Minutes 12/13/2023 - Laserfiche WebLink

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December 12, 2023 - Unfinished Business - 23-306 (b) Adoption of an ordinance to amend and reordain Chapter 2 (Administration) of the Code of the City of Portsmouth, Virginia by adding a new Article XIX regarding the Portsmouth Community Broadband Network Authority. Deferred from the October 10, 2023, City Council meeting. Motion by Mr. Hugel, and seconded by Ms. Lucas-Burke, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE TO AMEND AND REORDAIN CHAPTER 2 (ADMINISTRATION) OF THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA BY ADDING A NEW ARTICLE XIX REGARDING THE PORTSMOUTH COMMUNITY BROADBAND NETWORK AUTHORITY.” Ayes: Hugel, Lucas-Burke, Moody, Glover Nays: Barnes, Tillage, Whitaker - City Manager’s Report - 23 - 403 - Adoption of an ordinance amending and re-ordaining Sections 32-59 (Application for Permit; Applicant’s Bond) and 32-61 (Schedule of Fees and Charges) of Article II (Right-of-Way Permit) of Chapter 32 (Streets, Sidewalks and Local Improvements) of the Code of the City of Portsmouth, Virginia for the purpose of revising the bonding and right-of-way permitting structure for utility providers. Background:  The City Code establishes the requirements for obtaining a permit to perform work in the right-of-way.  Under Section 32-61 and Appendix A of the City Code, the fee to obtain a right-of- way permit is calculated based on the square footage of the land to be disturbed by the work covered by the permit.  In most cases, calculating the fee in this manner produces a cost that is reasonably related to the time and cost to the City of administering the permit.  However, when new utility providers (including internet providers) establish a network in the City for the first time, calculating the fee based on square footage results in permit fees of well over a million dollars.  The size of the fee is inconsistent with the Virginia Code requirement that land development fees approximate the actual cost to the City, and also harms Portsmouth citizens by discouraging new utility/internet providers from making their services available in Portsmouth. Discussion:  The proposed ordinance would amend the City Code to revise the method of calculation of right-of-way permit fees for utility providers that are subject to regulation by the State Corporation Commission or that have been granted a franchise agreement by City Council to install facilities in the right-of-way.  The right-of-way permit fees for these entities would be calculated based on 1% of the total project cost.  In addition, in recognition of the volume of utility facilities in the right-of-way, the proposed ordinance increases the bond that utility companies are required to post with the Engineering Department to secure their work in the right-of-way from $100,000 to $250,000.  The net effect of the proposed amendments will be to encourage new internet providers and other utilities to enter the Portsmouth market by making permitting fees reasonable, while still recouping the City’s costs of administering the permits and protecting the City’s interest in maintaining the right-of-way through higher bonding.