26-2293 Amending City Code, Communications Facilities in Public Rights of Way, Concerning Requirements ORDINANCE 26-2293
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
LONGWOOD, FLORIDA, AMENDING SECTION 78-43 OF CHAPTER
78,ARTICLE II, COMMUNICATIONS FACILITIES IN PUBLIC RIGHTS-
OF-WAY, CITY OF LONGWOOD CODE OF ORDINANCES TO
AMEND RIGHT-OF-WAY PERMIT APPLICATION REQUIREMENTS
FOR INSTALLATION OF COMMUNICATIONS SERVICES FACILITIES
WITHIN PUBLIC RIGHTS-OF-WAY INCLUDING LETTER OF CREDIT,
LETTER OF CREDIT DRAW AGREEMENT, BOND AND INSURANCE
REQUIREMENTS; PROVIDING FOR CODIFICATION, CONFLICTS,
SEVERABILITY,AND AN EFFECTIVE DATE.
WHEREAS, Section 337.401, Florida Statutes, provides that a permit for the installation of
a utility within a public right-of-way must require the permit holder to be responsible for any
damage resulting from the issuance of such permit, and the reasonable rules and regulations
adopted herein are intended to ensure compliance with such statute; and
WHEREAS, Section 337.401, Florida Statutes, also provides that a municipality may adopt
by ordinance provisions for insurance coverage, indemnification, force majeure, abandonment,
authority liability, or authority warranties; and
WHEREAS,the letter of credit and letter of credit draw agreement requirements set forth
in this ordinance are the equivalent of a construction bond secured by a letter of credit; and
WHEREAS, the revisions set forth in this ordinance address statutory changes adopted by
Chapter 2026-39, Laws of Florida (SB 488); and
WHEREAS, nothing in Section 337.401, Florida Statutes defines the terms of a
construction bond, requires a construction bond to be issued by a surety, or prohibits a
construction bond from being in a form of an agreement with the city secured by a letter of
credit; and
WHEREAS, Section 337.401, Florida Statutes, provides that a municipality may adopt
other reasonable rules and regulations relating to the placement or maintenance of
communication facilities in its roads or rights-of-way and may require the registration of the
communication services providers; and
WHEREAS, the City Commission finds it to be in the best interest of the public health, to
amend the definitions of Chapter 78, Article II, City of Longwood Code of Ordinances in the
manner specified in this Ordinance.
NOW,THEREFORE, BE IT ENACTED BY THE CITY OF LONGWOOD, FLORIDA,AS FOLLOWS:
SECTION 1: Authority. The City of Longwood has the authority to adopt this Ordinance
pursuant to Article VIII of the Constitution of the State of Florida, Chapter 166, Florida Statutes
and Chapter 337.401, Florida Statutes.
Ordinance No.26-2293
Page 1 of 4
SECTION 2: Adoption. Section 78-43 of Chapter 78, Article II of the City of Longwood Code is
hereby amended to read as follows (words that are strigut are deletions; words that are
underlined are additions; provisions not included are not being amended):
ARTICLE II. COMMUNICATIONS FACILITIES IN PUBLIC RIGHTS-OF-WAY
Sec. 78-43. Construction bond in the form of a cash c crow or letter of credit and draw
agreement; insurance.
(a) The city shall not be liable or responsible for damages or repair cost caused by a permit holder's
communication services facilities installation activities.
(b) As a condition to applying for a permit for the installation of communication services facilities with
the right-of-way, each applicant for a right-of-way permit involving a project area exceeding 500
linear feet must either: (i)execute an escrow agreement and submit into escrow with the city a
cash deposit in an amount equal to$250,000.00; or(ii) execute a letter of credit draw agreement
with terms acceptable to the city and deliver an original letter of credit in the amount of
$250,000.00 drawable by the city fr a local bank within Seminole Co my Florida
(c) As a condition to applying for a permit for the installation of communication services facilities with
the right-of-way, each applicant for a right-of-way permit involving a project area of 500 linear feet
or less must either: (i) execute an escrow agreement and submit into escrow with the city a cash
deposit in an amount equal to$25,000.00; or(ii)execute a letter of credit draw agreement with
terms acceptable to the city and deliver an original letter of credit in the amount of$25,000.00
drawable by the city from a local bank within Seminole County, Florida. Provided however, if an
applicant for a right-of-way permit has a history of causing damages during installation activities
within rights-of-way,then the city may require a minimum cash escrow or letter of credit of
$250,000.00.
(d) The cash deposit or letter or credit will be held by the city from the issuance of the right-of-way
permit and until 200 days after completion of the installation of the communications services
facilities subject to the permit. Provided, however, the city and applicant may mutually agree to a
modified cash escrow or letter of credit and letter of credit draw agreement to accommodate an
applicant's request for multiple right-of-way permits within a year; such modifications may include
utilizing one cash escrow or letter of credit for multiple right-of-way permits or adjusting the
holding period. Subject to deductions to correct damages as allowed by the escrow agreement or
letter of credit draw agreement,the cash deposit or letter of credit will be returned to the
applicant on the 200th day after the completion of the installation of the communications services
facilities subject to the permit.The return of the letter of credit shall not release the applicant from
liability for damages discovered thereafter. The resit or letter of credit will be held as
security to ensure that damages caused by the applicant or its contractors and subcontractors
during its installation activities are promptly corrected.The escrow letter of credit draw agreement
will allow the city to use letter of credit funds to correct property damages,
including to other utilities and improvements within the right-of-way and to adjacent public or
private property.
(e) The escrow agreement, letter of credit draw agreement and letter of credit will be in a form and
with terms acceptable to the city.The letter of credit draw agreement will include indemnification
Ordinance No.26-2293
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provisions in favor of the city as authorized by statute.The letter of credit must be drawable by the
city by electronic means from a bank(as defined by Fla. Stat. section 658.12)that is authorized to
do business in the United States.The city manager is authorized to create an escrow agreement
arm letter of credit draw agreement and letter of credit form for use by applicants. No right-of-way
permit for the installation of communication services facilities will be issued unless and until the
required escrow agreement or letter of credit draw agreement is executed and the required eas#
deposit or letter of credit is providedrnadc.
(f) In the event the applicant desires to post a construction bond in lieu of a letter of credit and letter
of credit draw agreement,the construction bond provided to the city shall be: (i) in a form and
with terms acceptable to the city with the city as the beneficiary; (ii) have a minimum penal sum
equal to ten percent(10%) of the replacement cost of all existing road improvements, utilities,
facilities, and other improvements within the full width of the public right-of-way for the entire
length of the proposed permitted work site as documented by a signed and sealed detailed
estimate prepared by a Florida licensed engineer certified to the city, but in no event less than
$2,000,000.00; and (iii) be issued by a surety licensed to do business in the state of Florida and
having an AM Best Rating of A++or better. If applicant desires to use a construction bond,for city
review, comment and acceptance or rejection the applicant must submit with its right-of-way
permit application a signed and sealed detailed estimate for replacement cost of all existing road
improvements, utilities, facilities, and other improvements within the full width of the public right-
of-way for the entire length of the proposed permitted work site prepared by a Florida licensed
engineer and such must be certified to the city.The construction bond must remain valid and in
place to cover claims made from the issuance of the permit until at least eighteen (18) months
after completion of the work.
(g) The permit holder shall have and maintain during the performance of the installation activities
commercial general liability insurance in minimum amount of$3,000,000 per occurrence and name
the city as an additional insured party. A certificate of insurance and declaration page for such
insurance must be provided to the city before the issuance of any right-of-way permit for the
installation of communication services facilities.
WI) Except for the provisions of subsection (a), this section does not apply to communication services
facilities relocation work compelled by the Florida Department of Transportation or the city
pursuant to F.S. § 337.403.
(gi) This section does not apply to efforts to repair damaged communications services facilities already
installed in the right-of-way unless such efforts involve a replacement of facilities in an area larger
than 200 linear feet.
SECTION 3. Conflicts. If any ordinance or part thereof is in conflict herewith,this Ordinance shall
control to the extent of the conflict.
SECTION 4:Severability. The provisions of this Ordinance are declared to be separable and if any
section, paragraph, sentence or word of this Ordinance or the application thereto any person or
circumstance is held invalid,that invalidity shall not affect other sections or words or applications
of this Ordinance. If any part of this Ordinance is found to be preempted or otherwise
superseded, the remainder shall nevertheless be given full force and effect to the extent
permitted by the severance of such preempted or superseded part.
Ordinance No.26-2293
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SECTION 5: Codification. Section 2 of this Ordinance shall be incorporated into the Longwood
City Code. Any section, paragraph number, subsection number, letter, and/or any heading may
be changed or modified as necessary to effectuate the foregoing. Grammatical, typographical,
and other similar or like errors may be corrected, and additions, alterations, and omissions not
affecting the construction or meaning of this ordinance or City Code may be freely made.
SECTION 6: Effective Date. This Ordinance shall take effect immediately upon its adoption.
FIRST READING: September 10, 2026
SECOND READING AND ADOPTION: September 21, 2026
PASSED AND ADOPTED THIS Z I DAY OF , , 2026
i k S CITY COMMISSION
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o • ' , CITY OF LONGWOOD, FLORIDA
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ti Tony B ayor
A I EST:
Liane Cartagena, City Clerk
Approved as to form and legality for the use and reliance of the City of Longwood, Florida, only.
Daniel W. Langle it tt r6 ney
Ordinance No.26-2293
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Business Impact Estimate Histom
LONGWOOD
Section 166.041(4), Florida Statutes F I U , i (1
Proposed Ordinance:Ordinance No. 26-2293
Title: AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF LONGWOOD,FLORIDA,AMENDING SECTION 78-43 OF CHAPTER 78,
ARTICLE II, COMMUNICATIONS FACILITIES IN PUBLIC RIGHTS-OF-WAY,CITY OF LONGWOOD CODE OF ORDINANCES TO AMEND
RIGHT-OF-WAY PERMIT APPLICATION REQUIREMENTS FOR INSTALLATION OF COMMUNICATIONS SERVICES FACILITIES WITHIN
PUBLIC RIGHTS-OF-WAY INCLUDING LETTER OF CREDIT,LETTER OF CREDIT DRAW AGREEMENT,BOND AND INSURANCE
REQUIREMENTS;PROVIDING FOR CODIFICATION,CONFLICTS,SEVERABILITY,AND AN EFFECTIVE DATE.
Date BIE Posted: 9/3/26 Date Notice Published: 9/3/26
PART A-BUSINESS IMPACT ESTIMATE APPLICABILITY
A Business Impact Estimate is required before enactment unless one of the exemptions in section 166.041(4)(c), Florida
Statutes,applies.Check all applicable exemptions.
8 1.Compliance with law.The proposed ordinance is required for compliance with federal or state law or regulation.
0 2.Debt.The proposed ordinance relates to the issuance or refinancing of debt.
0 3.Budget.The proposed ordinance relates to the adoption of a budget or budget amendment, including revenue sources
necessary to fund the budget.
0 4.Contract or agreement.The proposed ordinance is required to implement a contract or agreement,including a federal,
state, local,or private grant or other financial assistance accepted by the City.
0 5. Emergency ordinance.The proposed ordinance is an emergency ordinance.
0 6.Procurement.The proposed ordinance relates to procurement.
❑7.Specified development/code implementation.The proposed ordinance is enacted to implement one or more of the
following:
❑ a. Development orders and development permits,as those terms are defined in s. 163.3164, Florida Statutes,and
development agreements authorized under ss. 163.3220-163.3243, Florida Statutes.
❑ b.Comprehensive plan amendments and land development regulation amendments initiated by an application by a
private party other than the City.
❑ c.Sections 190.005 and 190.046, Florida Statutes,relating to community development districts.
❑ d.Section 553.73, Florida Statutes,relating to the Florida Building Code.
❑ e.Section 633.202, Florida Statutes, relating to the Florida Fire Prevention Code.
DETERMINATION
0 No exemption applies.A Business Impact Estimate is required.
0 One or more statutory exemptions above apply.A Business Impact Estimate is not required by section 166.041(4), Florida
Statutes.
❑Although exempt,the City is voluntarily providing the information in Part B for informational and procedural purposes.
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PART B-BUSINESS IMPACT ESTIMATE
Complete this Part when no exemption applies. It may also be completed voluntarily when an exemption applies.
1.Summary and Public Purpose
Provide a summary of the proposed ordinance,including the public purpose to be served,such as serving the public health,
safety, morals,or welfare of the City.
Ordinance No.26-2293 amends Section 78-43 of the City Code governing permit requirements for the installation of communications
services facilities within public rights-of-way.The ordinance updates the City's financial security and insurance requirements in response to
statutory changes adopted through Chapter 2026-39,Laws of Florida(SB 488),and pursuant to Section 337.401,Florida Statutes.The
ordinance removes the existing cash escrow option,retains letter of credit requirements,establishes an alternative construction bond
option,and establishes minimum commercial general liability insurance requirements for permit holders.These requirements are intended
to protect the City's rights-of-way,utilities,infrastructure,adjacent property,and the public from financial loss or damage associated with
communications services facility installation activities and thereby serve the public health,safety,and welfare.
2. Direct Economic Impact on Private,For-Profit Businesses
A. Direct Compliance Costs-Estimate any direct compliance costs that businesses may reasonably incur if the
ordinance is enacted.
Applicants seeking right-of-way permits for communications services facility installations may incur costs associated with obtaining and maintaining the financial security and insurance required by the ordinance.Applicants
using a letter of credit must provide$250,000 for projects exceeding 500 linear feet or$25,000 for projects of 500 linear feet or less,subject to the ordinance.Applicants electing to provide a construction bond in lieu of a
letter of credit may incur costs associated with obtaining the bond and preparing the required signed and sealed replacement-cost estimate by a Florida licensed engineer.The bond must have a penal sum equal to at least
ten percent of the replacement cost of applicable improvements,but not less than$2,000,000.Permit holders must also maintain commercial general liability insurance of at least$3,000,000 per occurrence and name the
City as an additional insured.Actual costs will vary based on the applicant,project,financial institution,surety,insurer,project scope,and other circumstances and cannot reasonably be quantified by the City.
B.New Charges or Fees-Identify any new charge or fee imposed on businesses subject to the ordinance,or for
which businesses will be financially responsible.
None anticipated.
C.City Regulatory Costs and Revenues-Estimate the City regulatory costs associated with the ordinance,including
estimated revenues from any new charges or fees imposed on businesses to cover those costs.
None anticipated.
3. Businesses Likely to Be Impacted
Provide a good faith estimate of the number of businesses likely to be impacted by the proposed ordinance.
Estimated number: Exact number cannot reasonably be determined.
The ordinance applies only to communications services providers and other eligible applicants seeking City right-of-way permits for installation
Basis for estimate: of communications services facilities.The number of applicants will vary based on future construction activity within City rights-of-way.
4.Additional Information
Provide any additional information the City Commission determines may be useful in evaluating the business impact of the
proposed ordinance.
The ordinance amends the City's existing right-of-way permitting requirements in response to changes to Section 337.401,Florida Statutes,enacted
through Chapter 2026-39,Laws of Florida(SB 488).It removes the existing cash escrow alternative and provides for a letter of credit or qualifying
construction bond as financial security.The actual economic impact on an individual applicant will depend on the size and scope of the project and the
method of financial security selected.
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