©2016 Michigan Economic Development Corporation

Data Shows Telecommunications Fees Charged by Southeastern Michigan Municipalities Vary Greatly

Thursday, January 17, 2002

Jennifer Kopp
(517) 335-4590

Benefits of a Common Fee Systems Discussed

The Michigan Economic Development Corporation (MEDC), in partnership with the Michigan Public Service Commission (MPSC), released a list of application and annual fees charged by southeastern Michigan municipalities to install telecommunications lines.This list shows a wide range in the amount of application and annual fees assessed throughout the region.

“Telecommunications companies looking to make an investment in one of the most populous areas of our state are met with varying fees and complex permitting systems,” said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation.“This high fee and endless red tape can be frustrating and in some cases will discourage companies from investing in our state.”

The collected fee list shows the applications fees collected by municipalities were as high as $10,000.In addition, annual right of way maintenance fees telecommunications providers are expected to pay vary from no fees in the city of Melvindale to up to 5 percent of the company’s gross revenues in the city of Berkley.

Carl Grivner, executive vice president of global operations for Global Crossing, supported Rothwell's statement, "Enlightened policies on public rights-of-way are good for both communities and businesses such as ours.Reasonable access and fees enable Global Crossing and other communications companies to connect customers and sell them the bandwidth they need to help fuel economic growth.Unreasonable fees, denial of access or long delays affect us and prevent area businesses from taking advantage of the services and pricing plans they need to support local jobs and be competitive with other regions. These problems also can block both business and consumer telecom customers from getting new services. We're looking forward to working with governments at all levels to promote positive public rights-of-way policies."

To address the concern of varied application and annual fees, Governor Engler has proposed legislation that creates one common replacement fee statewide for right-of-way access.It would also create a uniform right-of-way application and permitting process for municipalities and providers to utilize.

Laura Chappelle, chairman of the Michigan Public Service Commission said, "To encourage and attract investment that will expand broadband services and choices to users across the state, we need to reduce the fees and streamline the permitting process.Telecommunications carriers have limited resources to invest across the country and we need to make sure that our investment climate is the most attractive possible.Eliminating this patchwork of fee structures will help do that.”

The MEDC, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.

PERMIT FEES CHARGED BY SOUTHEASTERN MICHIGAN MUNICIPALITIES

MUNICIPALITY

APPLICATION FEES

ANNUAL FEES

CITY OF ALLEN PARK

$2,500

$500

CITY OF AUBURN HILLS

$2,500

$500 for permit for extension

$1,000 for renewal permit

$0.15 per lineal ft - aerial

$0.30 per lineal ft - underground

CITY OF BERKLEY

$5,000 refundable application fee

$10,000 franchise fee

5% of gross revenues; or

$0.25 per linear ft – aerial

$0.40 per linear ft - underground

CITY OF BIRMINGHAM

$10,000

Fee based on the City’s fixed and variable cost of maintaining the rights-of-way used by the provider

CITY OF BLOOMFIELD HILLS

$2,500 application fee

$500 for permit for extension

$1,000 for renewal permit

$0.15 per lineal ft – aerial

$0.30 per lineal ft - underground

TOWNSHIP OF BLOOMFIELD

$2,500 application fee

$500 for permit for extension

$1,000 for renewal permit

$0.15 per lineal ft – aerial

$0.30 per lineal ft - underground

CITY OF CENTER LINE

$5,000

$0.10 per lineal ft – aerial

$0.25 per lineal ft - underground

CITY OF DEARBORN

$2,500

4% of gross annual revenues fee or

$0.65 per lineal ft – aerial

$0.30 per lineal ft - underground

CITY OF DEARBORN HEIGHTS

$500

$0.25 per lineal ft – aerial

$0.40 per lineal ft - underground

CITY OF DETROIT

Fees Have Not Been Set

CITY OF FARMINGTON

$1,500

$0.10 per lineal ft – aerial

$0.25 per lineal ft - underground

CITY OF FARMINGTON HILLS

$1,500

$0.10 per lineal ft – aerial

$0.25 per lineal ft – underground

CITY OF HIGHLAND PARK

$10,000

$1.00 per lineal ft.

CITY OF LATHRUP VILLAGE

$5,000

Fee based on the City’s fixed and variable cost of maintaining the rights-of way used by the provider

CITY OF LIVONIA

$10,000

$1.25 per lineal ft – Major Street

$0.36 per lineal ft – Local Street

$1.28 per lineal ft – State Highway

$0.79 per lineal ft – Country Road

Optional one percent gross revenue fee

CITY OF MADISON HEIGHTS

$10,000

$0.25 per lineal ft – aerial

$0.40 per lineal ft - underground

CITY OF MELVINDALE

$1,000

No annual fees

CITY OF OAK PARK

$1,500

Rights-of-Way Plan Review fee based on cost of construction ranging between $20 and $10,000

Overhead:

$0.44 per lineal ft – Major Streets

$0.33 per lineal ft – Local Streets

underground:

$0.67 per lineal ft – Major Streets

$0.49 per lineal ft – Local Streets

CITY OF PONTIAC

$500

$0.15 per lineal ft – aerial

$0.30 per lineal ft - underground

TOWNSHIP OF REDFORD

$2,500

$500

CITY OF ROCHESTER HILLS

$5,000

Fee based on the City’s fixed and variable cost of maintaining the rights-of-way used by the provider

CITY OF ROYAL OAK

$500

$0.25 per lineal ft – aerial

$0.41 per lineal ft - underground

CITY OF SOUTHFIELD

$0.03 per lineal ft – aerial

$0.10 per lineal ft - underground

$0.95 per lineal ft – Major Streets

$0.33 per lineal ft – Local Streets

$0.01 per lineal ft – State Highway

$0.30 per lineal ft – Country Road

CITY OF STERLING HEIGHTS

$10,000

$500

CITY OF TROY

$10,000

$0.25 per lineal ft – aerial

$0.40 per lineal ft - underground

CITY OF WARREN

$5,000

$0.33 per lineal ft – aerial

$0.66 per lineal ft - underground

CITY OF WEST BLOOMFIELD TOWNSHIP

$2,500 application fee

$500 for permit for extension

$1,000 for renewal permit

$0.15 per lineal ft – aerial

$0.30 per lineal ft - underground

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