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Prior Lake council approves Comcast franchise; one member abstains over employment
Summary
The Prior Lake City Council adopted an ordinance approving a new cable television franchise with Comcast, allowing Comcast to install fiber to homes and collecting a PEG fee tied to cable revenues; Council Member Helier abstained because of recent employment with Comcast.
The Prior Lake City Council on April 14 approved an ordinance granting Comcast a cable television franchise that staff said will allow the company to bring fiber to most homes in the city over the next two years.
City Manager Jason Wedell told the council the proposed franchise establishes permitting and construction standards and a city fee to help cover inspection and coordination costs. "Their intent is to bring fiber optic cable basically to every single home in the city of Prior Lake over the next 24 months," Wedell said.
Wedell said the franchise will yield public, educational and governmental (PEG) funding based on 5% of the gross revenues from Comcast’s cable television service. He noted state law prevents the city from imposing franchise requirements beyond what it already requires of existing franchise holders. "At the state level . . . we could collect franchise fees on internet and broadband but that has not happened yet," Wedell said, emphasizing that the 5% fee applies to the cable-TV portion of Comcast’s offering.
Council members who spoke praised the additional service option and the potential for competitive pricing. "We heard a lot of complaints during COVID about internet availability, pricing, service," Council Member Braid said. "Now we have Comcast coming in to install fiber, which is a real big benefit for the residents of our city." Council Member Lake said residents have asked for more options and she would support the agreement.
Council Member Brighten made the motion to approve the ordinance; Council Member Churchill seconded. The motion passed on a voice vote. The mayor noted one abstention: Council Member Helier sat out the vote because, as Wedell explained earlier, Helier "has been recently employed with Comcast and so . . . he's going to sit this one out." The ordinance was adopted as presented.
The agreement is described by staff as a new, five-year franchise consistent with city code (chapter 4, article 7) and with the city’s existing franchise framework for other providers. Wedell said the franchise includes standard requirements for permits and coordination where Comcast will trench, directional drill and work in rights-of-way and private front yards. A Comcast representative had been present at prior meetings and at the earlier public hearing on the company’s application.
The council approved the consent agenda and other routine business earlier in the meeting. The Comcast franchise ordinance was the principal substantive action of the evening.
