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HomeMy WebLinkAbout169-26 RESOLUTION Page 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 169-26 File Number: 2026-2280 A RESOLUTION TO APPROVE A NON-EXCLUSIVE TELECOMMUNICATIONS FRANCHISE AGREEMENT WITH OZARKSGO, LLC FOR THE PLACEMENT AND MAINTENANCE OF BURIED AND AERIAL FIBER OPTIC CABLES AND OTHER BROADBAND SYSTEM EQUIPMENT WITHIN THE CITY’S PUBLIC RIGHTS-OF-WAY WHEREAS, A.C.A. § 14-200-101 authorizes municipalities to grant franchises for the use of public rights-of-way by public utilities; and WHEREAS, OzarksGo, LLC has requested a non-exclusive telecommunications franchise agreement to construct, operate, maintain, and upgrade fiber optic facilities within the City to provide non-regulated broadband internet and telephone services; and WHEREAS, as compensation for the use of the public rights-of-way, OzarksGo will remit a franchise fee equal to four percent (4%) of its gross revenues derived from non-regulated broadband and telephone services provided within the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Rawn to sign a non- exclusive telecommunications franchise agreement with OzarksGo, LLC. for the placement and maintenance of buried and aerial fiber optic cables and other broadband system equipment within the City’s public rights-of-way with a franchise fee of 4% of gross revenues derived from non-regulated broadband and telephone services provided within the City. PASSED and APPROVED on July 21, 2026 Approved: _______________________________ Molly Rawn, Mayor Attest: ___________________________________ Courtney Spohn, Senior Deputy City Clerk Treasurer Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 herein shall be construed to alter, limit or otherwise compromise that immunity afforded the City of Fayetteville under the Constitution and Statutes of the State of Arkansas. Section 11: Any notice of communications required in the administration of this Agreement shall be sent by first class mail and electronic mail and shall be addressed as follows: City of Fayetteville Attn: Mayor's Office 113 W. Mountain Street Fayetteville, AR 72701 mayorsoffice@fayetteville-ar.gov A copy of the notice shall also be sent by email to city _attomey@fayetteville-ar.gov. OzarksGo, LLC Attn: Chris Holloway P.O. Box 848 Fayetteville, AR 72702 cholloway@ozarksgo.net A copy of the notice shall also be sent by email to sbandy@ozarksgo.net. or to such other physical or email address as OzarksGo, LLC and the City of Fayetteville may, in writing, designate from time to time. WHEREUPON, the City and OzarksGo, LLC, acting through their duly authorized officers and pursuant to appropriate authority granted by their respective authorizing body or governing documents, do hereby execute this Franchise Agreement with an effective date of August 1, 2026. CITY OF FAYET TEVILLE, ARKANSAS By:-------------­ MOLLY RAWN, Mayor ATTEST: By: -------------- Courtney Spohn, Deputy City Clerk Treasurer OZARKSGO, LLC WITNESS: Page 4 of 4 Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2026-2280 MEETING OF JULY 21, 2026 TO: Mayor Rawn and City Council THROUGH: FROM: Steven Dotson, Chief Financial Officer SUBJECT: Telecommunications Franchise Agreement with OzarksGo, LLC RECOMMENDATION: Staff recommends approval of an Resolution authorizing the Mayor to execute a Non-Exclusive Telecommunications Franchise Agreement with OzarksGo, LLC, for the placement and maintenance of buried and aerial fiber optic cables and other broadband system equipment and facilities for the provision of broadband and telephone services within the City's public rights-of-way. BACKGROUND: Arkansas Code Annotated § 14-200-101 authorizes municipalities to grant franchises for the use of public rights-of-way by public utilities. OzarksGo, LLC has requested a non-exclusive telecommunications franchise to construct, operate, maintain, and upgrade fiber optic facilities within City rights-of-way to provide broadband internet and telephone services to customers within the City of Fayetteville. The proposed agreement establishes the terms and conditions governing OzarksGo's use of public rights-of- way, including construction standards, permitting requirements, insurance and bonding requirements, relocation obligations, and franchise fee payments. DISCUSSION: The proposed Resolution authorizes the execution of a Non-Exclusive Telecommunications Franchise Agreement with OzarksGo, LLC, allowing the company to install, operate, maintain, and upgrade fiber optic facilities within the City's public rights-of-way to provide broadband internet and telephone services. The franchise is non-exclusive, meaning the City retains the authority to grant similar franchises to other telecommunications providers. The agreement establishes the terms and conditions governing OzarksGo's use of the City's rights-of-way. The company will be required to obtain all necessary permits and comply with City standards for construction, maintenance, restoration, and operation of its facilities. The agreement also requires OzarksGo to maintain appropriate insurance coverage and a $100,000 performance bond to ensure that any damage to public infrastructure resulting from construction activities is repaired in accordance with City requirements. As compensation for the use of the public rights-of-way, OzarksGo will remit a franchise fee equal to four percent (4%) of its gross revenues derived from broadband and telephone services provided within the City. Franchise fees will be remitted monthly, and the agreement provides the City with the authority to review records necessary to verify compliance with the payment requirements. Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov The agreement also requires OzarksGo to relocate or remove its facilities, at its expense, when necessary to accommodate public improvements or other municipal projects. In addition, the agreement includes provisions allowing the City to terminate the franchise in the event of material noncompliance following notice and an opportunity for the company to cure the violation. Upon approval of the ordinance and execution by both parties, the franchise agreement will become effective on August 1, 2026. BUDGET/STAFF IMPACT: Approval of the Resolution is anticipated to generate franchise fee revenue equal to 4% of OzarksGo's gross revenues from broadband and telephone services provided within the City, although the amount will depend on subscriber growth and service revenues. ATTACHMENTS: 3. Staff Review Form, 4. Non-Exclusive Telecommunications Franchise Agreement for Broadband and Telephone Services Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2026-2280 A RESOLUTION TO APPROVE A NON-EXCLUSIVE TELECOMMUNICATIONS FRANCHISE AGREEMENT WITH OZARKSGO, LLC FOR THE PLACEMENT AND MAINTENANCE OF BURIED AND AERIAL FIBER OPTIC CABLES AND OTHER BROADBAND SYSTEM EQUIPMENT WITHIN THE CITY’S PUBLIC RIGHTS-OF-WAY WHEREAS, A.C.A. § 14-200-101 authorizes municipalities to grant franchises for the use of public rights-of-way by public utilities; and WHEREAS, OzarksGo, LLC has requested a non-exclusive telecommunications franchise agreement to construct, operate, maintain, and upgrade fiber optic facilities within the City to provide non-regulated broadband internet and telephone services; and WHEREAS, as compensation for the use of the public rights-of-way, OzarksGo will remit a franchise fee equal to four percent (4%) of its gross revenues derived from non-regulated broadband and telephone services provided within the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Rawn to sign a non-exclusive telecommunications franchise agreement with OzarksGo, LLC. for the placement and maintenance of buried and aerial fiber optic cables and other broadband system equipment within the City’s public rights-of-way with a franchise fee of 4% of gross revenues derived from non-regulated broadband and telephone services provided within the City. Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2 City of Fayetteville Staff Review Form 2026-2280 Item ID 7/21/2026 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Steven Dotson 7/1/2026 CHIEF FINANCIAL OFFICER (110) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of an ordinance authorizing the Mayor to execute a Non-Exclusive Telecommunications Franchise Agreement with OzarksGo, LLC, for the installation, operation, and maintenance of broadband and telephone facilities within the City's public rights-of-way. Budget Impact: 1010.001.0001-4105.14 General Account Number Fund Project Number Project Title Budgeted Item?No Total Amended Budget $- Expenses (Actual+Encum)$- Available Budget $- Does item have a direct cost?No Item Cost $- Is a Budget Amendment attached?No Budget Amendment $- Remaining Budget $- Purchase Order Number:Previous Ordinance or Resolution # Change Order Number:Approval Date: Original Contract Number: Comments: Docusign Envelope ID: 6E0F0F5F-A88B-8A4A-83BC-3252D02B82D2