To allow companies to provide services on the city’s dedicated right-of-way, franchise ordinances exist in Derby for said companies to operate uninterrupted. Currently, the city’s franchise ordinance with AT&T has expired, so City Attorney Jacque Butler presented a new one to the Derby City Council for a first reading at its Sept. 28 meeting. Given changes over the years, Butler pointed out that the newly proposed ordinance would be a little different. Per state law, cities can charge an access line fee or gross receipts fee as part of the franchise ordinance, with Derby using the former for several years. AT&T currently pays $2.50 per month per access line. With households no longer maintaining or using landline phone services, though, that franchise fee collected by Derby has steadily declined. At present, the city receives approximately $1,100 per month in franchise fees from AT&T. … As proposed, a move to a gross receipts franchise fee (equal to five percent of the company’s gross receipts) would bring in an estimated $1,500 per month. The structure is in line with the city’s 2020 franchise agreement with IdeaTek and mirrors those imposed on AT&T in Wichita, Bel Aire, El Dorado, Overland Park, Johnson County and more. “It’s just about changing how we’re doing business because people are changing the way they’re doing their telecommunications services,” Butler said.
Source: Derby Informer | News
