziply Fiber’s centrally located network infrastructure. To facilitate this co-management and operation arrangement, Ziply Fiber is transferring some of its assets, including some of its rights under the Master Use Permit with the City, to NFC Northwest.
A section of Ziply’s Master Use Permit, titled “Transfer of Ownership,” governs whether and when the City’s consent to a transfer of ownership of Ziply Fiber’s rights under the Master Use Permit is required. That section says that “[t]he City’s consent is not required where ZIPLY FIBER transfers or assigns its rights under this Master Permit for the purpose of securing a debt, or where the transfer or assignment is to another person or entity controlling, controlled by, or under common control with ZIPLY FIBER.” (Underlining added.)
Because NFC Northwest is an entity under common control with Ziply Fiber, Ziply Fiber’s transfer of assets to NFC Northwest is not subject to the City’s consent under the Master Permit. Nevertheless, for administrative convenience, it is advantageous for both the City and Ziply Fiber to record its acknowledgment of this transfer of assets and cooperative management and operation of Ziply Fiber’s network within Olympia. This proposed action by Council will accomplish that acknowledgment through this Resolution and will authorize amendment of the Master Use Permit to reflect this new arrangement.
Unrelated to the transfer of assets from Ziply Fiber to NFC Northwest, the City and Ziply Fiber have, in the course of Ziply Fiber’s construction and operation of its network in Olympia, identified a technical issue with the Master Use Permit. To facilitate effective administration of the Master Use Permit and Ziply Fiber’s build out and operation of its network in Olympia, the parties want to correct that issue with a minor, technical amendment to the Master Use Permit. This minor technical amendment clarifies the City’s code definitions that apply and should have very little, if any, practical effect on Ziply Fiber’s activities under the Master Use Permit.
Climate Analysis:
This action has no known climate impacts.
Equity Analysis:
This action has no known equity issues.
Neighborhood/Community Interests (if known):
This action may facilitate Ziply Fiber’s build-out of its telecommunications network within the City of Olympia, giving more Olympia residents the choice to utilize Ziply Fiber for telecommunications services, and thus driving competition among telecommunications providers and possibly lower prices for customers.
Financial Impact:
This action has no known financial impact.
Options:
1. Move to approve the Resolution acknowledging Ziply Fiber Pacific LLC’s transfer to NFC Northwest LLC of certain rights under a Master Use Permit granted by the City, and approve an Amendment to that Master Use Permit, and authorize the City Manager to sign the Amendment.
2. Direct staff to modify the Resolution or Amendment and return to Council for approval at a later date. This will delay the execution of the agreements.
3. Do not approve the Resolution. The Amendment will not be executed.
Attachments:
Resolution
Amendment to Master Use Permit