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Council approves first readings: Ziply and Wholesale telecom franchises; council records concerns on ownership changes
Summary
Ellensburg City Council held first readings of two 10‑year nonexclusive telecommunications franchise ordinances July 7 and approved both. The agreements name Ziply Fiber Pacific LLC and Wholesale Networks LLC as grantees. Council discussed compensation (a $5,000 review fee), indemnity and a clause requiring council approval for certain
The Ellensburg City Council on July 7 approved first readings of two 10‑year nonexclusive telecommunications franchise ordinances, one granting a franchise to Ziply Fiber Pacific LLC and the other to Wholesale Networks LLC (ordinances 4965 and 4966). Both franchises include standard indemnity terms and a nonexclusive grant to construct, operate and maintain telecommunications networks within city rights‑of‑way.
Key points: City Attorney Chris Horner and staff described both agreements as similar in term length (10 years, with a one‑time 5‑year renewal option) and substance. Staff said the principal city compensation for franchise processing is a $5,000 administrative fee to cover staff review; additional revenue would come from future utility tax collections on services once they are operating in the city.
Ownership transfer language and council concerns: Both applicants indicated planned corporate reorganizations or potential takeovers later in the year. Staff incorporated language requiring council notification and, in certain cases, council approval for changes in ownership or control above a stated threshold. Several council members expressed concern about pre‑approving transfers and asked for stronger assurances; staff said franchise terms bind successors and additional contractual protections (indemnification and obligations) would apply.
Votes and next steps: Council held and approved first readings: the Ziply franchise ordinance passed first reading with recorded opposition during the vote; Wholesale Networks’ first reading also passed, with several members abstaining in that vote. Staff will return with final ordinance actions on subsequent meeting agendas for second readings and formal adoption.
