With a new cable tv company taking over for Broadstripe in Depoe Bay, the City Council has decided to step back and take a broader look at its franchise fee system, by which utilities, like cable, electric, gas, telephone and others pay to use the city’s rights-of-way to distribute their service. Franchise fees are a significant source of revenue for the city, since it doesn’t have its own property tax.
Broadstripe is being replaced by Wave Broadband which is expected to take over in November. City officials say a few members of the city council and the town’s planning commission will examine how the current franchise fee system is set up, check around the state to see how others are doing it, come up with any needed changes and forward a set of recommendations to the full city council.
City Recorder Pury Murray says although Broadstripe’s franchise agreement is ending in November, the city has the right to extend the current franchise agreement for six months in order to give the city time to adjust to the system’s new owners and to make any changes to the city’s franchise ordinance.