Utilities committee approves $760,000 payment to Digital C, conditions further disbursements on audit and legislative sign-off

The Cleveland City Council Utilities Committee on Jan. 26 approved an amended Ordinance 126-2025 that authorizes a $760,000 payment to Digital C for 2024 work on the city’s broadband subscription program while placing additional conditions on future payments.

Committee members voted 5–1 to approve the amendment after extended questioning about Digital C’s reported results and the status of an ongoing audit. The committee said further disbursements must await a completed, clean audit and, by amendment, prior legislative approval.

The payment addresses the contract’s performance-based structure after Digital C reported 2,802 new household internet subscribers for 2024, short of the contract goal of 35,100 household subscriptions tied to a $1.75 million payment tier. Committee members and city staff told the committee that Digital C exceeded the contract’s digital-literacy metric for year one but did not meet the household subscription target.

“There's no money going out the door until…