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Milton discusses franchise agreement with HyperFiber LLC to explore citywide fiber buildout
Summary
Council discussed a proposed franchise agreement that would let HyperFiber LLC do due diligence and seek permits to place fiber in city rights-of-way; staff said the agreement does not itself authorize construction and a $3,000 retainer would cover billable city costs.
The City of Milton discussed a proposed franchise agreement with HyperFiber LLC that would allow the company to perform due diligence and pursue permits to assess and potentially build fiber-optic infrastructure in the city, Director Madden told the council at Monday's study session.
The topic matters because a franchise would grant a private company limited use of city rights-of-way to investigate and—if later authorized through permits—install fiber that could expand high-speed Internet options for Milton residents and businesses.
Director Madden said the franchise application is the first step and does not authorize construction: "This agreement does not grant Hyper Fiber LLC the authority to commence any work within the city. That would be done, through a separate effort." Madden added that legal staff reviewed the contract and approved it. The franchise application would let HyperFiber do due diligence along the I-5 corridor and seek street-work permits if it elects to investigate gaps in the system.
Councilmembers asked questions about where the company plans to place fiber, whether the city must contribute money, and whether multiple providers could be authorized. Madden said the company's application map shows potential activity in the King County portion of the city and that the city would not pay construction costs; the agreement includes a $3,000 retainer "[to] allow the city to recoup any billable costs" to perform investigations and related review. Madden said the city can allow more than one franchisee and that two other companies (EZ Fiber and another unnamed East Coast firm) had applied or expressed interest.
Councilmember Peretti and Councilmember Whelan both framed the item in terms of increasing competition for Internet service: Peretti said Milton residents and businesses have experienced service problems with Comcast and described the franchise process as a step toward attracting competitors and improving local connectivity. Whelan said the franchise process is a useful way to learn what vendors would offer and how they would build out service.
No formal action or vote was taken at the meeting. Madden said the item will return to the council for approval at the next regular meeting; "we'll bring it back for approval on Monday," the mayor said. Staff also indicated two additional fiber franchise agreements are expected to come forward in June.
Council members asked staff to provide any additional requested information before the approval hearing.
