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QUINNESEC -- The Breitung Township Board has tabled a proposed contract with Charter Communications, balking at the idea of potentially adding fees to local cable TV bills.
The township board was set to consider a 10-year agreement that would grant Charter access to the right-of-way along local streets and roads in return for paying the township a fee ranging from 1% to 5%.
About 1,300 Breitung Township residents subscribe to Charter, according to Township Superintendent Steven Mulka. And if each customer was charged just 1%, that would generate $15,600 annually for the township's general fund.
Mulka added that neighboring Iron Mountain and Kingsford currently both charge 2%, generating about $39,000 and $35,000 per year, respectively. The charge is listed on the customer's cable bill and the company makes the payments to the municipality so there's no additional billing requirements.
"They list it as a franchise fee," he said. "We haven't charged it before. ... Whatever you do here, you're locked in for 10 years."
If approved by the board, the agreement would also set the percentage for any other provider that submits a franchise agreement, with the township required to charge the same rate paid by Charter, Mulka added.
But board members seemed more concerned with raising cable rates for township residents, rather than adding to its bottom line.
"When I get that bill, it's already too high. Another 1% to 2% will be that much more too high," Township Supervisor Denny Olson said.
"Charter is not going to absorb that (cost)," Trustee Ben Peterson added. "They'll pass it on to the customer.
"I say we don't change it, keep it like we've been doing," Peterson said. "I say we take no action as a board."
However, Mulka said the flipside of not agreeing to the contract was Charter also would be free to pursue its options as a service provider.
"They're not locked into providing service, either," he said. "Then they have the option to discontinue service at any time."
Both Olson and Peterson said it seemed unlikely Charter would pull its service from the township, considering the investment the company already has in the area.
Board members also questioned if they couldn't have the best of both worlds by agreeing to the contract at no charge, or whether they could wait and consider an agreement two or even three years from now.
Mulka said he'd have to contact Charter to get that information, resulting in the proposed contract being tabled until the board's November meeting.
"Check and come back," Olson said. "(But) what I'm sort of hearing is we're not in favor of raising prices on our residents."