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Council tables telecom franchise with MCI Metro (Horizon) amid questions over fees, installation and obligations
Summary
Discussion over a proposed 10-year franchise agreement with MCI Metro (Horizon) covered federal/regulatory limits, repair and right-of-way obligations and the franchise-rate cap of 3.5%; council tabled the resolution pending additional attorney review and clarifications.
Harrisville council members debated a proposed 10-year franchise agreement with MCI Metro (doing business as Horizon) but chose to table the resolution pending further review.
Staff presented a standard franchise template reviewed by city legal services and noted state law caps franchise collection at a maximum of 3.5 percent. Council members asked whether the franchise could require above-ground poles in some areas, how companies should restore private irrigation or sprinkler systems in public-right-of-way plantings, and how to quantify the city’s administrative costs for monitoring utility installation and encroachment permits.
The city attorney walked through obligations in the draft, saying that while companies may request certain above-ground infrastructure, the city can require undergrounding where reasonable and that the franchise requires contractors to repair damage. Council members also asked how the council would explain franchise fees to residents; the attorney said the fee is collected by the telecom company and often passed to customers and that the fee is intended to help offset city costs to maintain right-of-way and monitor installations.
After extended discussion the council voted to table the agreement to allow staff and the attorney to resolve outstanding questions and bring the item back for a future vote.
