Committee forwards Fat Beam LLC telecom franchise to full City Council; members flag right-of-way concerns

On Oct. 21 the Government Performance and Finance Committee moved to forward a proposed 10‑year telecommunications franchise for Fat Beam LLC to the full Tacoma City Council for consideration.

Jeff Peters, division manager for cable communications and franchise services, presented the ordinance request and said the company is headquartered in Coeur d’Alene and already operates in several Washington cities. Peters said the proposed franchise would allow the provider to operate in the public right-of-way under a 10‑year term and requires bonds, letters of credit and insurance as required by Title 10 of the municipal code. Peters said the company’s plan includes "residential services and 1 gig symmetrical of 8 gigabits, enterprise and government clients and potentially dark fiber services." Staff recommended approval and presented a schedule that would place the first reading next week, a final reading on Nov. 18 and an estimated effective date of Dec. 12.

Committee members asked whether municipalities can charge a fee tied to use of the right-of-way. Peters responded that state law and court precedent limit local franchise fees — citing the Auburn case and state preemption — and that a state process and utility regulator typically set some attachment or permit fees. He referenced a per‑pole fee figure used in practice ($2.75 per pole) as an example of a state-set charge.

Members also voiced concern about congestion in the right-of-way — multiple utilities and telecom attachments in the same space — and asked staff to track capacity and cost impacts to the city when new providers enter the right-of-way. Peters said existing work by Tacoma Public Utilities and permitting processes would govern additional construction; new underground or above-ground work would require permits.

A committee motion to forward the franchise to the full city council passed on a voice vote. Staff recommended final consideration by council, with the schedule shown during the presentation.