Rawlins council delays telecom franchise approvals amid debate over subsurface right-of-way fee

The Rawlins City Council on Feb. 17 delayed final votes on telecommunications franchise ordinances for Visionary Communications LLC and All West Wyoming Inc. while council and staff work with providers to settle a proposed right‑of‑way subsurface permit fee.

Council members voted to table the third and final readings to allow coordination between the franchise approvals and the city’s proposed fee and permitting processes. Council member Steve Sanger moved to table the Visionary ordinance, and a similar motion was passed for All West; online votes recorded each tabling motion as passing with a majority.

Why it matters: local officials and broadband providers said the timing is consequential. Several companies are planning construction in Rollins this spring and said high permitting fees could make planned projects financially infeasible or pass costs to customers.

Providers who spoke during a public hearing and later during council debate described the proposed fee as a significant and, in some cases, unexpected cost. "This fee structure adds nearly a dollar a foot for construction and I know our company is planning on spending over $2,000,000 this year on construction," said Brian, CEO of Visionary Broadband (public comment, SEG 221–276). Mike Morrison of Charter Communications told council an independent cost study should support any imposition of non‑nominal permitting fees: "There should be an independent cost study to support any imposition on permitting fees that are not nominal" (SEG 293–304). Marty Perullo of All West said the draft resolution did not distinguish overbuild construction from routine maintenance and asked for documentation of the fee calculation (SEG 323–356).

City staff and the city attorney defended the policy approach as cost recovery rather than a revenue source. "This is intended to create a standardized approach to managing our right of way…a cost recovery structure rather than any type of revenue generating structure," Attorney Mayberry said while explaining legal and administrative rationale for a fee (SEG 1835–1840). Public works staff said the city has faced repair costs when subsurface work struck existing infrastructure: "We struck a communication line, and the city was charged $7,500 just for repair…" the public works director said, citing a recent trench repair (SEG 1866–1869).

Council members requested that staff convene affected utilities and communications providers to review the fee formula, to include existing right‑of‑way holders (e.g., electrical and gas utilities), and to consider a nominal interim fee if necessary. Vice Mayor Garner and others warned that a large fee will likely be passed to local customers. Several providers said they were willing to participate in a working group and pay documented, reasonable costs if the formula is transparent.

What happens next: Council directed staff to coordinate stakeholder meetings and postponed third readings so those discussions can occur. Council members said the franchise third readings will be brought back at a future council meeting after staff and stakeholders have met; staff will attempt to schedule a focused stakeholder session and report back to council (SEG 2498–2557).

The transcript records that the tabling motions for the Visionary and All West third readings were made on the floor and carried by online vote; the special‑resolution debate on the fee itself was also tabled to allow those discussions.