Franchise Agreements. Why they're important.
Whether you're a utility company wanting to use the public right-of-way or a government entity in charge of managing it, having a franchise agreement in place makes sense.
A franchise agreement is a binding document that outlines how a municipality will protect and manage its rights of way and how they will identify who is using it. In this manner, they are able to protect their property rights in the same manner as private individuals do. This is important because the Telecommunications Act of 1996 and state law require fair and reasonable access to right of way by utilities and telecommunication firms. With the influx of new users over the last decade, municipalities want to know who's using their right of way and protect it from overuse or disrepair. On the other hand, utility companies want to protect their right to use the right of way. It makes sense for them to install their services in an area that is already set aside for this use; this saves them from time-consuming negotiations with individual property owners. A binding document that addresses their rights and obligations, who is responsible for relocations and under what circumstances, and a host of other concerns is good business. Franchise agreements cover all these issues. They outline the area to be occupied, conditions of use, depth of installation, construction standards, insurance, repair and maintenance, permits, and inspections. In some cases, they outline the fees to be charged. Fees may cover:
Summary; Whatever your train of thought, it's important for municipalities to have a franchise agreement in place for any utility occupying its right of way. The agreement should detail rent or fair compensation (even if there is none), permit requirements, construction standards, insurance, who pays for relocation, mergers and acquisitions, duration of agreement, and other conditions of use. This protects the taxpayer, the owner of the right of way, and those using or wishing to use public property. For more details, contact Dennis Judson at 585-334-1310 or by email at djudson@fisherassoc.com. « Go Back
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