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Council debates whether to keep 5% franchise fee or allow negotiated rates after Google Fiber request
Summary
Staff presented a proposed text amendment to remove the automatic 5% franchise fee for broadband and instead allow council negotiation. Council members debated setting a fixed telecom rate (3.5%) versus open negotiation; no formal change was adopted and staff will refine language.
Herriman staff presented a proposed text amendment to city code that would remove a fixed 5% franchise fee for providers and replace it with language allowing the council to negotiate fees on a case‑by‑case basis. Staff said Google Fiber requested the amendment, arguing it typically pays lower fees elsewhere and favors negotiated agreements rather than a uniform 5% franchise charge.
Council members weighed options: several urged retaining the higher 5% cable franchise rate for traditional cable providers while setting telecommunication/broadband providers in a lower 3.5% band, citing federal distinctions and common practice. Staff cautioned that federal non‑discrimination rules constrain how municipalities treat competing providers and recommended careful drafting. The item was a request for feedback; the council did not adopt a code change and directed staff to refine the proposed language before any ordinance initiation.
