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Committee approves franchise agreement permitting GulfCo (Unity subsidiary) to operate in city right-of-way with 5% franchise payments
Summary
The committee approved a franchise agreement for Unity Fiber's subsidiary GulfCo to operate in the city's right-of-way, with standard notice, repair and contact requirements and a 5% franchise payment on gross revenues; staff and the company's counsel said no immediate buildout is planned.
The committee approved a standard franchise agreement with GulfCo (a Unity subsidiary) governing the company's use of the city's right-of-way for fiber-optic broadband services.
Chris (city staff) described the agreement as the city's standard franchise that "controls how much they owe us" and sets notice, permitting and response timelines to reduce neighborhood impacts from infrastructure work. Addison Franklin of Capell & Howard, representing Unity/GulfCo, told the committee Unity is undergoing internal financing and is shifting future growth to GulfCo; she said "with about 90% certainty, there's no immediate plans for additional build out" and that GulfCo will share existing infrastructure with Southern Light while future growth is assigned to GulfCo.
Chris and committee members emphasized improved franchise terms since prior issues and said the agreements now require companies to provide a contact person, notice to neighborhoods and timelines for responding to problems. The agreement includes a 5% quarterly franchise payment on gross revenue from services provided to customers in the city. The committee approved the franchise agreement and will send it to full council for consideration.
