Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Franchise Agreement topic
No spam. Unsubscribe anytime.
Mount Clemens approves 10-year Wow Internet franchise, keeping 5% franchise fee
Summary
The Mount Clemens City Commission approved a 10-year franchise agreement with WideOpen West Michigan LLC (Wow Internet) that maintains the statutorily mandated 5% gross-revenue franchise fee and a 1% peg fee; staff said the terms are set by state statute and estimated combined annual franchise revenue from cable providers totals about $250,000.
The Mount Clemens City Commission approved a 10-year franchise agreement with WideOpen West Michigan LLC (doing business as Wow Internet), continuing a statutorily set 5% franchise fee and a 1% peg fee.
City staff said the agreement follows state statute that establishes a 10-year maximum term and ties the franchise fee to the amount paid by the largest provider in the community. ‘‘The state statute provides that a local franchise agreement shall be for a period of 10 years ... the 5% is set forth in the statute,’’ a city staff member said during the discussion.
Commissioners asked about possible graduated fees and whether the city could negotiate increasing percentages over time. Staff responded that the statute limits flexibility: the annual franchise fee is calculated relative to the largest cable provider (Comcast in Mount Clemens) and the 5% figure is the maximum the statute allows.
The finance director said combined franchise receipts from AT&T, Comcast and Wow are approximately $250,000 a year, but commissioners were reminded that those receipts fluctuate with subscriber counts. ‘‘That number can go up and down every single year depending on … subscribers,’’ a staff speaker said.
The motion to approve the franchise agreement passed on roll call. The agreement runs for the 10-year term allowed by statute; staff noted providers may apply for additional renewal terms under the state rules.
