I have been asked to comment on the passage of Resolution 10-2020 which amends the Town’s fee structure for permits in the Town’s right-of-way. 

The FCC implemented a rule which limited local government’s ability to regulate “small cells” and related infrastructure which became effective April 2019. 

This ruling was a concern not only to the Town of Centreville, but to many rural municipalities and counties. In fact, in September 2018, the Queen Anne’s County Commissioners wrote to the FCC in response to these pending regulations. (The full letter can be found here.)  

“...Queen Anne’s County writes to express our concerns over the Federal Communications Commission’s proposed Declaratory Ruling...we are concerned that the proposed language would significantly impede local governments’ ability to serve as trustees of public property, safety and welfare…The FCC’s proposed recurring fee structure is an unreasonable overreach that will harm local policy innovation. We disagree with the FCC’s interpretation of “fair and reasonable compensation” as meaning approximately $270 per small cell site. Local governments share the federal government’s goal of ensuring affordable broadband access for every American, regardless of their income level or address….Why does it see fit to so narrowly dictate the rates charged by municipalities? Without the ability for Queen Anne’s County to set permit fees to recoup our expenses for processing them and add a franchise fee so that we may serve areas which the industry will not in our jurisdiction, our county will lose money and not be able to provide 21 century internet services to all our citizens.” 

In early 2019, at the advice of our attorney, the Town of Centreville introduced Ordinance 02-2019 “Small Cells” which regulated the permitting of small cells and related infrastructure in the right-of-way. The Town held a public hearing on March 21, 2019. No one spoke in favor of the ordinance. No one spoke in opposition of the ordinance. The ordinance has a provision providing that the Town Council could regulate the fees associated with permitting small cells and related infrastructure via Resolution, as we do for all non-utility fees. The ordinance passed unanimously on March 21, 2019. 

On May 16, 2019 the Town Council approved Resolution 03-2019, which amended the Town’s fee schedule to add fees for permits in the right of way, permits for small cell facilities in the right of way, permits for new poles and annual right-of-way fees. This fee was implemented to ensure that the Town can equitably protect public property, safety and welfare. 

The fee amounts were based on regulations from the FCC and do not reflect the true cost of the permitting activity (the true cost is likely to be much higher). 

With regards to it’s fee structure, the Town of Centreville strives for a policy of equity. Equity is defined as ‘the quality of being fair and impartial’. Whether it is a building permit to erect a shed in your backyard, a building permit for a developer to build a new home, or a utility to place infrastructure in the Town’s right-of-way, the policy of the Town has been based on equity. 

Fees are charged to applicants based on the cost associated to provide that service and process the permit. The person/company seeking the permit pays the town for the cost associated with processing the permit. These fees are updated from time to time based on costs associated with processing them. Taxpayers who do not benefit from this should not foot the bill for this. 

High speed internet has the ability to positively affect every household and business. That being said, there will be a subset of property owners in town that do not want to utilize fiber high-speed internet or perhaps there will be an area that will not be served by underground fiber. It is because of this that the cost to permit this infrastructure is to be born by the company seeking the permit. There is a tangible labor cost to review the plans, approve the permit, oversee and inspect the construction, ensure the protection of public property, and safety and welfare of the citizens, etc. The actual cost of this is likely to be much greater than the permit fees, but the FCC has set limits on local government fees associated with permitting this infrastructure. 

Resolution 10-2020 amends the Fee Schedule to clarify fees related to non-small cell facilities (such as underground fiber) in the right of way. These fees mimic the original fee structure from Resolution 10-2019 and both resolutions are almost identical, with Resolution 10-2019 providing greater detail. This resolution ensures that the permit applicant is paying their fair share to install the infrastructure and that the cost to the taxpayers is minimized, to the extent allowable by FCC regulations. 

These types of fees and ordinances are prevalent throughout Maryland. In October 2019, the Maryland Municipal League stated that “there are 45 municipalities that have adopted ordinances or aesthetic standards” which would include permit fees and design manuals. In addition, many Maryland Counties have also adopted these ordinances. 

For example, one of our local neighbors and a town that is often cited as one we should strive to be like, Denton MD, enacted similar legislation in 2019, complete with a requirement for permits, design manual, and a fee structure. 

Property and local income taxes should be used to provide services to all citizens of Centreville. They should not be used to subsidize private development (whether it is a developer building a subdivision, a homeowner installing a new roof, or a private utility installing infrastructure). The Town strives to enact fee structures that promote equity and maximizes the tax dollar for everyone. Resolution 10-2020 was enacted to clarify Resolution 03-2019 and ensure equity and fairness for the taxpayers of Centreville.