Discussion and possible action to approve the Revocable Telecommunications License Agreement issued to Flying Bull LLC for the purpose of granting: (a) 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; and (b) temporary permission to provide internet access services to subscribers.

Until such time that the City adopts legislation governing Fiber Optic Communications in its rights-of-way, Flying Bull LLC d/b/a Novos Fiber (“Novos”), is seeking to provide internet access services within the City of Peoria.  In an effort to promote more broadband fiber options for the City’s residents and businesses, the City would like to grant Novos a Telecommunications License Agreement (“License”) 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 internet access services and/or telecommunications services. The proposed version of the License will grant Novos temporary permission to provide internet access services until such time that the City adopts legislation governing Fiber Optic Communications in its rights-of-way.  Once the superseding legislation has been adopted by the City, Novos will agree to switch over to the new type of License governing Fiber Optic Communications. 

Novos desires to install, operate, maintain, and repair fiber optic cables, conduit, 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 internet access services and/or telecommunication services in authorized areas (Use Areas), identified on the Use Area Map incorporated as Exhibit A hereto.

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

There have been no previous actions related to this License.

Staff recommends approval of the Telecommunications License Agreement issued to Flying Bull LLC d/b/a Novos Fiber 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 temporarily provide internet access services, until such time the City adopts legislation governing Fiber Optic Communications in the rights-of-way, and/or provide telecommunications services.

The City will collect plan review and permit fees. The City will also collect license fees under the future Fiber Optic Communications License once the respective legislation has been adopted by City Council.