Peoria adopts ordinance to license fiber-optic broadband providers in city rights-of-way

Peoria’s council on April 22 approved an ordinance to regulate fiber-optic communication systems and to establish a licensing framework for broadband providers seeking to install facilities in city rights-of-way.

Ben Ganados of Development and Engineering presented the ordinance, which requires providers to submit five-year license applications, comply with city engineering standards and pay annual license fees. The ordinance establishes an Annual Minimum Fee (AMF) — based on the number of subdivisions in a provider’s service area — that applies until a provider earns revenue; once revenues exceed the AMF, licensees will transition to a percentage of gross revenues (providers offering internet service to the public would pay 3% of gross revenues; those leasing facilities to third parties would pay 6%), with annual increases tied to CPI.

Staff explained an incentive to encourage providers to coordinate with developers and place fiber before final paving: annual fees would be waived until a developer obtains 51% of permits for a residential project. The ordinance includes permit and engineering standards and enforcement mechanisms intended to protect city streets and infrastructure; staff said trained inspectors will monitor construction and repairs and that microtrenching fees and the full fee schedule will be adopted later under a separate fee ordinance (statute requires a 60-day notice for fees).

Councilmembers and staff described extensive cross-jurisdictional work drafting the rules and said city practice must protect pavement integrity while enabling greater broadband competition. Council approved the ordinance by unanimous vote; staff said licenses will be finalized and issued to eligible providers by late May/early June, and that the subsequent fee ordinance is likely to come forward in August after the 60-day notice period.