Discussion and possible action to adopt ORD. 2025-26 amending Fee Table 27-7 of Chapter 27 of the Peoria City Code (1992) to lower the annual license fee for Fiber Optic Communications Services Providers that lease, license, or contract out the use of their Facilities to third parties.

On April 22, 2025, City Council adopted legislation governing Fiber Optic Communications Systems and the provision of Fiber Optic Communications Services in the public rights-of-way and easements. This new legislation adopted a fee methodology that included an annual license fee of 6% of gross revenues for Fiber Optic Communications Services Providers that lease, license, or contract out the use of their Facilities to third parties (“dark fiber services”), which staff is now proposing be lowered to 3% of gross revenues to encourage competition in the marketplace and reduce barriers to market entry. Staff informed Council at the August 5, 2025, meeting, that they planned on bringing forth this ordinance to lower the annual license fee for dark fiber services

This proposed ordinance will adopt the lower fee for “dark fiber” providers of 3% of gross revenues as set forth in that certain ordinance amending Section 23-114 of the City Code that Council is being asked to adopt concurrently with this fee ordinance.

Given the fact that the City will be lowering the fee and not assessing a new fee or increasing a fee, the City is not required to post a 60-day public fee notice as required by A.R.S. §9-499.15.

• 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.
• August 5, 2025 – City Council approved Ordinance No. 2025-20 which adopted the fees for Fiber Optic Communications Systems and Microtrenching.

Staff recommends adoption of the Ordinance amending Fee Table 27-7 of Chapter 27 of the Peoria City Code (1992) to lower the annual license fee for Fiber Optic Communications Services Providers that lease, license, or contract out the use of their Facilities to third parties.

Adopting this ordinance will not result in any additional costs to the City.  However, it will result in additional revenue to the City from annual license fees from Fiber Optic Communications Services providers.