Title
New City Code Chapter 5D - Network Infrastructure Services - Fiber to the Home
Description
This report provides information to the Transportation, Infrastructure and Planning Subcommittee regarding a potential new section of City Code, Chapter 5D - Network Infrastructure Services. The Code section would provide the framework for the license and transactions between the City and companies building and operating fiber-optic networks to provide fiber-to-the-home services that will allow residential customers to have access to broadband internet services.
THIS ITEM IS FOR INFORMATION AND DISCUSSION.
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, two of the companies, Gigapower and Google Fiber, entered into similar licenses with the cities of Chandler and Gilbert. Representatives from Gigapower, Google, Desert iNet, and Zoom contacted City staff to outline their interest and presented proposals to build a FTTH network in Phoenix.
In existing City Code, Chapter 5 covers cable television license, Chapter 5A covers industrial gas pipeline licenses, Chapter 5B covers telecommunication service providers, and Chapter 5C covers small wireless services. Since City Code does not have a Chapter to allow network infrastructure services to be installed and operated in the right-of-way, the City is working with network infrastructure service providers to develop City Code changes so that these companies may install fiber-optic cabling in the City’s rights-of-way (ROW) to provide high-speed internet access to residential customers through a FTTH services network.
The build-out of the FTTH services network will focus on residential properties and take approximately three to five years to complete. At this time, the use of trenching and horizontal directional drilling processes will be used for installation.
The new Code section will establish the framework for the license, the basis for the long-term agreement with these companies, and 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 a fee for the use of the ROW.
Staff has met with industry stakeholders to develop the proposed City Code language (see Attachment A) and will continue to work with them based upon City Council Subcommittee direction. Staff anticipates bringing the proposed City Code changes for Council after the summer break.
Financial Impact
The new Code section will propose a license fee based on a gross revenue from FTTH customers or an annual minimum fee based on residential units passed with their fiber-optic facilities. 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.
Department
Responsible Department
This item is submitted by Deputy City Managers Inger Erickson and Alan Stephenson, the Street Transportation Department and the City Engineer.