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Burton adopts franchise-fee ordinance to charge utilities for right-of-way use

City of Burton City Council · January 14, 2025
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Summary

The council adopted a Franchise Fee Ordinance setting fee rules for utilities using city rights-of-way, including minimum percentages for water/wastewater and natural gas providers and adoption of state-defined methods for cable and telecommunications.

The Burton City Council adopted a Franchise Fee Ordinance that establishes terms under which utilities and service providers may use the city's public rights-of-way and other public property and sets franchise-fee calculations consistent with state law. The ordinance, approved Jan. 14, 2025, includes fee references such as a minimum two percent (2%) for water/wastewater and natural gas providers and a five percent (5%) rate for cable/video where set by state law.

The ordinance text explains that, "Water and Wastewater...shall pay a Franchise Fee to the City for such use in an amount equal to not less than two percent (2%) of such service provider's gross receipts for services provided within the City." It also adopts and defers to state mechanisms where applicable, including chapter and PUC rules for telecommunications and cable services. The packet requires permitting for work in public rights-of-way and permits the city to require relocation of facilities on 45 days' notice for right-of-way widening or public-health and safety concerns.

Councilmember Jeff Eckhardt moved to adopt the ordinance and Councilmember Tommie Gilmon seconded; recorded support came from Councilmembers Nathan Kalkhake, Paul McLaughlin and Macey Tidwell. The ordinance will be effective following the board's approval and required posting.