The city of Brookings wants to raise the fee it charges Frontier Communications to do business here, but it’s too soon to know if that will translate to higher costs for Frontier customers.

On Monday, the Brookings City Council authorized staff to notify Frontier it wants to negotiate a new franchise fee agreement of 5 percent of gross revenues, up from the current 3.3 percent.

If enacted, it will boost the amount Frontier pays the city from $11,000 annually to $16,500, according to City Manager Gary Milliman.

It’s unclear whether Frontier would raise costs to its customers to offset the increase. Steve Crosby, Frontier’s senior vice president of government and regulatory affairs, said Monday it was the first that he or anyone at the company had heard of the proposed increase.

“We’ll have to dig into this,” he said.

Crosby did not indicate whether Frontier would balk at an increase or accept it as a cost of doing business.

Milliman noted in a report to the council that the city is negotiating with Charter Communications to renew its franchise for cable television and related services.

Charter’s current franchise fee rate is 5 percent, which the city proposes to extend. Milliman said the agreement with Frontier has expired, making it a good time to put the two companies on equal footing as far as franchise fees.

The payments from Frontier and Charter are compensation for using the city’s streets and rights-of-way for business by erecting transmission lines, boxes and poles, Milliman said in his report.

“In some instances, both Charter and Frontier provide similar telecommunication services,” he wrote.

A 2008 survey by the League of Oregon Cities found that cities collect franchise fees ranging from 3 to 7 percent from telephone service providers.

Bandon has the lowest rate – 3.0 percent. Brookings’ 3.3 fee for Frontier is the next lowest amount, followed by Port Orford at 4.0 and Jacksonville, Rogue River, Central Point (Hunter), Coos Bay (ORCA) and North Bend (ORCA), all of which charge 5.0 percent.

North Bend’s Verizon fee is 6.0 percent. Most cities in the survey indicated they charge 7.0 percent, including Gold Beach, Ashland, Cave Junction, Central Point (Qwest), Coos Bay (Verizon), Drain, Eagle Point, Florence, Grants Pass, Klamath Falls, Medford and Talent.

Council member Dave Gordon made the motion to authorize city staff to seek an increased fee from Frontier.

Council President Ron Hedenskog cast the only dissenting vote. During an interview after the meeting, he said he opposed the move because the city doesn’t have a funding deficit and there is no reason to increase Frontier’s fee.

“The only reason to raise it is that other cities are doing it,” he said.

City officials also have discussed a possible change in the way Coos Curry Electric Cooperative compensates the city for providing service. The utility now maintains a certain number of street lights in Brookings in lieu of paying a franchise fee.

Instead, the city is considering renegotiating the contract so CCEC will pay a franchise fee. Mayor Larry Anderson has said the current setup is outdated.

No talks have been held regarding the issue and none are scheduled at this time.