Council deadlocks on Wide Open West addendum after debate over 2% PEG fee pass-through

Warren City Council debated whether to authorize a 2% public, educational and government (PEG) fee tied to a proposed franchise addendum with Wide Open West (WOW), and whether the company should be allowed to pass that fee on to subscribers. The council heard legal and staff explanations before voting; an amendment to prohibit pass-through failed on a tie.

The debate centered on a proposed 10-year addendum that would authorize a PEG fee of up to 2% of WOW’s gross revenues to be paid to the city. City staff and counsel said state and federal law permit a PEG fee, and that the provider may lawfully pass the charge to its subscribers unless the council directs otherwise. “The fee is in lieu of in kind support,” a staff member said during explanation of the franchise framework. A council member framed the measure bluntly: “This is a tax by another name.”

Council members split over whether the city should accept the 2% revenue stream or try to prevent customers from absorbing the cost. City Controller Richard Fox said the last quarterly franchise check from WOW was about $54,000 and that a 2% PEG fee would add roughly $21,000 quarterly (about $84,000 annually) in PEG revenue for the city, but warned revenue could decline over time as subscribers move to streaming platforms.

A motion to amend the addendum to restrict WOW from passing the PEG fee to its customers was moved and called; the roll-call on the amendment produced a tie, leaving the amendment failed and the main item scheduled to return on the next agenda for further consideration.

What’s next: Council will revisit the addendum on a future agenda; staff said alternatives include negotiating a lump-sum payment or seeking in-kind contributions, but prior attempts had produced only limited offers.