TPU board of two minds on future of Click Cable TV system

The future of Tacoma’s city-owned cable and fiber-optic system is now in the hands of the Tacoma City Council after the city’s utilities board endorsed two divergent plans Thursday.

A majority of the Tacoma Public Utility Board members voted first to develop a business plan that would allow the city to keep and expand Click Cable TV. Twenty minutes later, the board again voted 3-2 in favor of offering the system for lease to a private company.

Board member Mark Patterson was the common denominator. He said he sees promise in both options, though he said he prefers a lease because it stands the best chance of penciling out financially.

Board members Monique Trudnowski and Woodrow Jones also voted in favor of the lease option.

Keeping Click, which is a part of Tacoma Power, is too big a risk for electric ratepayers, Trudnowski said. TPU leaders have said Click is losing around $7.6 million per year — losses that will only grow if the business model doesn’t change, according to consultant reports.

“Times are changing constantly,” Trudnowski said of rapidly evolving technology. “My concern is who is going to pay for this?”

The debate over Click’s future heated up in March when Wave of Kirkland made an offer to lease the system for 40 years. The company modified that initial proposal Thursday, instead offering to lease for five years because some public officials were wary of such a long lease in the fast-changing cable and Internet industry.

Kathleen Deakins, who spoke on behalf of Rainier Connect, which is also vying to operate the system, said that company’s offer remained the same as it was in April, which includes a $500,000 fund to pay for devices for low-income students.

Both companies pledged to offer $9.95 per month or no-cost Internet access for those in need.

Karen Larkin and Bryan Flint joined Patterson in voting to look at ways to keep Click, an option known as “all-in” because it presumes that the city would explore offering Internet service in addition to cable. Private companies already provide Internet service to homes and businesses by leasing fiber capacity on Click’s system.

The all-in option would have the city offering both Internet and phone service to customers. Supporters say bundling the services would make Click more competitive by attracting customers who don’t want to have to do business with multiple providers.

Larkin, the newest member of the TPU board, said she wants to see the city try to make Click succeed.

“I do believe Click has not been run appropriately … and we need to have a different focus and a different management philosophy,” she said.

Thursday’s meeting drew about 150 people. Members of the public who spoke overwhelmingly supported the all-in option. None favored leasing Click’s infrastructure. A few said they weren’t sure or needed more time to decide.

“So many cities in the United States would love to have what we have. We don’t have the vision, apparently,” said Vicki Harris, a Click employee who retired a year ago. “We have three steps up on Seattle. We don’t know what to do with it.”

Others likened the current debate about Click’s infrastructure to a similar one a century ago: Tacoma’s purchase of power and water assets from Charles Wright. Click could be used as an equalizer to provide inexpensive or no-cost Internet access to low-income residents, said Tacoma architect Jim Merritt.

“It would be unrealistic to think the private sector would accommodate this need for all socioeconomic groups across our city,” Merritt said. “I implore you to look beyond the short-sighted accounting that Click is not financially sound.”

The Tacoma City Council could vote Dec. 15 on which direction to pursue for Click. The council can accept any, some or none of the TPU board’s recommendation.

This story was originally published December 4, 2015 at 6:36 AM with the headline "TPU board of two minds on future of Click Cable TV system."