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Metro Act Fees FAQs


 
 
Q: How and when are maintenance fees collected from telecommunication providers?
A:The Metro Authority annually invoices telecommunication providers assessed maintenance fees for actual footages installed in municipal public rights-of-way as of March 31st of each year.  Invoices are annually sent to providers by April 1st with payment due by April 29th.

As the METRO Act (PA 48 of 2002) does not specifically address the issue of pro-rating maintenance fee assessments/payments, the Metro Authority has no statutory provisions to pro-rate annual maintenance/payments based on the date of installation of telecom facilities in municipal public rights-of-way.  As regards the current assessment/collection practice, Section 8(1) of the Act states:

"The authority may prescribe the forms, standards, methodology, and procedures for assessing fees under this act.  Each provider and municipality shall provide reasonably requested information regarding public rights-of-way that is required to assist the authority in computing and issuing assessments under this section."


Q: What telecommunication facilities are included in the assessment of linear feet?
A: PA 48 defines "telecommunication facilities" as the "…equipment or personal property, such as copper and fiber cables, lines, wires, switches, conduits, pipes, and sheaths, which are used to or can generate, receive, transmit, carry, amplify, or provide telecommunication services or signals. "Telecommunication facilities" or "facilities" do not include antennas, supporting structures for antennas, equipment shelters or houses, and any ancillary equipment and miscellaneous hardware used to provide federally licensed commercial mobile service as defined in Sec. 332(d) of part I of title III of the communications act of 1934, chapter 652, 48 Stat. 1064, 47 U.S.C. 332 and further defined as commercial mobile radio service in 47 C.F.R. 20.3, and service provided by any wireless, 2-way communication device." (Sec. 2(j)).


Q: What are the fees associated with this permit?
A:
There is a $500 one-time application fee paid to the municipality for permits filed after October 27, 2003 (generally not applicable to AT&T, Verizon/MCI and others claiming grandfathered franchises).  Unilateral or bilateral permits are issued by the municipalities based on applications by the providers.

In addition, providers are invoiced annually (on or around April 1) by the METRO Authority as follows:

Incumbent Local Exchange Carrier (ILEC) Assessment Calculation

ILEC assessments are the lesser of:

-   Annual per foot fee of 5¢ per linear foot, or

-   Number of access lines times the statewide per access line per year fee of the provider with the highest number of access lines in Michigan (AT&T).

Competitive Local Exchange Carrier (CLEC) and Broadband Company Assessment Calculation

CLEC and Broadband Company assessments are based on linear foot fee only for each ILEC in which they reside.

The equation for CLECs and Broadband companies is ILEC per linear foot fee times CLECs/Broadband's linear feet in that ILECs territory.

Cable Provider Fees

$0.01 per linear foot if facilities capable of providing broadband internet transport service. This assessment may be satisfied if the aggregate amount of investments certified by the cable provider exceeds the amount assessed.


Q: How and when will the collected fees be distributed to the
municipalities?

A: 100% of the collected funds are distributed back to the municipalities usually by May 31 of each year. Cities and villages receive 75% of the funds using the Michigan Department of Transportation PA 51 formula for allocating transportation funding to municipalities. Townships receive 25% based on their percentage of the total linear feet of right of way in townships as specified in section 11 of PA 48.

Q: Are the underserved areas negatively affected by this act?
A: No, the METRO Authority may waive fees for underserved areas (as defined in Broadband Development Authority Act 49 of 2002). Two thirds of the affected municipalities must also approve the waiver because it reduces their payments from the Authority. (Sec. 8(21)).

 
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Related Content
 •  Metro Act Permits FAQs
 •  Municipality Compliance with METRO Act FAQs
 •  Telecommunication Providers FAQs
 •  County Involvement FAQs
 •  METRO Authority Specific Guidelines/Policy Determinations

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