Discussion and possible action to approve the First Renewal to the Telecommunications License Agreement issued to MCImetro Access Transmission Services, LLC doing business as Verizon Access Transmission Services for the purpose of granting permission to construct, install, operate, maintain, and use public highways, public rights-of-way, public streets, and public utility easements within the City of Peoria to provide telecommunications services.

MCImetro Access Transmission Services LLC d/b/a Verizon Access Transmission Services (MCImetro), previously entered into a Telecommunications License Agreement with the City of Peoria to construct, install, operate, maintain and use the public highways, public streets, public rights-of-way, and public utility easements in the City in order to provide telecommunications services. The term of said Agreement was for a period of five years.  MCImetro would like to continue to provide telecommunications services and therefore, has applied for a renewal to the Telecommunications License Agreement.

MCImetro currently has an existing inventory of telecommunication lines installed in the Use Area and desires to continue to install, operate, maintain, and repair telecommunication lines and equipment (Facilities), which contain bundles of multiple fibers that are to be routed through underground conduits within the City rights-of-way for the purpose of providing telecommunication services, as authorized by Arizona Corporation Commission. The City desires to grant MCImetro the license renewal.

The Facilities to be placed in the City's public right-of-way include conduit, ducts, vaults, and other appurtenances. At this time, no above ground electrical boxes are to be installed, and all other Facilities to be placed are required to be underground. All Facilities installed shall comply with City construction standards and the system is to be installed and constructed along the routes identified on the Use Area map incorporated as Exhibit A of the License Agreement. Upon written request of MCImetro and subject to the approval and discretion of the City’s Development and Engineering Department Director, the Use Area in Exhibit A may be amended. Any amendments to the Exhibit will not become effective until MCImetro’s written request and the Development and Engineering Department Director’s approval has been filed with the City Clerk.

Under the terms of the Telecommunication License Agreement, MCImetro is responsible to:

• Apply for and obtain any permits prior to constructing, installing, maintaining or performing any work in the public highways, public streets, public rights-of-way or public utility easements, which require a permit and plan review approval from the City.
• Submit required construction assurances (permits bond in the amount of the cost of the improvements) and certificate of insurance for each permit prior to beginning any and all construction work performed pursuant to the rights granted under this Agreement. The permit bonds for each permit are separate from the Performance Bond and Revocable Letter of Credit.
• Post a performance bond in favor of the City in the sum of $380,000 to guarantee that the Licensee shall well and truly observe, fulfill and perform each and every term of this License;
• Prior to applying for any permit deposit a security fund in the sum of $100,000, as security for the faithful performance by it of all the provisions of this License, and compliance with all orders, permits and directions of any department or office of the City.
• Comply with the other terms and conditions of the license agreement.

• May 1, 2018 - Council approved the original License Agreement with MCImetro for a five-year term.
  
  
• September 19, 2022 - The First Amendment to the License Agreement with MCImetro to expand the Use Area was approved administratively by staff in accordance with Section 2.3.4 of the original Agreement. 

Staff recommends approval of the First Renewal to the Telecommunications License Agreement issued to MCImetro Access Transmission Services LLC d/b/a Verizon Access Transmission Services for the purpose of granting permission to construct, install, operate, maintain, and use public highways, public rights-of-way, public streets, and public utility easements within the City of Peoria to provide telecommunications services for a five-year term.

No direct fiscal impact to the City.