Teleport Communications America, LLC, 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.  Teleport would like to continue to provide telecommunications services and therefore, has applied for a renewal to the Telecommunications License Agreement.

Teleport 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 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 generally depicted in Exhibit A of this Agreement.

The Use Areas in Exhibit A may be amended upon written request of Teleport and subject to the approval and discretion of the City’s Development and Engineering Department Director. Any amendments to the Exhibits will not become effective until written Teleport’s 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, Teleport 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 will 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.

 March 5, 2019– Council approved the original License Agreement with Teleport for a five-year term.

November 8, 2022 – The First Amendment to the License Agreement with Teleport to expand the Use Area was approved administratively by staff in accordance with the terms of the original Agreement. 

Staff recommends approval of the first renewal to the Telecommunications License Agreement issued to Teleport Communications America LLC 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.