Council reopens Blue Peak franchise process after questions about renewals, easements and free Internet offers

The Pryor Creek City Council on Tuesday discussed but did not approve an ordinance to grant Clarity Telecom LLC d/b/a Blue Peak a nonexclusive permit to build and operate a cable/fiber system in city easements. The item was presented as an initial ordinance draft; councilors raised legal, competitive and procurement concerns and voted to take no action so staff can research and negotiate changes.

Councilors questioned language that would automatically renew the permit for an additional 10‑year term and sought clarity on the charter’s renewal limits. Councilor (first name used in the transcript) Terry said he did not like automatic renewals “that get thrown on you,” and asked staff to remove the auto‑renewal clause and bring the ordinance back.

The conversation also touched on competition and whether the franchise process fair‑markets local Internet service. One councilor warned that accepting free Internet or other in‑kind offers to city buildings could raise procurement issues; another said the city could decline any free offers. Mayor (no name given) said he supported allowing more competition and added: “I have confidence that Blue Peak will do what they say.”

City staff (Chase and the city attorney) agreed to research how the city charter and federal law interact on franchise term and renewal limits, to check publication and legal notice requirements, and to negotiate the contested language with Blue Peak’s legal team. The council’s action to take no final action functions as a first reading and a direction to staff to return with revisions, not as a rejection of the company’s proposal.

Next steps: staff will research charter/federal-law issues, consult with the city attorney to redraft contested sections (including automatic renewal language), and report back to council before a formal vote.