The franchise agreement deals with the television and phone service that will be available to Internet subscribers.
The Board of Aldermen approved a franchise agreement for a term of 25 years with the fee paid to the city for video services gradually kicking in over time. No fee will be paid during the first five years. The contract says Telepak will pay 2.5 percent during years six through 10, and a fee of 5 percent will be paid thereafter from the sale of video services. The contract says the company will pay those amounts or the lowest percentage payable by a third-party provider of video services, whichever is lesser.
The franchise agreement also calls for Telepak to pay 2 percent of gross revenue from the sale of local phone service.
Franchise fee payments will be paid within 60 days of the end of each quarter. A 1 percent per month penalty applies to late payments.
The payments are subject to audit by the city no more than once per calendar year.
Telepak is required to carry comprehensive general liability insurance of $1 million.
The Associated Press reported that four other cities have entered a franchise agreement with C Spire — Clinton, Ridgeland, Quitman and McComb.