Title
License Agreement for Intrepid Fiber Optic Installation
History
Intrepid Fiber desires to install, operate and maintain underground fiber optic telecommunications cables within the Village’s rights-of-way. The proposed non-exclusive License Agreement would provide residential and commercial customers with an additional option for access to reliable, reasonably priced high-speed broadband internet services.
Intrepid is headquartered in Colorado and currently works and provides fiber internet service to a number of communities in Colorado and Minnesota. Intrepid Fiber is a startup that is backed by global investment firm Brookfield Infrastructure Partners.
The Village of Orland Park is the first municipality in Illinois to execute an agreement with Intrepid and will be the first municipality in Illinois to undertake installation of its high-speed internet network. The full build-out will entail a multi-year effort.
Section 253 of the Telecommunications Act of 1996 (47 U.S.C. 253) provides that the Village may not prohibit or have the effect or prohibiting the ability of any entity to provide any interstate or intrastate telecommunications service. Further, the Illinois Telephone Company Act (220 ILCS 65/4) authorizes telecommunications carriers, such as Intrepid Fiber, to construct, maintain, alter and extend its facilities along, upon, under and across any highway, street, alley, or public right-of-way dedicated to utility purposes, so long as it does not inconvenience or disturb the public in the use thereof.
The proposed License Agreement includes requirements for equipment placement in rights-of-way, obtaining required permits, and damage restoration per Village regulations. The key terms of the agreement are as follows:
• The initial term of the License Agreement is for fifteen years from the date of the execution by the Village. The License Agreement may be renewed for successive five-year terms upon written consent of the Village and Intrepid Fiber.
• Intrepid Fiber will pay a $10,000 license fee for the initial term, and the parties will agree upon a renewal fee at the time of any such renewal.
• The License Agreement is not specific to one location as Intrepid Fiber may install in other locations after their initial project. However, Intrepid Fiber must submit a permit application, and obtain a permit for each location where any cables will be installed. The Village will review each proposed location.
• Although Intrepid Fiber's work consists mostly of installation of underground fiber optic cables, the Agreement allows for aerial cable installation as well. However, it does not allow Intrepid Fiber to install small cell equipment. They will install the cables in the Village’s rights-of-way in a manner not to inconvenience or disturb any of the Village’s public utility infrastructure or any other permitted or authorized users of the rights-of-way.
• Intrepid Fiber must post a letter of credit to ensure compliance with the License Agreement and the Village’s ROW Standards.
• Intrepid Fiber is required to restore the rights-of-way to the same condition as before the installation, maintenance, or repair.
• The Village can require Intrepid Fiber to relocate or remove its cables in certain circumstances.
Currently, a number of utility companies have franchise agreements with the Village for the installation and distribution of utilities in Village right-of-ways (AT&T, Nicor, ComEd, Etc.) The proposed Intrepid Fiber License Agreement would permit Intrepid Fiber to use Village right of ways for the installation of additional fiber optic utility lines. The approval of a License Agreement for fiber optic installations would allow the Village to regulate and streamline the formal agreement between the Village and Intrepid for the use of Village rights-of-ways.
Financial Impact
Intrepid Fiber will pay the Village a license fee in the amount of $10,000.
Recommended Action/Motion
I move to approve a License Agreement for Fiber Optic Installations in the public right-of-way with BIF IV Intrepid OpCo LLC, operating as Intrepid Fiber Networks;
AND
Authorize the Village Manager to execute said agreement subject to Village Attorney Review.