Many folks don’t like it, but Click is headed for public-private model after council vote

A decision to move forward on a new business model for Tacoma’s Click Network was never going to be an easy sell, and Tuesday’s 5-plus hour City Council session was proof.

More than 70 people signed in to speak about a proposed resolution to move forward in negotiations over the next 90 days with Tacoma-based Rainier Connect. The deal would introduce an expanded public-private partnership with the current Click internet service provider to run and invest in the network. The term sheet offers a 20-year Indefeasible Right of Use (IRU), effectively a long-term lease of the network, with two, 10-year extensions possible.

Public ownership of the assets would continue.

A review of the contracts by the Public Utility Board and the City Council could take place by the end of June.

Tacoma Public Utilities Director Jackie Flowers emphasized at Tuesday’s meeting that “we are not selling the network” and terms of a contract with Rainier Connect would protect the city’s interests.

TPU’s board approved the resolution at its March 18 meeting, sending it to the council.

The council ultimately approved the resolution, but not after hearing from critics of the plan during public comment.

“Table this or call for a public vote,” said one person, in a sentiment echoed through the evening.

Others took issue with the length of the proposed deal, with a possible total of 40 years if the two extensions go through.

“We don’t know what future will bring with technology,” another person said.

“If it isn’t broke, don’t fix it,” said another.

Supporters of the plan who spoke included customers with Rainier Connect, as well as several company employees and the company’s CEO.

“Our magic is in our people...and our team is unbelievably excited,” said CEO Brian Haynes, about his company’s opportunity with Click. Haynes was in attendance with his family, highlighting the company’s multigenerational ties to the area, starting in 1910 as a rural telephone provider.

“We will not let you down,” Haynes added.

Questions persisted from the public over Click’s finances and the ultimate need for the new business model to move forward. Some pointed to a recent misstatement from a Board of Public Utility member over its rebroadcast fees.

“We’ve never really known the numbers,” said one commenter during Tuesday’s meeting.

Flowers pushed back on those accusations, having worked through Click’s budget submitted to the city last year that included rate increases and staff cuts. She reiterated there was no “sustainable path forward” to keep the existing model in place.

During last year’s budget discussions, she added, it was made clear that the budget was designed to be “transitional” with the second year of the budget having even harsher rate increases if implemented without the new model, which ultimately could drive away more customers and perpetuate the network’s losses.

The city is currently appealing a legal challenge over using Tacoma Power electric utility revenues to cover Click budget deficits. A decision on that appeal is not expected until later this year. As to why a new review of Click’s financial figures is not being pursued, city attorney Bill Fosbre noted at the meeting the potential financial risk it could expose the city to in light of the current legal challenge.

Before voting to approve, Mayor Victoria Woodards acknowledged the decision was difficult and that there had been “no stone unturned” in the years spent trying to find a way to keep Click going.

“We’re here tonight to make a tough decision,” Woodards said, acknowledging audience members wearing T-shirts that said “Stick With Click.”

“I believe what we’re doing is sticking with Click,” she said, adding that creating partnerships has been a valuable tool used by the city in continuing to support entities such as Cheney Stadium and the Pantages Theatre.

As for Rainier Connect, Woodards said, “I promise we will hold them accountable,” and to make sure concerns raised in the rounds of public comment “can be addressed by our partner.”

This story was originally published March 27, 2019 at 9:44 AM.