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Council adopts new utility right-of-way license code, exempts non-owner wireless providers

Westland City Council · July 15, 2025
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Summary

Westland repealed chapter 10 and adopted Ordinance 17-59 (option 2) to modernize right-of-way management and fee collection; the version adopted narrowly exempts wireless providers that do not own physical facilities in the right-of-way and implements updated master fees and charges by resolution.

The Westland City Council voted unanimously on July 14 to repeal chapter 10 and adopt Ordinance 17-59 (option 2), revising the city’s utility right-of-way code and adopting new fee and license provisions.

Staff described a multi-year effort to move from franchise agreements to a license-based model that clarifies records and reporting, audit authority, insurance and indemnity language and fee structures. Staff noted the city lacked key audit and remittance language in its prior code; outside counsel and staff drew language from neighboring municipalities to close gaps. As staff summarized, “none of the right of way usage fees are taxes,” underscoring that the proposed charges compensate the city for use of public right-of-way, not a tax on residents.

Option 2—adopted by council—adds a narrow exemption stating that wireless providers that do not own facilities in the right-of-way (beyond FCC-defined small-cell attachments) are not subject to the gross-revenue usage fee; instead, small-cell attachments are treated under an attachment-fee structure (an FCC-permitted $270 per attachment was discussed). Representatives from Verizon and AT&T, along with industry groups, supported Option 2 as resolving their legal and operational concerns; Verizon’s speaker said she supported “the version 2 of the ordinance of the 17 5 9 underscore 2.”

Council adopted the ordinance and then passed Resolution 2025-07 to update the master fees and charges, setting provider registration fees, utility license fees, small-cell permit fees and the schedule for gross-revenue or minimum per-linear-foot charges for operators. The council’s action modernizes the city’s right-of-way oversight while narrowing potential legal exposure.