South Pittsburg board considers imposing franchise fees on local cable company

SOUTH PITTSBURG, Tenn. — As SVEConnect prepares to bring broadband internet, television and phone services to rural and urban parts of Marion County, the company is working with local municipalities to solidify franchise fee agreements.

At the same time, South Pittsburg city leaders are considering imposing those fees to another local media company that has had issues paying them to other towns in the past.

At the South Pittsburg City Commission’s September meeting, City Administrator Gene Vess said officials have given SVEConnect its franchise fee proposal, which includes a rate fee of 3 percent.

That percentage expectation is in line with nearby municipalities like Kimball, Tennessee.

Spectrum, another media provider in Marion County, is paying the same 3 percent rate in South Pittsburg.

Commissioner Ronnie Lancaster asked if Blue Bridge Media, which offers similar services and is based in South Pittsburg, is paying a franchise fee to the town like the others. “No, sir,” Vess said.

City Attorney Billy Gouger said he tried to find records of agreements between South Pittsburg and Blue Bridge Media recently but was unsuccessful.

“In response to my request for a copy of it, I was told that there was a different kind of agreement worked out between the city and [the company] that called for citywide WiFi to be provided within city buildings and facilities in exchange for not having to pay a franchise fee. That’s sort of where it stopped.”

Those services to the city were ended years ago.

Gouger said it’s been “difficult” to collect the fees from Blue Bridge Media for other clients he represents.

In Kimball, where Gouger is also the city attorney, city leaders terminated the franchise agreement with Blue Bridge Media in April for nonpayment of the fees.

Jasper, Tenn., leaders have had similar problems collecting the money.

“It’s probably going to be difficult for you all, too,” Gouger told the South Pittsburg board.

Lancaster asked what the city needed to do to get a franchise agreement with Blue Bridge Media.

“You could force the issue if they’re operating within your city without permission or without a valid franchise agreement,” Gouger said. “Technically, that’s a violation of the law.”

The problem South Pittsburg and other nearby communities have had is that there are no local Blue Bridge employees in a decision-making position with the company, he said.

“They’re all in Connecticut, or I think the last person I dealt with is in New York,” Gouger said.

Gouger warned the board to tread carefully if a decision is made to push forward and demand an agreement.

“You have some citizens within your city that are dependent on [Blue Bridge Media] for services right now,” Gouger said. “So, if you terminate their right to do business here, make sure those people have other options available to them that they can afford.”

“I can’t see we’re going to make two of them pay [a franchise fee], and don’t make that other one,” Lancaster said. “We need to do something.”

No one on the board made a motion to take any action on the matter.

Ryan Lewis is based in Marion County. Contact him at ryanlewis34@gmail.com