By Patricia A. Scheyer
NKyTribune reporter
Fort Wright city council voted to renew the cable franchise for Spectrum at its recent meeting.
Former Ft Wright Mayor and long time city representative to the TBNK board Tom Litzler came to explain what was going on with the franchise.
“I appreciate this administration and past administrations who have given me the opportunity to be involved with cable franchising since 1980,” he said, noting that the city first issued the franchise to Storer Cable in 1980. “So much has changed from 1980 until today as far as franchising. Cincinnati got cable just two months before we did, and it was a really big deal, because they were getting a monopoly.”
Former Mayor Tom Litzler talks to county about cable franchise.
He told of how six companies had to pay $100,000 just to be able to bid for the franchise, and it was awarded to Storer because they were the only ones who had a dual cable system.
“You gave them the rights to the rights of way for your streets to put their lines and their cables in, and to have contact with all the residents of Ft Wright,” Litzler said. “It was a heck of a deal.”
But now the attitude is different. He related how state and federal regulations have changed, largely because, according to Litzler, cable companies paid lobbyists big money to get them changed.
“It changes the outlook when you’re negotiating with a company as to how they view the value of what you’re offering to them in a franchise,” he explained. “I think they actually resent the fact that they have to come to you and get a franchise. I know they resent the fact that you have anything at all to say about their business. I think you can get the picture of how it is now negotiating with them compared to how it used to be.”
He said initially the companies came in with scholarships for students, and free cable for the city buildings and the police stations, fire stations and schools. Now, he said sadly, they don’t give anything.
“Now they will not give anything unless they have to,” Litzler said. “I set the stage for this just to tell you that I am not real happy with the franchise that has been recommended to you. But I can tell you, it is the best that can be done. And I’m still confident that you and our residents are protected by the things that are in this particular franchise. This has taken several years of negotiation with the two franchises.”
He said what consumers want and how they’re getting it has changed also, because they can have satellite, different cable companies, and streaming systems.
Mayor Dave Hatter said he understands how difficult it is to negotiate franchises, especially with the cable companies, because they can be uncooperative.
Mayor Dave Hatter weighs in on the discussion.
He explained that instead of all the cities in the area negotiating separately, 16 cities have gotten together and appointed the Telecommunications Board of Northern Kentucky, or TBNK, to negotiate for all of them. When cable companies come into a city, they want to put their equipment in the right of way, and cities say they have to pay for that right, he said. Therefore a franchise agreement has to be negotiated. The first one was in 1980, and that agreement was renewed with TKR in 1997.
“We generate not a tremendous amount of money, but a substantial amount of money every year through franchise payments,” said Hatter. “One of the services that is provided through that franchise agreement and the telecommunications board is that the first Wednesday of every month our meeting is televised. Our franchise fee is 5 percent.”
Council member Bernie Wessels asked about the smaller cell towers that are popping up, which he said residents are upset about.
Litzler said the smaller towers are not included in this agreement. He warned the city that what is in the agreement is the ability for the cable companies to come back to the cities and ask for relief from any part of this franchise agreement if they can justify it. He told council that they need to be careful in their dealings after the fact not to give them cause to come back and ask for relief.
Council voted unanimously for the agreement which will be for 10 years. The second reading will be in September.
In a similar matter, council voted to levy a 5 percent franchise fee for Duke Energy. In the past Fort Wright had not asked for a franchise fee from Duke, although other cities in the are have charged the fee. Council agreed that it was a fair thing to do if they have a franchise fee from other companies.
This was also a first reading and the second reading will be in September.
