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Council introduces 10‑year, nonexclusive telecom franchise for Calor Communications
Summary
City Attorney Michael Swanson presented a special ordinance to maintain a 7% franchise fee and extend Calor Communications' franchise term to 10 years; the council introduced the ordinance for first reading after staff described market and legal considerations and a resident urged state action to increase local right‑of‑way revenue.
The Klamath Falls City Council on June 15 introduced for first reading a special ordinance that would grant Calor Communications Incorporated a nonexclusive 10‑year franchise to operate a telecommunications business in the city.
City Attorney Michael Swanson presented the ordinance and said the company’s franchise fee would remain at 7% of gross revenues while the term would be extended from the five‑year interval used in past agreements to a 10‑year term. "It would remain at 7% of their gross revenues for the term," Swanson said, and staff recommended review and passage to maintain the existing franchise relationship.
Councilors asked whether a longer nonexclusive franchise would prevent other companies from entering the local market. Swanson responded that the longer term would not exclude competitors: the franchise is nonexclusive and does not bar new market entrants.
During the public hearing, a resident referenced recent state legislative changes that modestly increased the amount municipalities can recover from telecommunications companies using public rights of way and urged local officials to press the state for higher recovery levels so local fees better match maintenance costs.
A councilor moved to introduce the ordinance by title only; the motion was seconded and the council approved the motion by voice vote. City Manager Jonathan Tigard then read the ordinance title aloud.
If adopted in later readings, the ordinance would allow Calor Communications to keep its franchise under the proposed 10‑year term at the stated 7% fee. The council took no final adoption vote on June 15; the item was advanced as an ordinance introduction and will return for subsequent readings as required by council procedure.
