CDOT updates commission on fiber permit fees, 339 permits processed and concerns about rural access and BEAD changes
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Summary
CDOT staff updated commissioners on implementation of a standardized right-of-way fiber permit program, reporting 339 permits processed since Jan. 1, 2024, initial permit fee receipts of $50,825, two delinquent accounts and planned fee adjustments; commissioners raised rural access and program design concerns tied to NTIA/BEAD changes.
CDOT staff briefed the Transportation Commission on June 18 on the department’s fiber permit and right-of-way fee program, reporting how the program has been implemented, revenue and penalty rules, and planned next steps to improve access. The briefing was presented by Ali Axley, ITS branch manager, and Leslie Gaylord, fiber product manager.
Leslie Gaylord said CDOT has standardized permit and agreement processes across regions under an executive order first issued on March 31, 2022, and implemented a structured fee resolution adopted in December 2023. Gaylord said CDOT had processed 339 fiber permits since Jan. 1, 2024, and that initial permit fees collected totaled $50,825; regional staff charged a combined $49,825.09 to cover time spent processing permits. She reported two delinquent accounts out of 38 registered vendor accounts; penalties can freeze new permit applications until accounts are cured.
The presentation described an invoicing workflow (letters of intent, annual invoices, delinquency notices), a planned fee posting in December to execute a previously adopted TC resolution, and a staffing chargeback target (CDOT seeks a minimum ~35% fee chargeback for the fiber product manager role to recoup CDOT administrative time). Gaylord also described an executed interagency agreement with the Colorado Broadband Office (CBO), partnership extensions with providers and tribes, and an internal CDOT “Dig Once” revamp to begin in July to coordinate conduit placement when right-of-way work occurs.
Commissioners voiced concerns about the program’s effects on rural broadband deployment and whether the fee design discourages builds in CDOT right of way. Commissioner Garcia said the fee structure and the annual nature of the charge may push developers to seek alternative, non‑CDOT routes and asked CDOT to revisit whether an upfront fee or negotiated arrangement would better support rural builds. He also said the recently announced NTIA change requiring the CBO to re-run its BEAD application process could disrupt planned projects and funding timelines.
Vice Chair Eula Adams said the program’s original purpose was to expand broadband access and was not intended primarily as a revenue source. Adams and Garcia asked whether the legislature had set fees or taken up statutory changes; staff replied there had been bills proposed but none had gained traction and that the legislature had generally accepted CDOT’s existing fee work.
CDOT staff said a small number of local agencies and private providers request leases of CDOT dark fiber (below-market rates, “a couple hundred dollars per year per mile” as described by a staff speaker), but uptake has been limited. Staff also said that much of their early invoicing was manual and that next-year administrative costs should fall as processes become more automated.
Ending: CDOT staff said they will continue to monitor permit revenues, delinquency rates and the effects of federal BEAD/NTIA changes; commissioners asked staff to return with further analysis of fee impacts on rural builds and options for alternative fee structures or negotiated access for public-purpose needs (for example school districts or CDOT ITS uses).
