Agenda Item Wording:
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Race Communications fiber optic network presentation - Receive an informational presentation regarding Race Communications’ proposed installation of a new fiber optic network in Visalia, including anticipated community benefits, construction impacts, and City permitting and inspection oversight.
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Agenda Date: 11/02/2026
Prepared by:
Chris Crawford, City Engineer, chris.crawford@visalia.gov, 713-4331
Jason Huckleberry, Engineering and Building Director, Jason.Huckleberry@visalia.gov, 713-4495
Department Recommendation: Staff recommends that the City Council receive this informational presentation regarding Race Communications’ proposed fiber optic network in Visalia. Staff recommends that the City Council concurs with the processes recommended by City Staff under which Race Communications will install their fiber optic network in the street right of way and public utility easements in compliance with Public Utilities Code Section 7901 and statewide franchise laws. Staff will be responsible for processing encroachment permits, setting requirements, performing inspections, and performing all related work in accordance with city policies and standards.
Summary:
Race Communications is planning to install a new fiber optic network in Visalia. This report and presentation provide an overview of the proposed project and a discussion about the principal matters that staff will address as construction plans and permit applications are developed. Race provides fiber internet and telephone services throughout California. Race is planning to install infrastructure all throughout the city, but they are planning to do this work in phases. Phase 1 encompasses about half of the city but is primarily located around the center of the city. See the attached Phase 1 project exhibit.
Where existing utilities are located on overhead power poles Race plans to install the new fiber lines on existing poles or install new “buddy poles” if the existing poles can’t handle the additional line loads. If a new pole is installed, the other utilities will be notified to move to the new pole. When all utilities from the old pole are relocated, the old pole will be removed from the ground. This process is subject to scheduling by the utility companies and can take 2-3 years to be completed. Where existing utilities are located underground, Race is planning to directional drill new fiber optic conduit. There will be numerous street crossings but they plan on installing these new fiber conduits in public utility easements (PUE’s) just behind the street right of way wherever possible. If no PUE’s exist, they plan to install the conduits in the street right of way behind the curb and gutter. Proposed locations will be shown on the plans submitted by Race, but final locations will be determined in the field by Race with the city inspector after Underground Service Alert ("USA") markings are completed.
Race will be submitting permits through the standard city encroachment permit process and will be performing work under the review of city public works inspectors and other staff. The background discussion below provides more detailed information on this process.
Background Discussion:
CPUC Certification and Public Utility Authority
Race Telecommunications, LLC, doing business as Race Communications, holds a CPUC Certificate of Public Convenience and Necessity under utility number U-7060-C authorizing specified telecommunications services in California.
Race’s CPCN establishes its authority to operate as a certificated competitive local exchange carrier, subject to the terms of its CPUC authorization. Its public utility telecommunications status provides the basis for invoking the rights afforded to telephone corporations under California law. Those rights must be exercised within the scope of its actual authorization; they do not establish blanket approval of every proposed facility or construction activity.
Public Utilities Code Section 7901 grants telephone corporations/telecommunications corporations, such as Race, a statewide franchise right to construct their lines along public roads and highways, provided the installation does not interfere with public use or navigation. Because the company operates under a statewide franchise, state law does not allow the city to charge it a local franchise fee. Section 7901.1 preserves municipal authority to exercise reasonable control over the time, place, and manner of access to roads, highways, and waterways, with equivalent treatment of entities. Accordingly, Race’s state operating authority and the city’s construction oversight serve different purposes. The city is required by state law to process applicable encroachment permits but has authority to require the telecommunications public utility meet reasonable traffic control, utility protection, construction scheduling, and restoration consistent with state law. Certification as a statewide telecommunications public utility under Section 7901 does not establish rights over a particular private parcel or permission to use City-owned facilities, an encroachment permit meeting applicable city requirements must be sought by the public utility. The encroachment permit is a ministerial permit, meaning it must be granted by the City if the applicant shows they meet the requirements.
Proposed Project and Schedule
The proposed network would add a broadband service option within the areas Race develops. Race advertises fiber internet with equal upload and download speeds and offerings up to 10 gigabits per second; the plans and speeds available to Visalia customers may vary depending on the company. Race’s long-term goals are to install fiber throughout the entire city. However, they are going to perform this work in phases. Phase 1 will be their first phase and will be the center portion of the city, covering roughly one-half of the city from the middle outwards. Race expects it will take 18-24 months to complete construction of Phase 1.
City staff will require that Race conduct public outreach regarding the project, particularly since the new underground conduits will need to avoid, and/or repair if necessary, other underground utility lines and service lines that are damaged by Race. The project involves areas that were developed before the statewide USA system to track underground line location was implemented.
Potential Community Benefits
An additional fiber provider could increase broadband choices for residents and businesses and support remote work, online learning, telehealth, and business operations. The extent of these benefits will depend on actual coverage, customer adoption, available service plans, and pricing. Race will discuss its proposed service-area map and offerings in their presentation to City Council.
Construction Impacts and City Oversight
Installation will involve excavation, boring, conduit placement, fiber installation, equipment placement, and restoration, depending on the approved design. Temporary effects may include lane or sidewalk restrictions, parking limitations, traffic impacts and restrictions, noise, and disruptions to driveway access. Race’s specific installation methods and pedestrian/traffic control plans will be submitted to the City staff for review through the encroachment permit process and the City will require Race to take reasonable measures to avoid or reduce these impacts when possible.
The City requires an encroachment permit before work or travel restrictions occur within the public right-of-way. Its permit program addresses public and worker safety, protection of existing infrastructure, and compliance with City standards. The permit application calls for project plans, a vicinity map, and applicable traffic and/or pedestrian control plans.
For this project, staff will address the following matters through plan review, applicable permit conditions, inspection, and coordination with Race:
1. Encroachment Permit & Inspection Fees: Project sections will be submitted through the city encroachment permit process. City inspection and permit fees will be assessed through this process to cover city staff costs.
2. Bonds & Insurance: Insurance will be collected per City standards. A 100% performance bond covering affected city improvements and 10% maintenance bond covering the 1-year period after completion will be collected.
3. Utility protection: Identify conflicts with existing utilities and city facilities, coordinate field verification and utility locating, and establish procedures for reporting and addressing damage.
4. Traffic and access: Review traffic control for vehicles, pedestrians, and bicyclists; maintain accessible routes and emergency access; and coordinate temporary impacts to residences, businesses, schools, and transit stops.
5. Conduit Alignment: After USA markings are completed in the field Race staff will mark the final locations of their proposed underground conduit lines. The City inspector will verify if the final alignment conforms with applicable requirements prior to construction but Race is solely responsible for the installation of the conduit.
6. Surface restoration: Establish applicable requirements for pavement, sidewalks, curb and gutter, landscaping, and other affected improvements; document existing conditions; and inspect completed restoration.
a. Pothole Discussion - This project will result in a significant number of potholes in many streets throughout town. The following two discussion points generally address how staff plans to address the potholing.
i. Moratorium Streets - City staff recently completed a Moratorium Street Map which contains all new streets or streets that have had major rehabs completed within the last 8 years. Race has been given direction that any potholing in these roadways could result in the city requiring full asphalt replacement or new slurry seals over the entire roadway.
ii. Streets not under moratorium - The street surface restoration for these roadways will depend on the amount of potholing required in the roadway and the condition of the roadway. Staff anticipate that proper slightly upgraded City standard potholing repair will be sufficient in many roadways where extensive potholing is not required. If extensive potholing is required these roadways could also be subject to full street asphalt replacement and/or slurry seal installation.
7. Construction scheduling: Coordinate work with City capital and maintenance projects, recently improved streets, and applicable street-work restrictions. Staff will evaluate permit requirements for each proposed phase.
8. Public communication: Race has door hangers and paper notifications that will be issued to residents and businesses prior to construction. Race will maintain a fact sheet for residents on their website and will respond to residents’ questions/concerns throughout construction.
9. Completion records: Obtain required final inspection documentation and record information for installed facilities. Race will be required to provide the city with final as-built plans showing final location and depths of infrastructure upon completion.
This list is meant to provide the City Council with some of the more significant items being coordinated between Race and City staff. There are many other detailed design and construction coordination items that continue to be discussed between the City and Race.
Fiscal Impact: The city will be collecting encroachment permit fees to cover staff time related to this project. The Council needs to be aware that this project will result in a significant number of potholes in existing roadways. City staff will use good engineering judgement, current road conditions, and existing city policy to determine the most appropriate pothole or street surfacing repair method for each area. However, these potholes could result in additional street maintenance costs in the future.
Prior Council Action: None
Alternatives: None recommended
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to concur with the processes recommended by City Staff under which Race Communications will install their fiber optic network in the street right of way and public utility easements in compliance with Public Utilities Code Section 7901 and statewide franchise laws. Staff will be responsible for processing encroachment permits, setting requirements, performing inspections, and performing all related work in accordance with city policies and standards.
Environmental Assessment Status: See the CEQA review section.
CEQA Review: Race will be responsible for confirming that they qualify for the state statutory broadband exemption.
Deadline for Action: 11/02/2026
Attachments:
1. Phase 1 Project Exhibit
2. Race Communications Presentation
3. City Staff Presentation
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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