St. Clair Shores Councilmen Review 10-year Agreement with AT&T

ST. CLAIR SHORES, MI — Under a 10-year agreement St. Clair Shores signed with AT&T in 2007, the company agreed to pay the city a 5 percent franchise fee on U-verse video services residents subscribe to. The agreement ends May 7, 2017. Now that the ten years is almost up, City Council members negotiated a new agreement with AT&T, according to candgnews.com.

Council members voted 6-0 on Oct. 3 to replace the current 10-year agreement with another 10-year agreement, or an 11-year term, if lawful. Members want to continue the fees for as long as possible, considering St. Clair Shores received $357,000 from franchise fees in just the last fiscal year, City Manager Mike Smith said.

Some Council members were concerned with how the city's revenue would be affected if technology changed during the next 10-year agreement. There were some worries that the technology may become outdated, candgnews.com reported.

City Attorney Robert Ihrie said that since AT&T was asking to renew the contract before it expired, the first contract is essentially turned into a nine-year agreement. He suggested that St. Claire Shores negotiate with AT&T to sign the new agreement and have it commence May 7, 2017, or sign an agreement that would last for 11 years instead of ten.

Councilman Peter Rubino expressed let down that AT&T wasn't finishing the original 10-year contract.

“If we sign a 10-year contract, I would think that’s in good faith that both parties are going to honor a 10-year contract,” Rubino said, according to candgnews.com.

Lori Doughty, external affairs director for AT&T, said the money paid to St. Clair Shores each quarter depends on the number of subscribers in the city.

“It’s a standard renewal, statewide contract,” Doughty said.

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