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An ordinance granting a franchise to Vero Fiber Networks, LLC, to construct, operate, and maintain a fiber optic communications system within Metropolitan Nashville and Davidson County under the provisions of the Metropolitan Code of Laws, Title 6, Chapter 26 (Proposal No. 2026M-049AG-001).
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WHEREAS, in the Metropolitan Code of Laws, Title 6, Chapter 26 (the “Chapter 26”), the Council of The Metropolitan Government of Nashville and Davidson County established terms and conditions for companies wishing to construct, operate, and maintain a fiber optic communications system in the public rights-of-way, in whole or in part; and,
WHEREAS, Chapter 26 is applicable to any fiber optic communications systems used for producing, receiving, amplifying or distributing audio, video or other forms of electronic signals to or from subscribers or locations within Metropolitan Nashville and Davidson County, but not including the offering of cable services as defined under the federal Cable Communications Policy Act of 1984, as amended (the “Cable Act”), and/or any franchise granted by the Metropolitan Government pursuant to the Cable Act; and,
WHEREAS, Vero Fiber Networks, LLC, a Colorado limited liability company duly authorized to do business in the State of Tennessee (hereinafter “Grantee”), has filed an application pursuant to Section 6.26.030.B of the Metropolitan Code of Laws for a nonexclusive franchise to construct, operate and maintain a fiber optic communications system in the public rights-of-way within Metropolitan Nashville and Davidson County; and,
WHEREAS, Grantee intends to provide communications services that are classified by the Federal Communications Commission as information services, including broadband internet access services, but does not intend to provide any cable services or video services within the meaning of the Cable Act or the Tennessee Competitive Cable and Video Services Act, 2008, Tenn Code § 7-59-301 et seq. (the “CCVSA); and,
WHEREAS, the grant of a franchise to Grantee has been approved by the Metropolitan Planning Commission in accordance with Section 11.505 of the Charter of the Metropolitan Government of Nashville and Davidson County.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That a franchise to construct, operate, and maintain a fiber optic communications system, as defined by the Metropolitan Code of Laws, Title 6, Chapter 26, within Metropolitan Nashville and Davidson County is hereby granted to Grantee in accordance with the terms and conditions of Chapter 26 (except as otherwise provided in the attached Fiber Optic Communications Franchise Agreement), and for a term of (15) years.
Section 2. That the Fiber Optic Communications Franchise Agreement by and between The Metropolitan Government of Nashville and Davidson County and Grantee, which agreement is attached hereto and by reference made a part of this Ordinance as Exhibit A, is hereby approved and the Metropolitan Mayor is hereby authorized to execute said agreement.
Section 3. That in all matters concerning the rights-of-way, the Grantee will comply with the provisions of the Americans With Disabilities Act of 1990, as amended, and the Rehabilitation Act of 1973.
Section 4. That this Ordinance shall take effect from and after its enactment, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This ordinance grants a franchise to Vero Fiber Networks, LLC, (“Vero Fiber”) to construct, operate, and maintain a fiber optic communications system within Metropolitan Nashville and Davidson County under the provisions of Chapter 6.26 of the Metropolitan Code applicable to franchises for Fiber Optic Communications Services.
Section 6.26.020 defines "fiber optic communications" or "fiber optic services" as a network of cables, wires, lines, towers, wave guides, optic fiber, microwave, and any associated converters, equipment, or facilities designed and constructed for the purpose of producing, receiving, amplifying or distributing audio, video or other forms of electronic signals to or from subscribers or locations within Metropolitan Nashville and Davidson County, but not including the offering to the public cable television services.
This ordinance would approve a 15-year franchise for Vero Fiber for the operation of its fiberoptic network. The term of the agreement would be effective upon passage by the Metropolitan Council.
Vero Fiber will be required to pay $15,198 per year as a reasonable estimate of Metro’s costs associated with owning, maintaining, and managing the public rights-of-way used by the company. Further, the fee will be subject to renegotiation if Metro conducts a new cost study or revises Chapter 6.26 of the Metropolitan Code prior to the expiration of the franchise term.
Section 6.26.240 provides that fiber optic providers are to pay a franchise fee in an amount equal to 5 percent of gross revenues. However, Tennessee courts have held that the 5 percent gross revenue amount applicable to telecommunications/fiber optic providers is not allowed.
Vero Fiber would be solely responsible for obtaining all permits, licenses, and other approvals to construct, operate, maintain, or repair its system. All construction would occur as provided in Chapter 13.20 of the Metropolitan Code. The director of the Nashville Department of Multimodal Infrastructure may suspend or revoke a permit and take necessary action if Vero Fiber violates the terms of the permit or this agreement until the violation has been corrected.
Vero Fiber would provide a certificate of insurance naming the Metropolitan Government as an insured party with minimum coverage of $1,000,000 for combined single limit, bodily injury, and real property damage per occurrence. Vero Fiber must also obtain automobile and worker’s compensation insurance. Vero Fiber would also agree to indemnify and hold harmless the Metropolitan Government from all claims resulting from Vero Fiber’s conduct in relation to the franchise.
This ordinance has been approved by the Planning Commission.
Fiscal Note: Vero Fiber Networks, LLC will pay Metro an annual franchise fee in the amount of $15,198 relative to Metro’s cost with owning, managing and maintaining the public rights-of-way for the fiber optic communication system. This fee is subject to renegotiation to address any increase Vero Fiber Networks, LLC’s occupancy of public rights-of-way and any increase in Metro’s rights-of-way related costs.