Fiscal court opens first reading of nonexclusive telecommunications franchise ordinance; county to solicit bids

MADISON COUNTY, Ky. — The Madison County Fiscal Court on Oct. 14 completed a first reading of an ordinance to establish nonexclusive telecommunications franchises in county rights of way and to authorize a public bid process for providers.

Jill (county staff) summarized the ordinance, which runs to multiple pages and establishes application and bidding rules, construction standards, insurance and bonding requirements, aesthetic standards, and compensation options. The ordinance includes a $5,000 nonrefundable application fee; it also contemplates a franchise-fee structure (for example, a base franchise fee plus scheduled increases) but allows the court to choose between retaining franchise fees or continuing to accept the Commonwealth’s telecommunications excise distribution if that yields a better financial outcome for the county.

Why it matters: The ordinance creates a framework for awarding nonexclusive, 10‑year telecommunications franchises in Madison County’s public rights of way. County officials said the framework will permit competition and give the county leverage to set construction, safety and aesthetics requirements and to require bonding and insurance of successful bidders.

Key points and process

Jill said Unity — which purchased Windstream — intends to bid. The ordinance requires bidders to meet technical and financial standards and permits the county to solicit competing offers before awarding franchises. Jill said the application fee is an application fee rather than the ongoing franchise fee, and that franchise-fee calculations will be compared against the Commonwealth excise distribution to determine which approach is more beneficial.

Magistrates asked about the fee structure, the nonrefundable $5,000 application fee, and the treatment of large incumbent providers such as Charter. County counsel Belinda Ainge (identified by the judge) has been advising the court on franchise law and will continue to assist as the county updates agreements with existing providers.

Next steps

The court acknowledged the ordinance’s first reading and voted to record the first-reading acknowledgment; further actions — advertising for bids, receiving proposals and awarding a franchise — will come later. The ordinance emphasizes that franchises must be nonexclusive under state and federal law and that the county will follow a competitive solicitation process.