Discussion and possible action to approve the Revocable Fiber Optic Communications License issued to Light Source Communications LLC for the purpose of granting permission to construct, install, operate, maintain, and use public highways, public rights-of-way, public streets within the City of Peoria to provide Fiber Optic Communications Services.

Light Source Communications LLC (“Light Source”) is seeking to provide Fiber Optic Communications 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 Light Source a Fiber Optic Communications Systems License (“License”) to construct, install, operate, maintain and use the public highways, public streets, public rights-of-way in the City in order to provide Fiber Optic Communications Services.

Light Source 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 Fiber Optic Communications Services in authorized areas (Use Areas), identified on the Use Area maps incorporated as Exhibits A hereto.

The Fiber Optic Communications Services that Light Source intends to provide will involve the leasing, licensing and contracting the use of its Facilities to third parties.

The Use Areas in Exhibit A may be amended upon written request of Light Source 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 Light Source’s request and the Development and Engineering Department Director’s approval has been filed with the City Clerk.

Under the terms of the License, Light Source is responsible to:

• Pay an initial Annual Minimum Fee (“AMF”) based on the 28 subdivisions that are within Light Source’s Use Area until such time that Light Source begins generating revenues from contracting out the use of its Facilities to third parties.  If those revenues exceed the AMF, Light Source will then transition to paying a license fee based on the percentage of its gross revenues.
  
  
• 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, 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 Fiber Optic Communications License issued to Light Source Communications, LLC for the purpose of granting permission to construct, install, operate, maintain, and use public highways, public rights-of-way, public streets within the City of Peoria to provide Fiber Optic Communications Services.

The City will collect quarterly or annual license fees, plan review fees, and permit fees.