Title
Create New Chapter of City Code for the 5D Network Infrastructure Services License and to Establish an Effective Date (Ordinance G-7250)
Description
Request City Council to adopt an ordinance to establish the Network Infrastructure Services License by creating a new chapter 5D of the Phoenix City Code and to establish an effective date of April 20, 2024.
Report
Summary
In 2022, the City of Mesa approved licenses for five companies to provide fiber-to-the-home (FTTH) services for high-speed internet services. In 2023, the Cities of Chandler and Gilbert approved similar licenses for the same purpose. During this time, representatives from AT&T, Google, Desert iNet, and Zoom Technology Arizona approached City staff to outline their interest and present proposals to build a FTTH network in Phoenix.
City Code currently does not have a Chapter to allow network infrastructure services to be installed and operated in the right-of-way (ROW) and the creation of this code will enable the City to enter into Network Infrastructure Service Licenses with interested providers who desire to install fiber-optic cabling in the City’s ROW and provide high-speed internet access to residential customers through a FTTH services network.
The new Code section (Attachment A) will establish the framework for the license, the basis for the long-term agreement with these companies, will outline the financial terms and payments that companies will remit to reimburse the City for services provided in the installation and operation of their networks, and establish a fee for the use of the ROW.
Concurrence/Previous Council Action
On June 21, 2023, this item was presented to the Transportation, Infrastructure and Planning Subcommittee for discussion.
Public Outreach
The Street Transportation Department met with stakeholders between May 2022 and November 2023 with representatives of the network infrastructure service industry to discuss the new Code Chapter, applicable fees, and the City's proposed license requirements.
Financial Impact
The new Code section will propose a license fee based on a percentage of gross revenues from FTTH customers and an annual minimum fee based on the number of residential units passed. In addition, the companies will reimburse the City for plan review and permits, inspections, ROW Management, and other fees for staff time that are directly related to the construction, operation, and repair of the facilities required for the FTTH networks.
On Dec. 20, 2023, in accordance with A.R.S. 9-499.15 and City of Phoenix Administrative Regulations 1.98, the City posted on its website that the new fees in Chapter 5D will be on a City Council agenda on Feb. 21, 2024, or later.
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson, the Street Transportation Department and the City Engineer.