Discussion and possible action to adopt ORD. 2025-20 amending Fee Table 27-7 of Chapter 27 of the Peoria City Code (1992) to memorialize the fee methodology for an annual license fee for Fiber Optic Communications Systems in the City’s rights-of-way, and a fee associated with Microtrenching.

In correlation with the Fiber Optic Communications Systems legislation adopted by City Council on April 22, 2025, which adopted new Sections 23-107 through 23-121 of the City Code, this related fee ordinance amending Chapter 27, Fee Table 27-7, of the Peoria City Code pertaining Development and Engineering Department Fees memorializes the annual license fee methodology articulated in Section 23-114 into Fee Table 27-7, which states:

1. Licensee shall pay an Annual Minimum Fee (“AMF”) on a quarterly or annual basis until such time that Licensee begins earning revenue from the provision of Fiber Optic Communications Services, which Licensee will then transition to the fee structures set forth in Subsections 23-114(a)(2) and 23-114(a)(3) of this Section.
   
   
2. If the Licensee is offering internet services directly to subscribers and is the Internet Service Provider (ISP), Licensee shall transition to an annual license fee of three percent (3%) of Gross Revenues when three percent (3%) of gross revenues from the sale of internet services using Licensee’s Facility exceeds the AMF.
   
   
3. If a Licensee occupies any portion of the City rights-of-way or any other City property and leases, licenses, or contracts the use of fiber-optic broadband connections, strands of fiber, or conduit to any other party in exchange for any form of compensation, Licensee shall transition to a quarterly and/or annual payment of six percent (6%) of Gross Revenues when six percent (6%) of gross revenues from the leasing, licensing, or contracting Licensee’s Facilities to any other party exceeds the AMF.

Additionally, this proposed ordinance adopts the fees associated with Microtrenching in the City’s rights-of-way.

In compliance with the 60-day public fee noticing requirement set forth in A.R.S. §9-499.15, these fees have been posted on the City’s website since April 23, 2025.

• April 22, 2025 – City Council adopted Ordinance No. 2025-09 pertaining to Fiber Optic Communications Systems.
• April 23, 2025 - The public fee notice, pursuant to A.R.S. §9-499.15, was posted on the City’s website.

Staff recommends adoption of the Ordinance amending Chapter 27, Fee Table 27-7 of the Peoria City Code by memorializing the new fee methodology for Fiber Optic Communications Systems set forth in Ordinance No. 2025-09 that was previously approved by Council, and the fees associated with Microtrenching.